Economics class: Airlines forecast increased ‘ghost flights’ to retain UK landing rights

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