Schedule padding effects following airport slot reforms: A synthetic difference-in-differences procedure

Abstract

The regulatory change in takeoffs and landings at Newark Liberty Airport offers a unique opportunity to examine the impacts of a potentially exogenous shock on airline schedule padding practices. In 2016, the Federal Aviation Administration reclassified Newark from a Level 3 to a Level 2 airport, signifying a less restrictive operational environment. Using a Synthetic Difference-in-Differences (SDID) methodology, we compare Newark flights with a synthetic control group of flights from other airports, isolating the effect of the slot control removal on schedule padding. We find that the regulatory change led to a reduction in schedule padding, particularly for flights arriving at Newark, where the reduction ranged from 2.35 to 2.85 min. This reduction is considerable, especially when considered in the context of the average schedule padding of 7.5 min, representing a 31–38 % decrease in padding for Newark-related flights.