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| Author: | Forsyth, P. |
| Title: | Airport infrastructure for the Airbus A380: cost recovery and pricing |
| Journal: | Journal of Transport Economics and Policy
2005 : SEP, VOL. 39:3, p. 341-362 |
| Index terms: | aircraft industry air transport airports costs pricing |
| Language: | eng |
| Abstract: | The introduction of the new large aircraft, the Airbus A380, will require investments by airports to enable them to handle it. These investments will be in the nature of sunk costs, such as in widening runways. As such they will pose problems for pricing, cost recovery, and investment evaluation. Short-run pricing efficiency involves not imposing any specific charge for the use of the aircraft, which will mean that users will not face the costs they impose. This, however, could create problems in terms of signals for investment. |
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