Performance assessment for airport noise charge policies and airline network adjustment response

Abstract

Noise charges have been introduced at major airports to mitigate external noise. This research investigated airline network design, by considering aircraft noise charges, and analyzing the performance of airport noise charge policies, from multiple perspectives. We formulated an airline network design model for minimizing airline operating costs, to determine optimal air routes and flight frequencies, as well as types of aircraft, in response to airport noise charges. We further assessed the performance of different noise charge policies by evaluating changes in airport operating profits and the social cost to residents surrounding the airport. An empirical example, using the Chiang Kai-Shek International Airport, illustrates how airports should determine optimal noise charge policies, from different perspectives. The results show that airlines may adjust types of aircraft, flight frequencies and flight routes, in response to hub airport noise charge policies, which may lead to changes in social costs, airport revenues, and weekly aircraft schedules. Landing fees setting may, in addition, affect the control an airport has over social costs, due to noise surcharges.