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Departure delays, the pricing of congestion, and expansion proposals at Chicago O’Hare Airport

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  • Johnson, Tracy
  • Savage, Ian
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    Abstract

    Chicago's O’Hare airport is extremely congested, especially in the late afternoon and early evening. The paper uses a publicly available database to estimate the relationship between the number of flights wishing to depart and the delays they experience. This relationship is used to calculate congestion fees that provide airlines with incentives to move some flights out of the peak period and to slightly alter the scheduled departure time of other flights to avoid the rush of departures that occur on the hour. The very high fees at certain times of day point to the benefits that can be obtained from current plans to expand and reconfigure the airport to reduce delays in both good and bad weather.

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    File URL: http://www.sciencedirect.com/science/article/pii/S096969970600007X
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Air Transport Management.

    Volume (Year): 12 (2006)
    Issue (Month): 4 ()
    Pages: 182-190

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    Handle: RePEc:eee:jaitra:v:12:y:2006:i:4:p:182-190

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    Web page: http://www.journals.elsevier.com/journal-of-air-transport-management/

    Related research

    Keywords: Airports; Landing fees; Congestion; Chicago;

    References

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    1. Schank, Joshua L., 2005. "Solving airside airport congestion: Why peak runway pricing is not working," Journal of Air Transport Management, Elsevier, vol. 11(6), pages 417-425.
    2. Daniel, Joseph I, 1995. "Congestion Pricing and Capacity of Large Hub Airports: A Bottleneck Model with Stochastic Queues," Econometrica, Econometric Society, vol. 63(2), pages 327-70, March.
    3. Karlsson, Joakim & Odoni, Amedeo & Yamanaka, Shiro, 2004. "The impact of infrastructure-related taxes and fees on domestic airline fares in the US," Journal of Air Transport Management, Elsevier, vol. 10(4), pages 283-291.
    4. Brueckner, Jan K., 2005. "Internalization of airport congestion: A network analysis," International Journal of Industrial Organization, Elsevier, vol. 23(7-8), pages 599-614, September.
    5. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
    6. Daniel, Joseph I. & Pahwa, Munish, 2000. "Comparison of Three Empirical Models of Airport Congestion Pricing," Journal of Urban Economics, Elsevier, vol. 47(1), pages 1-38, January.
    7. Brueckner, Jan K, 2002. "Internalization of airport congestion," Journal of Air Transport Management, Elsevier, vol. 8(3), pages 141-147.
    8. Starkie, David, 1998. "Allocating airport slots: a role for the market?," Journal of Air Transport Management, Elsevier, vol. 4(2), pages 111-116.
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    Citations

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    Cited by:
    1. Adler, Nicole & Gellman, Aaron, 2012. "Strategies for managing risk in a changing aviation environment," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 24-35.
    2. Brueckner, Jan K., 2009. "Price vs. quantity-based approaches to airport congestion management," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 681-690, June.
    3. Ashley, Katherine & Savage, Ian, 2010. "Pricing congestion for arriving flights at Chicago O'Hare Airport," Journal of Air Transport Management, Elsevier, vol. 16(1), pages 36-41.
    4. Zhang, Shengrun & Derudder, Ben & Witlox, Frank, 2013. "The impact of hub hierarchy and market competition on airfare pricing in US hub-to-hub markets," Journal of Air Transport Management, Elsevier, vol. 32(C), pages 65-70.
    5. Zhang, Anming & Zhang, Yimin, 2010. "Airport capacity and congestion pricing with both aeronautical and commercial operations," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 404-413, March.
    6. Moshe Givoni & Piet Rietveld, 2006. "Choice of Aircraft Size - Explanations and Implications," Tinbergen Institute Discussion Papers 06-113/3, Tinbergen Institute.

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