SETTING AIRPORT CHARGES AND THE WAY OF IMPLEMENTATION

Abstract

It is a strong trend in road traffic to implement pricing methods because of heavy congestions. In the same way as in an other transport sector, airport capacity needs to be priced in the congested areas in order to ascertain its efficient use. The aim of this paper is to analyse the possibilities of applying marginal cost pricing models by evaluating the airport charges. I also focus on the possibilities to increase the efficiency of capacity allocation, but it also must be seen in a wider perspective, how to ensure that airport infrastructure capacity is efficiently provided and used. In the first part I analyse the specific situation of airports, identify the factors, which determine the capacity of an airport. Then the currently used charging system will be presented and analysed. After this a theoretical approach will be presented; how to apply a new charging system based on marginal cost pricing. In the next chapter the purpose is to identify and assess the main barriers to the implementation of the new pricing principles and to recommend strategies to overcome these barriers. The paper focuses one specific cost aspect, the marginal capacity cost for using existing capacity at major airports. I therefore disregard possible problems with respect to cost recovery of airports that have sufficient capacity during most of the day.