Pricing schemes for air traffic services through multi-level approaches

This article addresses the problem of air traffic service (ATS) pricing over a domestic air transportation system with either private or public ATS providers. In both cases, to take into account feedback effects on the air transportation market, it is considered that the adopted pricing approaches c...

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Main Authors: Rabah Guettaf, Félix Mora-Camino
Format: Article
Language:English
Published: Emerald Publishing 2021-01-01
Series:Applied Computing and Informatics
Subjects:
Online Access:https://www.emerald.com/insight/content/doi/10.1016/j.aci.2018.07.001/full/pdf
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author Rabah Guettaf
Félix Mora-Camino
author_facet Rabah Guettaf
Félix Mora-Camino
author_sort Rabah Guettaf
collection DOAJ
description This article addresses the problem of air traffic service (ATS) pricing over a domestic air transportation system with either private or public ATS providers. In both cases, to take into account feedback effects on the air transportation market, it is considered that the adopted pricing approaches can be formulated through optimization problems where an imbedded optimization problem is concerned with the supply of air transportation (offered seat capacity and tariffs for each connection). Under mild assumptions in both situations the whole problem can be reformulated as a mathematical program with linear objective function and quadratic constraints. A numerical application is performed to compare both pricing schemes when different levels of taxes are applied to air carriers and passengers.
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spelling doaj.art-81b71260ce4741f3944e14338af8dc242023-06-23T09:38:01ZengEmerald PublishingApplied Computing and Informatics2634-19642210-83272021-01-011719010710.1016/j.aci.2018.07.001Pricing schemes for air traffic services through multi-level approachesRabah Guettaf0Félix Mora-Camino1Department of Mathematics, Faculty of Sciences, University Mouloud Mammeri of Tizi Ouzou, Tizi Ouzou, AlgeriaInstitute of Systems Science, Durban University of Technology, Durban, South AfricaThis article addresses the problem of air traffic service (ATS) pricing over a domestic air transportation system with either private or public ATS providers. In both cases, to take into account feedback effects on the air transportation market, it is considered that the adopted pricing approaches can be formulated through optimization problems where an imbedded optimization problem is concerned with the supply of air transportation (offered seat capacity and tariffs for each connection). Under mild assumptions in both situations the whole problem can be reformulated as a mathematical program with linear objective function and quadratic constraints. A numerical application is performed to compare both pricing schemes when different levels of taxes are applied to air carriers and passengers.https://www.emerald.com/insight/content/doi/10.1016/j.aci.2018.07.001/full/pdfQuadratic optimizationFlows optimization in networksPricingAir traffic services
spellingShingle Rabah Guettaf
Félix Mora-Camino
Pricing schemes for air traffic services through multi-level approaches
Applied Computing and Informatics
Quadratic optimization
Flows optimization in networks
Pricing
Air traffic services
title Pricing schemes for air traffic services through multi-level approaches
title_full Pricing schemes for air traffic services through multi-level approaches
title_fullStr Pricing schemes for air traffic services through multi-level approaches
title_full_unstemmed Pricing schemes for air traffic services through multi-level approaches
title_short Pricing schemes for air traffic services through multi-level approaches
title_sort pricing schemes for air traffic services through multi level approaches
topic Quadratic optimization
Flows optimization in networks
Pricing
Air traffic services
url https://www.emerald.com/insight/content/doi/10.1016/j.aci.2018.07.001/full/pdf
work_keys_str_mv AT rabahguettaf pricingschemesforairtrafficservicesthroughmultilevelapproaches
AT felixmoracamino pricingschemesforairtrafficservicesthroughmultilevelapproaches