Princing ATC/ATM services : Part II : the case of a private provider

Abstract : In this study a multilevel framework is proposed to analyze the charges definition problem for a private ATC/ATM service provider. 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. This solution is compared with the one obtained in the case of a public service provider maximising the level of end users demand. 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.