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Ramsey pricing of aircraft landing fees: A case study of Iranian airports

Author

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  • Saremi, Maryam
  • Fallahi, Firouz
  • Pels, Eric
  • Salmani, Behzad
  • Covich, Mohsen Pourebadollahan

Abstract

The aim of this paper is to calculate landing fees for five uncongested airports in Iran. To this end, a Ramsey pricing model is used, with focus on domestic flights. Marginal costs for different aircraft types, namely Fokker 100, Boeing MD83, and Airbus A320 are estimated. Next, these marginal costs are used to calculate the Ramsey fees for each aircraft type in Iran. The findings of this study indicate that an increase in the length of flight increases the Ramsey landing fees. Moreover, the calculated Ramsey landing fees for the flights with length of 800 km or less are lower than the current weight-based fees; while for the flights with length of 1200 km and more the Ramsey fees are higher than the current fees. The other finding is that the Ramsey fees for A320 is always lower than that of MD83 despite the fact that A320 has a higher maximum takeoff weight than the MD83.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:retrec:v:90:y:2021:i:c:s0739885920301207
    DOI: 10.1016/j.retrec.2020.100922
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    More about this item

    Keywords

    Airports; Charges; Landing fees; Ramsey pricing;
    All these keywords.

    JEL classification:

    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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