Dynamic cost indexing

This paper describes the development of a generic tool for dynamic cost indexing (DCI), which encompasses the ability to manage flight delay costs on a dynamic basis, trading accelerated fuel burn against ‘cost of time’. Many airlines have significant barriers to identifying which costs should be included in ‘cost of time’ calculations and how to quantify them. The need is highlighted to integrate historical passenger delay and policy data with real-time passenger connections data. The absence of industry standards for defining and interfacing necessary tools is recognised. Delay recovery decision windows and ATC cooperation are key constraints. DCI tools could also be used in the pre-departure phase, and may offer environmental decision support functionality: which could be used as a differentiating technology required for access to designated, future ‘green’ airspace. Short-term opportunities for saving fuel and/or reducing emissions are also identified.

Dynamic cost indexing: cost estimations and building the prototype

The design of a decision-support prototype tool for managing flight delay costs in the pre-departure and airborne phases of a flight is described. The tool trades accelerated fuel burn and emissions charges against 'cost of time'. Costs for all major 'cost of time' components, by three cost scenarios, twelve aircraft types and by magnitude of delay are derived. Short-term opportunities for saving fuel and/or reducing environmental impacts are identified. A shift in ATM from managing delay minutes to delay cost is also supported.