published_or_final_version / Business / Doctoral / Doctor of Philosophy

published_or_final_version / Urban Planning / Master / Master of Science in Urban Planning

published_or_final_version / Transport Policy and Planning / Master / Master of Arts in Transport Policy and Planning

This Research Report is submitted in fulfilment of the requirements for the degree of Master of Science in Property Development and Management to the Faculty of Engineering and Built Environment, University of Witwatersrand, Johannesburg, 2016 / The two main traditional revenue streams for airports are aeronautical and non-aeronautical revenues. In recent times, factors such as the slowing economic growth, terrorism threats, aircraft fuel hikes and fierce airline competition have contributed in reduced aeronautical revenues. The decline in aeronautical revenues has seen a shift of focus where most international airports now pursue business strategies to increase their non-aeronautical revenues. Airports in developed countries such as Schiphol, Brisbane, Adelaide, Canberra, Perth are recorded in literature to have shifted their focus to exploit the vast undeveloped land within the airport precincts through enabling the undeveloped land to be taken up for commercial property developments. This has allowed these airports to increase their non-aeronautical revenues in light of the declining aeronautical revenues. In South Africa, Airports Company South Africa (ACSA) announced its intention in year 2010 to unlock undeveloped airport land for commercial property developments within the nine airports that it operates. At O.R. Tambo International Airport (one of airports owned by ACSA), ACSA publicly announced the availability of pieces of land within the airport which can be taken up for commercial developments by private investors. One of the pieces of land is located in close proximity to existing airport adjoining residential houses in a suburb called Bonaero Park. Authors in existing literature have discussed availability of both positive and negative proximity effects of commercial properties on adjoining residential houses. This study researched the proximity effects of one of the proposed commercial property development at O.R. Tambo International Airport (ORTIA) on the houses in Bonaero Park through analyzing houses sales data of the suburb in the period of 2006 to 2014. A pre-announcement period was defined in the study from 2006 to 2010 and a post-announcement period defined from 2011 to 2014. House sales data from both the pre-announcement and post announcement period was analysed using quantitative methodologies. Qualitative data was gathered through conducting audio recorded interviews with Estate Agents who conducted house sales in Bonaero Park. Findings of the study reveal that the at both the pre-announcement and post-announcement periods, the South African residential property market was going through a tumultuous period which revealed that the announcement by ACSA to unlock the piece of land located in close proximity to the residential houses in Bonaero Park did not produce positive or negative proximity effects. / MT2017

A project report submitted in partial fulfilment of the requirements for the degree of Masters of Management (Finance and Investment) in the Faculty of Commerce, Law and Management Wits Business School, University of the Witwatersrand, 2016 / It is well acknowledged that infrastructure provision is linked to economic growth , in particular airports are viewed a strategic catalysts to this growth bringing about increased opportunities for trade, tourism, and serving as an enabler for business. African airports have historically suffered underinvestment as a result of competing priorities for government funding; growing safety concerns, increased traffic growth and globalisation, and the need for refurbishment and modernisation of systems. African nations are now beginning to spend considerable amounts on aviation infrastructure. The purpose of this study evaluate the financing mechanisms available to governments, to access the role that airport economic regulation plays in attracting investment and the potential of leveraging the securitisation model for the financing of aviation infrastructure. It was found that, no one funding mechanism is king and that airport owners and operators should attempt a diversification strategy towards their funding sources, taking into account that the investment appetite of various investors will be different at the various phases of infrastructure project delivery. It was found that airport regulation is key to harnessing the certainly of future cash flows required by private investors , and may be the required mechanism to off load the financial burden of smaller airports from the government budgets. Lastly it was found that development finance institutions may be the biggest benefactors to utilising the securitisation model to unlock further developmental funding; key to this is the support of institutional investors. / XL2018

Report submitted in partial fulfilment of the requirements for the degree of Master of Management in Finance and Investment Faculty of Commerce, Law and Management Wits Business School University of the Witwatersrand Johannesburg, South Africa / The development of transportation infrastructure, including airports, plays a vital role in economic growth in emerging markets. However, government budget allocations for this purpose are often insufficient to realise the full benefits. Project finance and Public Private Partnerships (PPPs) in particular, have been used to enable private sector participation in the financing of airport development. Airports PPPs have successfully been implemented worldwide, including, to a lesser extent, in emerging markets and Sub-Saharan Africa (SSA). There is a lack of literature on the benefits, risks, challenges and opportunities associated with airport PPPs in SSA, which this research aims to address. Case studies of recent airport PPPs in Brazil and India provide an outline of the emerging market context and insight into factors that affected these airport PPPs. In-depth interviews with two representatives of governments in SSA provide a rich view on the perceived benefits, risks, challenges and opportunities associated with airport PPPs in Africa. This research has found that airport PPPs can contribute to airport developments in SSA by enabling the private funding of airport upgrades and expansions. However, governments have an important role to play in providing an enabling environment for private investors by improving investability and implementing clear and practical PPP legislation, aviation policies and economic regulation of airport services. The limited institutional capacity and domain expertise of SSA governments is perceived as a challenge to the implementation of airport PPPs in the region. The low level of air traffic and small number of airports that handle more than one million passengers per annum further limit the opportunities for airport PPPs in SSA, although strong GDP growth provides an encouraging sign. Successful airport PPPs require the participation of private consortia with expertise in airport operations, construction and infrastructure concessions. Financing of airport PPPs is done preferably from domestic sources and development finance can play an important role. There are risks associated with the foreign ownership of key national infrastructure and a reliance on private sector to provide public infrastructure. Lighter forms of PPPs that limit the private sector risk exposure may be more suitable to the low-traffic and high-risk environment in SSA. / MT2017

