Princing ATC/ATM services : Part I : the case of a public provider

Abstract : In this study a multilevel framework is proposed to analyze the charges definition problem for a public ATC/ATM service provider whose final objective is, while guarranteeing safety, to promote the level of end users demand. This leads to the formulation of a bi-level optimization program involving ATC/ATM service provider as the leader and the whole airline sector as the follower. A direct optimal solution has been obtained in the simplistic considered one dimensional case. Then a natural negotiation process between the ATC/ATM service provider and the airline sector is introduced. Sufficient conditions are established so that the proposed negotiation process converges towards the optimal solution.