11-23-2018, 11:47 AM
(11-23-2018, 11:33 AM)jamincan Wrote: Restrictions like that work to a certain extent, but when availability is constrained, eventually the slot itself has value, rather than what it represents and then all logic goes out the window and you have airlines flying empty planes to an airport just to hold onto a slot. (I realize this isn't an endemic issue, but it's just the most stark example I know). It's sort of a similar situation to real estate.
I’m suspicious of the empty planes. If they have to use the slot to keep it, they don’t really own it, do they? Which in turn suggests that there are complicated rules, rather than simple auctioning of slots, in operation. Also, why should incumbent operators get to hold on to historical slots, even if they are using them? If somebody else can outbid them, it suggests that it may be because they can provide more customer value using the slot than the incumbent can.