Congestion in European Airspace : a pricing solution ?

Marianne Raffarin (1)

1 LEEA - ENAC - Laboratoire d'Economie et d'Econométrie de l'Aérien

This article deals with Air Traffic Control (ATC) pricing as a means of sorting out the European airspace congestion problem. For several years the situation has been worsening. Insufficient capacity of the ATC system, poor coordination between European ATC providers, and a high traffic level, as a consequence of economic growth, price competition, and hub-and-spoke organisation, explain a congested sky. The present ATC pricing rule is not designed to solve this problem. Components of this rule do not give airlines incentives to modify their choices. The article makes a proposal for a new rule, so that the airlines' equilibrium choices are also optimal choices, from a social point of view.

Domaines: Sciences de l'Homme et Société; Economies et finances

Marianne Raffarin. Congestion in European Airspace : a pricing solution ?. Journal of Transport Economics and Policy, 2004, 38 (1), pp 109-125. ⟨hal-01021572⟩