Projected Federal Aviation Administration (FAA) costs are allocated to users of the air traffic control system as part of the study on Airport and Airway Costs and User Cost Responsibility during the period FY77-FY86. A review of the economic theory of cost allocation is conducted including the procedures explored in a previous 1973 Cost Allocation Study. A modified version of the long-run marginal cost approach is selected as the preferred methodology. This method is combined with engineering techniques to develop a set of allocation procedures for each of the FAA budget categories. The cost responsibility of air carrier, general aviation and military (including government) user groups are then determined by applying the procedures to two different sets of cost projections; (1) a baseline set assuming continuation on historical relationships between FAA expenditures and user activity and (2) an alternative set assuming introduction of planned air traffic control enhancements. (Author)
Airport and Airway System Cost Allocation. Volume 4
1977
117 pages
Report
No indication
English