The noise charge has been generally introduced at major airports in order to internalize noise externalities. This research aims to investigate the airline network design considering aircraft noise charge, and to analyze the performance of airport noise charge policy from multiple perspectives. The study formulates an airline network design model by minimizing airline operating cost to determine the optimal air routes and flight frequencies and aircraft types in response to airport noise charge. Then, the study further formulates a model to assess the performance of different noise charge policies by evaluating changes in airport operating profits and the welfare of airport residents nearby. An empirical example for the Chiang Kai-Shek (CKS) International Airport illustrates how airport should determine the optimal noise charge policy from different perspectives.
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