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Airport Infrastructure for the Airbus A380: Cost Recovery and Pricing

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  • Peter Forsyth

Abstract

The introduction of the new large aircraft, the Airbus A380, will require investments by airports to enable them to handle it. These investments will be in the nature of sunk costs, such as in widening runways. As such they will pose problems for pricing, cost recovery, and investment evaluation. Short-run pricing efficiency involves not imposing any specific charge for the use of the aircraft, which will mean that users will not face the costs they impose. This, however, could create problems in terms of signals for investment. In addition, the ownership/regulatory environment within which most airports operate will further increase the incentives for excessive investment. © 2005 LSE and the University of Bath

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  • Peter Forsyth, 2005. "Airport Infrastructure for the Airbus A380: Cost Recovery and Pricing," Journal of Transport Economics and Policy, University of Bath, vol. 39(3), pages 341-362, September.
    • Handle: RePEc:tpe:jtecpo:v:39:y:2005:i:3:p:341-362
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    Cited by:

    1. Saremi, Maryam & Fallahi, Firouz & Pels, Eric & Salmani, Behzad & Covich, Mohsen Pourebadollahan, 2021. "Ramsey pricing of aircraft landing fees: A case study of Iranian airports," Research in Transportation Economics, Elsevier, vol. 90(C).
    2. Forsyth, Peter, 2007. "The impacts of emerging aviation trends on airport infrastructure," Journal of Air Transport Management, Elsevier, vol. 13(1), pages 45-52.
    3. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2013. "Demand uncertainty and airport capacity choice," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 91-104.
    4. Adam Hoszman & Paweł Zagraje, 2021. "Aircraft-Related Charges in European Airports: Determinants and Differentiation," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 157-171.
    5. Sheng, Dian & Li, Zhi-Chun & Xiao, Yi-bin & Fu, Xiaowen, 2015. "Slot auction in an airport network with demand uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 82(C), pages 79-100.
    6. Sun, Xiaoqian & Wandelt, Sebastian & Zhang, Anming, 2021. "Technological and educational challenges towards pandemic-resilient aviation," Transport Policy, Elsevier, vol. 114(C), pages 104-115.
    7. Xiao, Yi-bin & Fu, Xiaowen & Oum, Tae H. & Yan, Jia, 2017. "Modeling airport capacity choice with real options," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 93-114.
    8. Balliauw, Matteo & Onghena, Evy, 2020. "Expanding airport capacity of cities under uncertainty: Strategies to mitigate congestion," Journal of Air Transport Management, Elsevier, vol. 84(C).
    9. Xiao, Yibin & Fu, Xiaowen & Zhang, Anming, 2016. "Airport capacity choice under airport-airline vertical arrangements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 92(C), pages 298-309.

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