Aviation TDM
Air Transportation Demand Management
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Victoria Transport Policy Institute
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Updated 4 November 2008
This chapter describes management strategies to increase air transport efficiency, including strategies that encourage use of alternative modes, reduce total air traffic, increase air travel system efficiencies, and reduce specific aviation external costs such as air and noise pollution.
Aviation TDM
includes efforts to encourage more efficient use of air transportation
resources, and reduce excessive air travel. Many specific TDM strategies can
apply to aviation (Whitelegg and
· Congestion Pricing can be used to manage airport congestion and allocate landing slots. Just as airlines offer lower fares during off-peak seasons, they could more frequently offer lower fares for flights during off-peak times of day.
· Least Cost Planning can be applied to aviation planning and investments, so alternative solutions can be considered equally with aviation investments and subsidies. For example, investments to improve express rail and bus service may be more cost effective than expanding airports to accommodate growth in medium-distance (100-800 miles) trips.
· Price Reforms can help encourage efficiency, manage demand and internalize costs.
· Aviation Fuel Tax Increases can internalize costs, create more neutral transportation fuel prices, and encourage more efficient aircraft (T&E, 1999b).
· Eliminate tax exemptions and low tax rates on airports and aviation fuels that tend to favor air travel over other alternative modes. Eliminate duty-free shops at airports, which encourages air travel.
· Support development of fast and efficient rail transport on busy corridors to compete with air transport for medium-distance journeys.
· Implement TDM Programs for airport ground transportation, Commute Trip Reduction Programs for airport employees, and Smart Growth for airport area development.
· Implement Tourist Transportation Management to encourages reduced motor vehicle travel for recreation trips.
· Incorporate Sustainability Objectives in aviation planning.
· Upgrade and replace older aircraft with newer models that reduce fuel consumption, noise and air pollution emissions, and improve air traffic management systems to increase operational efficiency (TC, 1999).
Aviation provides significant benefits to
users and the economy, but it also has significant economic and environmental
costs (Davidson, Wit and Dings, 2003;
Air transport has relatively high emission rates per passenger-kilometre, especially for short distances (less than 1000 km), because emissions are particularly high during take-off and landing. High altitude emissions contribute more to global warming per unit than other types of anthropogenic greenhouse gas emissions (IPCC, 1999; Lee and Sausen, 2000). Air travel’s contribution to global warming is predicted to increase from about 3.5% up to 5-15% of total human impacts if current trends continue (T&E, 1999a).
Newer aircraft are more fuel efficient and produce less noise and air pollution, and airport authorities are incorporating sustainability objectives in their planning, but their effectiveness is limited, and such gains are often overwhelmed by growth in traffic volumes. As a result, the total economic, social and environmental costs of air transport are increasing in most regions.
Annual
Growth Rates (T&E, 1999a)
Flights 3.4%
Aircraft kilometres 3.9%
Passengers 4.7%
Passenger kilometres 4.9%
Cargo 6.7%
Airports use large amounts of land, and impose direct impacts on the natural environment and human communities. Airports are major activity centers that often have significant ground transportation congestion and are frequently a catalyst for low-density, automobile-dependent land development.
|
Environmental
Concern |
Typical
Sources |
|
Aircraft noise |
Noise in the vicinity of airports caused by aircraft operations. Engine testing and others noise sources at airports. Ground support vehicles and operations. Sonic boom caused by supersonic aircraft Noise caused by aircraft en-route |
|
Air pollution near airports |
Aircraft engine emissions (carbon monoxide, nitrogen oxides, volatile organic compounds, unburnt hydrocarbons) during landing and take off cycle. Emissions from airport ground service vehicles. Emissions from access traffic (automobiles, buses, trains). Emissions from other airport sources (solvents, fuels, etc.). |
|
Global phenomena |
Long-range air pollution (eg. acid rain). Greenhouse effect (combustion gases including carbon dioxide, water, carbon monoxide, oxides of nitrogen, methane ). Depletion of ozone layer (releases of chlorofluorocarbon, oxides of nitrogen and high altitude vapour trails). |
|
Airport and infrastructure construction |
Loss of land. Soil erosion. Impact on water tables, river courses and field drainage. Destruction of natural resources (wetlands, wildlife, ecosystems). Impact on flora and fauna. |
|
Water and soil pollution near airports |
Water pollution caused by inadequate treatment of contaminants in airport wastewaters. Herbicides, defoliants and poisons to eliminate rodents and pests. Aircraft maintenance (oils, paints, wastes from workshops facilities). Aircraft washing, deicing and anti-icing. Leaking pipes and storage tanks (above and below ground level). Spills of fuels, lubricants and solvents. Runoff from paved areas. |
|
Airport waste management |
Disposal of environmentally harmful materials used in aircraft servicing and maintenance (metals, solvents, acids, dyes, paint strippers, adhesives, petroleum distillates, hydraulic fluids, etc.). Pesticides, herbicides, disinfectants. Solid and liquid wastes from airport operations including administration, cargo, maintenance, terminal buildings, restaurants and cafeterias, parking lots, medical clinics, etc.). Disposal of waste from the airport and incoming aircraft. |
|
Aircraft accidents/incidents |
Accidents/incidents involving dangerous goods carried as cargo. Other environmental problems arising from aircraft accidents. Emergency procedures involving fuel dumping. |
This table lists various environmental impacts associated with aviation.
