Modulation of en-route charges to redistribute traffic in the European airspace

Peak-load pricing (PLP), a two-tariffs charging scheme commonly used in public transport and utilities, is tested on the European Air Traffic Management (ATM) system as a means for reducing capacity-demand imbalances. In particular, a centralised approach to PLP (CPLP) where a Central Planner (CP) sets en-route charges on the network is presented. CPLP consists of two phases: in the first, congested airspace sectors and their peak and off-peak hours are identified; in the second, CP assesses and sets en-route charges in order to reduce overall shift on the network. Such charges should guarantee that Air Navigation Service Providers (ANSPs) are able to recover their operational costs while inducing the Airspace Users (AUs) to route their flights in a way that respects airspace capacity. The interaction between CP and AUs is modelled as a Stackelberg game and formulated by means of bilevel linear programming. Two heuristic approaches, based on Coordinate-wise Descent and Genetic Algorithms are implemented to solve the CPLP model on a data set obtained from historical data for an entire day of traffic on European airspace. Results show that significant improvements in traffic distribution in terms of shift and sector load can be achieved through this simple en-route charges modulation scheme.