Determinants of delays at European airports

Using flight data for the period 2000–2004 we find that four significant variables in explaining delays at European airports are market concentration, slot coordination, hub airports and hub airlines. We find evidence for the hypothesis that airlines internalize the effects of self-imposed congestion, but the results for the hub variables are somewhat puzzling. While delays are higher at hub airports, hub airlines experience lower delays than non-hub airlines. This may be at least partly explained by the special characteristics of the hub-and-spoke system in Europe, which is less extensive and more constrained, relative to the US. If introduced in Europe, efficient airport congestion tolls should be carrier-specific to account for the differences in internalization of delays.