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1 Donald Koran & Jonathan D. Ogur, Statement on Airport Access Problems 1 (1983)

handle is hein.usfed/stmapap0001 and id is 1 raw text is: STATEMENT ON AIRPORT ACCESS PROBLEMS BY THE FEDERAL TRkDE COMMISSION'S BUREAUS O ECONOMICS, COMPETITION, AND CONSUMER PROTECTION 1/ May 25, 1983 Since the late 1950's, the Federal Aviation Administration (FAA) has used regulation to limit the number of landings per hour at certain airports. For much of that time, the FAA delegated to a comittee composed of the airlines permitted to serve each controlled airport the task of allocating the limited number of landing rights (slots) available at that airport. Since the 1981 strike by the Professional Air Traffic Controllers Organization (PATCO), the FAA has allocated slots directly by detailed regulation. In other words, the agency itself has decided the number of slots each carrier may use during each limited hour at the restricted airports. While the FAA's non-market approach to the problem of airport.access sets needed limits on the use of airport and air traffic control services, this approach imposes unnecessary losses on airlines and travelers. Regulitions often cannot distinguish between high-valued and low-valued flights. As a result, some low-valued flights are permitted, while other high- valued flights are denied access. For exa.mnple, the FAA probably 1/ This statement represents hho vious of the Bureaus of Econorics, Competition%, and Consumer Protection of the Federal Trade Commission (FIC Bureaus), but does not necessarily represent the views of the Pederal Trade Commission or' of any individual Commissioner. However, the Federal Trade Commisson has voted to author ize its Bureaus to rel ease thin statemnt. In addition, separate statements from Commissioners Pertschuk aind Douglas are appended.