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Airport pricing systems in europe and an application of Ramsey pricing to Spanish airports

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  • Martín-Cejas, Roberto Rendeiro

Abstract

This paper describes the landing fee structures which are prevalent at most European airports: a mix of weight-based landing fees, passenger fees, and other charges. The paper describes alternative pricing systems which emphasize economic efficiency rather than airport finance considerations. Finally the paper calculates the structure of landing fees for a hypothetical uncongested airport using a Ramsey pricing formulation with data representative of uncongested Spanish airports. Further research is necessary before recommending implementation because the elasticities of demand and operating costs with distance are borrowed from North American studies.

Suggested Citation

  • Martín-Cejas, Roberto Rendeiro, 1997. "Airport pricing systems in europe and an application of Ramsey pricing to Spanish airports," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 33(4), pages 321-327, December.
    • Handle: RePEc:eee:transe:v:33:y:1997:i:4:p:321-327
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    Citations

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    Cited by:

    1. Voltes-Dorta, Augusto & Lei, Zheng, 2013. "The impact of airline differentiation on marginal cost pricing at UK airports," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 72-88.
    2. Bigerna, Simona & Bollino, Carlo Andrea, 2016. "Ramsey prices in the Italian electricity market," Energy Policy, Elsevier, vol. 88(C), pages 603-612.
    3. Niemeier, Hans-Martin, 2021. "Is economics good for aviation policy? Some problems in bridging the gap between theory and policy," Journal of Air Transport Management, Elsevier, vol. 96(C).
    4. Hakimov, Rustamdjan & Mueller, Juergen, 2014. "Charges of uncongested German airports: Do they follow Ramsey pricing scheme?," Research in Transportation Economics, Elsevier, vol. 45(C), pages 57-65.
    5. Martín-Cejas, Roberto Rendeiro, 2010. "Ramsey pricing including CO2 emission cost: An application to Spanish airports," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 45-47.
    6. Wei, Wenbin, 2006. "Impact of landing fees on airlines’ choice of aircraft size and service frequency in duopoly markets," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 288-292.
    7. Mathisen, T.A. & Jørgensen, F. & Solvoll, G., 2014. "Marginal costs pricing of airport operations in Norway," Research in Transportation Economics, Elsevier, vol. 45(C), pages 49-56.

    More about this item

    Keywords

    landing fee efficiency pricing;

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