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A Market in Airport Slots
By Keith Boyfield
Airlines must compete to survive. As Chris Tarry argued in last week's Business, "airfares have only one way to go: down". Whether they are paying out of their own pocket or their employersâ, passengers are increasingly reluctant to pay excessive fares in order to prop up inefficient national flag carriers. And with increased competition, they donât have to.
Yet national airlines such as BA, Air France and Lufthansa remain protected from the full gales of competition by the so-called grand-fathering rights they enjoy at major hubs such as Heathrow, Paris CDG and Frankfurt. Under existing EU rules, carriers do not pay for slots. Incumbent airlines can retain their lucrative slots so long as they use them for at least 80 per cent of the time. Last week the European Commission made things easier by bowing to intensive lobbying by national flag carriers. As a temporary measure aimed at alleviating mounting losses in the aftermath of the Iraq War, airlines that hold slots at congested airports will be able to retain them, even if they do not use them.
However, pressure is mounting to free up slots and allow them to be auctioned to the highest bidder. The goal would be to encourage leaner, more efficient carriers to fly from major hubs and, in the process, promote a more competitive airline industry.
The scarcity of slots at congested airports, such as Heathrow and Gatwick, represents a major barrier to new entry. The only way to break into this tightly protected market is to buy slots on an unofficial secondary market. However, it tends to be the entrenched incumbents who are building up their portfolio of slots at Heathrow. Last year, for example, BA acquired slots from Air Lithuania.- The estimated OF THE SLOTS AQUIRED FROM OTHER CARRIERS IS now shown on BA's balance sheet. In the company's latest quarterly results, landing rights are valued at £65m, up from £32m the year before.
A newly published report from the IEA, a pro-market think tank, recommends that the existing tightly regulated regime is replaced by a slot allocation system based on more rational economic logic. The proposed new regime would rely on auctions, backed up by a transparent secondary market, to allocate slots. Phased in over a decade, it is suggested that a random batch of 10 per cent of the available slots at London's three main airports should be auctioned to the highest bidder each year.
If auctions were introduced, a higher percentage of the ticket price would flow to the airport operator, the provider of the runway slot, to reflect the value of this scarce resource. The total price paid by the consumer would not necessarily increase since airlines currently receive the scarcity rent associated with the slot through the yield premium it charges passengers. Ultimately, market demand will determine prices â if passengers value the convenience of Heathrow, they will be prepared to pay for it.
The idea of auctions, backed up by a secondary trading market in slots, is gaining support. The European Commission has asked NERA, a firm of economic consultants, to quantify and identify the respective costs and benefits associated with various possible slot allocation systems, including primary auctions and secondary trading. Its report will be submitted in July.
NERA's report is likely to build on work already undertaken by the Civil Aviation Authority, which advocated market based solutions in a paper, The Implementation of Secondary Slot Trading, published just over a year ago, as well as some detailed analysis of slot auctions carried out by DotEcon Ltd, another firm of economic consultants, on behalf of HM Treasury and DETR in 2001.
Gordon Brown's Treasury is a driving force behind the idea of adopting auctions, because it realises that switching to an auction-based system might prove a useful income earner for the Exchequer through the imposition of a levy on auction revenues collected by the monopoly provider of runways in the south-east, BAA plc.
Airlines with valuable slots at congested airports are likely to lobby vigorously in defence of the status quo since this protects them from unwelcome competition. But a market based system of slot allocation would be more equitable, because it gives all airlines an opportunity to bid for slots. It would be more efficient, since sl

subset: commoncrawl


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Dr. Arturo Casadevall delivered the Kass Lecture at the IDSA/ICAAC (Infectious Disease Society of America; Interscience Conference on Antimicrobial Agents and Chemotherapy) meeting in Washington, DC on Monday, October 27. Being selected to deliver the Kass Lecture is among the very highest honors in the Infectious Diseases field. Dr. Casadevall is the first faculty member in the Division of Infectious Diseases to deliver a named IDSA lecture.
The President-elect of IDSA has asked Dr. Josh Nosanchuk to serve a two-year term as chair of the Joint Research Awards Committee. Every two years, the chair and staff support rotates between the National Foundation for Infectious Disease (NFID) and IDSA; the latter will take over for the 2009 and 2010 program years.
Thursday, December 04, 2014
Digital Disease Detection: Current Capabilities and Future Directions in the Use of the Non-Traditional Data Sources for Public Health Surveillance and Rapid Detection of Emerging Infectious Disease
John Samuel Brownstein, PhD
8:00 AM : Forchheimer Medical Science Building 3rd Floor Lecture Hall
Grand Rounds
Einstein (East) & Moses (West) Campus
Department of Medicine
Albert Einstein College of Medicine
Jack and Pearl Resnick Campus
Belfer Building - Room 1008
1300 Morris Park Avenue
Bronx, NY 10461 (directions)
Fax: 718.430.8563


