Brussels, 30/04/2008 (Agence Europe) - On Wednesday 30 April, the European Commission adopted a communication clarifying certain aspects of the application of regulation setting out common rules for the allocation of slots in airports (EUROPE 8506). Amendments introduced following a very broad consultation launched at the end of last year confirm the independence of the coordinator, application of the rule on new entrants and formal recognition of the existence and application of slot “second trading.” The Commission is hoping that such clarification will enhance transparency in the slot allocation system and it is committed to producing proposals, if necessary, on revising current legislation on competition issues.
With the typical pragmatism characterising its mandate, the Commission has recognised the existence of the practice of second trading and does not intend to begin infringement proceedings against member states practising this in a transparent way that respects the rules of competition and all other provisions contained in current legislation. This Commission position officially authorises a practice that regularly occurs in European airports but which until now was denied recognition, apart from in the United Kingdom, which in 2006 gave its approval for a flexible approach on the matter.
In concrete terms, airlines that mainly operate in airports at saturation point and at the main hubs, exchange slots for money or other benefits (co-management of gates, exchange of aeroplane capacity etc.). This secondary market was expanded after the entry into force of the “Open Skies” agreement with the US, especially London Heathrow, the largest of these hubs used for flights to the US. The lack of clarity in current legislation (the initial regulation on slot allocation effectively recognised the trading of slots but did not say a word about secondary trading) contributed to the fact that no-one knew whether this secondary market had in fact been authorised by the Commission's services. By recognising this practice, the European Commission is also hoping to put an end to previous infringement proceedings launched in this context against some of the airlines. It is also committed to refraining from launching infringement procedures in countries where this practice exists and is encouraging countries where this practice goes one but where it has not been authorised, to introduce more transparency into the market.
The communication introduced the following clarifications:
Independence of the coordinator - responsible for allocating slots. The Commission confirms the need for a functional separation between the coordinator and any other party involved in slot allocation. It also believes that this independence should apply to the funding of the coordinator's activities. According to the Commission, the coordinator should therefore keep “separate accounts” and budgets and not rely on the financing of his activities by the airport managing body, service provider ort single air carrier alone.
New Entry. According to the Commission, the rule on new entrants (50% of these slots must first be allocated to new entrants, unless requests by new entrants are less than 50%) should be permanently applied throughout the scheduling seasons and not as some actors wanted exclusively within the first slot allocation period.
Local guidelines. The Commission has clarified the compatibility of operating restrictions at a local level, particularly with relations to environmental standards. Possible standards should not include discrimination based on nationality or identify of air carrier. Noise related operating restrictions should also respect Community law, particularly the 2002/30/EC direction (on noise operating restrictions).
Consistency between slot allocation and flight plans. The Commission has drawn attention to the increasing need for coordination between requests for single slots and flight plans, particularly for general and business aviation. Nonetheless, it did confirm that all measures aiming to foster coherency between slot allocation and flight plans would be tackled in the proposal expected on “Single Sky II”.
Data transparency. The Commission is encouraging the transfer of information on coordinators' slots into the planned data base. (ABy.)