Lansing Airport Runway Extension Benefit / Cost Analysis

The Capital Region Airport Authority in Michigan is proposing to extend a runway from 7,250 feet to 8,500 feet at Lansing’s Capital City Airport (LAN) to accomodate larger aircraft. In addition to the runway extension, the project includes installation of navigational aids, roadway relocation, perimeter fencing and land acquisition.

Economic Development Research Group, working with Mead and Hunt, was engaged by the airport authority to conduct the formal benefit-cost analysis required for FAA approval. The study team assembled data on all facets of airport activity growth and elicited input from the six airlines that operate at the airport (four passenger airlines and two cargo-only carriers).

The study documented benefits including (a) ground-side travel time and expense savings associated with its ability to serve nearby passengers who would be able to use LAN for long distance flights instead of driving further distances to other airports; (b) air-side expense savings associated with its ability to accommodate aircraft with larger capacity and longer distance range; (c) expense savings for cargo shipments because a longer runway allows larger payloads, avoiding the need for extra operations to accommodate peak payloads and (d) salvageable value of the runway extension that can be retained at the end of its anticipated useful life.