Secondary trading of airport slots: Issues and challenges

Most Level 3 airports around the world suffer severe congestion and flight delays. Airlines have to obtain airport slots in order to schedule flights at such airports. The main way for airlines to acquire slots is primary slot allocation, in which a slot coordinator distributes slots to airlines according to certain rules and regulations. Due to excessive demand for slots and restrictions on allocation rules, it is difficult for some airlines to obtain the desired slots in this manner. Another way for airlines to obtain slots is through secondary slot trading, in which slots can be redistributed among airlines without being returned to slot pool. The secondary trading of airport slots has played a positive role in promoting the efficient utilization of slot resources, but systematic studies are insufficient. This paper discusses the reasons for the existence of slot secondary trading, sorts out the main policies and rules governing the mechanism, investigates its impacts on the industry and society, and points out the major problems and challenges. The paper provides a reference for subsequent research and practical application of airport slot secondary trading in the future.