Lahore School of Aviation

The University of Lahore

Program: BS Aviation Management Semester & Section: 8th Sem (8A)

Course: Airline Economics Code:

Supervisor: Maam Ufaq Badge: Fall 2020

Assign. No: 4 Due Date: 02/05/2024

NAMES SAP ID’S

Mahnoor Shahzad 70112312

Muhammad Saad Butt 70110697

Saria Cheema 70109057

Kamran Naseer 70110749

Sachal Nadeem 70109111

Remarks: ______________________________________________________________
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Marks: / 10
 PROS AND CONS
The research paper examines the impact of slot concentration and reallocation on
consumer welfare at Mexico City International Airport. Here's an analysis of the
pros and cons of the paper and a comparison with Pakistan's aviation system
Pros:
1. Rigorous methodology: The paper employs a robust econometric approach,
using data from 2015 to 2018, to estimate the effects of slot concentration and
reallocation on consumer welfare.
2. Relevant policy implications: The study provides valuable insights for airport
slot management, highlighting the potential benefits of slot reallocation in
enhancing consumer welfare.
3. Contextual analysis: The paper considers the specific characteristics of
Mexico City International Airport, including its hub-and-spoke structure and
dominant airline presence.
Cons:
1. Limited generalizability: The study's findings might be specific to Mexico
City International Airport, and the results may not be directly applicable to other
airports or contexts.
2. Data limitations: The paper relies on secondary data, which might have
limitations in terms of accuracy, completeness, or relevance.
3. Simplifying assumptions: The study assumes a perfectly competitive market,
which might not accurately reflect the complexities of the aviation industry.
Comparison with Pakistan's aviation system:
1. Slot management: Pakistan's airports, such as Karachi's Jinnah International
Airport, face similar slot management challenges. Implementing a slot
reallocation system could enhance consumer welfare and efficiency.
Example: Pakistan International Airlines (PIA) dominates Karachi's airport, like
the dominant airline presence in Mexico City. Slot reallocation could encourage
competition and improve services.
2. Airline competition: Pakistan's aviation market is relatively less competitive
compared to Mexico's. Encouraging more airlines to operate in Pakistan could
lead to better services and prices.
Example: The entry of new airlines like Airblue and Serene Air has increased
competition, leading to improved services and more options for consumers.
3. Airport infrastructure: Pakistan's airports require modernization and
expansion to accommodate growing passenger demand. Investing in airport
infrastructure could enhance the overall travel experience.
Example: The new Islamabad International Airport, inaugurated in 2018, offers
improved facilities and services, demonstrating the potential benefits of investing
in airport infrastructure.

In conclusion, the research paper provides valuable insights into the consumer
welfare effects of slot concentration and reallocation. While its findings might be
specific to Mexico City International Airport, the study's methodology and policy
implications can be applied to other airports, including those in Pakistan. By
addressing the limitations and challenges in Pakistan's aviation system,
policymakers and stakeholders can work towards enhancing consumer welfare
and improving the overall air travel experience.