THE SLOTS GAME

The European Commission is proposing to open up the airport slot allocation process in Europe so that there is much wider use of commercial mechanism, in order to lower barriers to entry and remove false protections for incumbent airlines. Others say that the low-cost sector is thriving because secondary and tertiary airports are so uncongested and that tinkering with the system could change that. A series of "technical amendments" to the 1993 European Union Slot Allocation Regulation have been introduced. A key element are the "grandfather rights." Introducing market mechanisms to drive down prices and make allocations fairer will be complicated by longstanding practices and interpretations such as a 1999 court case where the High Court rules that money payments accompanying exchanges of slots at London Heathrow did not constitute a purchase. This has led to a gray market in UK slots. Another practice is carriers' ability to place speculative bids on slots, which can result in uneven allocations. What's crucial is to balance the need for stability while allowing new entrants a chance at the market. The European Council and Parliament is not expected to resolve these questions for at least another year.

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  • Corporate Authors:

    Penton Media

    1300 E 9th Street
    Cleveland, OH  United States  44114-1503
  • Authors:
    • Paylor, A
  • Publication Date: 2005-4

Language

  • English

Media Info

  • Features: Photos;
  • Pagination: p. 52-54
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00989451
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: May 3 2005 12:00AM