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GRAU E conomic study of Lleida - Alguaire Airport Treball realitzat per: Luis Miguel Morell Batlle Dirigit per: Alvaro Garola Crespo Grau en: Enginyeria Civil Barcelona, Juny 2017 Departament d’Enginyeria Civil i Ambiental GRAU TREBALL FINAL DE F Gratefulness: I would really like to thank all the people who have been supporting me all the time and who have encouraged me to beat myself. Obviously, I want to thank the professor Àlvar Garola, who have guided my thesis, and thank all my family (LM, AB, PC, MB and JS) for all their encouragement. Thank you all very much. 2 ABSTRACT Currently, the world has become completely globalized and, in relation to this fact, both passengers and freight transport has become very important in our society. In fact, one of the main essential elements in connection with transport is the infrastructures which are necessary so as to make transport possible and efficient. This thesis is based on analysing the infrastructure that is necessary so as to develop one of the most important modes of transport: the air transport and, in relation to this, the airports. In fact, this thesis analyses the airport of Lleida - Alguaire, which is a relatively new airport that was built in 2010 near the city of Lleida, which has 138.144 inhabitants. The construction of such an important infrastructure near Lleida was an extraordinary scenario because of the relatively small amount of citizens living within the area. Owing to this fact, this thesis has analysed the Lleida - Alguaire Airport so as to know whether it was a good idea to have an airport built near Lleida. The analysis of the Lleida - Alguaire Airport has been realized from two different points of view: On the one hand, the airport has been analysed both economically and financially through its Profit and Loss Accounts. On the other hand, the airport has been analysed from a social point of view trhough a Cost Benefit Analysis. In fact, it has been socially compared with the other important airports located nearby: Reus Airport, Girona Airport, Barcelona Airport and Toulouse Airport. Moreover, so as to analyse appropriately the Lleida - Alguaire Airport, three sensitivity analyses have been realized by assuming different scenarios. To sum up, according to the results obtained in this thesis, the Lleida - Alguaire Airport is neither economically nor socially profitable owing to the amount of passengers who are interested on using the infrastructure and because of its capacity. Nevertheless, the Lleida - Alguaire Airport might attract some business activities in the long term which could benefit the local economy and income. Key words: Transport, Air Transport, Airport, Lleida - Alguaire Airport, Reus Airport, Girona Airport, Barcelona Airport, Toulouse Airport, Demand, Capacity, Profit and Loss Account, Cost Benefit Analysis, Sensitivity Analysis, Internal Rate of Return (IRR), Net Present Value (NPV). 3 RESUMEN Actualmente, el mundo está totalmente globalizado y, en relación con esto, el transporte de pasajeros y carga tiene mucha importancia en nuestra sociedad. De hecho, uno de los elementos esenciales en relación al transporte son las infraestructuras, que son necesarias para hacer posible y eficiente el transporte. Esta tesis se basa en el análisis de la infraestructura que es necesaria para desarrollar uno de los modos de transporte más importantes: el transporte aéreo y, en relación a éste, los aeropuertos. De hecho, esta tesis analiza el Aeropuerto de Lleida - Alguaire, que es un aeropuerto relativamente nuevo que fue construido en el año 2010 cerca de la ciudad de Lleida, que tiene 138.144 habitantes. La construcción de una infraestructura tan importante cerca de la ciudad de Lleida fue una situación extraordinaria debido a la pequeña cantidad de habitantes que habitan en la zona. Por este motivo, esta tesis ha analizado el Aeropuerto de Lleida - Alguaire para saber si fue una buena idea construir un aeropuerto cerca de Lleida. El análisis del Aeropuerto de Lleida - Alguaire se ha realizado desde dos puntos de vista distintos: Por una parte, se ha analizado el aeropuerto económica y financieramente a partir de la Cuenta de Pérdidas y Ganancias. Por otra parte, el aeropuerto ha sido analizado desde un punto de vista social a partir de un Análisis Coste Beneficio. De hecho, ha sido socialmente comparado con los principales aeropuertos próximos: Aeropuerto de Reus, Aeropuerto de Girona, Aeropuerto de Barcelona y Aeropuerto de Toulouse. Además, para analizar adecuadamente el Aeropuerto de Lleida - Alguaire, se han realizado tres análisis de sensibilidad asumiendo distintos escenarios. En conclusión, según los resultados obtenidos en esta tesis, el Aeropuerto de Lleida - Alguaire no es rentable ni económica ni socialmente debido al nombre de pasajeros que están interesados en usar la infraestructura y a causa de la capacidad del aeropuerto. Sin embargo, el Aeropuerto de Lleida - Alguaire podría atraer nuevos negocios a largo plazo que podrían beneficiar la economía local y los ingresos. Palabras clave: Transporte, Transporte Aéreo, Aeropuerto, Aeropuerto de Lleida - Alguaire, Aeropuerto de Reus, Aeropuerto de Girona, Aeropuerto de Barcelona, Aeropuerto de Toulouse, Demanda, Capacidad, Cuenta de Pérdidas y Ganancias, Análisis Coste Beneficio, Análisis de Sensibilidad, Tasa Interna de Retorno (TIR), Valor Actual Neto (VAN). 