THE ECONOMICS OF AIRPORT DEMAND AND PRICING

The scarcity of airport resources is discussed, and comments are made on the nature of airport demand. The reduction of airport congestion by adding to capacity, as well as pricing techniques to reduce congestion are considered. Variable landing fees are suggested as a possible solution. Landing fee structure which encourages wasteful use of airport resources, and the benefits from congestion charges are discussed at some length. New York is presented as a case study of increased landing fees, and the special problem of general aviation is discussed. Selective changes in airline ticket prices are also suggested as a mechanism for shifting airport use to slack periods. Rationing runway use by price rather than by willingness to tolerate delay would allow higher-valued users to bid landing time away from lower-valued users, who would shift their operations to less desired times and locations. The success of the implementation of peak-time charges in New York is noted. Peak-time airline ticket pricing (instituted in New York) deserves consideration as a congestion-reducing device.

• Supplemental Notes:
  • From Airport Economic Planning by G.P. Howard.
• Corporate Authors:

  Massachusetts Institute of Technology Press

  55 Haywood Street
  Cambridge, MA  United States  02142-1493
• Authors:
  • ECKERT, R D
• Publication Date: 1974

Media Info

• Features: Figures;
• Pagination: p. 420-444
• Serial:
  • Publication of: American Society of Civil Engineers
  • Publisher: American Society of Civil Engineers

Subject/Index Terms

• TRT Terms: Airlines; Airport capacity; Airport operations; Demand; Economics; Fares; Finance; Landing fees; Pricing; Traffic congestion
• Candidate Terms: Airport congestion
• Subject Areas: Aviation; Economics; Finance; Terminals and Facilities;

Filing Info

• Accession Number: 00155732
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Aug 31 1977 12:00AM