Airport Operating Patterns, Airport Pricing And Price Regulation

In recent years,Chinese civil aviation industry has developed rapidly.According to the global airport throughput ranking in 2018,Beijing Capital International Airport,Shanghai Pudong International Airport and Guangzhou Baiyun International Airport have become the top 15 hub airports in the world.However,the service level of these Chinese airports is not advanced in the world.And many small and medium-sized airports are in deficit for years because of the low passenger demand.Compared with the international airports with high service level,the domestic airports are generally not highly commercialized,and non-aeronautical business revenues are relatively low.The majority of Chines airports,which are now operating some non-aeronautical projects themselves,are still exploring the non-aeronautical business franchise.At present,few studies discuss aeronautical charge and the operating patterns of the non-aeronautical business(self-operating and franchising),and airport regulation regimes(single-till and dull-till)together.Based on analyzing the operation of domestic and international airport,we firstly investigate the relationship between aeronautical business and non-aeronautical business by airport pricing model.Then we study the aeronautical charge and concession revenue management with different operating patterns separately for private airport and public airport.The results show that the franchise mode can effectively improve the profit-maximizing airport revenue,especially the social welfare.We can also obtain the optimal aeronautical charge for different airport operating patterns,and determines the optimal proportion of franchise revenue sharing.Finally,we explore the airport pricing under different airport regulation regimes.It is found that single-till regulation is prior to dull-till regulation in the terms of the social welfare.But dull-till regulation is good to maintain airport revenue and operating enthusiasm.In addition,introducing franchise mode will have no influence on airport revenue under single-till regulation and dual-till regulation price-cap,improve social welfare under regulation,airport throughput under single-till regulation,airport revenue under dual-till regulation.