Planning And Design Of Airport Infrastructure

646). Both stakeholders have valid ideas but this contrasting battle pushed all decisions toward reactionary efforts. There is a need for a win-win situation for those decisions but no proper process was in place to balance the issue. The city of Denver also allowed United Airlines and Continental to make major scope changes to the project construction. The increase in scope changes meant increase cost, more work and more delays were on the way. This in turn, will hinder the project construction’s progress. At this point of major scope changes, the airlines still had no signed agreement.

1. Should Arauco build the Nueva Aldea project? (Hint: Estimate the project Net Present Value and provide a recommendation considering quantitative and qualitative arguments)

Denver’s geographic location and the growing size of its population and commerce made it an attractive location for airline hubbing operations. There was a growth on the determination of the “ pro New Airport”.

Following the September 11, 2001 terrorist attack, airport security has received considerable attention from the government as well expect in the aviation industry. The damages that transpired following the attack have remained fresh in the minds of peace loving citizens. In fact, security has become everybody’s business because a security lapse in the aviation industry paralyzes various sector of the economy. Today, the government has encouraged redesigning of the airport with much consideration given to security. The new concerns in the wake of 9/11 terrorist attack propose integration of security into airport design and planning. Although the airports may not accommodate redesigning of the general layout, critics agree that an

The identified dis-benefits of the plan in section 2 are not always eliminated but can be reduced to the acceptable level standardised by regulating bodies such as International Civil Aviation Organisation (ICAO). Every stakeholders of the airport must consider sustainability of the environment while planning for future because a careless actions at the present may have huge negative impact on the social, environmental and economic aspect in the future.

The brothers Wilbur and Orville Wright, possibly the two most renowned representatives of American aeronautics, were the first to experience controlled, continuous flight of a powered airplane in history. Despite being autodidactic in the area of engineering, the duo proved to be extraordinarily successful, testing and refining their strategies to overcome successive challenges that arose with the building of a plane (Crouch 226). The two were so far ahead in the race for flight that they even anticipated and found solutions to problems that more learned scientists could not have even begun to predict. Successful, man-controlled, powered flight was a fundamental turning point in history; it transformed the methods of how the United States

This paper consists of several sections. The description of the project outlines the capital asset decision at hand, which in this case is the purchase of a new Boeing 787-9 Dreamliner by American Airlines. The second section of the paper highlights some of the information about the Dreamliner. Statistics about seat configuration are critical to the revenue projects used later in the net present value (NPV) calculation. The third section of the paper covers the lease or buy decision. American has both options and this section covers some of the financial aspects of each that are critical, such as depreciation. The fourth section is an explanation of the weighted-average cost of capital for American Airlines. The fifth section is an outline of the NPV calculation. The final section is the conclusion. The NPV compares directly the incremental cash flows associated with the lease option and those associated with the buy option. The final NPV figures are close to one another, but one option clearly adds more value to the company to the other. The "buy" option is therefore recommended.

This approach allows for valuing real assets with some degree of operating flexibility, incorporating the value of the flexibility into the option price. It values the option to exercise but not the obligation to make future investments. It is based on the law of one price (the price of two portfolios with the same cash flows in every state of the world must be the same). Option value increases with great uncertainty (see Exhibit 3). The major uncertainties are Arundel Partners’ WACC and volatility of return on assets. A sensitive analysis shows the degree of changes with the changing uncertainties. The major disadvantage of this approach is that it often requires changes in business process. In Arundel Partners’ case, the terms and provisions in the contract will mitigate some of the disadvantages.

It has always been the dream of mankind wanting to join the birds in the sky, many innovators created various contraptions to achieve flight. On December 17, 1903, two brothers by the name of Wilbur and Orville Wright decided to test their contraption and it was successful. This event changed the course of aviation as the contraption known as Flyer 1 became the first successful powered heavier-than-air flight.

Furthermore, in this article will be discussed the main issues related to the possibility of increasing airport taxes to be determined by the Hong Kong authority. As Hong Kong International Airport (HKIA) is one of the busiest airports and the government cannot possibly build new airport due to the area limitation of Hong Kong, the authority will build an additional runway (3rd runway), and it will impact to the airport operational costs. Finally, the Hong Kong Government will raise taxes to the airlines, and it will be a problem for HK Express as the only low-fare airline in Hong Kong.

With the rapid growth of commercial air travel in the 1970s, the FAA recognized that the nation’s airports contributed significantly to the national economy and international commerce, as well as being a critical mode of transport for the public. Airports needed funding to improve safety and maintain airport infrastructure such as runways, taxiways, NAVAIDS, and land acquisition. The Federal Aviation Administration (FAA) formed the National Airport System Plan (NASP) to ensure these significant airports received Federal grants to make these improvements. The FAA revised the NASP with the Airport and Airway Improvement Act of 1982 and called the National Plan of Integrated Airport Systems (NPIAS) to reflect the further expansion.

In the early 1980’s, Denver experienced significant economic growth due to the booming oil, real estate, and tourism industries. The major airport that operated within Denver during that time was the Stapleton Airport. Up to 1970, the Stapleton Airport was able to accommodate the demands of Denver but in subsequent years it was unable to meet the ever growing needs of the city. The Stapleton Airport was seen as a liability and limited the attractiveness of businesses that were swarming to it. Issues with handling high traffic volume, disruptions in connection schedules, and an overall poor airport layout led the city of Denver to decide whether they wanted to expand or replace the Stapleton Airport. A study performed in 1983

As our payoff estimates are changing favourability of options too close to the base case scenario, we cannot make sound recommendations at this time. A slight change in the probability of the lease being granted or our ability to develop or good reputation reverses our optimal decision.

1. Introduction 2. Analysis of current position 3. Analysis of new project 3.1 Methodologies and processes of Valuation 3.2 processes of Valuation 4. Conclusion

3). Airport design has always been an important part of any renovation project or new construction, yet even more light has been shed on this part of the process as the A380 and future models will require larger gates, bigger hangers and improved baggage-collection and passenger transport services. Yeaman states that “due to the aircraft’s high passenger volume…gate hold rooms may have to double in size, concourses need to be widened and capacity of ticket processing and customs areas may need to be expanded” (2001, p. 4).