Document Type : Original Article

Authors

• Alireza Mahpour
• Amirhossein Baghestani
• Sahand Heshami

Faculty of Civil, Water, and Environmental Engineering Shahid Beheshti University, Tehran

Abstract

The paper aims to explore the optimal pricing of airport parking facilities, taking into account the amortization of construction costs for old airports. The paper applies a benefit-cost model to price the parking lot of Mehrabad Airport in Tehran, which is an old airport that has been operating since 1938. The paper collects data from the airport management on the annual costs and income of the contractors who rented the parking lot, and calculates the current profit and the equilibrium price of the parking services. The paper finds that the contractors have a high profit margin of 40% from the airport parking, which is unfair to the customers and the airport authority. The paper suggests some policy implications for the airport sector managers, such as regulating the quality and profit of parking services, adjusting the pricing to reflect the traffic conditions, and increasing the annual expenses and rent for the contractors. The paper concludes that these policies can improve the management and performance of the airport parking sector, and align with the interests and expectations of the stakeholders.

Keywords

• Airport
• Parking Pricing
• Transportation Infrastructure
• Benefit to Cost