Airport quotas and peak hour pricing : theory and practice

Abstract

This report examines the leading theoretical studies not only of airport peak-hour pricing but also of the congestion costs associated with airport delays and presents a consistent formulation of both. The report also considers purely administrative measures, such as quotas, and hybrid systems which combine administrative and economic control techniques. These are all compared to the real-world situation and problems of implementation discussed. The actual experiences of the Port Authority of New York and New Jersey at the three major New York area airports and the British Airports Authority at Heathrow are then presented. Both organizations administer hybrid quota/ peak-hour pricing systems in conjunction with their respective air traffic control authorities. Their experience is compared with the theoretical analyses.