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A pure-cash system provides incentives for incumbent carriers to buy (scarce) slots and leave them empty to limit competition. British Airways would definitely
by pmyteh 5y ago
A pure-cash system provides incentives for incumbent carriers to buy (scarce) slots and leave them empty to limit competition. British Airways would definitely do this at Heathrow if allowed, for example.
Also, it potentially reduces actual passenger numbers, lowering the airport operator's take from duty-free and catering, which I suspect pays much more than the slot fees.
- chrismorgan 5y agoPerhaps you could add a clause “if you don’t fly the slot, then you pay most of what you would have spent on the flight”—high enough to ruin the perverse incentive, but low enough to encourage not making the flight unnecessarily. And perhaps an arrangement that most of the surplus goes to some charity or other.
- fshbbdssbbgdd 5y agoThey should auction the slots every month. There should be no grandfathering or other incentive to hoard.
- runarberg 5y agoI think that is anti-competitive and if it isn’t illegal already it ought to be.