Economic Analysis of Local Area Augmentation System and Alternative Architectures
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1996-01-01
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Abstract:The objective of this study has been to perform an economic comparison by conducting a cost-benefit analsyis (CBA) of the five Local Area Augementation System (LAAS) and alternative architectures. The five architectures chosen by the FAA for the study are: Pseudolite kinematic LAAS, Wide-Lane Kinematic LAAS, Code-Based LAAS, Instrucment Landing System (ILS), and the LAAS-Glide Slope System. A comparison of archhitecture based on the benefit/cost (B/C) ratio and cost-effectiveness criterion indicates that the Code-based LAAS architecture has, by far,the highest B/C ratio of 4.0 and the lowest life-cycle cost of $860.9 million over a 15 year time horizon. The B/C ratios of other non-ILS architectures are in the range of 3.4 to 3.7, and the life cycle costs in the range of $946.5 milliono to $1,014.6 million. For the reference ILS architecture, the study estimates a low B/C ratio of 0.4 and the life cycle cost of $921.2 million. The latter cost is not much different from other architecture life cycle, despite the exclusion of the substantial sunk cost of existing runway ILS and aircraft avionics equipment.
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