Congestion in European Airspace

Marianne Raffarin

Journal of Transport Economics and Policy, 2004, vol. 38, issue 1, 109-125

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

Date: 2004
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