MARKET-BASED ALLOCATION OF AIRPORT SLOTS

Can market mechanisms improve the allocation of scarce airport capacity?
Airport slots remain one of the scarcest resources in air transport, yet their allocation continues to rely predominantly on administrative rules. As demand for air travel continues to grow and infrastructure expansion becomes increasingly challenging, the need for more efficient allocation mechanisms is becoming ever more pressing.

In a new Lear Competition Note, Eduardo Cardadeiro and João E. Gata examine whether a gradual, market-based approach could improve the allocation of airport slots while preserving coordination and public-interest objectives. The paper proposes a progressive, quality-sensitive combinatorial auction designed to introduce market signals alongside the current allocation framework, encouraging a more efficient use of scarce airport capacity while facilitating access for new entrants and taking into account both economic value and service quality.  

📄 Read the full Competition Note here