Airport capacity and inefficiency in slot allocation

Picard, Pierre;Tampieri, Alessandro;Wan, Xi
(2019) International Journal of Industrial Organization — Vol. 62, p. 330-357 (2019)

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Authors
  • Picard, PierreUCLouvain
    Author
  • Tampieri, Alessandroorcid-logoUniversity of Florence
    Author
  • Wan, XiUniversité du Luxembourg and Avi Alliance Düsseldorf
    Author
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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Citations

Picard, P., Tampieri, A., & Wan, X. (2019). Airport capacity and inefficiency in slot allocation. International Journal of Industrial Organization, 62, 330-357. https://doi.org/10.1016/j.ijindorg.2017.10.003 (Original work published 2019)