European Commission proposes market-based system to overcome shortage of capacity at continent's airports
European airlines are gearing up for a battle with the European Commission (EC) over its latest proposals for replacing the current system for slot allocation with a market-based approach.
The EC says it wants to "rethink airport operations" and sees a market-based slot allocation system as a major tool to manage the increasing problem of limited capacity. It has released a consultation paper setting out ideas for commercialising slot allocation, asking governments, airlines and other parties for their comments by 1 December.
The proposals focus on the idea that the shortage of slots at Europe's airports should be tackled by a financially based mechanism, such as free trading, possibly combined with slot auctions. Slots would be valued and airlines would, says the EC, "either use the slots allocated to them to the full, or decide not to do so and receive financial compensation instead".
Long-standing issues such as grandfather rights, favouring national carriers such as British Airways - which controls about 40% of slots at London Heathrow airport - would be tackled under the EC's proposals. Airlines currently carry out "secondary trading" of slots, which the EC says implies carriers have been given the right to trade the slots they are allocated. At present, such trading is not transparent, even though major slot transaction deals are commonplace. BA says secondary trading is allowed in UK law and defends grandfather rights because they "allow us to plan schedules and ensure continuity of services".
The European Regions Airline Association says slot allocation is one of the "two most significant issues" facing regional carriers (the other is air traffic control route charges). Its director of air transport policy, Andrew Clarke, says the EC's proposals "do not address capacity" and adds: "This is simply a means of deciding who gets access. The existing system might have shortcomings, but there must be a demonstrated net benefit if it is to change."
JULIAN MOXON / LONDON
Source: Flight International
