Improving efficiency in airport finance: A review of airport charging and slot effectiveness

Abstract

This paper deals with the regulatory regime governing airport charges, and introduces the European Commission's current plan of 2005 for setting up a Community-wide framework in this area. It shows how airport charges can be used to improve airport efficiency and thus raise additional finance. More specifically, it recommends an ‘infrastructure fee’ as a tool to reduce no-show rates. Airport charge schemes for the attraction of low-cost carriers (LCCs) are also outlined, as well as the legal limits set by European Community law. Finally, ways to increase slot effectiveness are presented, and the paper describes the potential impact of slot trading as an element of future Community airport regulation.