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Author:Raffarin, M.
Title:Congestion in European airspace. A pricing solution?
Journal:Journal of Transport, Economics and Policy
2004 : JAN, VOL. 38:1, p. 109-126
Index terms:Air transport
Congestion
Pricing
Models
Europe
Language:eng
Abstract:This article deals with Air Traffic Control (ATC) pricing as a means of sorting out the European airspace congestion problem. For several years the situation has been worsening. Insufficient capacity of the ATC system, poor coordination btw. European ATC providers, and a high traffic level, as a consequence of economic growth, price competition, and hub-and-spoke organisation, explain a congested sky. The present ATC pricing rule is not designed to solve this problem. Components of this rule do not give airlines incentives to modify their choices. The article makes a proposal for a new rule, so that the airlines' equilibrium choices are also optimal choices, from a social point of view.
SCIMA record nr: 253301
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