Hub-airport congestion pricing and capacity investment

This study examines hub-airport congestion pricing and capacity investment using a simple hub-spoke network model, in which hub-carrier scheduling causes both schedule delays and congestion delays. The “fixed-proportion assumption” is removed. The authors find the following. (i) A public hub airport requires both per-flight charges, which must be movement-related but cannot be weight-related, and discriminatory per-local and per-connecting passenger charges to reach the first-best outcome. (ii) Either weight-related per-flight charges or the marginal-operating-cost (MOC) pricing on local and/or connecting passengers cannot reach the first-best. (iii) First-best charges can lead capacity investment to be socially efficient. However, weight-related per-flights charges result in under-investment, whereas the MOC pricing results in over-investment in runway capacity. (iv) Private hubs that charge positive movement-related per-flight charges subsidize passengers through per-passenger charges. Finally, (v) movement-related per-flight charges lead private hubs to overinvest, whereas weight-related per-flight charges lead to either over- or under-investment.

• Record URL:
  https://doi.org/10.1016/j.trb.2017.03.009
• Record URL:
  http://www.sciencedirect.com/science/article/pii/S0191261516309055
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
• Supplemental Notes:
  • Abstract reprinted with permission of Elsevier.
• Authors:
  • Lin, Ming Hsin
  • Zhang, Yimin
• Publication Date: 2017-7

Language

• English

Media Info

• Media Type: Web
• Features: Appendices; Figures; References; Tables;
• Pagination: pp 89-106
• Serial:
  • Transportation Research Part B: Methodological
  • Volume: 101
  • Publisher: Elsevier
  • ISSN: 0191-2615
  • Serial URL: http://www.sciencedirect.com/science/journal/01912615

Subject/Index Terms

• TRT Terms: Airport capacity; Congestion pricing; Flight delays; Hub and spoke systems; Investments; Profits; Scheduling
• Subject Areas: Aviation; Finance; Operations and Traffic Management; Planning and Forecasting; Terminals and Facilities;

Filing Info

• Accession Number: 01639069
• Record Type: Publication
• Files: TRIS
• Created Date: Jun 27 2017 4:09PM