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Do more US airports need slot controls? A welfare based approach to determine slot levels

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  • Swaroop, Prem
  • Zou, Bo
  • Ball, Michael O.
  • Hansen, Mark
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    Abstract

    This paper analyzes the welfare effects of slot controls on major US airports. We consider the fundamental tradeoff between benefits from queuing delay reduction and costs due to simultaneous schedule delay increase to passengers while imposing slot limits at airports. A set of quantitative models and simulation procedures are developed to explore the possible airline scheduling responses through reallocating and trimming flights. We find that, of the 35 major US airports, a more widespread use of slot controls would improve travelers’ welfare. The results from our analyses suggest that slot caps at the four airports that currently have slot controls (Washington Reagan, Newark, New York LaGuardia, New York John F. Kennedy) are set too high. Further slot reduction by removing some of the flights at these airports could generate additional benefits to passengers. Slot controls can potentially reduce two thirds of the total system delays caused by congestion. A number of implementation and design issues related to the use of slot controls are also discussed in the paper.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part B: Methodological.

    Volume (Year): 46 (2012)
    Issue (Month): 9 ()
    Pages: 1239-1259

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    Handle: RePEc:eee:transb:v:46:y:2012:i:9:p:1239-1259

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    Related research

    Keywords: Airport demand management; Slot controls; Flight delay; Schedule delay; Airline scheduling; Welfare;

    References

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    1. Proussaloglou, Kimon & Koppelman, Frank S., 1999. "The choice of air carrier, flight, and fare class," Journal of Air Transport Management, Elsevier, vol. 5(4), pages 193-201.
    2. Brueckner, Jan K., 2009. "Price vs. quantity-based approaches to airport congestion management," Journal of Public Economics, Elsevier, vol. 93(5-6), pages 681-690, June.
    3. Christopher Mayer & Todd Sinai, 2003. "Network Effects, Congestion Externalities, and Air Traffic Delays: Or Why Not All Delays Are Evil," American Economic Review, American Economic Association, vol. 93(4), pages 1194-1215, September.
    4. Rupp, Nicholas G., 2009. "Do carriers internalize congestion costs? Empirical evidence on the internalization question," Journal of Urban Economics, Elsevier, vol. 65(1), pages 24-37, January.
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    9. Hansen, Mark & Wei, Wenbin, 2006. "Multivariate analysis of the impacts of NAS investments: A case study of a capacity expansion at Dallas-Fort Worth Airport," Journal of Air Transport Management, Elsevier, vol. 12(5), pages 227-235.
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    13. Hsiao, Chieh-Yu & Hansen, Mark, 2011. "A passenger demand model for air transportation in a hub-and-spoke network," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 1112-1125.
    14. Brueckner, Jan, 2009. "Airport Congestion Management: Prices or Quantities," University of California Transportation Center, Working Papers qt8qs9k927, University of California Transportation Center.
    15. Jan Brueckner & Ricardo Flores-Fillol, 2007. "Airline Schedule Competition," Review of Industrial Organization, Springer, vol. 30(3), pages 161-177, May.
    16. Morrison, Steven A. & Winston, Clifford, 2008. "The effect of FAA expenditures on air travel delays," Journal of Urban Economics, Elsevier, vol. 63(2), pages 669-678, March.
    17. Michael O. Ball & Lawrence M. Ausubel & Frank Berardino & Peter Cramton & George Donohue & Mark Hansen & Karla Hoffman, 2007. "Market-Based Alternatives for Managing Congestion at New York’s LaGuardia Airport," Papers of Peter Cramton 07mbac, University of Maryland, Department of Economics - Peter Cramton, revised 2007.
    18. Hansen, Mark, 2002. "Micro-level analysis of airport delay externalities using deterministic queuing models: a case study," Journal of Air Transport Management, Elsevier, vol. 8(2), pages 73-87.
    19. Flores-Fillol, Ricardo, 2010. "Congested hubs," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 358-370, March.
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    Cited by:
    1. Liu, Yi & Hansen, Mark & Zou, Bo, 2013. "Aircraft gauge differences between the US and Europe and their operational implications," Journal of Air Transport Management, Elsevier, vol. 29(C), pages 1-10.
    2. Kim, Amy & Hansen, Mark, 2013. "Deconstructing delay: A non-parametric approach to analyzing delay changes in single server queuing systems," Transportation Research Part B: Methodological, Elsevier, vol. 58(C), pages 119-133.

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