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Enhancing Slot Allocation at Community Airports: Evaluation and Policy Recommendations

This content evaluates the current slot regulation at Community airports, addressing congestion issues and proposing policy options for more efficient slot allocation. Key aspects include regulatory improvements, enforcement measures, and commercial slot allocation mechanisms. The text outlines problem definitions, Commission objectives, policy options, and next steps to optimize slot management.

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Enhancing Slot Allocation at Community Airports: Evaluation and Policy Recommendations

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  1. Slot allocation at Community airports Infrastructures and Airports Unit Klaas Pel

  2. Content • Evaluation of the slots Regulation • Commercial slot allocation mechanisms: • Problem definition • Commission objectives • Policy options • Next steps

  3. Evaluation of slots Regulation (1) • Regulation (EC) 793/2004 amending Regulation (EEC) 95/93 • Technical improvements of Regulation (EEC) 95/93 • Review 3 years after entry into force • Focus stakeholder consultation on market access and enforcement elements • New entrants: • Reinforcement of definition so air carriers can establish a viable network and competitive critical mass of operations

  4. Evaluation of slots Regulation (2) • Enforcement: • Maintaining the integrity of the slot allocation system • Introduction of sanctions and measures to prevent slot abuse • Role and position of slot coordinator: • Increased responsibilities and authority to deal with slot abuse • Unquestionable neutrality and independence • Process of slot allocation: • Better use of existing capacity whilst maintaining compatibility with IATA scheduling guidelines

  5. Commercial slot allocation mechanisms • Ongoing assessment of introduction of commercial slot allocation mechanisms • Primary allocation: • Higher posted prices • Auctioning of newly created slots • Withdrawal of proportion of slots • Secondary trading

  6. Problem definition (1) • Of the 35 busiest EU airports, 6 are heavily congested, 10 partially congested and 19 uncongested • Trends at congested airports: • Commercial flights replace general aviation and ad hoc flights • scheduled pax flight replace cargo and charter • Average aircraft size increases • Average flight distance increases • Expected aggregate yearly growth in slot demand at major EU airports 3.1% between 2005-2025 • By 2025 up to 14 EU airports likely to be saturated for 8-10 hours a day and more than 40 airports unable to handle typical peak hours • By 2025 Europe will need an additional 6 major airports and 9 medium sized airports

  7. Problem definition (2) • New entry at congested airports difficult due to lack of slots or creation of additional capacity • Airlines not confronted with full opportunity costs of slots they hold • Slots perhaps not allocated in a way that best reflects underlying demand • Under current regime little incentive for airline to trade slots with airline that values the slot more highly to utilise it • Under Regulation only exchanges permitted • Need for clear legal basis to ensure slot transfers take place in a non-discriminatory and transparent way

  8. Commission objectives • Overall objective: optimal and economically most efficient use of slots at coordinated Community airports, while maximising potential for competition • Specific targets: • To ensure more economically efficient use of the available slots • To strengthen competition at Community airports • To match secondary trading with overall EU air transport policy • To maintain compatibility with world-wide procedures

  9. Policy options • Status quo/ non-regulatory option • Secondary trading in combination with primary trading mechanisms • Secondary trading • Secondary trading with tailored competition law measures

  10. Next steps • Evaluation of application of Regulation (EC) 793/2004 • Stakeholder hearing on commercial slot allocation mechanisms and on application of Regulation (EC) 793/2004 • Proposal for amendment of slots Regulation • Impact assessment • Adoption proposal for new legislation

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