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Impact of landing fees on airlines’ choice of aircraft size and service frequency in duopoly markets

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  • Wei, Wenbin

Abstract

A one-shot simultaneous game-theoretic model is applied in a duopoly market to investigate how airport landing fees could influence airlines’ decisions on aircraft size and service frequency. It is found that higher landing fees will force airlines to use larger aircraft and less frequency, with higher load factor for the same number of passengers. It is also found that airlines will be better off if some of the extra landing fees are returned to airlines as a bonus for airlines using larger aircraft, which consequently reduces airport congestion.

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  • Wei, Wenbin, 2006. "Impact of landing fees on airlines’ choice of aircraft size and service frequency in duopoly markets," Journal of Air Transport Management, Elsevier, vol. 12(6), pages 288-292.
    • Handle: RePEc:eee:jaitra:v:12:y:2006:i:6:p:288-292
    DOI: 10.1016/j.jairtraman.2006.07.008
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    References listed on IDEAS

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    Cited by:

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    2. Chen, Wei-Ting & Huang, Kuancheng & Ardiansyah, Muhammad Nashir, 2018. "A mathematical programming model for aircraft leasing decisions," Journal of Air Transport Management, Elsevier, vol. 69(C), pages 15-25.
    3. Givoni, Moshe & Rietveld, Piet, 2009. "Airline's choice of aircraft size - Explanations and implications," Transportation Research Part A: Policy and Practice, Elsevier, vol. 43(5), pages 500-510, June.
    4. Presto, Felix & Gollnick, Volker & Lau, Alexander & Lütjens, Klaus, 2022. "Flight frequency regulation and its temporal implications," Transport Policy, Elsevier, vol. 116(C), pages 106-118.
    5. Zakharenko, Roman & Luttmann, Alexander, 2023. "Downsizing the jet: A forecast of economic effects of increased automation in aviation," Transportation Research Part B: Methodological, Elsevier, vol. 170(C), pages 25-47.

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