European slot allocation: Current and future regulation

Abstract

Slots are the fundamental instrument for the distribution of an airport's capacities to air carriers. Facing increasing air traffic, the ‘slot challenge’ is considered the touchstone of the European liberalisation policy. It is thus important to all airlines that the European regulations provide for a system of slot allocation to accommodate the airlines’ interests in keeping valuable slots as well as achieving access to congested airports.This paper focuses on whether and how slots can be traded under the current legal framework.The paper therefore analyses the challenges airlines face with the current system of slot allocation, and how future regulations could solve the scarcity problem. In the first step, it will illustrate the possibilities for transferring slots within the current European legal framework, and show how code-sharing creates a loophole for the airlines.The next part deals with the different possibilities of future slot allocation mechanisms and their advantages and disadvantages for airlines and whether German law is ready for market-based slot mobility. Finally, the paper evaluates the measures for providing more efficient use of scarce airport capacities.