Aviation and related activities are considered prestigious and particularly important for economic development. As a result, airports and some air services are often subsidized, directly and indirectly, through favorable industrial, tax and regulatory policies (UBA, 2001). Policies that underprice aviation and favor it over other consumer options violate Market Principles, and tend to be economically harmful overall.
Demand management can increase the efficiency and social benefits of aviation. For example, a Royal Commission on Environmental Protection found (RCEP, 1994):
·
A reduction in the growth and rate of air travel
would help considerably towards reducing, or at least stabilizing, emissions
from aircraft. It would also reduce the scale of some of the other
environmentally damaging effects of air transport, such as noise and the loss
of land for airports and surface links. (p.74, para 5.38).
·
An unquestioning attitude towards future growth in
air travel, and an acceptance that the projected demand for additional
facilities and services must be met, are incompatible with the aim of
sustainable development, just as acceptance that there will be a continuing
growth in demand for energy would be incompatible. Another parallel is with the
forecast growth in road traffic…A comparable change in attitude towards the
growth of air transport is needed, only in this case on an international scale.
(p.75, para 5.39).
·
We recommend that policy on air services should be
based on discouraging air travel for domestic and near-European journeys for
which rail is competitive, and that the government should support the upgrading
of rail links to the main international airports in order to avoid the need for
development of air feeder services from regional airports. (p.207, para 12.50).
Short and medium-distance air trips tend to
compete with automobile and train travel, so the relative price and service
quality of these modes affects air travel volumes. For example, convenient,
affordable, high speed train service between major cities in
Aviation transport management programs can be implemented by international agreements related to transportation, environmental protection and tourist industry development; as part of national transportation planning and investment programs; and by regional airport authorities.
Current interregional transportation planning tends to favor air travel over alternative modes, particularly interregional bus. For example, For example, there are federal, state and regional programs to support airports, and policies to maintain commercial aviation service competition, but no similar programs for interregional bus services (GAO, 2005). This has reduced the quality of alternatives.
Aviation transport management is a relatively new concept so it is uncertain how much effect such programs can have. Although some aviation traffic has very high value, much of the growth in air transport appears to be relatively low value trips that are sensitive to pricing and the quality of alternatives. It is likely that a coordinated Aviation TDM program could significantly reduce air traffic growth rates.
Research by Hagler Bailly (1999) finds the fuel price elasticity of airline travel seem to fall in the -0.25 to -0.45 range, which means that a 10% increase in fuel prices typically reduces airline travel by 2.5% to 4.5%. The same study found that the long-run elasticity of fuel use to aviation turbo fuel prices is -0.3, with a range of –0.2 to -0.45. Research summarized in Davidson, Wit and Dings (2003) indicates the elasticity of air travel with respect to ticket price is about 1.0, and fuel costs represent about 10% of total operating costs, so doubling fuel costs or imposing other fees of this magnitude would reduce air travel mileage about 10%.
