Congestion
Management
Jim Szczesniak
Deputy Commissioner
Planning, Policy, & Environment
June 07, 2007
Perspective
• Hub Airport
• International Traffic
• Small GA Component
• Runway Expansion
Possible
Background
• HDR
• Scheduling Meetings
• Show Cause Order
• Rule
• Airfield/Weather
– VMC/IMC imbalance
• VMC AAR 100-96
• IMC AAR 80-72
– AAR is not actual
capacity
• Schedule
PERCENT IFR
25
IFR (%)
20
15
10
5
• Know your airport
DE
C
NO
V
OC
T
SE
P
AU
G
JU
L
JU
N
Y
MA
AP
R
R
MA
FE
JA
B
N
0
PERCENT DAYS IN MONTH WITH IFR Vs.
PERCENT DELAYED OPERATIONS
18.0%
May
Delayed Operations (%)
16.0%
14.0%
Mar
12.0%
Apr
Jun
Jul
Jan
10.0%
Feb
Aug
8.0%
Nov
Dec
Oct
6.0%
4.0%
Sep
2.0%
0
5
10
15
Percentage of Days In Month with IFR (%)
20
25
PERCENTAGE OF DAYS WITH MEASURABLE PRECIPITATION
50.0%
48.4%
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
6.5%
5.0%
DE
C
NO
V
OC
T
SE
P
AU
G
JU
L
JU
N
Y
MA
AP
R
R
MA
FE
B
JA
N
0.0%
Month
PERCENT DAYS IN MONTH WITH PRECIP Vs. PERCENT
DELAYED OPERATIONS
18.0%
May
16.0%
Delayed Operations (%)
• Know your airport
Days With Measurable Precip (%)
45.0%
14.0%
Mar
12.0%
Apr
Jun
Nov
Dec
Oct
6.0%
2.0%
5.0%
Feb
Aug
8.0%
4.0%
Jul
Jan
10.0%
Sep
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Percentage of Days In Month with Precip (%)
40.0%
45.0%
50.0%
LASHO
West
East
Ceiling & Vis
Future Airfield
9L-27R
4L-22R
9C-27C
9R-27L
10L-28R
10C-28C
10R-28L
4R-22L
Congestion Management
• In general, not interested in congestion
management
– Solving congestion through adding capacity
• Why?
– Anti-competitive
– Economically damaging
– Can be self-defeating
Competition
• Airport Planning-Urban Planning-Business
Strategy
• Interregional
– ORD and other hubs
• Intraregional
– ORD-MDW/MKE
Economically Damaging
• O’Hare’s economic
impact
– Existing $38B
– Modernized $56B
• Small Communities
• Domestic B737
– $34M
• International B777
– $133M
• PFC’s
• Landing fees
Self-defeating
• HDR and O’Hare Modernization Program
• Protectionism
• Disincentive
• Playing with Fire
Congestion Management
• Which Kind?
– Administrative
– Auctions
– Pricing
• Flexibility
• Congestion management proceeds/slot
ownership
• Minimize regulatory burden
• Use-or-lose and slot life
Which Kind?
• Administrative
– Devil you know
– Small community new entrant treatment
• Auctions
– Self-defeating issues
– Small community new entrant treatment
• Pricing
– Control the fees and funds
• Cost per enplanement
– Flexibility on small community and international fees
Flexibility
• Adjustable rate
– ORD from 88 to 98 AAR
• Seasonality
Proceeds/Slot Ownership
• Airport should receive congestion management
proceeds. Why?
– We’re the only one that can solve the problem
• Gate or runway
– Regional economic damage
• Feds
– Redistribution
• Airport mad and so are the airlines
• Airlines
– Shareholders
• No outside entities should have ownership
Regulatory Burden
• Opportunities
– International flights
– Weekends
• Pricing fees are the norm
Use-or-lose and slot life
• Scarce resource can’t be wasted
• 80%
– Is it 80%? Watch the weekends
• Short life span to prevent self-defeating
perpetuation
– ORD from 2002 to new runways in 2008
– Closely spaced in the future?