european commission slot allocation at community airports infrastructures and airports unit klaas...
TRANSCRIPT
European CommissionEuropean Commission
Slot allocation at Community airports
Infrastructures and Airports Unit
Klaas Pel
European CommissionEuropean Commission 2
European CommissionEuropean Commission 3
Content
• Evaluation of the slots Regulation
• Commercial slot allocation mechanisms:– Problem definition– Commission objectives– Policy options
• Next steps
European CommissionEuropean Commission 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 CommissionEuropean Commission 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 CommissionEuropean Commission 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 CommissionEuropean Commission 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 CommissionEuropean Commission 8
• 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
Problem definition (2)
European CommissionEuropean Commission 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. To ensure more economically efficient use of the available slots2. To strengthen competition at Community airports3. To match secondary trading with overall EU air transport policy4. To maintain compatibility with world-wide procedures
European CommissionEuropean Commission 10
Policy options
• Status quo/ non-regulatory option
• Secondary trading in combination with primary trading mechanisms
• Secondary trading
• Secondary trading with tailored competition law measures
European CommissionEuropean Commission 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