Landing fees at many airports are based on aircraft weight. However, these fees do not accurately measure the cost associated with a landing or takeoff. This is because the opportunity cost of a plane using a runway primarily reflects the amount of time that other aircraft no longer have access to the runway, and this amount of time is largely independent of the weight of a plane. If landing fees at heavily used airports are set below market- clearing levels and are based on aircraft weight, explain why there may be some significant costs associated with such an approach.

  • CreatedNovember 14, 2014
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