Skip to main content

Sequential peak-load pricing: the case of airports and airlines

Buy Article:

$43.00 plus tax (Refund Policy)


We investigate airport peak-load pricing using a vertical structure of airport and airlines. We find that a profit-maximizing airport would charge higher peak and off-peak runway prices and a higher peak/off-peak price differential than a public airport. Consequently, airport privatization would lead to both fewer total passengers and fewer passengers in the peak period. Although peak-travelling passengers benefit from fewer delays, this low level of peak congestion is not efficient, suggesting that airport privatization cannot be judged based on its effect on congestion alone. We also examine pricing behaviour of a public airport constrained to charge a time independent price.
No References
No Citations
No Supplementary Data
No Article Media
No Metrics

Keywords: H23; L50; L93

Document Type: Research Article

Affiliations: 1: Department of Civil Engineering, Universidad de Chile 2: Sauder School of Business, University of British Columbia

Publication date: 2008-08-01

  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more