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Optimal Contract for Reducing Flight Delays in EU: In the Context of SESAR

Author

Listed:
  • Estelle Malavolti

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, ENAC - Ecole Nationale de l'Aviation Civile)

  • Chunan Wang

    (BUAA - Beihang University)

Abstract

In the context of the SESAR (Single European Sky Air traffic management Research) Joint Undertaking, the role that the air navigation service provider (ANSP) could play has been reconsidered. ANSP manages traffic and deals with potential conflict situations and external events, which have led to the reorganization of the air traffic. The modification of traffic inevitably leads to delays for airlines, which is costly. In this study, we suggest that ANSP could provide a costly delay reduction service to airlines. Indeed, if ANSP has several solutions for traffic conflict resolution or reorganization, there is room for a choice between these solutions using additional criteria. Our study thus proposes an original model in which we determine the optimal design of a delay reduction contract signed between welfare- or profit-maximizing ANSPs and a monopoly airline. We give some comparative statics, in particular, the evaluation of the impact of a modification in safety standards on the contract.

Suggested Citation

  • Estelle Malavolti & Chunan Wang, 2022. "Optimal Contract for Reducing Flight Delays in EU: In the Context of SESAR," Post-Print hal-03555363, HAL.
    • Handle: RePEc:hal:journl:hal-03555363
    DOI: 10.1155/2022/8372764
    Note: View the original document on HAL open archive server: https://hal.science/hal-03555363v1
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