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Efficient and Equitable Airport Slot Allocation

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  • Daniele Condorelli

Abstract

This paper studies slot allocation at congested airports in Europe. First, I discuss the inefficiencies of the current regulation, introduced as part of the liberalisation process of the air transport market. Then, I consider three marked based methods which are suitable to achieve a more efficient allocation of slots to airlines: congestion pricing, auctions and secondary trading. These methods are examined in terms of their ability to improve efficiency and in terms of their implications on the distribution of slots’ scarcity rents. Special attention is drawn to complementarities between slots. Finally, I propose to auction slots periodically, allowing secondary trading well before the first auction takes place. By selling slots before the first auction incumbents can be partially compensated for the subsequent withdrawal of their slots.

Suggested Citation

  • Daniele Condorelli, 2007. "Efficient and Equitable Airport Slot Allocation," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 81-104, January-F.
    • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:81-104
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    References listed on IDEAS

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    Cited by:

    1. Ye, Qing Chuan & Zhang, Yingqian & Dekker, Rommert, 2017. "Fair task allocation in transportation," Omega, Elsevier, vol. 68(C), pages 1-16.
    2. Daniel, Joseph I, 2014. "The untolled problems with airport slot constraints," Economics of Transportation, Elsevier, vol. 3(1), pages 16-28.
    3. Sismanidou, Athina & Tarradellas, Joan & Bel, Germà & Fageda, Xavier, 2013. "Estimating potential long-haul air passenger traffic in national networks containing two or more dominant cities," Journal of Transport Geography, Elsevier, vol. 26(C), pages 108-116.

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    More about this item

    JEL classification:

    • D45 - Microeconomics - - Market Structure, Pricing, and Design - - - Rationing; Licensing
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise

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