Table 2 Travel Impact Summary
|
Objective |
Rating |
Comments |
|
Reduces total
traffic. |
3 |
|
|
Reduces peak
period traffic. |
3 |
|
|
Shifts peak to
off-peak periods. |
3 |
|
|
Shifts travel to
alternative modes. |
2 |
May shift air
travel to other modes. |
|
Improves access,
reduces the need for travel. |
|
|
|
Increased
ridesharing. |
|
|
|
Increased public
transit. |
2 |
May shift air
and ground transport to transit. |
|
Increased
cycling. |
|
|
|
Increased
walking. |
|
|
|
Increased
Telework. |
1 |
May result in
some electronic substitution of physical travel. |
|
Reduced freight
traffic. |
2 |
Reduced air
freight may be an important component of aviation transport management. |
Rating from 3
(very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed
impacts.
Benefits can include reduced congestion, infrastructure, operating costs, air and noise pollution, crashes and land use impacts associated with aviation and airport construction. Some Aviation TDM strategies improve Transportation Choice for medium-distance travel. Emission Reduction benefits tend to be particularly large for reductions in high altitude jet travel.
Costs can include increased program and planning costs, increased consumer prices and reduced consumer services (for example, if reduced public subsidies result in closing down a local airport).
Table 3 Benefit Summary
|
Objective |
Rating |
Comments |
|
Congestion
Reduction |
3 |
Can reduce both
aviation and ground transportation congestion. |
|
Facility Cost
Savings |
1 |
Some automobile
traffic may be reduced, while some trips may shift from air to automobile. |
|
Consumer Savings |
-2 |
Some strategies
increase prices, although others reduce prices for alternatives. |
|
Transport Choice |
2 |
Some strategies
improve alternatives, such as rail transport. |
|
Road Safety |
0 |
Uncertain. |
|
Environmental
Protection |
3 |
Aviation has
high environmental costs, so managing aviation can provide significant
environmental benefits. |
|
Efficient Land
Use |
1 |
Some strategies
involve more efficient land use, particularly around airports. |
|
Community
Livability |
2 |
Aviation can
impose significant air and noise pollution, so managing aviation can
significantly improve community livability. |
Rating from 3
(very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed
impacts.
Equity impacts depend on which TDM strategies are implemented and what perspective is used in the analysis. Aviation is a relatively high-priced travel mode that tends to be used most by higher-income travelers. As a result, aviation subsidies and underpricing tend to be regressive (i.e., they benefit higher-income people more than lower-income people). On the other hand, increasing aviation prices to internalize costs makes air travel less affordable to lower- and middle-income consumer, harming them directly (although the overall equity impacts depends on how revenues are used).
Since aviation tends to dominate most medium- and long-distance public transportation markets, alternatives such as bus and rail have received little support. To the degree that Aviation TDM involves improving these alternatives it can benefit people who are transportation disadvantaged (particularly those with lower incomes), and communities that do not have commercial airports.
Table 4 Equity Summary
|
Criteria |
Rating |
Comments |
|
Treats everybody
equally. |
-2 |
People who
depend most on air transport may bear higher costs. |
|
Individuals bear
the costs they impose. |
2 |
Many strategies
internalize costs. |
|
Progressive with
respect to income. |
0 |
Depends on type
of program, particularly how any revenues are used. |
|
Benefits
transportation disadvantaged. |
1 |
Some strategies
improve transport choices. |
|
Improves basic
mobility. |
1 |
Some strategies
improve transport choice. |
Rating from 3
(very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed
impacts.
Aviation TDM can apply in various geographic areas, but tend to be most important in large urban regions with large airports. Since federal, state/provincial and regional agencies do most air transportation planning they have the greatest role in implementing Aviation TDM. Local governments may be involved in airport land use and ground transportation planning.
Table 5 Application Summary
|
Geographic |
Rating |
Organization |
Rating |
|
Large urban
region. |
3 |
Federal
government. |
3 |
|
High-density,
urban. |
2 |
State/provincial
government. |
3 |
|
Medium-density,
urban/suburban. |
2 |
Regional
government. |
2 |
|
Town. |
1 |
Municipal/local
government. |
1 |
|
Low-density,
rural. |
1 |
Business
Associations/TMA. |
1 |
|
Commercial
center. |
0 |
Individual
business. |
1 |
|
Residential
neighborhood. |
0 |
Developer. |
1 |
|
Resort/recreation
area. |
2 |
Neighborhood
association. |
0 |
|
College/university
communities. |
0 |
Campus. |
0 |
Ratings range from
0 (not appropriate) to 3 (very appropriate).
TDM Program and Improved Transport Choice
Aviation TDM can involve Congestion Pricing, Price Reforms and increased