Optimisation of ROI

The results of optimising the ROI are shown in Figure 16.1 (national level) and Figure 16.2 (European level) and are summarised in Table 16.2. [O c_nlo-1.xls, c_nlo-2.xls]

Note that by increasing the number of flight movements, the ROI has increased from 10% to 31% on the national level and from 16% to 38% for the European level. As a result however, the number of flight movements increased beyond a realistic market demand. This means that we have to specify

Table 16.1 Results aimed at minimising the investment

Pilot run

I

t

D

f

ROI

[$ billion]

[hours]

[km]

[100 k]

[%]

National airport in North Sea

20.6

0.700 (0.650)

35.0

10.00

10

European airport in North Sea

36.6

1.05 (0.B50)

55.0

30.00

16

Numbers in italic represent optimised values.

When there is a slack, the values in the optimum solution are given between brackets.

:Sj Fte Edit View Insert Format lools Data Window WB! Help

WBMAX

:Sj Fte Edit View Insert Format lools Data Window WB! Help

WBMAX

A

B

C

D

E

F

G

H

I

j -J"

1

Endogenous variables

I

t

d

f

E

2

25

0.65

35

39.33333

7 866667

3

4

Objective function

-1

-25

5

6

Maximum investment

1

25

=<=

25

7

Maximum time

1

0.65

<=

0.7

S

Minimum distance

1

35

->-

35

9

Minimum flight movements

1

39.33333

>-

10

10

Investment definition

1

-0.2

-0.15

12.1

=

12.1

11

Traveltime definition

1

-0.01

0.3

=

0.3

12

Exploitation revenues definition

-0.2

1

0

-

0

13

14

Return on investment

31%

15

16

17

18

19

20

21

22

23

24

► ir

N i ► HIV WB! Status \Sheetl/Sheet2 / Sheet3 /

<

Figure 16.1 Screenshot solved model (national airport)

II] File Edit View Insert Format Tools Data Window WB! Help Type a question for help • _ S X

-jI1-</ "> • C • ft >: • !. illB^Eg^®!

Arial - 10 - B I U fgl||) . ToS i^S SS • Jl • A • |

-jI1-</ "> • C • ft >: • !. illB^Eg^®!

Arial - 10 - B I U fgl||) . ToS i^S SS • Jl • A • |

A

B

C

D

E

F

G

H

J J

1

Endogenous variables

I

t

d

f

E

2

45

0.85

55

86

17.2

3

4

Objective function

-1

-45

5

6

Maximum investment

1

45

-<-

45

7

Maximum time

1

0.85

1.05

S

Minimum distance

1

55

=>=

55

9

Minimum flight movements

1

86

>=

30

10

Investment definition

1

-0.4

-0.15

10.1

-

10.1

11

Traveltime definition

1

-0.01

0.3

-

0.3

12

Exploitation revenues definition

-0.2

1

0

-

0

13

14

Return on investment

38%

15

16

17

18

19

20

21

22

23

24

► ir

< t H |\ WB! Status XSheetl/Sheet2 / Sheet3 /

Ready NUM

Figure 16.2 Screenshot solved model (European airport)

Table 16.2 Results aimed at maximising the ROI

Pilot run

I

t

D

f

ROI

[$ billion]

[hours]

[km]

[100 k]

[%]

National airport in North Sea

25

0.650

35.0

39.33

S1

European airport in North Sea

45

0.850

55.0

86.00

SB

Numbers in italic represent optimised values.

When there is a slack, the values in the optimum solution are given between brackets.

Table 16.3 Results aimed at maximising the ROI

Pilot run

I

t

D

f

ROI

[$ billion]

[hours]

[km]

[100 k]

[%]

National airport in North Sea

21.35

0.650

35.0

15.00

14

European airport in North Sea

45

0.985

68.5

50.00

22

Numbers in italic represent optimised values.

When there is a slack, the values in the optimum solution are given between brackets.

an upper bound for the number of flight movements. Therefore, on a national level the market demand is restricted to 1 500 000 flight movements and on a European level to 5 000 000 flight movements.

The results of these simulations are summarised in Table 16.3. [O c_nlo-3.xls, c_nlo-4.xls]

Using a non-linear instead of a linear model results for the return on investment in an increase from 10% to 14% on the national level, and from 16% to 22% for the European level.

The interpretation of this is: the non-linear model takes into account economies of scale and yields an outcome according to the market demand to be expected. The linear model, by contrast, minimises the investment and, as a result, gives the smallest airport as an outcome.

Best Investment Tips and Ideas

Best Investment Tips and Ideas

The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.

Get My Free Ebook


Post a comment