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Congestion in European Airspace : a pricing solution ?

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  • Marianne Raffarin

    (LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien - ENAC - Ecole Nationale de l'Aviation Civile)

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.

Suggested Citation

  • Marianne Raffarin, 2004. "Congestion in European Airspace : a pricing solution ?," Post-Print hal-01021572, HAL.
    • Handle: RePEc:hal:journl:hal-01021572
    Note: View the original document on HAL open archive server: https://enac.hal.science/hal-01021572
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    References listed on IDEAS

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    1. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1993. "A Structural Model of Peak-Period Congestion: A Traffic Bottleneck with Elastic Demand," American Economic Review, American Economic Association, vol. 83(1), pages 161-179, March.
    2. Vickrey, William S, 1969. "Congestion Theory and Transport Investment," American Economic Review, American Economic Association, vol. 59(2), pages 251-260, May.
    3. Steven A. Morrison & Clifford Winston, 1989. "Enhancing the Performance of the Deregulated Air Transportation System," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989 Micr), pages 61-123.
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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. 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.
    3. Bolić, Tatjana & Castelli, Lorenzo & Corolli, Luca & Rigonat, Desirée, 2017. "Reducing ATFM delays through strategic flight planning," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 98(C), pages 42-59.
    4. 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.
    5. 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).
    6. 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.
    7. Goran Pavlović & Frank Fichert, 2019. "Effects of fragmentation on route charges," Competition and Regulation in Network Industries, , vol. 20(4), pages 290-304, December.
    8. Rabah Guettaf & Felix Mora-Camino, 2018. "Pricing schemes for air traffic services through multi-level approaches," Post-Print hal-02138628, HAL.
    9. 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.
    10. 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.
    11. Marufuzzaman, Mohammad & Ekşioğlu, Sandra Duni, 2017. "Managing congestion in supply chains via dynamic freight routing: An application in the biomass supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 54-76.
    12. 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.
    13. 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.

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