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Abstract

This case studies the allocation of airport slots. As airline traffic increases, slots become scarce. Well-established airlines have historically determined rights to these slots, which limits the possibilities for new entrants to enter the market. In addition, sometimes the airlines do not make efficient use of their slots. It is often argued that this allocation system has to be revised to ensure economic efficiency. Several countries are considering this issue, which is often met with strong opposition from well-established airlines. Congestion in Hong Kong airport is increasing and the implications, should Hong Kong liberalise its allocation system, is under debate.
Location:
Other setting(s):
2005

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Abstract

This case studies the allocation of airport slots. As airline traffic increases, slots become scarce. Well-established airlines have historically determined rights to these slots, which limits the possibilities for new entrants to enter the market. In addition, sometimes the airlines do not make efficient use of their slots. It is often argued that this allocation system has to be revised to ensure economic efficiency. Several countries are considering this issue, which is often met with strong opposition from well-established airlines. Congestion in Hong Kong airport is increasing and the implications, should Hong Kong liberalise its allocation system, is under debate.

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Location:
Other setting(s):
2005

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