Most of the previous works ignore the fact that equilibrium flights in self-profit maximization scenario are totally different from that in joint profit (social welfare) maximization scenario and take price difference (flight fare difference) between the two scenarios as congestion price, which is a passenger-based method. Most of all, the function of congestion pricing is to alleviate congestion by making airlines reduce flights at peak time. Therefore, the equilibrium flights under self-profit maximization should be the same as the ones under joint profit maximization after congestion prices are tolled. Flight-based congestion pricing method is provided in our paper. The analysis suggests no role for congestion pricing when total real flight production of all airlines is less than the equilibrium flights under joint profit maximization scenario. Otherwise, congestion tolls should be levied to all airlines. Furthermore, congestion price can be determined by solving the corresponding equations system.
Bao-Cheng Zhang
. Flight-Based Congestion Pricing Considering Equilibrium Flights in Airport Airside[J]. Journal of the Operations Research Society of China, 2020
, 8(3)
: 477
-491
.
DOI: 10.1007/s40305-020-00306-9
[1] Jacquillat, A., Odoni, A.:Congestion mitigation at John F. Kennedy international airport in New York city:Potential of schedule coordination. Transp. Res. Rec. (2013). https://doi.org/10.3141/2400-04
[2] Chang, Y.H., Solak, S., Clarke, J.P.B., Johnson, E.L.:Models for single-sector stochastic air traffic flow management under reduced airspace capacity. J. Oper. Res. Soc. 67(1), 54-67(2016)
[3] Matos, P.L., Chen, B., Ormerod, R.J.:Optimisation models for re-routing air traffic flows in Europe. J. Oper. Res. Soc. 52(12), 1338-1349(2001)
[4] Matos, P.L.:Yield management for privatized air traffic control? J. Oper. Res. Soc. 52(8), 888-895(2001)
[5] Brueckner, J.K., et al.:Airport congestion when carriers have market power. Am. Econ. Rev. 92(5), 1357-1375(2002)
[6] Daniel, J.I.:Congestion pricing and capacity of large hub airports:a bottle-neck model with stochastic queues. Econom. J. Econom. Soc. 63, 327-370(1995)
[7] Brueckner, J.K.:Internalization of airport congestion:a network analysis. Int. J. Ind. Org. 23(7), 599-614(2005)
[8] Pels, E., Verhoef, E.T.:The economics of airport congestion pricing. J. Urban Econ. 55(2), 257-277(2004)
[9] Zhang, A., Zhang, Y.:Airport capacity and congestion when carriers have market power. J. Urban Econ. 60(2), 229-247(2006)
[10] Basso, L.J., Zhang, A.:Congestible facility rivalry in vertical structures. J. Urban Econ. 61(2), 218- 237(2007)
[11] Mayer, C., Sinai, T.:Network effects, congestion externalities, and air traffic delays:or why not all delays are evil. Am. Econ. Rev. 93(4), 1194-1215(2003)
[12] Hassan, A., Abdelghany, K., Abdelghany, A.:Modeling framework for evaluating sensitivity of airline schedules to airport congestion pricing. Transp. Res. Rec. 7(2177), 33-40(2010)
[13] Vaze, V., Barnhart, C.:Airline frequency competition in airport congestion pricing. Transp. Res. Rec. (2012). https://doi.org/10.3141/2266-08
[14] Bendinelli, W.E., Bettini, H.F., Oliveira, A.V.:Airline delays, congestion internalization and non-price spillover effects of low cost carrier entry. Transp. Res. A Policy Practice 85, 39-52(2016)
[15] Czerny, A., Zhang, A.:Airport peak-load pricing revisited:the case of peak and uniform tolls. Econ. Transp. 3(1), 90-101(2014)
[16] Zhang, A., Czerny, A.:Airports and airlines economics and policy:an interpretive review of recent research. Econ. Transp. 1(2), 15-34(2012)
[17] Zhang, B., Wu, H., Yang, X., Zhai, W., Xia, Q., Li, Y.:An estimation of returns to scale of airport airsides under multiple optimal solutions in DEA. J. Air Transp. Manag. 40, 149-156(2014)
[18] Lozano, S., Gutierrez, E., Moreno, P.:Network DEA approach to airports performance assessment considering undesirable outputs. Appl. Math. Model. 37(4), 1665-1676(2013)
[19] Fan, L., Wu, F., Zhou, P.:Efficiency measurement of Chinese airports with flight delays by directional distance function. J. Air Transp. Manag. 34, 140-145(2014)