Slide 1

Slot allocation at Community
airports
Infrastructures and Airports Unit
Klaas Pel

European Commission


Slide 2

European Commission

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Slide 3

Content
• Evaluation of the slots Regulation
• Commercial slot allocation mechanisms:
– Problem definition
– Commission objectives
– Policy options

• Next steps

European Commission

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Slide 4

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
European Commission

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Slide 5

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
European Commission

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Slide 6

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
European Commission

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Slide 7

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

European Commission

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Slide 8

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 nondiscriminatory and transparent way

European Commission

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Slide 9

Commission objectives
•
•

Overall objective: optimal and economically most
efficient use of slots at coordinated Community airports,
while maximising potential for competition
Specific targets:
1.
2.
3.
4.

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

European Commission

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Slide 10

Policy options
1. Status quo/ non-regulatory option
2. Secondary trading in combination with
primary trading mechanisms
3. Secondary trading
4. Secondary trading with tailored
competition law measures

European Commission

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Slide 11

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
European Commission

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