In Europe, all Air Navigation Service Providers (ANSPs) finance their activities by charging airlines using their airspace. These ‘en route charges’ usually account for a significant part of the cost of a flight, and they can therefore influence the route choice: airlines may decide to fly longer routes to avoid countries with higher charges. If ANSPs want to maximize their revenues, they must choose the optimal charge to impose on their airspace. We show that this optimal charge can be identified through a Network Pricing Problem (NPP) formulation in the form of Bilevel Programming where the leader (i.e. the ANSP) owns a set of arcs (the airways in its national airspace) and charges the commodities (i.e. the flights) passing through them. As the en route charges are proportional to a Unit Rate value fixed by the ANSP, we are able to apply a similar methodology as in the case of a single toll arc for the NPP. By exploiting the structure of the problem, we propose an exact algorithm to compute the optimal Unit Rate and apply it to a case study relying on real air traffic data and realistic flight cost figures.

En route charges for ANSP revenue maximization

CASTELLI, LORENZO
2010-01-01

Abstract

In Europe, all Air Navigation Service Providers (ANSPs) finance their activities by charging airlines using their airspace. These ‘en route charges’ usually account for a significant part of the cost of a flight, and they can therefore influence the route choice: airlines may decide to fly longer routes to avoid countries with higher charges. If ANSPs want to maximize their revenues, they must choose the optimal charge to impose on their airspace. We show that this optimal charge can be identified through a Network Pricing Problem (NPP) formulation in the form of Bilevel Programming where the leader (i.e. the ANSP) owns a set of arcs (the airways in its national airspace) and charges the commodities (i.e. the flights) passing through them. As the en route charges are proportional to a Unit Rate value fixed by the ANSP, we are able to apply a similar methodology as in the case of a single toll arc for the NPP. By exploiting the structure of the problem, we propose an exact algorithm to compute the optimal Unit Rate and apply it to a case study relying on real air traffic data and realistic flight cost figures.
2010
9781450714686
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11368/2298822
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