Economics at your fingertips  

Pricing the major hub airports

Joseph Daniel and Katherine Harback
Additional contact information
Katherine Harback: MITRE Center for Advanced Aviation System Development

No 08-13, Working Papers from University of Delaware, Department of Economics

Abstract: Implementing congestion pricing at twenty-seven major US airports would reduce delays by thirteen passenger-years and one thousand aircraft-hours every day, saving three to five million dollars. Chicago and Atlanta would save about one thousand dollars per aircraft. Airport revenues would increase about eleven million dollars daily. A bottleneck model with stochastic queues estimates substantial welfare gains whether or not airlines internalize self-imposed delays. Erroneously imposing fees from the non-internalizing specification on internalizing airlines, however, would be a costly mistake. The model calculates equilibrium traffic rates, queuing delays, layover times, connection times, and congestion fee schedules by minute of the day.

Keywords: airport congestion pricing; stochastic queuing; bottleneck model. (search for similar items in EconPapers)
JEL-codes: H2 L5 L9 R4 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Published in Journal of Urban Economics.

Downloads: (external link) ... 2008/UDWP2008-13.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found ( [301 Moved Permanently]-->

Related works:
Journal Article: Pricing the major US hub airports (2009) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this paper

More papers in Working Papers from University of Delaware, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Saul Hoffman ().

Page updated 2023-11-30
Handle: RePEc:dlw:wpaper:08-13.