The Economic Benefit of Data-Communication Technology on the New York Metroplex Area
The aim of this paper is to estimate the economic benefit for the New York Metroplex area of the controller-to-pilot communication standard known as Data-Communication. RAMS simulation software was first used to evaluate the potential impact of the new technology on airport operations in the three airports of LaGuardia, Newark and John F. Kennedy. The new technology would allow for a greater number of operations and reduce the average hourly workload for air traffic controllers. We employ a two steps procedure. First, we estimate a benefit function per number of hourly operations. Second, using the empirical distribution of hourly operations and the benefit function found in step one, we compute the average daily benefit from the technology as the reduced cost from delays plus the net effect on controllers workload due to its implementation. The procedure is applied at each airport individually and to the metroplex area as a whole. Our estimates show that the introduction of Data-Comm would yield significant savings in the New York Metroplex area.
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- Morrison, Steven A. & Winston, Clifford, 2008. "The effect of FAA expenditures on air travel delays," Journal of Urban Economics, Elsevier, vol. 63(2), pages 669-678, March.
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