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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

Suggested Citation

  • 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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    References listed on IDEAS

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    1. Baer, Christopher T. & Klein, Daniel B. & Majewski, John, 1992. "From Trunk to Branch: Toll Roads in New York, 1800-1860," University of California Transportation Center, Working Papers qt9pv183b2, University of California Transportation Center.
    2. David M. Levinson, 2002. "Financing Transportation Networks," Books, Edward Elgar Publishing, number 2308, April.
    3. Fielding, Gordon J. & Klein, Daniel B., 1993. "How To Franchise Highways," University of California Transportation Center, Working Papers qt79z9x6fs, University of California Transportation Center.
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    Cited by:

    1. 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.
    2. 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.
    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. repec:eee:transb:v:100:y:2017:i:c:p:93-114 is not listed on IDEAS
    5. Forsyth, Peter, 2007. "The impacts of emerging aviation trends on airport infrastructure," Journal of Air Transport Management, Elsevier, vol. 13(1), pages 45-52.

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