Anticipatory modulation of air navigation charges to balance the use of airspace network capacities

• We use charging incentives to align airlines’ route choices with available airspace capacities.
• Method in accordance with EU legislation on ANS charging.
• Bi-level optimisation reconciles perspectives of network manager and individual users.
• Revenue-neutral modulation of charges yields a more efficient use of available capacities.
• Potential barriers to implementation discussed.

Excess of air traffic demand over available capacity in certain segments of the European airspace network typically results in substantial delays imposed on airspace users, despite a possible parallel existence of underutilised adjacent network segments. Recent EU legislation lays down a performance scheme for air navigation services (ANS) and network functions, in an attempt to improve overall efficiency of the ANS, across the areas of safety, environment, capacity and cost-efficiency. It sets a framework for a possible introduction of incentive schemes which would drive the behaviour of involved stakeholders towards meeting the established performance objectives. In such a context, this paper examines an economic concept to incentivise a more efficient use of available network capacities. We put forward a method and develop a model for an anticipatory, time-dependent modulation of ANS charges, aiming to alleviate the demand-capacity imbalance on an airspace network, at minimal cost to airspace users. The proposed method is conceptualised as a bi-level optimisation problem, reconciling the perspectives of network manager and individual network users. The results of a medium-scale real-life case study indicate that an imposition of a revenue-neutral matrix of tolls and rebates on a congested airspace network may yield a fairly equitable route assignment, which seems capacity-wise more efficient than current administrative demand management practices.