The Paper challenges the common supposition that (scarcity) rents at Heathrow airport accrue from airlines charging … if Heathrow airlines matched the average load factors of those at London's other major airport, Gatwick, average fares …

congestion levels currently experienced at many airports. Several characteristics of aviation markets, however, may make naive … congestion prices equal to the value of marginal travel delays a non-optimal response. This paper develops a model of airport … airports in an international network will typically not be regulated by the same authority. We present an analytical treatment …