The government’s proposal to cap the number of landing slots an airline can hold in congested airports — principally, Delhi and Mumbai — is a good example of applying the wrong solution to a valid problem. The plan is to set an upper limit in percentage terms for landing slots for an individual airline per airport, and, once it reaches the threshold, it will be last in queue for new slots and eligible only if other carriers reject those slots.
The plan has been floated at the instance of incumbents and new entrants. These airlines claim that the current allocation policy is ...
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