What is the function of a Financial Feasibility Analysis?

• A. Projects the impact of the project on operating revenues and expenses
• B. Determines runway length based on demand
• C. Analyzes air traffic control staffing requirements
• D. Plans terminal passenger flow and scheduling

Answer: (A)

Evaluating financial viability is about whether the project will make economic sense by estimating its financial performance. A Financial Feasibility Analysis projects how the project will affect operating revenues and expenses over time, and it also includes capital costs, financing, and resulting cash flow. From these projections, you determine profitability, payback periods, and returns like NPV or IRR, which helps decide if the project should proceed, be modified, or be set aside, and how it compares to alternatives.

The other considerations focus on physical or operational aspects—runway capacity, staffing, or passenger flow planning—not on whether the project can financially sustain itself.