The "slots" market and the privatization of airports in Brazil: discussion of possible alternatives

O mercado de “slots” e a concessão de aeroportos à iniciativa privada: caminhos possíveis para o setor aéreo

Interaction between regulation and competition in regulated sectors remains one of the most challenging themes of economic law. Taking into consideration this complex interaction, this paper intends to discuss possible ways for the airline industry as well as the harmful consequences from the gap between the gradual process of economic deregulation of the airline industry and the restrictive regulation in the infrastructure sector of domestic aviation market in Brazil. The apex of this process happened between 2006 and 2007 and was called "aviation blackout". Nevertheless, regulatory imbalance persists, leading the infrastructure sector in hub airports to work at their limit or beyond. In the line of this finding there is a discussion of two possible ways to redefine the airport infrastructure regulatory model: the creation of slots market and the allocation of airports to the private sector, with international examples. Besides, this paper emphasizes that such ways must be treated in a continuum, since the creation of private incentives requires a simultaneous and integrated treatment, on the contrary, subject to distortion and inefficiency of the thought mechanisms. The paper also makes some considerations on the property rights definition regarding slots and other arrangements in order to encourage the best use of infrastructure. Finally, the authors discuss the ANAC (National Civil Aviation Agency of Brazil) proposal in the redefinition of slots allocation at congested airports.

Language

  • English
  • Portuguese

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Filing Info

  • Accession Number: 01494534
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Sep 22 2013 10:49PM