This study investigates airport congestion pricing and capacity investment with cost recovery consideration. Two countries’ airports are interlinked and served by each country’s home carrier. Our global welfare maximization shows that when per-passenger subsidies are not feasible under...

This study examines hub-carrier scheduling and hub-airport congestion pricing using a simple hub-spoke network model incorporating both schedule delays and congestion delays. We find that in the short-middle run, where aircraft size is given exogenously, hub-airport congestion tolls are not...

This article investigates airline pricing and airport congestion charges in hub-spoke networks. When a public hub airport and two public spoke (local) airports independently levy their charges, airlines will eventually set a ticket price that overcharges the passengers for congestion delay cost...