(When) Do hub airlines internalize their self-imposed congestion delays?

Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why All Delays Are Not Evil

We examine two factors that might explain the extent of air traffic delays in the United States: network benefits due to hubbing and congestion externalities. Airline hubs enable passengers to cross-connect to many destinations, thus creating network benefits that increase in the number of markets served from the hub. Delays are the equilibrium outcome of a hub airline equating high marginal be...

The Deterministic Bottleneck Model with Non-Atomistic Traffic

This paper investigates the conditions under which dominant airlines internalize self-imposed delays in a deterministic bottleneck model of airport pricing, complementing the similar analysis of Brueckner and Van Dender (BVD, 2008) for the standard congestion-pricing model. A unified model of bottleneck tolling includes untolled, uniform-, coarse-, multi-step-, and continuous-toll equilibria as...

Arrival and Departure Scheduling at Hub Airports Considering Airlines Level

As the air traffic increases at a hub airport, some flights cannot land or depart at their preferred target time. This event happens because the airport runways become occupied to near their capacity. It results in extra costs for both passengers and airlines because of the loss of connecting flights or more waiting, more fuel consumption, rescheduling crew members, etc. Hence, devising an appr...

“ What hurts the dominant airlines at hub airports ? ”

Hub and Network Pricing in the Northwest Airlines Domestic System