The Massachusetts Port Authority (Massport) contended that "peak-period pricing would not represent an effective demand management tool, since Logan's operations did not generally come near to capacity". (See page 5 and Exhibit 8 in the case.) To assess this argument, please consider the following scenarios:

2. (a)In Exhibit 8, the highest demand occurs in the hour of 18:00, which exceeds the capacity. Please tell Massport how this may affect delays. Does VUT equation apply to this scenario?
4. (b)During the hour of 17:00, there are 111 operations scheduled. What is the average delay per flight during this hour?
6. Please make the following assumptions. Boston's weather in August is typically good. Each runway has equal capacity. (Recall, capacity = 1 / average service time.) The landing/take-off requests for the runways arrive at the control office according to a Poisson process. Landing/taking-off process times have standard deviation 1 minute. The system is in steady state during this hour.
8. (c)How will your answer in (b) change if Logan schedules 4 more flights during this hour? What if 8 more flights?
10. (d)To what extent do you agree or disagree with Massport?