ABSTRACT
This chapter addresses the economic appraisal of airports. It illustrates a number of economic policy issues that manifest themselves in the economics of investment. The chapter discusses the sequence of project types that begins with a greenfield airport by a terminal capacity expansion, which builds on the greenfield airport case. It illustrates airside capacity projects through the appraisal of enlarging an existing runway and adding a new runway. The chapter addresses airport relocation. Costs associated with diverted traffic constitute a key determinant of the economic returns of the project. It also addresses the appraisal of investments to enlarge a runway.
