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Pricing of ACT/ATM services through Bilevel programming approaches

Guettaf, Rabah and Mancel, Catherine and Larbani, Moussa and Mora-Camino, Felix (2010) Pricing of ACT/ATM services through Bilevel programming approaches. Journal of the Brazilian Air Transportation Research Society - JBATS , 6 (2). pp. 9-23. ISSN 18083331

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Abstract

In this study a multilevel framework is proposed to analyze the charges definition problem for an ATC/ATM service provider. Two cases are considered: a case in which the ATC/ATM service provider is a public company whose final objective is, while guaranteeing safety, to promote the level of end users demand, and a case in which the ATC/ATM service provider is a private company whose objective is to maximize her profit. In both cases this leads to the formulation of a bi-level optimization program involving the ATC/ATM service provider as the leader and the whole airline sector as the follower. Direct optimal solutions are obtained in the simplistic considered one dimensional case. Then in both cases, public or private, natural negotiation schemes between the ATC/ATM service provider and the airline sector are introduced. Sufficient conditions are established so that the proposed negotiation processes converge towards the respective optimal solutions while a compensation scheme is proposed to make the two solutions identical. This study provides a basis for the study of the ATC/ATM charge definition problem for more complex airspace market structures.

Item Type: Article (Journal)
Additional Information: 3917/13483
Uncontrolled Keywords: Pricing, air traffic management, air transportation, optimization, BiLevel programming
Subjects: H Social Sciences > HB Economic Theory > HB131 Methodology.Mathematical economics. Quantitative methods
Kulliyyahs/Centres/Divisions/Institutes: Kulliyyah of Economics and Management Sciences > Department of Business Administration
Depositing User: Professor Larbani Moussa
Date Deposited: 08 Jan 2012 08:05
Last Modified: 08 Jan 2012 08:05
URI: http://irep.iium.edu.my/id/eprint/13483

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