Congestion Pricing in Two-airport System with Commercial Operations

This paper studies the congestion pricing in a two-airport system with concession revenues, and analyses the influences of the market propertities on the optimal charge. The main purpose is to help understand the microeconomic behavior of the three parts in the air transportation market and analyse the effect of concession revenues on the optimal charge. We assumed constant return to scale of capacity and linear delay function in our basic model, and separated the effects of congestion on passengers and carriers.