JUSTIN WASTNAGE / BRUSSELS
With lessons learned from previous attempt to liberalise trading, Brussels is gearing up for second effort
The European Commission is likely to relaunch its attempt to deregulate the airport take-off and landing slot market, as the harmonisation of existing rules is finally approved.
European Union member states had delayed the adoption of a proposal to unify existing rules in member states for around two years, as the minor reform was coupled with more fundamental changes. Proposals for secondary slot trading to be adopted across the EU were dropped at the end of last year after the bill expired. Ministers have now approved the bill.
A senior source within the EC's air transport economic regulation department says the executive is likely to launch a second attempt to liberalise slot trading rules by the end of this year. The source says the Commission has "learned lots of lessons" from its previous attempt, and adds that this time the body will not "stand in the middle and take flak from all sides".
Following the publication last month of the results of a 12-month study by consultants National Economic Research Associates (NERA) on the effects of different slot allocation schemes, the EC will attempt to stay neutral in the debate into the most effective method of allocating slots. "If the experience of the USA is taken as an example, airports, network carriers and low-cost carriers all have a different version of the best solution and whichever solution is eventually proposed, there will be opposition," the source adds.
NERA analysed three methods airports could use for rationing peak- hour slots: secondary trading (where airlines swap existing slots among themselves), raising posted prices for each slot in line with the market prices and pure auctions of slot pools. NERA says its study presents "no conclusion", but points to a combination of higher posted prices and secondary trading as being the least disruptive and most efficient option, also allowing increased concentration at hub airports.
NERA points out, however, that international disputes, public service obligations and national concerns will also form part of the EC's final proposal, expected to be launched in the final quarter, once a new Commission is appointed.
Source: Flight International
