Air Transport Research Society San Francisco 22 nd March 2007 MIME Noise Trading for Aircraft Noise Mitigation Peter Hullah EUROCONTROL Experimental Centre Brétigny sur Orge, France
EUROCONTROL European Organisation for the Safety of Air Navigation European Air-Traffic Management organisation Currently 37 Member States 5 objectives Heighten Safety Increase Capacity Reduce Delays Enhance Cost-Effectiveness Minimise Environmental Impact 4 activity pillars: Co-operative network design; Pan-European functions; Regional ATC services; Regulatory activities and support to EC regulation. EUROCONTROL Experimental Centre (EEC) entrusted with executing the Agency s research, development and validation programmes
Sustainable Air Transport Society Environment Sustainable Development Economy
Noise Management ICAO Balanced Approach Noise Operating Land-Use Noise Abatement Planning Restrictions Reduction and Operational Management at Source Procedures The last option is a last resort In theory! It s generally all that s available
Current Noise-based Restrictions USA Rest of world Total Curfew 74 154 230 Noise limits 33 60 93 Noise quotas 13 35 48 Noise abatement procedures 197 228 425 Preferential runways 190 168 358 Stage 3 restrictions 8 44 52 APU 20 85 105 Engine run-up 184 183 367 Noise budget 4 11 15 Noise surcharges 4 124 128
Growth in Airport Noise Restrictions
Internalisation of external effects Fundamental principle of environmental economics: Any externality should be internalised as close to its source as possible Three major types of incentive for internalisation Pricing Penalties For deviation from standards Rationing By quantity Can be mixed
Recent Environmental Markets Many current examples of use of market forces Name Where Date Object Lead Trading Program US 1980s phasing out lead in gasoline Emission trading US local air-quality control Water-pollution control NL & DE Water-pollution control Tradable Water Abstraction Rights N. CO / CA Regional Clean Air Incentives Market RECLAIM LA targeted two gases, SO2 and NOX Ecopoint Programme Austria ongoing limiting pollution and noise from truck traffic Zero Emission Vehicle Program CA ongoing speed up the introduction of electronic vehicles European car manufacturers (ACEA) voluntary agreement EU improve fuel efficiency of new cars by 25% relative to 1995 levels by 2008 Kyoto Protocol Greenhouse-gas emission trading World CO2 emission reduction European Union Emission Trading Scheme (EU ETS) EU 2005 CO2 emission reduction
Operation of a Market-based System Permits issued to meet desired measure of total impact across specified region Allocated to sources of impact in region free or paid for by polluters Number of permits allocated to a particular company based on previous impact, declared future impact, or by auction etc. Reducing impact leaves surplus permits may be traded If impact limited, available permits will be limited scarcity value associated with each permit encourages trading of permits.
Advantages of Market-based Systems Departure from standards-based regulation easier than taxbased approach more cost effective Can be revenue neutral producers don t see them as just another tax-collection scam initial permitscould be freely allocated up to the predefined limits all financial transactions are between the companies themselves Excess permits due to reduced pollution sold to recuperate investment in less polluting equipment cover pollution from increased production Taxes, charges and fines restrict growth Tradable permits encourage it
Noise Trading An Example 2-hour Leq at a major international airport produced by ENHANCE European Harmonised Aircraft Noise-contour Modelling Environment Produces noise contours from 3D radar trajectories Can be used to produce contours on a per-airline basis
Noise per Airline Area of 24-hour 55dB(A) Leq Contour vs Mvts per airline 140 LAeq-24h 55 dba Contour Area (km^2) 120 100 80 60 40 20 Main Hub carrier All flights y = 0.0904x R 2 = 0.9909 0 0 200 400 600 800 1000 1200 1400 Number of Operations Major carrier is just less than 50% of all flights! All other companies in bottom left sector
Noise per Airline 7 LAeq-24h 55 dba Contour Area (km^2) 6 5 4 3 2 1 0 Heavy Metal Airlines 2 mvts with noise of 65 mvts Air Rightnoise 22 mvts with noise of 22 mvts y = 0.0904x R 2 = 0.9909 QuietAir.com 51 mvts with noise of 44 mvts 0 10 20 30 40 50 60 Number of Operations
Noise Trading vs Slot Trading Date 1990 1990 1991 1991 1991 1991 1991 1991 1991 1991 1992 1997 1999 1999 2000 2001 2001 2002 2003 2003 2003 2004 2004 Recent Slot trading transactions 2004 2004 2005 Airline UA AA DL DL DL UA CO USAirways USAirways AA AA BA BA VA CO AA VA BA BA BA BA Alitalia Qantas AirTran SWA Republic Holdings Airport National LaGuardia National LaGuardia Hatsfiled (Eastern) ORD LaGuardia LaGuardia National LHR ORD LHR Gatwick Gatwick LHR TWA Gatwick LHR LHR LHR (Swiss) LHR CDG LHR National & LaGuardia Chicago airports - National and LaGuardia National & LaGuardia Number of slots 14 14 9 7 18 21 slots - 3 gates 64 (6 A380) 62 jet - 46 commuter 6? 40 + 3 gates 8 Cityflyer purchase 7 119 jet + 103 commuter 173 2 4 7 loan 8 slots 4 224 + Gandolf Co 2 pair 14 gates + 8 slots National - 19 slots LaGuardia 6 gates + slots 113 National - 24 LaGuardia Cost (millions unless noted) $19.30 $7-14 $5.40 $3.50 $32.50 $54 $85 $61 $61 18 per slot $150 $16.30 76 2 per slot $215 (offer) $500 2.4 M 3.4 30 35 12 7.1 M 20 $87.50 $89.90 $110
Economic value The UK s recent 5 additional environmental surcharge on (economy!) passenger tickets Average aircraft with 120 passengers = 300 = 450 Imagine this as a noise permit value, instead of a tax Say QuietAir.com has 51 movements per day, 365 days per year Sells 7 permits per day (only needs 44) 7 x 365 x 450 = 1,149,750 per annum additional return on investment from this airport alone Say HeavyMetal Airlines has 2 flights (= 4 movements) per week If they bought a new aircraft that produced average noise Would free-up 2 x 63 = 126 permits per week 126 x 52 x 450 = 2,948,400 per annum just from this airport!
Permit definition The previous example was just that an example Need good, usable, definition acceptable to airlines and residents Noise contours are not easily addable - non linear Does not take annoyance into account More annoyance from many quiet flights than from a few loud ones Why count noise where there aren t any people? What granularity is needed? How will permits be attributed? Sale, grandfather rights, auction etc. How to combat restrictive practices? How will airports know if noise rading will work for them? What regulation is needed? MIME will find the answers! Market simulation Noise technology
MIME partners Industry: Boeing R&TE (Spain) (Co-ordinator) R&D: SINTEF (Norway) QinetiQ (UK) Universities: U. Leeds (UK) TU Munchen (Germany) SMEs: ENVISA (France) EUROCONTROL Experimental Centre (France)
MIME Thank you Peter Hullah EUROCONTROL Experimental Centre Brétigny sur Orge, France