Universitat Rovira i Virgili
Universitat Rovira i Virgili. Departament d'Economia
2009
Hub congestion is a major problem and a relevant policy issue because it causes delays and many organizational problems at airports that end up implying unpleasant consequences both for air travelers and airlines. In a competitive framework in which carriers choose aircraft size, this paper suggests that airlines schedule too many flights using overly small aircraft, which constitutes a major contributor to congestion. Two- part congestion tolls, accounting for the congestion imposed on other carriers and the congestion imposed on all passengers, are needed to recover e¢ ciency. Finally, we analyze the validity of the results by studying the effects of network size, airport capacity, competition in layover time, and the formation of airline alliances. Keywords: congestion; hub-and-spoke networks; overprovision of frequency; con- gestion internalization; congestion tolls JEL Classiffication Numbers: L13; L2; L93
English
338 - Economic situation. Economic policy. Management of the economy. Economic planning. Production. Services. Prices
Oligopolis; Organització industrial; Aviació comercial; Aeroports-Direcció i administració
31
546210 bytes
Documents de treball del Departament d'Economia; 2009-04
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