Markets In Everything. Not. Market Pricing To Relieve Airport Congestion Banned by GAO

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Markets In Everything. Not. Market Pricing To Relieve Airport Congestion Banned by GAO

1 October 2008, 8:13 am
by Capre Diem

From a previous CD post:

Proposition 1: Anytime you have congestion or shortages, it's almost guaranteed that market pricing is absent.

Proposition 2: Market pricing will almost always reduce or eliminate congestion and shortages.

WASHINGTON (AP) — U.S. aviation officials have no legal authority to auction off takeoff and landing slots at airports, a scheme the government devised to try to curb crippling traffic jams at major airports, congressional investigators say.

Transportation Secretary Mary Peters proposed the auction plan after widespread complaints last year about rampant flight delays across the country. The government says two out of three flights delayed 15 minutes or more were due to cascading backups beginning at one of the New York metropolitan area's three airports: Newark, John F. Kennedy, and LaGuardia.

Trying to fix the problem, the government imposed new limits on the airports and announced plans to auction off some takeoff and landing slots to control the crushing demand for time and space. By auctioning slots, the government reasons, market forces will help restrain such demand and make the system operate more efficiently.

MP: Without market pricing, the congestion at airports during peak times will continue with 100% certainty.

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