Examines flight allocation among multiple airports in a metropolitan area, revealing regulatory implications for service and charges.
This study deals with the allocation of international and domestic flights (allocation of services) among multiple airports in a metropolitan area. We examine three types of airport operation: 1. separate operation by two private firms ( PP ); 2. integrated operation by a single private firm ( M ); and 3. integrated operation by the government ( G ). By means of numerical simulations, we obtain the following results: (a) the allocation of services varies with the location of airports and types of operation; (b) the welfare gain of the service choice regulation is quantitatively small compared with the airport charge regulation.
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MUN et al. (2012) studied this question.
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