NAS Strategy Simulator– Fleet Mix Module Chieh-Yu Hsiao Mark Hansen 10/20/03 1 Outline The Problem Approaches ¾Framework ¾Four models 9 Equilibrium Flow Model 9 Load Factor Model 9 Aircraft Size Model 9 Fleet Mix Model Future Research 2 Problem OD Demand Information Fleet Mix Module Given the OD demand, predict ¾ Segment traffic ¾ Fleet mix Origin Scope: 31 Benchmark Airports Fleet Mix Hub 1 Segment 1 Hub 2 Direct : Segment 2 Destination Hub n 3 Framework OD Traffic Hub Choice Segment Traffic Load Factor Model Segment Seats A/C Size Model Segment Flights Fleet Mix Model Segment Flights By A/C Category Equilibrium Flow Model Hub 1 Segment 1 Origin Hub 2 Direct : Segment 2 Destination Hub n 4 Equilibrium Flow Model OD Pax Hub Choice Model Distance SegPaxn HHI Delayn Choice Probabilities SegPaxn+1 Initial Values n=0 Distance SegPax0=OD Pax HHI Delay0 n=n+1 System Update Converge? SegPaxn+1 SegPaxn No SegPaxn+1 Delayn+1=f (Airport Pax n+1, Fixed effects) Yes Equilibrium SegPax Equilibrium Airport Pax 5 Hub Choice Model Allocates OD Traffic to Segment Traffic— Route (hub) Choice Nested Logit Model ¾ Direct or one-stop connecting ¾ Conditioned on connecting, choose the connecting airport(hub) Direct Connecting Hub1 … Hub n 6 Model Specification Pod ( Direct ) = exp(Vod ,i ) exp(Vdirect ) ; P ( Hub : i | Connect ) = od exp(Vdirect ) + (∑ exp( βVod ,i ))1/ β ∑ exp(Vod ,i ) i i Vdirect = c0 + b01 ln(distDod ) + b02 ln( paxDod ) + b03 ln( HHI od ) Vod ,i = b1 ln(distCo −i − d ) + b2 ln(max paxoi / di ) + b3 ln(min paxoi / di ) + b4 ln( Delayi ) distD/ distC : direct /connecting (O-hub-D) distance between OD paxD: # of pax of the direct segment maxpax: # of pax of the higher traffic segment minpax: # of pax of the lower traffic segment HHI: Herfindahl-Hirschman Index (0 to 1) of the direct segment od delay: the delay (the number of delayed operations per 1000 operations) of connecting airport i 7 Model Estimation Estimate Parameter Standard Error (*10-4) P-value ln( Dist. of Connect) -2.929 0.984 [.000] ln( Max Pax of Connect) 0.226 0.179 [.000] ln(Min Pax of Connect) 0.665 0.201 [.000] ln(Delay of Connect) -0.073 0.063 [.000] β , 1/(inclusive value) 1.453 0.399 [.000] Constant of Direct 2.386 2.295 [.000] ln(Dist. of Direct) -3.027 0.847 [.000] ln(Seg. Pax of Direct) 0.986 0.127 [.000] ln(HHI of Direct) -0.272 0.294 [.000] Associated Factor ρˆ 2 = 0 . 5555 N=39,298,503 (100,951 routes) 8 Equilibrium Flow Example Segment and OD density, and delay effects (segment pax are endogenous) Delay1=30 Background Pax=105 O Dist1=1800 Hub 1 Equilibrium (After 7 iterations) Background Pax=105 1,000 OD pax Dist=1500 Initial Pax=OD pax, HHI=0.9 Background Pax=105 Background Pax=105 Hub 2 Dist2=2000 Delay2=30 D Assigned Pax=611 Background Pax=105 O Assigned Pax=0 Background Pax=105 10,000 OD pax Background Pax=105 Equilibrium (After 10 iterations) O Background Pax=105 Assigned Pax=389 Assigned Pax=2350 D Background Pax=105 Background Pax=105 Assigned Pax=6165 Background Pax=105 Assigned Pax=1485 D Background Pax=105 9 NAS Equilibrium- Segment Level 10 NAS Equilibrium- Airport Level 7 Actual EQ pax (millions) 6 5 4 3 2 1 0 0 1 2 3 4 5 6 7 Predicted EQ pax (millions) 11 Equilibrium Prediction Possible situations: ¾Multiple Equilibria ¾May depend on the initial values and convergence criteria ¾Some equilibria may differ from the current status 12 Equilibria- initial values Segment Level Airport Level 13 Equilibria- Convergence Rules Segment Level Airport Level 14 Policy Experiment— ORD Delay Improvement Delay: 30 ln( Delay it ) = α 0 + ∑ α i * C i + β 1 * Pax it + ε it i =1 Airport fixed delay effect improved: α ORD = 1.70542 Current α ORD ' = α DEN = 0.42284 Delay (ops/1000 ops) Improved Airport Yearly (10%) Pax (m illions) 15 Policy Experiment— New Equilibrium Results ORD: +1,164,665 Other hubs: -876,506 Net effect on the system: +288,159 ORD attracts: 1200 800 600 400 200 0 AT BOL S BW C I L C T VG D C D A E D N FW D T EWW H R N L IA D IA H JF LA K S LA LGX M A C M O E M M IA M S O P R PHD PH L X P SAIT SEN SF A SL O C ST TP L A Changed Pax (*1000) 1000 -200 Connecting Airports ¾ ¾ from competing hubs ¾ ¼ from “direct” routes 16 Conclusions—Hub Choice Model Conclusions ¾The equilibrium model reflects the economics of the route choice ¾Conserves OD traffic at airport level while allowing connecting traffic to vary ¾A tool for policy analysis 17 Future works (1/2) Model Structure (Better Equilibrium Estimation) ¾Positive Feedback system ¾Dynamics of the system ¾Travelers’ behavior: flexible model form & Endogeneity ¾Computation efficiency 18 Future works (2/2) Affecting Factors Modeling ¾Delay ¾Market Concentration (HHI) ¾Other factors, for example, airport capacity System-wide Effects Estimation ¾Better Policy Analysis Tool 19 Questions? 20