Sunday, December 7, 2008

Auctions of airport takeoff and landing slots--maybe coming soon

U.S. to Auction Slots Soon at New York City Airports reports the Times.

"The auction is scheduled for next Friday, with results announced soon afterward; the changes are to take effect at La Guardia in March and at Kennedy and Newark in October.
If the auction is not overturned by the courts or Congress — and either seems possible — it could be the last significant transportation action of the Bush administration, which leaves on Jan. 20.
What is being auctioned is the right to land, or take off, within a half-hour period for 10 years. The reserve price — below which the slot will not be sold — is $10,000 for peak hours and $100 for off-peak, but the president of the auction company, Lawrence M. Ausubel of Power Auctions, said that those numbers were likely to be “well exceeded.”
Mr. Ausubel said he did not know of any prior auction of airport slots."

HT to Scott Kominer


Anonymous said...

I wonder how large a secondary market for these slots will be...

Anonymous said...

Who is selling? Where will the money go? Is there an advantage to having a high-traffic hub in NYC? Who singlehandedly decided to decrease the traffic / increase the price of tickets at LaGuardia?