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Pricing congestion for arriving flights at Chicago O'Hare Airport

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  • Ashley, Katherine
  • Savage, Ian
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    Abstract

    This paper estimates congestion fees for arriving flights at Chicago O'Hare Airport. The analysis finds that the level of congestion is only about a fifth of the magnitude of the congestion associated with departing flights. Congestion is much worse in poor weather conditions, and mitigating these weather delays is a primary objective of the current program to reconfigure the airfield. The analysis finds that the non-linearities inherent in models of congestion mean that even a very modest change in flight patterns reduces delays and congestion fees quite considerably.

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    Bibliographic Info

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

    Volume (Year): 16 (2010)
    Issue (Month): 1 ()
    Pages: 36-41

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    Handle: RePEc:eee:jaitra:v:16:y:2010:i:1:p:36-41

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

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    References

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    1. Jan K. Brueckner, 2002. "Airport Congestion When Carriers Have Market Power," American Economic Review, American Economic Association, vol. 92(5), pages 1357-1375, December.
    2. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
    3. Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
    4. Daniel, Joseph I. & Harback, Katherine Thomas, 2008. "(When) Do hub airlines internalize their self-imposed congestion delays?," Journal of Urban Economics, Elsevier, vol. 63(2), pages 583-612, March.
    5. James A. Brander & Anming Zhang, 1990. "Market Conduct in the Airline Industry: An Empirical Investigation," RAND Journal of Economics, The RAND Corporation, vol. 21(4), pages 567-583, Winter.
    6. Steven A. Morrison & Clifford Winston, 2007. "Another Look at Airport Congestion Pricing," American Economic Review, American Economic Association, vol. 97(5), pages 1970-1977, December.
    7. 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.
    8. Johnson, Tracy & Savage, Ian, 2006. "Departure delays, the pricing of congestion, and expansion proposals at Chicago O’Hare Airport," Journal of Air Transport Management, Elsevier, vol. 12(4), pages 182-190.
    9. Brueckner, Jan K. & Van Dender, Kurt, 2008. "Atomistic congestion tolls at concentrated airports? Seeking a unified view in the internalization debate," Journal of Urban Economics, Elsevier, vol. 64(2), pages 288-295, September.
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    Cited by:
    1. Swaroop, Prem & Zou, Bo & Ball, Michael O. & Hansen, Mark, 2012. "Do more US airports need slot controls? A welfare based approach to determine slot levels," Transportation Research Part B: Methodological, Elsevier, vol. 46(9), pages 1239-1259.

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