How to mix per-flight and per-passenger based airport charges: The oligopoly case

Achim Ingo Czerny, Simon Cowan, Anming Zhang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

8 Citations (Scopus)

Abstract

This paper compares the optimal mix of per-passenger and per-flight based (cost recovering) airport charges from the carriers’ and the social viewpoints when carrier markets are oligopolistic. We show that positive per-passenger charges might be able to support the implementation of monopoly fares at slot-constrained airports. They can also mitigate strategic frequency reductions at uncongested airports, leading to an increase in both carrier profit and welfare relative to a charging scheme that fully relies on per-flight charges.
Original languageEnglish
Pages (from-to)483-500
Number of pages18
JournalTransportation Research Part B: Methodological
Volume104
DOIs
Publication statusPublished - 1 Oct 2017

Keywords

  • Airlines
  • Airports
  • Congestion
  • Schedule delays
  • Slots

ASJC Scopus subject areas

  • Transportation

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