A Solution to Airport Delays
7 Pages Posted: 15 Aug 2009
Date Written: Spring 20008
Airport delays are increasingly significantly. These delays are largely attributable to increased congestion on runways and at gates as airlines increasingly use smaller but more frequently-departing passenger jets. This paper proposes reducing congestion by auctioning off takeoff and landing 'slots' at airports. These auctions would have several benefits: they would redistribute airport facilities toward higher-valued uses, incentivize airlines to make more efficient use of airport capacity, and generate revenue to fund airport improvements and capacity expansion.
Keywords: airport delays, congestion, proposed solutions, auctions, incentives, efficiency, FAA, market based system
JEL Classification: D42, D44, D49
Suggested Citation: Suggested Citation