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Congestion in European Airspace

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  • Marianne Raffarin

Abstract

This article deals with Air Traffic Control (ATC) pricing as a means of sorting out the European airspace congestion problem. For several years the situation has been worsening. Insufficient capacity of the ATC system, poor coordination between European ATC providers, and a high traffic level, as a consequence of economic growth, price competition, and hub-and-spoke organisation, explain a congested sky. The present ATC pricing rule is not designed to solve this problem. Components of this rule do not give airlines incentives to modify their choices. The article makes a proposal for a new rule, so that the airlines' equilibrium choices are also optimal choices, from a social point of view. © The London School of Economics and the University of Bath 2004

Suggested Citation

  • Marianne Raffarin, 2004. "Congestion in European Airspace," Journal of Transport Economics and Policy, University of Bath, vol. 38(1), pages 109-125, January.
  • Handle: RePEc:tpe:jtecpo:v:38:y:2004:i:1:p:109-125
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    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20040101)38:1L.109;1-
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    Cited by:

    1. Bubalo, Branko & Gaggero, Alberto A., 2015. "Low-cost carrier competition and airline service quality in Europe," Transport Policy, Elsevier, vol. 43(C), pages 23-31.

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