Thesis advisor: Frank Gollop / My doctoral dissertation consists of three essays in the field of Industrial Organization. The first two consider exclusive dealing contracts between upstream and downstream firms theoretically, while the third measures consumer substitution among geographically differentiated air travel products empirically. In the first chapter I study the ability of an incumbent seller to use exclusive dealing contracts to foreclose efficient entry when there are n downstream buyers, where n can be viewed as a measure of the degree of downstream competition. The effect of downstream competition on the ability of the upstream incumbent to use exclusive contracts anticompetitively depends on whether upstream firms compete over linear or two-part prices. The model also highlights an interesting effect of the sunk cost of upstream entry that is ignored in models with exactly two buyers. In the second chapter I investigate the ability of an incumbent monopolist to exclude a potential entrant via exclusive dealing contracts when these contracts include an agreement over price. I find that a simple entry game yields both exclusionary and entry equilibria. The exclusionary equilibrium is unique, however, under most reasonable assumptions; for example if buyers are downstream competitors, if entry or the marginal cost of the potential entrant are uncertain, or if the incumbent can commit not to compete for unsigned buyers. When buyers compete with one another downstream, the optimal guaranteed price is above (below) the marginal cost of the incumbent when downstream buyers compete over strategic complements (substitutes). In the third and final chapter (co-authored with Kyle Buika) I study the question of geographic market definition in the US airline industry. Though an accurate definition of an economic market is important for any study of industry, there is no rule governing what exactly constitutes a market. To define a market we must ask the question "between which products do consumers substitute,'' knowing that the answer to this question will depend on how "close'' products are to one another in product space, as well as how close they are to one another, and to consumers, in geographic space. We estimate a discrete choice model of air travel demand that uses known information about the locations of products and consumers, which allows us to study substitution patterns among air travel products at different airports. We evaluate the commonly used city-pair and airport-pair definitions of a market for air travel, and conclude that a city-pair is the appropriate definition. We also employ the Hypothetical Monopolist test for antitrust market definition, as defined by the Department of Justice and Federal Trade Commission, and conclude that the relevant geographic market for antitrust analysis is, according to this test, frequently more narrowly defined as an airport-pair. Finally we conduct merger simulations under different market definitions and compare the results to those obtained using our own results, and conclude that accounting for geography is important when studying mergers. / Thesis (PhD) — Boston College, 2011. / Submitted to: Boston College. Graduate School of Arts and Sciences. / Discipline: Economics.

[pt] O transporte de carga aérea no Brasil é um dos grandes fatores que ajudaram a alavancar as exportações e importações brasileiras. Com as exportações superando as importações, esta modalidade de transporte teve influência direta nos saldos positivos da balança comercial brasileira nos últimos anos. Esta dissertação mostra o cenário brasileiro dos últimos três anos e, sempre que for pertinente, a relação com o panorama mundial. Assim, o trabalho começa com a situação mundial da carga aérea para depois, então, discutir a situação no Brasil. Os fatores de influência que refletiram no transporte de carga, a movimentação das exportações e importações, as empresas aéreas nacionais e estrangeiras, exclusivas de carga ou mistas, que atuam no Brasil e, finalmente, os principais aeroportos brasileiros são temas desta dissertação. A motivação deste trabalho está no grande resultado obtido, no período analisado, por esta modalidade de transporte. O mercado doméstico e internacional está em franca expansão e a chegada de novos modelos de aeronaves cargueiras é vista com grande expectativa pelas companhias, aumentando, assim, a quantidade de toneladas quilômetros ofertados, o que garantiria o sucesso desta modalidade de transporte de carga. / [en] The air cargo transportation in Brazil is one of the great factors that have stimulated Brazilian´s exportations and importations. As the exportations surpassed the importations, such modality of transport had direct influence in the Brazilian trade balance for the last years. This dissertation shows the Brazilian scene of last the three years and, whenever it is pertinent, the relation with the world-wide panorama. Thus, the work starts with the world-wide situation of the air cargo with special attention to Brazil. Influence factors that they had reflected in the air cargo transportation, the cargo movement of the exportations and importations, the national and foreign airlines roles and situation in Brazil and, finally, the main Brazilian airports are subjects of this dissertation. The motivation of this work is the great result achieved for this analyzed period, regarding this transport modality. The domestic and international market is in great expansion and the coming of new freighter aircrafts models is seen with expectation for air companies, increasing, thus, the amount of tons offered kilometers, what it would guarantee the success of the cargo transportation modality.

