Dynamic cost indexing – Managing airline delay costs

This paper develops a decision-support tool for managing flight delay costs in the pre-departure and airborne phases of a flight. The dynamic cost indexing tool trades accelerated fuel burn against ‘cost of time’ and environmental impact. Many airlines have significant barriers to quantify the various components of ‘cost of time’. There are no industry standards for defining and interfacing the necessary tools. Dynamic estimation of passenger delay costs, delay recovery decision windows and air traffic control cooperation are key constraints. Short-term opportunities for saving fuel and/or reducing environmental impacts are identified.