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Cost–benefit analysis of investments in airport infrastructure:a practical approach

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Author Info

  • Jorge, José-Doramas
  • de Rus, Ginés

Abstract

This paper presents a cost–benefit analysis approach devised to conduct project evaluation in conditions of limited analyst time, research budget and data availability. The emphasis is on discarding economically viable from unviable projects rather than on arriving at a precise estimate of project return. The paper starts by setting out the theoretical background for identifying and measuring project benefits. It then presents a practical approach to measure such benefits in projects involving the expansion of passenger capacity and, subsequently, those aimed at expanding aircraft capacity. Projects in the freight market and the estimation of airport costs are treated in turn. A practical application is included as an appendix.

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File URL: http://www.sciencedirect.com/science/article/pii/S0969699704000213
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Bibliographic Info

Article provided by Elsevier in its journal Journal of Air Transport Management.

Volume (Year): 10 (2004)
Issue (Month): 5 ()
Pages: 311-326

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Handle: RePEc:eee:jaitra:v:10:y:2004:i:5:p:311-326

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Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

Related research

Keywords: Airports; Cost–benefit analysis; Infrastructure; Investment appraisal;

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Cited by:
  1. Silva, Hugo E. & Verhoef, Erik T. & van den Berg, Vincent A.C., 2014. "Airlines’ strategic interactions and airport pricing in a dynamic bottleneck model of congestion," Journal of Urban Economics, Elsevier, vol. 80(C), pages 13-27.
  2. Wei, Wenbin, 2008. "A new approach to quantify the benefit to air travelers resulting from airport capacity expansion," Journal of Air Transport Management, Elsevier, vol. 14(1), pages 47-49.

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