Economic Value of Terminal Aerodrome Forecasts at Incheon Airport, South Korea

In-Gyum Kim, Hye-Min Kim, Dae-Geun Lee, Byunghwan Lim and Hee-Choon Lee
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In-Gyum Kim: Planning and Finance Division, National Institute of Meteorological Sciences, Seogwipo-si 63568, Korea
Hye-Min Kim: Planning and Finance Division, National Institute of Meteorological Sciences, Seogwipo-si 63568, Korea
Dae-Geun Lee: Planning and Finance Division, National Institute of Meteorological Sciences, Seogwipo-si 63568, Korea
Byunghwan Lim: Planning and Finance Division, National Institute of Meteorological Sciences, Seogwipo-si 63568, Korea
Hee-Choon Lee: Earthquake and Volcano Policy Division, Korea Meteorological Administration, Seoul 07062, Korea

Sustainability, 2021, vol. 13, issue 12, 1-13

Abstract: Meteorological information at an arrival airport is one of the primary variables used to determine refueling of discretionary fuel. This study evaluated the economic value of terminal aerodrome forecasts (TAF), which has not been previously quantitatively analyzed in Korea. The analysis data included 374,716 international flights that arrived at Incheon airport during 2017–2019. A cost–loss model was used for the analysis, which is a methodology to evaluate forecast value by considering the cost and loss that users can expect, considering the decision-making result based on forecast utilization. The value was divided in terms of improving fuel efficiency and reducing CO 2 emissions. The results of the analysis indicate that the annual average TAF value for Incheon Airport was approximately 2.2 M–20.1 M USD under two hypothetical rules of refueling of discretionary fuel. This value is up to 26.2% higher than the total budget of 16.3 M USD set for the production of aviation meteorological forecasts by the Korea Meteorological Administration (KMA). Further, it is up to 10 times greater than the 2 M USD spent on aviation meteorological information fees collected by the KMA in 2018.

Keywords: economic value; cost–loss model; TAF; discretionary fuel; Incheon airport (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
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