Planning And Design Of Airport Infrastructure

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1. Introduction 1.1 Aim The continuous advancements in technology and demand have made the planning and design of airport infrastructure extremely complex. With the uncertainties involved in the air industry, a flexible approach for the future needs to be implemented. New projects in airports have no guarantee to be successful because of a range of factors. Unpredictable demand and increasing availability of alternative modes of transport go a long way in explaining this uncertainty. Airport projects are also susceptible to fluctuations in the economy, which can heavily impact on the level of projects an airport will undertake. These uncertainties mean an approach which takes them into consideration is important. The aim of this study…show more content…
The results will allow for a discussion on how effective real options analysis can be to helping improve infrastructure and how it can be used in other parts of airport expansion. A discussion will follow of how plans for new infrastructure can also be hindered because of a number of problems out with how lucrative the project may seem, and how the flexibility of having options available could help benefit any potential complications. These problems will be highlighted in chapter two. As some of the model inputs had to be estimated, this study is more of a guide to the benefits of using a Real Options approach to investing in infrastructure rather than a recommendation of expanding Edinburgh Airport. 1.2 A Brief History of Airport Infrastructure On December 17, 1903, Orville Wright piloted the first engine powered airplane. Over a century later, nobody could have envisaged how important this ground-breaking achievement would become to the world as we know it today. The first airstrips were in essence grassy fields, slight improvements were made when dirt only strips were introduced and this helped to reduce the drag produced from the grass. However, these were still not practical as they could only be used in ideal weather conditions (dry). This led to the introduction of concrete surfaces which permitted landings and take offs in all weather conditions (World, 2014). World War I stimulated an increase in air traffic leading to the
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