Ramsey pricing of aircraft landing fees: A case study of Iranian airports

Maryam Saremi, Firouz Fallahi*, Eric Pels, Behzad Salmani, Mohsen Pourebadollahan Covich

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

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Abstract

The aim of this paper is to calculate landing fees for five uncongested airports in Iran. To this end, a Ramsey pricing model is used, with focus on domestic flights. Marginal costs for different aircraft types, namely Fokker 100, Boeing MD83, and Airbus A320 are estimated. Next, these marginal costs are used to calculate the Ramsey fees for each aircraft type in Iran. The findings of this study indicate that an increase in the length of flight increases the Ramsey landing fees. Moreover, the calculated Ramsey landing fees for the flights with length of 800 km or less are lower than the current weight-based fees; while for the flights with length of 1200 km and more the Ramsey fees are higher than the current fees. The other finding is that the Ramsey fees for A320 is always lower than that of MD83 despite the fact that A320 has a higher maximum takeoff weight than the MD83.

Original languageEnglish
Article number100922
Pages (from-to)1-11
Number of pages11
JournalResearch in Transportation Economics
Volume90
Early online date30 Aug 2020
DOIs
Publication statusPublished - Dec 2021

Funding

The authors would like to thank the editor and four anonymous referees for their valuable comments, which substantially improved the quality and presentation of the paper. In addition, we are grateful to the Iran Airport Company for making the data available.

Keywords

  • Airports
  • Charges
  • Landing fees
  • Ramsey pricing

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