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Tuesday, February 17, 2004

Posted by Tanstaafl
Knowledge Problem: AIRPORT LANDING SLOTS ARE SCARCE, YET NOT PRICED

This is an extremely interesting proposal. There are couple other things that would need to be worked out. First I would allow airlines to trade or sell slots if they are so inclined. Second, I think I would set up the auction for 6 month contracts that begin 6 months from now. That way, the airlines have a heads-up as to when they will have slots, and can adequately schedule flights.

You can see Ms. Kiesling's energy markets expertise shine through in this suggestion by the way. Pricing systems for electricity that take time of day that power is used into account have been recommended by many as a way to curb usage during peak hours. Here too, higher prices during peak times would help distribute price sensitive passengers out to less busy times.


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