Owen's coalitional value and aircraft landing fees

In this paper we analyze the determination of aircraft landing fees. For this purpose we use the model of games with a system of unions and the Owen value. We provide an axiomatic characterization of the Owen value that is applicable in situations where only the systems of unions are subject to change. We argue that this is an appropriate approach as the industry is organized as a system of airlines. We illustrate our analysis by describing the situation at Labacolla airport in Santiago de Compostela, Spain. (C) 1997 Elsevier Science B.V.