The costs of peak-load demand: An application to Gran Canaria airport |
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| Authors: | Ofelia Betancor Juan Luis Jiménez M. Pilar Socorro |
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| Affiliation: | Economics of Infrastructure and Transport Group, Universidad de Las Palmas de Gran Canaria, Edificio de Ciencias Económicas y Empresariales, Campus Universitario de Tafira, 35017 Las Palmas, Gran Canaria, Spain;Department Strategy, Toulouse Business School, 31068 Toulouse, France;Hellenic Aviation Society, 6 Apostolidi Street, 14578 Ekali, Greece;Sauder School of Business, University of British Columbia, 2053 Main Mall, Vancouver, BC V6T 1Z2, Canada |
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| Abstract: | Many airports suffer from peak-load demand problems. To meet unconstrained demand at peak periods, they often invest in extra capacity that may be under used at other times. We use data from the airport in Gran Canaria to illustrate that costs associated with the peak-load problem are not only those related to the new investment. This paper provides a methodology for analyzing the costs arisen due to the peak-load demand, to explore alternative airport policies and to illustrate the problem of congestion at airport terminals. The results suggest that a situation in which airports differentiate charges by peak and off-peak days would be much desirable. |
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