This study analytically compares the performance of ex ante price-cap airport regulation vs. ex post light-handed airport regulation in the presence of demand uncertainty. Our modeling results suggest that light-handed regulation is a promising method which may lead to higher welfare than...

Airlines often encounter two major problems in expanding their international networks: (1) restrictive Air Services Agreements (ASAs) governing airlines' commercial rights, and (2) slot / capacity constraints in foreign hub airports. Government interventions are needed to solve these problems,...

This paper investigates the effects of concession revenue sharing between an airport and its airlines. It is found that the degree of revenue sharing will be affected by how airlines' services are related to each other (complements, independent, or substitutes). In particular, when carriers...

This study analyzes the effects of demand uncertainty on airport capacity choices. It shows that demand uncertainty will not change optimal capacity choice if demand variation is low and capacity cost is high; otherwise the optimal airport capacity under demand uncertainty will be larger than...