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Congestion in European Airspace

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  • Marianne Raffarin

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 between 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. © The London School of Economics and the University of Bath 2004

Suggested Citation

  • Marianne Raffarin, 2004. "Congestion in European Airspace," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 109-125, January.
    • Handle: RePEc:tpe:jtecpo:v:38:y:2004:i:1:p:109-125
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    Citations

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    Cited by:

    1. Basso, Leonardo J. & Zhang, Anming, 2008. "On the relationship between airport pricing models," Transportation Research Part B: Methodological, Elsevier, vol. 42(9), pages 725-735, November.
    2. Ivanov, Nikola & Jovanović, Radosav & Fichert, Frank & Strauss, Arne & Starita, Stefano & Babić, Obrad & Pavlović, Goran, 2019. "Coordinated capacity and demand management in a redesigned Air Traffic Management value-chain," Journal of Air Transport Management, Elsevier, vol. 75(C), pages 139-152.
    3. Samir Elhedhli & Huyu Wu, 2010. "A Lagrangean Heuristic for Hub-and-Spoke System Design with Capacity Selection and Congestion," INFORMS Journal on Computing, INFORMS, vol. 22(2), pages 282-296, May.
    4. Basso, Leonardo J., 2006. "Airport Ownership And Its Effects On Capacity And Price," 47th Annual Transportation Research Forum, New York, New York, March 23-25, 2006 208041, Transportation Research Forum.
    5. Jovanović, Radosav & Tošić, Vojin & Čangalović, Mirjana & Stanojević, Milan, 2014. "Anticipatory modulation of air navigation charges to balance the use of airspace network capacities," Transportation Research Part A: Policy and Practice, Elsevier, vol. 61(C), pages 84-99.
    6. van der Loo, Saskia & Heyndrickx, Christophe & Delhaye, Eef, 2023. "Split incentive problem in the uptake of new ATM technology," Journal of Air Transport Management, Elsevier, vol. 108(C).
    7. Pellegrini, Paola & Rodriguez, Joaquin, 2013. "Single European Sky and Single European Railway Area: A system level analysis of air and rail transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 64-86.
    8. Castelli, Lorenzo & Debels, Philippe & Ukovich, Walter, 2005. "Route-charging policies for a central European cross-border upper airspace," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 432-441.
    9. Bubalo, Branko & Gaggero, Alberto A., 2015. "Low-cost carrier competition and airline service quality in Europe," Transport Policy, Elsevier, vol. 43(C), pages 23-31.
    10. Goran Pavlović & Frank Fichert, 2019. "Effects of fragmentation on route charges," Competition and Regulation in Network Industries, , vol. 20(4), pages 290-304, December.
    11. Rabah Guettaf & Felix Mora-Camino, 2018. "Pricing schemes for air traffic services through multi-level approaches," Post-Print hal-02138628, HAL.

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