Knowledge that Transforms

The report explores the possibility of relieving the congestion and optimizing the use of airport runways by imposing marginal cost pricing or congestion tolls. Other short-term solutions are only briefly considered. New York's LaGuardia Airport is used as the primary example. It is concluded that proportional marginal cost pricing is preferable on efficiency grounds to the present weight-based service pricing used at most airports. Carrier load factors would have to be increased to more efficient levels by administrative measures.