Monday, May 30, 2016

Airport Slots: Can Regulation Be Coordinated with Competiton?

Cathal Guiomard, DCU Business School, Dublin, Ireland asks Airport Slots: Can Regulation Be Coordinated with Competiton?

ABSTRACT: Competition is a dynamic process in which firms vie for advantage; regulation is typically a set of static rules. On the face of it, there is a potentially serious conflict between the two. This paper reviews the EU's regulations dealing with administrative slot allocation, drawing in particular on the application of those rules at Dublin airport. It suggests the best way to promote competition in aviation is to avoid choosing an administrative basis of slot allocation, especially when a new airport is being developed, opting instead for market-based mechanisms whether slot trading or runway charges differentiation according to scarcity.

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