Submitted by JOSIANE SANTOS DE OLIVEIRA (josianeso) on 2017-05-30T12:21:44Z No. of bitstreams: 1 Talita de Albuquerque Barreto_.pdf: 3641892 bytes, checksum: f2e5a2fbe9ce56b1af55edb294e16c77 (MD5) / Made available in DSpace on 2017-05-30T12:21:44Z (GMT). No. of bitstreams: 1 Talita de Albuquerque Barreto_.pdf: 3641892 bytes, checksum: f2e5a2fbe9ce56b1af55edb294e16c77 (MD5) Previous issue date: 2016-12-22 / Nenhuma / Uma ação importante para a sustentabilidade é a redução do consumo de energia, buscando atingir a eficiência energética dos edifícios. Os aeroportos têm incorporado progressivamente operações comerciais e de lazer que os aproximam de centros comerciais, com um aumento no consumo de energia para iluminação artificial e condicionamento do ambiente considerando a operação 24/7. No entanto, muitas vezes não são desenvolvidos planos de eficiência energética. O Aeroporto Internacional Salgado Filho, localizado em Porto Alegre, sul do Brasil, tem cerca de 100 mil operações de aeronaves, entre pousos e decolagens, por ano, o que representa 4% do movimento nacional. Nesse contexto, este estudo tem como objetivo avaliar a eficiência energética do aeroporto mencionado. Este trabalho utiliza como parâmetro a certificação brasileira PROCEL Edifica. Foram coletados dados de consumo de energia de dois anos de operação do aeroporto. A eficiência energética foi avaliada através de condições técnicas de edifícios e sistemas operacionais, seguida por análise e classificação pelo método PROCEL Edifica. Os resultados apontaram para classificação geral da edificação como C no terminal 1 e classificação A no terminal 2. Os sistemas de iluminação e condicionamento de ar tiveram classificação abaixo do nível A e a partir da identificação de itens não atendidos do método, foram propostas ações para a redução do consumo de energia no aeroporto com a análise da viabilidade econômica dessas propostas. / An important action for sustainability is the reduction of energy consumption, seeking to achieve the energy efficiency of buildings. Airports have progressively incorporated commercial and leisure operations that bring them closer to shopping centers, with an increase in energy consumption for artificial lighting and environmental conditioning considering the operation 24/7. However, energy efficiency plans are often not developed. Salgado Filho International Airport, located in Porto Alegre, southern Brazil, has about 100,000 aircraft operations, between landings and takeoffs, per year, which represents 4% of the national movement. In this context, this study aims to evaluate the energy efficiency of the mentioned airport. This work uses as a parameter the Brazilian certification PROCEL Edifica. Energy consumption data from two years of airport operation were collected. Energy efficiency was evaluated through technical conditions of buildings and operating systems, followed by analysis and classification by PROCEL Constructs method. The results pointed to the overall classification of the building as C at terminal 1 and classification A at terminal 2. Lighting and air conditioning systems were rated below level A and from the identification of unmet items of the method, actions were proposed to reduce energy consumption at the airport with the analysis of the economic viability of these proposals.

O setor aeroportuário apresentou forte crescimento nos últimos anos, ressaltando as ineficiências na gestão de sua infraestrutura e de seus ativos, especialmente no Brasil. Assim, com a exaustão das técnicas tradicionais para a redução de custos, as empresas necessitam buscar melhorias apoiadas no uso de métodos mais complexos a fim de aumentar a produtividade de seus ativos. Desta forma, desponta a necessidade de modelos para a identificação da vida útil e análise da substituição econômica de ativos, uma vez que estas informações auxiliam na tomada de decisão e conduzem a melhores planos de manutenção, reduzindo as perdas do processo. Assim sendo, este trabalho tem por objetivo propor e aplicar uma sistemática para avaliação da substituição de ativos no setor aeroportuário, apoiado em modelos adequados às especificidades do setor através do estudo das suas variáveis. Para isto, são identificados os elementos que influenciam na vida útil dos ativos e, posteriormente, modelos de identificação de vida útil e substituição econômica de ativos são propostos e aplicados em um aeroporto brasileiro de grande porte. Pode-se concluir que a sistemática produziu resultados consistentes e que auxiliam a decisão de substituição de ativos de uma forma estruturada. / In the past years, an increase in aviation transport can be noticed and it highlights inefficiencies in asset management, especially in Brazil. Hence, the exhaustion of traditional techniques to cost reduction lead companies to seek improvements supported by more complex methods in order to increase productivity of their assets. Thus, it is crucial to develop models for useful life identification and economic replacement of assets, since these information assist the decision making process and lead to better maintenance plans, reducing wastage. As a result, the main objective of this work is develop and apply a systematic for evaluation of asset replacement in airports, supported by models that consider the specificities of the aviation sector and its particular variables. In this direction, elements that influence assets useful life are identified and, then, models for useful life identification and economic replacement of assets are developed and applied in an important Brazilian airport. It can be concluded that the systematic have produced consistent results and can assist in asset replacement decision in a structured form.