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Airport slot allocation in Europe: economic efficiency and fairness

  • Lorenzo Castelli

    ()

    (DEEI, University of Trieste)

  • Paola Pellegrini

    ()

    (Dept. of Applied Mathematics, University of Venice)

  • Raffaele Pesenti

    ()

    (Dept. of Applied Mathematics, University of Venice)

We propose a mechanism for solving the airport slot allocation problem in Europe. We consider the interdependence of the slots at different airports, and we maximize the efficiency of the system. Through an experimental analysis we quantitatively assess the cost imposed by grandfather rights, which constitute one of the main principles of the current slot allocation mechanism. Moreover, we introduce the possibility to fairly redistribute costs among airlines through monetary compensations. Our results suggest that it is possible to remove grandfather rights without significantly penalizing airlines.

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File URL: http://virgo.unive.it/wpideas/storage/2010wp197.pdf
File Function: First version, 2010
Download Restriction: no

Paper provided by Department of Applied Mathematics, Università Ca' Foscari Venezia in its series Working Papers with number 197.

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Length: 13 pages
Date of creation: Jun 2010
Date of revision:
Handle: RePEc:vnm:wpaper:197
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  1. Soomer, M.J. & Franx, G.J., 2008. "Scheduling aircraft landings using airlines' preferences," European Journal of Operational Research, Elsevier, vol. 190(1), pages 277-291, October.
  2. Sentance, A., 2003. "Airport slot auctions: desirable or feasible?," Utilities Policy, Elsevier, vol. 11(1), pages 53-57, March.
  3. S.J. Rassenti & V.L. Smith & R.L. Bulfin, 1982. "A Combinatorial Auction Mechanism for Airport Time Slot Allocation," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 402-417, Autumn.
  4. Madas, Michael A. & Zografos, Konstantinos G., 2006. "Airport slot allocation: From instruments to strategies," Journal of Air Transport Management, Elsevier, vol. 12(2), pages 53-62.
  5. Verhoef, Erik T., 2010. "Congestion pricing, slot sales and slot trading in aviation," Transportation Research Part B: Methodological, Elsevier, vol. 44(3), pages 320-329, March.
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