Flight-Based Congestion Pricing Considering Equilibrium Flights in Airport Airside
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Flight-Based Congestion Pricing Considering Equilibrium Flights in Airport Airside Bao-Cheng Zhang1 Received: 6 April 2019 / Revised: 27 January 2020 / Accepted: 15 April 2020 © Operations Research Society of China, Periodicals Agency of Shanghai University, Science Press, and Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Most of the previous works ignore the fact that equilibrium flights in self-profit maximization scenario are totally different from that in joint profit (social welfare) maximization scenario and take price difference (flight fare difference) between the two scenarios as congestion price, which is a passenger-based method. Most of all, the function of congestion pricing is to alleviate congestion by making airlines reduce flights at peak time. Therefore, the equilibrium flights under self-profit maximization should be the same as the ones under joint profit maximization after congestion prices are tolled. Flight-based congestion pricing method is provided in our paper. The analysis suggests no role for congestion pricing when total real flight production of all airlines is less than the equilibrium flights under joint profit maximization scenario. Otherwise, congestion tolls should be levied to all airlines. Furthermore, congestion price can be determined by solving the corresponding equations system. Keywords Flight-based congestion pricing · Cournot game · Equilibrium flight · Passenger-based congestion pricing · Aircraft type Mathematics Subject Classification 91A80
1 Introduction Air traffic delays have grown dramatically, and delays have plagued airline traffic in most of the large airports in the world. Solutions to the delay problem are now
This work was supported by the National Natural Science Foundation of China (No. 71571182), the Social Science and Humanity Fund of the Ministry of Education of China (No. 14YJC630185) and the Fundamental Research Funds for the Central Universities (No. 3122013C001).
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Bao-Cheng Zhang [email protected] School of Air Traffic Management, Civil Aviation University of China, Tianjin 300300, China
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widely discussed, such as schedule coordination mechanism [1], air traffic management [2,3] and yield management [4]. Following Refs. [5,6], a number of different airport congestion pricing models have appeared in the literature. Relying on a simulation model, Ref. [6] was the first to recognize the potential for internalization of congestion. References [5,7] explored the idea further using simple analytical models. References [8–10] provided further elaboration. Comprehensive empirical evidence in support of the internalization hypothesis was offered by Ref. [11], which showed that flight delays are lower at highly concentrated airports, where the dominant carrier is likely to internalize much of the congestion it creates, thus limiting its extent. Reference [12] presented a modeling framework for evaluating the sensitivity of airline schedules to the congestion pricing of airports. Reference [13] held that a sign
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