How to mix per-flight and per-passenger based airport charges: The oligopoly case
While airport aeronautical charges are traditionally aircraft weight related, currently an increasing share of aeronautical airport revenues is derived from passenger related charges. This paper compares the optimal mix of per-passenger and per-flight based (cost recovering) airport charges from the...
| Main Authors: | , , |
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| Format: | Journal article |
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Elsevier
2017
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| _version_ | 1797068212548927488 |
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| author | Czerny, A Cowan, S Zhang, A |
| author_facet | Czerny, A Cowan, S Zhang, A |
| author_sort | Czerny, A |
| collection | OXFORD |
| description | While airport aeronautical charges are traditionally aircraft weight related, currently an increasing share of aeronautical airport revenues is derived from passenger related charges. 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. |
| first_indexed | 2024-03-06T22:07:28Z |
| format | Journal article |
| id | oxford-uuid:50a48a65-cd21-4f30-8388-16e88fc52716 |
| institution | University of Oxford |
| last_indexed | 2024-03-06T22:07:28Z |
| publishDate | 2017 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | oxford-uuid:50a48a65-cd21-4f30-8388-16e88fc527162022-03-26T16:14:48ZHow to mix per-flight and per-passenger based airport charges: The oligopoly caseJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:50a48a65-cd21-4f30-8388-16e88fc52716Symplectic Elements at OxfordElsevier2017Czerny, ACowan, SZhang, AWhile airport aeronautical charges are traditionally aircraft weight related, currently an increasing share of aeronautical airport revenues is derived from passenger related charges. 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. |
| spellingShingle | Czerny, A Cowan, S Zhang, A How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title | How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title_full | How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title_fullStr | How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title_full_unstemmed | How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title_short | How to mix per-flight and per-passenger based airport charges: The oligopoly case |
| title_sort | how to mix per flight and per passenger based airport charges the oligopoly case |
| work_keys_str_mv | AT czernya howtomixperflightandperpassengerbasedairportchargestheoligopolycase AT cowans howtomixperflightandperpassengerbasedairportchargestheoligopolycase AT zhanga howtomixperflightandperpassengerbasedairportchargestheoligopolycase |