text: Rising Datsun: The American history of a Japanese brand Datsun 1200 By Brendan McAleer on 7/19/2013 Called the Sunny in overseas markets, the humble little 1200 was often over-looked as it sat parked on dealer lots next to the sporting 510 and the luscious 240Z. And yet the 1600lb tyke accounted for about 60% of Datsun's sales.Modestly powered, with a 1.2L 67hp engine, the lightweight 1200 was nonetheless extremely efficient. When the 1973 oil crisis hit, Nissan's ad-men ran a Datsun coast-to-coast, tracking mileage and handing out orange "Datsun saves" jerry cans. Rising Datsun: the American history of a Japanese brand - Page 12


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Antone Abreau (1922 - 2008) was born on September 30, 1922. He was born into the Abreau family.
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Originally published August 13, 2014 at 9:11 PM | Page modified August 13, 2014 at 9:18 PM
Wednesday downpour sets record, floods in Factoria
Rainfall on Wednesday shattered records and brought relief to those fighting wildfires throughout the state.
Seattle Times staff
Overnight rainstorms on Wednesday shattered a 32-year-old Seattle record and aided in suppressing multiple wildfires throughout the Northwest, officials said.
According to the National Weather Service, 1.31 inches of rain fell at Seattle-Tacoma International Airport in a 24-hour period that ended Wednesday morning. By 6 a.m. Wednesday, 0.85 of an inch of rain had fallen since midnight, shattering the date's record of 0.33 of an inch set in 1982.
The monthly average rainfall for all of August is under an inch.
"This is fairly uncommon for summer months," said Josh Smith, a meteorologist with the National Weather Service.
Seattle City Light reported it had about 4,300 customers without power early Wednesday in the White Center area. The power was restored later Wednesday morning.
The record-breaking downpour was especially unwelcome in Bellevue's Factoria neighborhood, where early-morning flooding at an oil-change shop created a hazardous mess that spread onto Factoria Boulevard Southeast and possibly into nearby Coal Creek.
At some point around 3 or 4 a.m., almost 2 inches of rain had fallen, flooding Formula-1 Fast Lube, a few cars and part of Factoria Boulevard Southeast with 3 to 4 feet of water. The water lifted oil out of the lube shop and spread all over the street, parking lot and sidewalk nearby.
Drainage was apparently slowed by a filter that Bellevue city workers had previously placed over a storm drain to prevent hazardous materials used in a repaving of Factoria Boulevard Southeast from entering Coal Creek, said city spokeswoman Tresa Berg.
Crews got to the scene by about 4:30 a.m. to lift the filter out of the storm drain, and that quickly drained the backup. Berg said she had no idea how much oil had been dispersed in the area. The filter has since been reinserted into the drain because Berg said that in the absence of an unpredictable downpour, the filter does its job without creating problems.
"Nobody I asked knew it would rain like this last night," Berg said. "I was more worried about fire hazards because of the lightning and how dry it's been."
Floodwaters didn't enter other businesses nearby but did slow the number of customers they usually see in the morning.
The flood was gone in time for the morning commute, but cleanup work that lasted until about noon and reports about the flooding kept many customers from coming into businesses such as Taco Bell and Spotless Cleaning.
"There were no customers this morning, and that's when we're usually busy," said Boon Seo, owner of Spotless Cleaning, on Wednesday afternoon. "More are coming in now, but it's still too slow."
Rain also fell over many of the region's large fires, which, along with cooler temperatures, will moderate fire behavior, according to the Northwest Interagency Coordination Center.
The Carlton complex fire in Okanogan County is 95 percent contained. The Chiwaukum complex fire is 40 percent contained, and officials said fire behavior is "expected to be more benign" as a result of the rainfall.
Two Arizona-based hotshot crew members fighting the South Cle Elum Ridge fire were injured Wednesday afternoon when a large log rolled down a steep slope and hit them. They were taken to Harborview Medical Center in stable condition.
Humidity levels rose throughout the Devil's Elbow complex fire on the Colville Indian Reservation, making planned burnouts difficult, but the rain and cooler temperatures made direct suppression easier.
However, lightning from the storms may have ignited new fires that could show up later, the coordination center said.
Material from Seattle Times reporters Alexa Vaughn, Paige Cornwell and Jennifer Sullivan was used in this report.
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