RESEARCH SEMINAR

G.A.R.S.
German Aviation Research Society
Call for Papers, August 2003
German Aviation Research Seminar

“How to make slot markets work”

Subject
Many congested airports around the world restrict access by airlines through the use of a limited number of starting and
landing permissions (slots). Today the allocation of slots is generally determined by the historical use of airports.
Providing legacy carries with an advantage over upstarts. This administrative rationing mechanism has been heavily
criticised by economists and increasingly also by politicians. Both groups recognize the administrative allocation does not
account for the willingness to pay for slots, and hence it restrains the efficiency of the system. A natural way to account for
willingness to pay is the implementation of market mechanisms. However, the specific design of a market for slots raises a
number of theoretical and practical questions, questions that need to be addressed given their central importance for the
functioning of the air transport industry.
Over the course of the upcoming year we intend to hold up to four seminars on the issue of slot market design. Ashgate
will publish a selection of papers from these seminars in the GARS Series. Papers may be theoretical or applied, and may
address the following topics, however other topic areas are also of interest:
- Slot design and slot quantities: Specification of slots, determination of airport capacity, property rights of slots,
empirical assessment of slot scarcity, costs resulting from scarcity
- Slot auctions: Adequate auction design for slots, experience with auctions in other industries, auctions and airline
strategies
- Airport charges: Congestion pricing: theory and evidence, airport charges and uncertainty, how airport charges and
regulation interact with slot allocation
- Valuation of slots: Slot valuation by airlines and capital markets
- Airport investment: Investment criteria and incentives for expansion facing airports and slot constrained airlines,
obstacles to capacity expansion
- Political economy of slot allocations: Limits of market mechanisms, history of the IATA slot allocation system,
competition and efficiency, rent seeking of stakeholders

Keynote speakers and chairs of session

Andreas Brenck, Berlin University of Technology,
Peter Forsyth, Monash University, Melbourne
David Gillen, Wilfrid Laurier University, Waterloo and University of Berkeley, California
Hans-Martin Niemeier, University of Applied Science Bremen
Hartmut Wolf, Kiel Institute for World Economics

Venue
The first Seminar will take place on November, 7th and 8th 2003 at the University of Applied Sciences Bremen.

Paper proposals
Please send an extended abstract (one page, about 300 words, including a short CV) until October 9th, 2003, as pdf- or
word-file to: Achim I. Czerny. Information on acceptance will be given by October 12th, the full version of the paper is
preferably due by November 3rd. Please also mention whether you would agree with the submission of the paper to the
GARS Series by Ashgate.

Contact and further information

Achim I. Czerny, Berlin University of Technology

phone +49-(0)30-314-252 07
mailto:aic@wip.tu-berlin.de
http://userpage.fu-berlin.de/~jmueller/gars/index.htm

Aerlines Magazine e-zine edition, Issue 24 1