Monday, December 7, 2015

China to Experiment with Competitive Slot Distribution

Reuters reports today that China plans to reform slot allocation at some of its major airports in 2016. Interestingly, China will test out different methods of slot allocation, including sale and random drawing, at different airports, offering a potentially useful natural experiment for scholars and economists. Under the current system, State-owned airlines have been granted the most attractive slot times at the expense of private carriers.  Unfortunately, it appears the reforms will only apply to domestic flights, leaving in place the current system for international services, which is reportedly an obstacle to amending the China/U.S. Air Services Agreement.

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