This paper explores the effect of airline emissions charges on airfares, airline service quality, aircraft design features, and network structure, using a detailed and realistic theoretical model of competing duopoly airlines. These impacts are derived by analyzing the effects of an increase in...

This paper investigates the effects of concession revenue sharing between an airport and its airlines. It is found that the degree of revenue sharing will be affected by how airlines' services are related to each other (complements, independent, or substitutes). In particular, when carriers...

We consider a public and congested airport served by airlines that may have market power, and two types of travelers with different relative values of time. We find that in the absence of passenger-type-based price discrimination by airlines, it can be useful to increase the airport charge so as...

This paper analyzes the effects of cooperation between a hub-and-spoke airline and a high-speed rail (HSR) operator when the hub airport may be capacity-constrained. We find that such cooperation reduces traffic in markets where prior modal competition occurs, but may increase traffic in other...

This study analyzes the effects of demand uncertainty on airport capacity choices. It shows that demand uncertainty will not change optimal capacity choice if demand variation is low and capacity cost is high; otherwise the optimal airport capacity under demand uncertainty will be larger than...

This paper investigates the effects of competition between air transport and high-speed rail (HSR). While airlines are assumed to maximize profit, HSR may maximize a weighted sum of profit and social welfare. We show that both airfare and HSR fare fall as the weight of welfare in the HSR’s...

This paper extends the literature on airport congestion pricing by allowing carriers to price-discriminate between the business and leisure passengers when operating costs are the same for all passengers. The main results are: First, the second-best discriminating business fare exceeds the...

This paper analyzes pricing and slot-allocation mechanisms to manage airport capacity when profits are important to an airport, owing to budget constraints or profit maximization. We find that congestion pricing and slot trading/slot auctioning do not lead to the same results. Total traffic is...

In this paper, we study airport decisions on pricing and capacity investment with both aeronautical and concession operations. In addition, the airport under consideration is serving air carriers who have market power. We find that a profit-maximizing airport would over-invest in capacity in the...

Airport pricing papers can be divided into two approaches. In the traditional approach the demand for airport services depends on airport charges and on congestion costs of both passengers and airlines; the airline market is not formally modeled. In the vertical-structure approach instead,...