System Dynamics Analysis on Management of Airline-Airport Coexistence with Load Factor Guarantee

摘要

We discussed management of airline-airport coexistence for a sustainable air transport system. Governments provide various financial supports for unprofitable regional airways when such airways are essential to local life and the economy. However, providing inefficient subsidies are often criticized worldwide. This paper examines the validity of load factor guarantee (LFG) scheme in which an airline and an airport agree on the load factor of a flight and the airport compensates for any discrepancy between the actual and agreed upon load factor. We analysed LFG management using data from Noto Airport and All Nippon Airways (ANA) from 2005 to 2011. By examining several scenarios using system dynamics (SD), we found that LFG is effective in maintaining regional airways when combined with appropriate levels of subsidies. The results illustrated that only an annual negotiation of a target load factor cannot balance the benefits between an airline and an airport and thus, it does not sustain the condition of mutualism. The keys to the success of airline-airport coexistence are integral management of LFG and monthly demand adjustment. The SD model is applicable to airways worldwide and contributes to better design and management of a regional air transport system.