Circular 3. Airport Economics (Preliminary Study)

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Circular 3

Airport Economics (Preliminary Study)

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CIRCULAR AIRPORT ECONOMICS Preliminrry Study - - C m - MAY 1948 Prepared in 'I k ,- ---,--,n-- TI---CIz azd published by authority of the Seoretary General INTERNATIONAL CIVIL AVIATrON ORGANIZATION MONTREAL CANADA

This Rblication is issued in glish, French and Spanish. Published in Konteal, Canada, by the International Civil Aviation Orpanization. Correspondence concerning the publications should be addressed to the Secretary General of ICAO, Dominion Square Building, Elontreal , Canada. Orders for ICAO publications should be sent, on payment In Canadian cmwrency 1, to the In Emtian currency dms, to the Secretary General of ICAO, fCBO Representative, Dominion Square Building, Middle East Office, Montreal, Canada. 10 Sharfa Lotfallah, Apartment 7, Cable address ICAO lfJTlUU Zamalek, Cairo, Egypt. Cable address IGAOREP CAIRO In French currency Fr,, to the In Aarst-ralfan currency s/d, to the ICAO Representative, ICAO Representative, European African Office, Far East Pacific Office, 60 bis Avenue d 1 Idna, 522 Little Collins Street, Paris 16 , France. Melbourne, Australia . Cable address ICAOREP PARIS Cable address ICAOREP MEIBOURNE In Penxviafl currency soles, to the ICAO Representative, South Ameiean Office, Apartado 680, Lima, Peru. Cable address ICAm LIMA . Prf ce 10 cents Canadian kiontreal

ICAO Circular 3 . AT/ Page 3 TABLE OF CONTENTS Page .............................................. Foreword 5 ........................................... Conclusions 7 ................... Chapter 1 - Airport Organization 9 ...... The Meaning of the Term "airportn 9 Hangars. Buildings and Landing Area .... 12 Types of Airport Administration ........ 14 Chapter I1 - Airport Finances ...O................... 16 .......................... Airport costs 16 Main Items of Operating and ................. Maintenance Expenses 19 Airport Cost Variation and its Relation to the Requirements of Aircraft ...... 20 The Effect of Operational Requirements on Airport Costs ..................... 22 The Relation of Airport Costs .................. to Airport Revenues 26 .......... Variation in Airport Revenues 27 Future Trends in Landing Charge Revenues for International Airports ........... 30 ........................ . Chapter I11 Airport Charges 33 ........... The Level of Landing Charges 35

page 4 ICAO Circular 3 - 'I'/I- Page Limitations on the Level of Landing Charges .................... 38 International Treatment of Landing Charges .................... 40 Landing Charges Compared to Total Costs and Revenues of Airlines .............. 41 How Much Would Landing Charges Have to be Increased to Cover Airport Expenses ............................. 45 The Effect of Increased Landing Charges on Traffic Volume ..................... 47 Landing Charge Formulae .......me......,. 48 Weight-Scales and other Bases for ................... Charges per Landing 50 The tiWeight-Scalefl Tariff and "Valuew Received ...................... 51 Variations on the Straight wWeight-Sc,eN Landing Tariff .......,................ 53 Appendix I - Landing Charpes in Relation to Total Expenses of a Typical International Air Service .......................... 57 Appendix I1 - Financial Operating Results for 21 U.S. Airports ...................... 59

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