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  •  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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