Marginal Cost Pricing of Airport Runway Capacity.
An examination of the costs of congestion delay at La Guardia Airport, New York, and possible changes in fees to reduce them. At present, each additional airliner arriving or departing between 3:00 and 4:00 p.m. imposes an average of $1,000 in delay costs on other users, and one more non-airline plane costs others more than $500. Full marginal cost pricing, imposing congestion tolls, is probably infeasible, in part because airline lessees must agree to any change to the present weight-based fees. Therefore, a proportional marginal cost pricing system is proposed that would not raise total airline costs but would tend to discourage low-value general aviation at peak hours. Administrative measures to encourage efficiency would still be needed. 28 pp. Ref.