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JOURNAL OF MANAGEMENT POLICY AND PRACTICE

A Simulation Approach to Airline Cost Benefit Analysis

Author(s): Massoud Bazargan, David Lange, Luyen Tran, Zhiyuan Zhou

Citation: Massoud Bazargan, David Lange, Luyen Tran, Zhiyuan Zhou, (2013) "A Simulation Approach to Airline Cost Benefit Analysis," Journal of Management Policy and Practice, Vol. 14, Iss. 2, pp. 54 - 61

Article Type: Research paper

Publisher: North American Business Press

Abstract:

In this paper we conduct a cost benefit analyses using simulation for an Airline. This study pertains to

using Towbarless Towing Vehicles (commonly referred to as supertugs) to transport aircraft to and from

the terminal to airline’s maintenance hangar facility at their hub. This study attempts to investigate the

possibility of reducing costs through saving jet fuel by adopting supertugs and identify if their high

purchasing costs are justified. This study adopts simulation to analyze the annual savings by studying the

numbers needed, as well as the utilization and operation cost for these supertugs. The results are very

encouraging, enabling the airline to clearly evaluate their cost and benefits for purchasing new

supertugs.