Pricing schemes for air traffic services through multi-level approaches. Issue 1 (7th August 2020)

• Record Type: Journal Article
• Authors: Guettaf, Rabah; Mora-Camino, Félix
• Is Part Of: Applied computing and informatics. Volume 17:Issue 1(2021)
• Page Start: 90
• Page End: 107
• Publication Date: 2020-08-07
• Subjects: Quadratic optimization -- Flows optimization in networks -- Pricing -- Air traffic services; Information science -- Periodicals; Information storage and retrieval systems -- Periodicals; 004
• DOI: 10.1016/j.aci.2018.07.001
• Languages: English
• ISSNs: 2210-8327

Abstract

Abstract : This article addresses the problem of air traffic service (ATS) pricing over a domestic air transportation system with either private or public ATS providers. In both cases, to take into account feedback effects on the air transportation market, it is considered that the adopted pricing approaches can be formulated through optimization problems where an imbedded optimization problem is concerned with the supply of air transportation (offered seat capacity and tariffs for each connection). Under mild assumptions in both situations the whole problem can be reformulated as a mathematical program with linear objective function and quadratic constraints. A numerical application is performed to compare both pricing schemes when different levels of taxes are applied to air carriers and passengers.