THE THEORY OF AIR CARRIER DEMAND FOR SLOTS

This paper is part of a study directed at exploring the possible use of airport pricing in achieving optimal utilization of airports, particularly those in the Washington-Baltimore area. The paper analyzes the theory of the demand by airlines for landing and take-off slots at an airport. The demand--the amount airlines would be willing to pay for an extra slot--is determined by the profitability of an additional flight, and therefore depends on the new business that a flight would bring in. The theory is then applied to the question of optimal use of an airport. Economists have sugested the use of congestion tolls, by means of which users would be required to take into account the total extra costs of an extra movement. Under congestion pricing, an airport would be used to the point where the demand price (value of an extra movement) is equal to the total extra cost of a movement. The same theory applies to determination of optimum movement quotas at an airport.

  • Corporate Authors:

    Secretary of Transportation

    400 7th Street, SW
    Washington, DC  United States  20590
  • Authors:
    • Yance, J V
  • Publication Date: 1970-1

Subject/Index Terms

Filing Info

  • Accession Number: 00073861
  • Record Type: Publication
  • Source Agency: FLIGHT TRANSPORTATION LABORATORY, MIT DEPT. OF AERONAUTICS AND ASTRONAUTICS
  • Report/Paper Numbers: None
  • Files: TRIS
  • Created Date: Sep 5 1974 12:00AM