4 INDEX 1. INTRODUCTION…………………………………………………………………………………………………………………..9 2. THESIS OBJECTIVES……………………………………………………………………………………………………………10 3. TRANSPORT……………………………………………………………………………………………………………………..11 4. THE AIR TRANSPORT…………………………………………………………………………………………………..……11 4.1 Introduction to Air Transport…………………………………………………………………………………...…11 4.2 Airplane Definition…………………………………………………………………………………………………..….12 4.3 Air Transport History……………………………………………………………………………………………………12 4.4 Current World Air Transport Scenario………………………………………………………………….……..14 4.5 Air Transport Infrastructures: The Airport and Surroundings……………………………….….…16 5. THE BUS TRANSPORT……………………………………………………………………………………………………….…17 5.1 Bus Introduction………………………………………………………………………………………….………….…….…17 5.2 Bus History……………………………………………………………………………………………………………….……17 5.3 Bus Uses……………………………………………………………………………………………..…………………………18 6. AIR TRANSPORT ORGANIZATIONS……………………………………………………………………………….….…19 6.1 IATA…………………………………………………………………………………………………………………….……..…19 6.2 ICAO……………………………………………………………………………………………………………..………………19 6.3 AENA and Aeroports de Catalunya…………………………………………………………….…..……………20 7. LLEIDA - ALGUAIRE AIRPORT………………………………………………………………………………..…………21 7.1 Introduction to the Lleida - Alguaire Airport………………………………………………………….……21 7.2 Construction of the Lleida - Alguaire Airport……………………………………………………….………21 7.3 Location of the Lleida - Alguaire Airport………………………………………………………………..……24 7.4 Other parameters of the Lleida - Alguaire Airport………………………………………..…….………25 7.5 Commercial Evolution of the Lleida - Alguaire Airport……………………………………..…………27 7.6 Some Data of the Lleida - Alguaire Airport………………………………………………………….………28 8. ECONOMIC EVALUATION OF AIRPORT PROJECTS……………………………………………………….……29 8.1 Introduction…………………………………………………………………………………………………………………29 8.2 Economic Benefits of Airport Infrastructures……………………………..……………………….………30 8.2.1 Benefits Without Rationing………………………………………………………………………….………30 8.2.2 Benefits With Rationing………………………………………………………..…………………….………31 8.2.3 Capacity Constraint………………………………………………………………………………………..……32 8.2.4 Landside Airport Infrastructures………………………………………..……………………….………33 8.2.5 Airside Airport Infrastructures………………………………………………………..…………….……36 9. SUMMARY OF THE INTERVIEW TO THE LLEIDA-ALGUAIRE AIRPORT’S DIRECTOR……………39 10. ANALYSIS OF THE LLEIDA - ALGUAIRE AIRPORT……………………………….…………………..…………45 10.1 Introduction……………………………………………………………………………………..…….……………..……45 10.2 Analysis of the demand……………………………………………………….……………..…………………...…47 10.3 Financial Analysis……………………………………………………………………………………………..……...…50 10.4 Cost - Benefit Analysis…………………………………………………………………..………………………...…53 10.4.1 Introduction to the Cost - Benefit Analysis…………………………………………………….……53 10.4.2 Parameters Considered in the Cost - Benefit Analysis…………………………………………55 10.4.3 Computations Realized in the Cost - Benefit Analysis…………………………………...……61 5 10.4.4 Results of the Cost - Benefit Analysis………………………………………..…………………….……64 10.4.5 Sensitivity Analysis………………………………………………………….……………………………….…..65 10.4.5.1 Sensitivity Analysis 1………………………………………………………..……………………..……66 10.4.5.2 Sensitivity Analysis 2……………………………………………………………………..…………..…68 10.4.5.3 Summary of the Sensitivity Analyses 1 and 2 and main CBA…………………..……69 10.4.5.4 Sensitivity Analysis 3……………………………………………………………………………….……71 10.5 Future Scenario.……………………………………………………………………………………………………..…..74 11. CONCLUSIONS…………………………………………………………………………….…………………………….….…76 12. BIBLIOGRAPHY………………………………………………………………………….……………………………….……77 6 FIGURES INDEX - Figure 1: World passenger air transport evolution (graphic realized through data from International Civil Aviation Organization) - page. 14 - Figure 2: Spanish passenger air transport evolution (graphic realized through data from AENA) - page.15 - Figure 3: World air cargo transport evolution (graphic realized through data from International Civil Aviation Organization)- page.15 - Figure 4: Spanish air cargo transport evolution (graphic realized through data from AENA) - page.16 - Figure 5: Map of the Spanish airports (AENA) - page.20 - Figure 6: Map of the Catalan air transport infrastructures (Aeroports de Catalunya ) - page.21 - Figure 7: Location of the Lleida - Alguaire