The Role of
Congestion Management
in Aviation
National Airspace System
Performance Workshop
Pacific Grove, CA
By: Molly W. Smith
Office of Aviation Policy & Plans
Date: March 16, 2006
Federal Aviation
Administration
Summary of Topics
What is Congestion Management and
When Should it be Used?
Goals of Congestion Management
Current & Prospective use of Congestion
Management
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What Is Congestion Management?
The application of either administrative or market
based mechanisms imposed by the government to
balance operations at capacity constrained airports
when:
DMarket forces are unable to properly respond,
D Demand for access at an airport persistently exceeds
available airport supply and,
D Capacity cannot be increased in the near term to
meet demand
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Congestion Management
Alternatives
Market-Based
Administrative
Auctions
Administrative Cap
Congestion Pricing
Upgauging of Aircraft
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Goals of Congestion Management
zMitigate Airport (and NAS) Congestion and Delay
zSupport Efficient Allocation and Utilization of
Resource
zEncourage Airline Competition
zPromote Greater Passenger Throughput
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Current and Prospective Examples of
Congestion Management
Current
HDR
Future
O’Hare Order
•LaGuardia
•JFK
•Reagan National
The Role of Congestion Management in Aviation
O’Hare Proposed
Rule
LaGuardia
post-HDR
Federal Aviation
Administration
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O’Hare Order Limiting Scheduled Arrivals
Percent of Operations Delayed
Chicago O'Hare and OEP 35
45%
OEP 35
ORD
40%
35%
30%
25%
20%
15%
10%
5%
0%
Nov-03
Dec-03
Jan-04
Feb-04
Mar-04
Apr-04
May-04
Jun-04
Jul-04
Source: ASPM
Order caps scheduled hourly arrivals to 88/hour from 7:00
a.m. to 9:00 p.m.
Temporary delay reduction measure while engaged in
rulemaking
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O’Hare Notice of Proposed Rulemaking
Main Features of NPRM:
Maintain operational cap of 88 arrivals per hour
Preferences for new entrants and limited incumbents
Blind buy/sell and leasing
Seeks Comment on Minimum Usage Requirement
Sunset Rule on April 6, 2008
*Phase I of the O’Hare Modernization Program (OMP) is
projected to be completed by the end of 2007.
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HDR At LaGuardia Airport
High Density Rule and AIR-21 Provisions to expire January
1, 2007
Post-HDR the “Do Nothing” approach is not a viable option
Extending the HDR is not a preferred alternative:
DMitigate Airport Congestion & Delay
UEfficient Allocation & Utilization of Resource
UEncourage Airline Competition
UMaximize Passenger Throughput
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Alternatives for LaGuardia Airport
After Expiration of the HDR
Administrative Rule
Auctions
Congestion Pricing
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Administrative Options
Up-Gauging of Aircraft
Features
Operational cap established by FAA Benchmark Report or other FAA
measures.
Slots would be subject to usage requirement based on aircraft size.
A baseline number of slots could be allocated to all carriers to ensure
continuity of service. Baseline slots would not be subject to the usage
requirement.
Slots could have finite lives so they would be periodically withdrawn
and reallocated, which would encourage new entry and provide
access to the airport.
Blind secondary market.
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Sample of Research Results on
Up-Gauging of Aircraft
NEXTOR researched impact of moderate upgauging using
TAAM simulation. 12% to 25% of RJs were replaced with
larger aircraft, such as B737s.
Moderate Upgauging does not lead to increased delays.
Upgauging could raise passenger throughput at LaGuardia
by 3-4 million passengers per year.
Moderate Upgauging could be accommodated under
current gate configuration at LGA.
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Market Based Mechanisms
Auction of Landing and Takeoff Rights
Features
Operational Cap established by FAA Benchmark
Report or other FAA measures.
Simultaneous auction in which airlines can bid on
multiple slots.
Vouchers could be used to recognize air carrier
investments.
Auctions could be phased in over time to provide a
smooth transitional period.
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Primary NEXTOR Research Results on
Auctioning Landing and Takeoff Rights
Software can be developed & used to address the difficult
problem of selling slots simultaneously at LaGuardia.
Benefits include:
• Operations would be capped, which ensures a certain level
of congestion.
• Likely to generate significant revenue which could be used
for capacity expansion projects.
• Encourages efficient utilization of the airport.
Main Constraint: Implementation requires legislation.
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Market Based Mechanisms
Congestion Pricing
Features
Congestion fees would be set during the most congested
periods of the day.
While there would not be an operational cap, a target
level of operations would be established at the airport and
congestion fees would be set at a level that influences
carriers to schedule operations up to the target level.
Congestion fees would change as necessary in order to
achieve the target level of operations.
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NEXTOR Results Suggest that
Congestion Pricing Leads to Upgauging
120
Average Seat per Operation
100
80
Similar Levels of operations
60
40
20
0
2005 Average Seats per Operation
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Congestion Pricing Seats per Operation
Federal Aviation
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Questions
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