Legalized slot trading comes a step closer in Europe
EU transport ministers have agreed a general approach on proposed changes to the 1993 slot allocation rules that could make it legal for airlines to buy and sell slots. Proposals for freeing up the slot allocation market have been under discussion since the 1993 regulation was implemented. However, EU legislators have remained wary of throwing the doors open to either primary or secondary trading. Primary trading is defined and regulated by an authority; secondary trading involves a direct exchange between airlines. The EU has traditionally insisted that secondary transfers should not involve monetary compensation, but has consistently turned a blind eye to such activities. In the UK, secondary trading is entrenched at Heathrow, one of the region’s most capacity constrained airports, and has created a thriving gray market.
Legalized slot trading comes a step closer in Europe
By Anne Paylor (Air Transport World)
November 1, 2012
European Union (EU) transport ministers have agreed a general approach on proposed changes to the 1993 slot allocation rules that could make it legal for airlines to buy and sell slots.
Proposals for freeing up the slot allocation market have been under discussion since the 1993 regulation was implemented. However, EU legislators have remained wary of throwing the doors open to either primary or secondary trading.
Primary trading is defined and regulated by an authority; secondary trading involves a direct exchange between airlines. The EU has traditionally insisted that secondary transfers should not involve monetary compensation, but has consistently turned a blind eye to such activities.
In the UK, secondary trading is entrenched at Heathrow, one of the region’s most capacity constrained airports, and has created a thriving gray market.
The Transport Council’s general approach would permit secondary trading between airlines, but would also allow member states to introduce charges for carriers that return unused slots to the slot pool too late for re-allocation. It would also strengthen the independence of, and cooperation between, slot coordinators and enhance the transparency of the allocation process.
To ensure that capacity allocation at individual airports does not adversely impact the European air traffic network, the Single European Sky (SES) network manager would remain integral to the allocation process.
Concerns about the possible negative impact of secondary trading on less lucrative regional flights and the potential speculative use of traded slots have been addressed through inclusion of a clause permitting states to apply temporary restrictions where “a significant and demonstrable problem with second trading occurs.” Such restrictions would have to be transparent, non-discriminatory and proportionate, justified and subject to European Commission approval.
A “general approach” is a position agreed by the Council before the European Parliament has determined its position on the proposal in question. It can be used to negotiate the draft legislation that will lead to final adoption and subsequent entry into force of the legislative act.
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Impending change for EU airport slot rules
Expanding on a 1993 European Union rule that introduced slot regulations at airports all over Europe, airport officials could soon be able to sell and buy landing and take-off slots. This new slot exchange could will become law if an agreement reached during the Transport, Telecommunications and Energy Council Monday in Luxemburg comes to fruition. The proposal will be part of an airport legislative package that could go in front of the European Parliament as early as November 6, according to an EU press release.
The council, headed by European Commissioner for Transport Siim Kallas and Efthemios Flourentzou, the Cypriot minister of communications and works, also included charges for the late return of unused slots and gives greater autonomy to slot coordinators. The new rules would “enhance fair competition and competitiveness of operators,” according to the release.
The new slot agreement arises from a December 2011 “airport package,” which groups together three legislative proposals that seek to ease congested European airports. The new agreement would amend the 1993 rule and would increase airport capacity, according to the EU. Officials have pegged the economic benefits at €5 billion across a 13-year period.
…. and it continues ….
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There is a lot of information on slots from the European Commission
at http://ec.europa.eu/transport/modes/air/airports/slots_en.htm
This includes:
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Further analysis carried out in 2010-2011 on how the current Slot Regulation is working has shown that the allocation system in place prevents optimal use of the scarce capacity at busy airports. Therefore the Commission is proposing changes to the current Regulation to allow for the introduction of market-based mechanisms across the EU provided that safeguards to ensure transparency or undistorted competition are established, including greater independence for slot coordinators. This will help to ensure that slots go to those carriers able to make the best use of them. Several additional measures will improve slot utilisation while ensuring a correct use of this scarce resource.The proposals contained in the Airport package adopted on 30 November 2011
The proposals contained in the Airport package adopted on 1st December 2011
The aim of the proposed regulation is to ensure that airlines can make the best use of the available capacity. To this effect, the new proposals:
- allow airlines to trade slots with each other at airports anywhere in the EU in a transparent way;
- reform the rules designed to help new entrants access the market at congested airports. This will allow a greater number of carriers to challenge more effectively the ‘dominant’ carriers which have a large presence at busy airports;
- tighten the rules requiring airlines to demonstrate that they have used their slots sufficiently during the season;
- also tighten the rules on the independence of the coordinator and increase the level of transparency on slots transactions, in order to make the market work better.
- improve the information flow between slot coordinators, airports, airlines, national authorities and organisations providing air traffic control, in order to inform decisions on airport coordination and to allow the system to react better to disruptions, for example due to severe weather conditions.
According to analysis carried out by the Commission, the changes proposed could be worth €5 billion to the European economy and create 62,000 more jobs over the period 2012-2025 and would allow the system to handle 24 million more passengers a year by 2025.
Better Airports package (December 2011)
Press release on the Better Airports package 
This said:
On slots
“The Commission proposals introduce market based mechanisms for the trading of slots between airlines in a transparent way, as well as measures to ensure that existing capacity is used by airlines – by raising the threshold on the “use it or lose it rule” from 80%-85%.
The proposed measures on slots would allow the system to handle 24 million more passengers a year by 2025. They will be worth €5 billion to the European economy and create up to 62,000 jobs over the period 2012-2025
Five European airports are currently operating at capacity: Düsseldorf, Frankfurt, London Gatwick, London Heathrow, Milan Linate. On current trends this could increase to nineteen key airports by 2030, including for example Paris CDG – with very significant consequences for delays and congestion.”
http://ec.europa.eu/transport/modes/air/airports/slots_en.htm