Functions Of Demand For Air Transport

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Executive Summary Intro Methods There are different methods to estimate the benefits. Such as, the possibility of asking the passengers for their willingness to pay for these changes, by informing them how these changes will benefit them. This could also be done by, commutating with Airlines to find out how much they would be willing to pay for enlargement of the airport (George, 2014). By setting a number, airlines would have an estimate of what the passengers are willing to pay for the performs of this project. Another option is to ask directly potential passengers and current (George, 2014). An indirect way to estimate this benefit is based on the provisions of the demand for air…show more content…
This interpretation responds to the assumption that marginal cost airlines do not vary with increasing product that does not change the cost of each trip for airlines, despite the expansion and time (George, 2014). Data collection and Data Processing The purpose of calculating the cost-benefit analysis is to start making investment decisions from 2011 and finished in 2031, despite the opening of the new track in 2014 (Broward County Florida , 2010). The value of investment from 2011 till 2014 is 477,338,836 million (Broward County Florida , 2010). The value of investments expands in time to meet rising demand expected, which does not occur at once, but gradually (Broward County Florida , 2010). Table 2 presents the concepts of the investment cost, according to data provided by Broward County. Recurrent costs include repairs and extra storage, central services, air navigation and other minor costs, as well as maintenance of asphalt tracks every four years (at a cost of 300 million pesetas per track (Broward County Florida , 2010). Figure1 shows the costs of operation and maintenance according to data released by Broward County (Broward County Florida , 2010). This project will also contribute to increased local economic, through the creation of thousands of direct and indirect jobs (City of Fort Lauderdale , 2012). Terminal Renewal The four airport terminals will be remodeled with larger lobbies, new restaurants and shops,
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