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Evidence on efficient airport slot allocations through congestion pricing and auctioning
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The existing airport slot allocation system, burdened by rising demand and limited infrastruc ture, promotes anti-competitive practices and economic inefficiencies. This master thesis delves
into proposed alternatives, notably administrative methods like the PSAM model and market based mechanisms, such as auctions and secondary trading. While the PSAM pilot project
demonstrated potential at medium-sized coordinated airports in Portugal, experts in slot alloca tion claim that Germany’s current decentralized process already ensures a pareto-optimal sce nario. Consequently, they argue that the PSAM may not offer a significant industry benefit,
challenging its purported efficiency enhancement. Contrastingly, research indicates that remov ing the grandfathering system and auctioning off all slots with a formal secondary market may
enhance efficiency, however, it requires careful implementation to prevent the build-up of mar ket power. Secondary slot trading offers consumer benefits, like route network expansion, yet
raises competitive concerns and may prompt airlines to prioritize frequency over using larger
aircraft.
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Efficiency Airports Airslots Auctions Congestion pricing