Business Case for the SunShine CoaSt airport Master Plan

Approach and methodology
Components Benefit description Quantification methodology
Included
in BCR?
Diversion cost savings – airlines
Savings from
inbound diversions
The monetised value of inbound airline aircraft time saved by avoiding
diversion of those flights to Brisbane in the event of unfavourable
weather conditions. Diversion is avoided by having a wider and better
oriented runway at Maroochydore.
To calculate the value of travel time savings due to the number of flight diversions
avoided with the new runway, we calculated the number of avoided diversions (%
of total flights), and monetised that diversion rate using the CASA Standard
Economic Values Guidelines 2007. We used the mid point of the range of values
($1,150 - $8,000 per diversion) and then performed a sense-check calculation
based on broad estimates of aircraft flying times to alternative ports.
Savings from
avoided outbound
delays
The monetised value of outbound airline aircraft time saved by avoiding
diversion of inbound flights to Brisbane in the event of unfavourable
weather conditions. Diversion is avoided by having a wider and better
oriented runway at Maroochydore.
To calculate the value of travel time savings due to the number of flight diversions
avoided with the new runway, we started by calculating the number of avoided
diversions (% of total flights), and monetised that diversion rate using information
from CASA Standard Economic Values Guidelines 2007. The monetised rate was
derived from the CASA dataset which estimated fuel, maintenance and crew costs
for an aircraft, delay time information for ground delayed flights rather than air
delayed flights and then used an equal apportionment of flights with and without a
network effect.
Reduced transport time – freight
Savings from
reduced leakage to
Brisbane
The monetised value of outbound freight time saved by avoiding road
transport to Brisbane and transhipment to final destination at Brisbane
Airport. Leakage is avoided with having the capability to cater aircraft
with greater operational ranges and hence able to service more
destinations.
There was insufficient publicly available data in relation to freight activity to allow
robust estimation of the likely uptake of increased payload capacity and therefore
reduced costs (or alternatively, reduced travel time as a result of substitution from
Brisbane Airport to SCA as a result of the improved capability of the new runway).
Additionally, we considered that although the value of freight in the context of this
analysis was unlikely to change the overall direction of the results, a net small net
benefit would be accrue as a result of improved substitutability for specific freight
routes. No additional analysis was conducted and freight does not appear in the
overall BCR.
Sunshine Coast Airport
PricewaterhouseCoopers 17