Airport slot allocation in Brazil: impacts on the competitiveness of the airline industry

• Grant number: 09/09216-0
• Support Opportunities: Regular Research Grants
• Start date: December 01, 2009
• End date: November 30, 2011
• Field of knowledge: Engineering - Transportation Engineering - Transportation Planning
• Principal Investigator: Alessandro Vinícius Marques de Oliveira
• Grantee: Alessandro Vinícius Marques de Oliveira
• Host Institution: Divisão de Engenharia Civil (IEI). Instituto Tecnológico de Aeronáutica (ITA). Ministério da Defesa (Brasil). São José dos Campos , SP, Brazil

Abstract

This projects aims at estimating the impacts of the dominance of essential transportation infrastructure on the market Power of major incumbent carriers in Brazil. By making use of empirical models of Industrial Organization and econometric methods, here I consider a case study of the airline industry in order to investigate the consequences of alternative regulatory framework for the access to congested airports by carriers. The direct application is the slot allocation problem in two of the most congested airports in Brazil, Congonhas and Santos Dumont. The major contribution of the proposal is the development of a structural model of competition in the Brazilian airline market aiming at consistently identyfing the competitive conduct of airlines in alternative scenarios of infrastructure concentration. Consistent estimation is targeted with the aid of a generalized supply relation (GSR) that nests important references from the Industrial Organization literature as special cases. (AU)