ABSTRACT
First, at present, airport slots are generally allocated based on grandfather rights or, in other words, by history. This guarantees continuity of airline operations because airlines are allowed to constantly reuse slots which they have used in the past. On the other hand, allocation based on grandfather rights does not account for the willingness to pay of airlines and, therefore, hampers the efcient allocation of runway capacity (though secondary trading might result in efcient allocation of slots).
