Conventional economic wisdom suggests that congestion pricing would be an appropriate response to cope with the growing congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive congestion prices equal to the value of marginal...

In the paper a nested logit model is used to describe passenger preferencesconcerning airports and airlines. A statistical model for the passengers'sequential choice of airport and airline is calibrated. It appears that thechoice sequence first airport, then airline is statistically preferable...