| Property | Value |
| Name | De Neufville, R. and Odoni, A. (2006). What is demand management? |
| Description | De Neufville, R. and Odoni, A. (2006). What is demand management? Airport systems, Chapter 12, page 461-495
The main feature of the purely administrative approach is the schedule coordination. This could only effective at mildly congested airports and in regulatory environments where change is slow and gradual. In a dynamic, deregulated environment and at airports facing severe congestion, purely administrative procedures will unavoidably lead to significant market distortion in the long run and will inhibit competition. In the purely economic approach airport users should be forced to internalize the external costs imposed by their use of the facility. In this case it's possible to optimize use of a congested facility. Congestion pricing can be particularly effective at airports where traffic is nonhomogeneous and is not dominated by one or two carriers. It is difficult to apply this congestion pricing in practice, both for technical and political reasons. As a result, the congestion-related landing fee schedules that have been implemented to date impose relatively low tolls on peak-period operations and are greatly simplified in structure. Hybrid demand management systems combine elements of administrative and economic approaches. Their common characteristic is the use of administrative procedures to specify the number of slots available at an airport. Economic devices are congestion pricing, slot markets and slot auctions to arrive at the final allocation of slots. Several airports use already a combination of this. The concept of "buy-and-sell" slots is also interesting. However, it's difficult to distinguish who the original owner or "provider" of airport slots is. Auctioning of airport slots is an idea that is largely unexplored in practice and whose application entails many complications. Interest in airport demand management is growing quickly throughout the world. It will probably expand in the future, with hybrid systems likely to be widely adopted. |
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| Created On: | 12/07/2007 12:17 |
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