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Secondary trading of airport slots as a combinatorial exchange

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  • Pellegrini, Paola
  • Castelli, Lorenzo
  • Pesenti, Raffaele

Abstract

In our research we propose a market formalization of secondary trading of airport slots. This proposed market is managed through an individual rational and budget balanced combinatorial slot exchange. The suggested market mechanism allows consideration of en-route sector capacities during the slot allocation process. We quantify the potential advantage of the market by comparing it with current practice. The results show that solutions that appear optimal when neglecting en-route sector capacities can be infeasible when taking capacities into account. Finally, in the proposed market the existence of grandfather rights does not seem to affect airline costs in a significant way.

Suggested Citation

  • Pellegrini, Paola & Castelli, Lorenzo & Pesenti, Raffaele, 2012. "Secondary trading of airport slots as a combinatorial exchange," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 1009-1022.
    • Handle: RePEc:eee:transe:v:48:y:2012:i:5:p:1009-1022
    DOI: 10.1016/j.tre.2012.03.004
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    Cited by:

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    3. Martin Bichler & Douglas Ferrell & Vladimir Fux & Jacob K. Goeree, 2019. "Designing Environmental Markets for Trading Catch Shares," Interfaces, INFORMS, vol. 49(5), pages 324-337, September.
    4. Fukui, Hideki, 2019. "How do slot restrictions affect airfares? New evidence from the US airline industry," Economics of Transportation, Elsevier, vol. 17(C), pages 51-71.
    5. Cavusoglu, Sabriye Sera & Macário, Rosário, 2021. "Minimum delay or maximum efficiency? Rising productivity of available capacity at airports: Review of current practice and future needs," Journal of Air Transport Management, Elsevier, vol. 90(C).
    6. Pellegrini, Paola & Bolić, Tatjana & Castelli, Lorenzo & Pesenti, Raffaele, 2017. "SOSTA: An effective model for the Simultaneous Optimisation of airport SloT Allocation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 99(C), pages 34-53.
    7. Ivanov, Nikola & Netjasov, Fedja & Jovanović, Radosav & Starita, Stefano & Strauss, Arne, 2017. "Air Traffic Flow Management slot allocation to minimize propagated delay and improve airport slot adherence," Transportation Research Part A: Policy and Practice, Elsevier, vol. 95(C), pages 183-197.
    8. Androutsopoulos, Konstantinos N. & Madas, Michael A., 2019. "Being fair or efficient? A fairness-driven modeling extension to the strategic airport slot scheduling problem," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 37-60.
    9. Andreas Knorr & Alexander Eisenkopf, 2022. "Ein Vorschlag zur Reform der Slotvergabe an kapazitätsbeschränkten Verkehrsflughäfen [A Proposal to Reform Slot Allocation at Capacity-Constrained Commercial Airports]," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 102(6), pages 470-478, June.
    10. Liu, Wenjing & Zhao, Qiuhong & Delahaye, Daniel, 2022. "Research on slot allocation for airport network in the presence of uncertainty," Journal of Air Transport Management, Elsevier, vol. 104(C).
    11. Alexandre Jacquillat & Amedeo R. Odoni, 2015. "An Integrated Scheduling and Operations Approach to Airport Congestion Mitigation," Operations Research, INFORMS, vol. 63(6), pages 1390-1410, December.
    12. Pellegrini, Paola & Rodriguez, Joaquin, 2013. "Single European Sky and Single European Railway Area: A system level analysis of air and rail transportation," Transportation Research Part A: Policy and Practice, Elsevier, vol. 57(C), pages 64-86.
    13. Jamie Fairbrother & Konstantinos G. Zografos & Kevin D. Glazebrook, 2020. "A Slot-Scheduling Mechanism at Congested Airports that Incorporates Efficiency, Fairness, and Airline Preferences," Transportation Science, INFORMS, vol. 54(1), pages 115-138, January.
    14. Cheng, Meng & Xu, Su Xiu & Huang, George Q., 2016. "Truthful multi-unit multi-attribute double auctions for perishable supply chain trading," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 93(C), pages 21-37.
    15. Konstantinos G. Zografos & Michael A. Madas & Konstantinos N. Androutsopoulos, 2017. "Increasing airport capacity utilisation through optimum slot scheduling: review of current developments and identification of future needs," Journal of Scheduling, Springer, vol. 20(1), pages 3-24, February.
    16. Paola Pellegrini & Lorenzo Castelli & Raffaele Pesenti, 2011. "Metaheuristic algorithms for the simultaneous slot allocation problem," Working Papers 9, Venice School of Management - Department of Management, Università Ca' Foscari Venezia.
    17. Jacquillat, Alexandre & Odoni, Amedeo R., 2018. "A roadmap toward airport demand and capacity management," Transportation Research Part A: Policy and Practice, Elsevier, vol. 114(PA), pages 168-185.
    18. Fukui, Hideki & Miyoshi, Chikage, 2024. "Estimating tactical surface metering management’s effect on aircraft fuel savings at airport," Research in Transportation Economics, Elsevier, vol. 103(C).
    19. Chen, Haoxun, 2016. "Combinatorial clock-proxy exchange for carrier collaboration in less than truck load transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 152-172.

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