Dynamist Blog

Airport Competition

In Dallas, the political and journalistic establishment seems to believe that airport competition is bad, especially since no on can tell you exactly how it will turn out. But that's exactly the reason you need it. If we knew in advance what travelers really valued--and, of course, if we could somehow contain interest-group politics--competition wouldn't be so important. From The Future and Its Enemies:

Competition provides not only useful criticism but a continuous source of experiments. It gives people...the ideas with which to create still more progress and encourages them, too, to come up with incremental improvements. By picking winners, stasist protectionism eliminates this learning process, which includes learning what does not work.

"Premature choice," warns the physicist Freeman Dyson, "means betting all your money on one horse before you have found out whether she is lame." Protecting established interests from new challengers is one form of premature choice. But technocratic planners also sometimes kill existing alternatives to force their new ideas to "succeed." To protect the space shuttle, NASA not only blocked competition from private space launch companies, it also eliminated its own expendable launchers. Such pre-emptive verdicts often mark public works projects. Planners pick an all-purpose winner, squeeze out alternatives, and eliminate any real chance of experiment and learning.

Consider the infamous Denver International Airport. Aviation officials touted the $4.9 billion project as essential to keep up with the region's growth. They promised it would be a vast improvement over the old Stapleton Airport, which was often socked in by bad weather. But its sponsors foisted DIA on unwilling customers. The airport is 25 miles outside Denver, pretty much in the middle of nowhere, while Stapleton was just 15 minutes from downtown. To make matters worse, there are no hotels near DIA. And the new airport's cost per passenger is somewhere between $11.75 and $18.14, depending on how you count--substantially more than either the $4.59 at Stapleton or the $9.91 promised by former Mayor Federico Pena. Frequent travelers resent the inconvenience and the generally higher ticket prices. "I liked Stapleton better," one told The Denver Post. "You could literally leave about 45 minutes before your plane departed. With DIA, you have to leave an hour and a half before." A flight attendant expressed a common sentiment: "It's a beautiful airport. But we hate it."

On the airport's first anniversary, journalists had trouble reaching a simple verdict on DIA. There were complaints all right--lots of them. But some passengers liked the spiffy new airport, with its marble floors and inviting shops. And flight delays had in fact dropped dramatically. The first-anniversary stories were confused, lacking a central theme.

The reporters had missed the main problem: The city had eliminated the most obvious source of feedback--competition from the old airport. It had made DIA a protected monopoly rather than an experiment subject to competitive trial. By shutting down Stapleton, DIA's political sponsors had made it impossible to rule the new airport a definite error. No matter how many complaints passengers lodge, officials can always point to other advantages. At the same time, however, DIA's monopoly keeps it from becoming an accepted success. Without a genuine trial, we simply have no way to tell whether travelers (or airlines) would rather trade a convenient location for fewer weather-related delays. One airport must fit all: Love it or hate it, if you're flying from Denver you don't have a choice.

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