A Solution to Airport Delays

Abstract

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