Economics class: Airlines forecast increased ‘ghost flights’ to retain UK landing rights
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.
Specification:
Government failure
Click to read the article below and then answer the questions:
Airlines forecast increased ‘ghost flights’ to retain UK landing rights
Explain the law of unintended consequences
Explain how the new rules might constitute government failure
Redesign the policy, considering the following quotes from the article:
- “As demand for flights returns, it’s right we gradually move back to the previous rules while making sure we continue to provide the sector with the support it needs”
-“It is inconceivable that international demand will average 70 per cent this summer.”
-“Many low-cost carriers are hoping to expand and would like to scoop up slots, while network airlines, whose long-haul routes have been slower to recover, have pushed to retain their landing rights.”
David Dike, Economic Research Council — Economic Episodes
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