Airport Slot Allocation for Maximal Destination Coverage

Due to the escalating congestion at airports, there has been a growing interest in using optimization methods for airport slot allocation and flight scheduling. Level 2 and 3 airports nowadays have a substantial surplus of demand relative to airport capacity, which requires sophisticated slot allocation. This process is not only a computationally complex task but needs to satisfy the requirements of different players following individual objectives. The resulting allocation of slots and subsequent flight schedules significantly impacts the market power of airlines. From the passengers’ perspective, the key consideration is connectivity, emphasizing the importance of viable connections between destinations. We propose an innovative slot allocation model that prioritizes destination coverage while considering limitations on market power for participating airlines. Based on an extensive computational study, we elaborate on how varying degrees of market power restrictions can positively or negatively influence connectivity.