Managing airport charges under the multiple hub network with high speed rail: Considering capacity and gateway function

This paper aims to identify a better way of managing airport charges to improve social welfare. In particular, we consider the system of two hubs that connect high speed rail (HSR). We apply the bi-level air transport model, which includes the behavior of carriers, passengers, and airports. We analyze various scenarios of airport charges in hub airports. The results suggest that (i) maximization of airports' profit by coordinating airport charges can be compatible with the improvement of social welfare under the multiple hub system, when the runway capacity constraint at a busy airport is not strict, but that situation exists under a particular charging scheme; (ii) considering the profitability, there exists definite though limited possibility of cooperation between airlines and HSR.