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Airport capacity and inefficiency in slot allocation

Author

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  • Pierre M. Picard
  • Alessandro Tamapieri
  • Xi Wan

Abstract

This paper studies the time slot allocation of flight departures when travelers have a preference for departing on peak times and the number of available peak-time slots is constrained by airport capacities. We show that, compared to public airports, private airports may restrain their supply of peak slots strictly below their capacity levels when they serve airlines that compete to the same destinations. Such an inefficiency takes place in airports that have low per-passenger charges and are not too busy. It does not occur in the absence of competition in destination markets.
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Suggested Citation

  • Pierre M. Picard & Alessandro Tamapieri & Xi Wan, 2019. "Airport capacity and inefficiency in slot allocation," LIDAM Reprints CORE 3034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:3034
    Note: In : International JOurnal of Industrial Organization, 62, 330-357, 2019
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    Citations

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    Cited by:

    1. Pierre M. Picard & Alessandro Tampieri & Xi Wan, 2022. "Are Deregulated Airports More Efficient?," Working Papers - Economics wp2022_18.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    2. Sun, Joo Yeon, 2020. "Airport curfew and scheduling differentiation: Domestic versus international competition," Journal of Air Transport Management, Elsevier, vol. 87(C).
    3. Lee, Heeyeon & Jung, Jihyeok & Lee, Deok-Joo, 2024. "An auction-based airport slot reallocation scheme considering the grandfather rights of airlines," Journal of Air Transport Management, Elsevier, vol. 118(C).
    4. Dixit, Aasheesh & Kumar, Patanjal & Jakhar, Suresh Kumar, 2022. "Effectiveness of carbon tax and congestion cost in improving the airline industry greening level and welfare: A case of two competing airlines," Journal of Air Transport Management, Elsevier, vol. 100(C).

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    More about this item

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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