Airport Landing Slots: Allocation Strategies And Challenges

Airport landing slots are permissions granted by airport operators for an airline to land or take off at a specific time, ensuring efficient operations. Not all airports require slots, with only level 3 airports needing stricter management due to higher flight volumes and infrastructure needs. The allocation of slots between air carriers is a planning tool to ensure that available landing and take-off slots are used efficiently and distributed in a neutral, non-discriminatory, and transparent way. The Worldwide Airport Slot Guidelines (WASG) are the foundation upon which the global slot allocation process works.

-system'>The <'use it or lose it'> system

The 'use it or lose it' system is a crucial part of the IATA slot rules. This system warrants the reallocation of slots if they are not utilised by at least 80% in a season. This rule is also known as the '80% rule'. The 'use it or lose it' system is a fundamental principle of slot allocation rules and is designed to ensure that valuable slots are not left unused by airlines.

The 'use it or lose it' system is intended to work in tandem with the high value of slots, creating an incentive for airlines to use their allocated slots and not leave them empty. However, this system has faced criticism for encouraging airlines to operate unnecessary flights, also known as ghost flights, to preserve their slot allocations. This was particularly evident during the COVID-19 pandemic when airlines operated ghost flights to prevent the loss of their slot allocations, resulting in significant airline losses and negative environmental consequences.

The 'use it or lose it' system has been suspended several times in the past two decades, including after the 9/11 attacks, the SARS epidemic, the global financial crisis, and during the COVID-19 pandemic. These suspensions were implemented to prevent the unnecessary operation of ghost flights and to account for periods of temporary but widespread travel disruption.

The 'use it or lose it' system is a key component of the airport slot allocation process, which aims to balance airport access opportunities for new and existing carriers. The allocation of slots is determined by guidelines set by the Worldwide Airport Slot Board, which includes members from the International Air Transport Association (IATA), Airport Council International (ACI), and the Worldwide Airport Coordinator Group (WWACG).

Slot trading

The International Air Transport Association (IATA) manages the allocation of airport slots through the Worldwide Airport Slot Guidelines (WASG). This regulatory body has overseen the slot allocation process since 1970, ensuring a balance between new and existing carriers. The WASG is jointly published by IATA, Airports Council International (ACI), and the Worldwide Airport Coordinators Group (WWACG).

Twice a year, IATA holds a Slot Conference where airlines and airports meet to finalise their slot requirements. These conferences are crucial for airlines to obtain their desired slots and adjust their schedules. If an airline does not utilise at least 80% of its allocated slots, they can be reallocated to other operators. This "'use it or lose it'" system encourages efficient use of slots, although it faced challenges during the COVID-19 pandemic.

To address these concerns, proposals for unrestricted and transparent slot trading have been suggested. Additionally, safeguards such as prohibiting restrictive covenants in slot trades and increasing transparency through published trading information have been recommended to enhance competition and prevent anti-competitive practices.

Slot conferences

The International Air Transport Association (IATA) holds a Slot Conference twice a year, attracting over 400 slot-coordinated airports and scheduled carriers. Airlines and airports meet at these conferences to finalise the airline's requirements, which are submitted before the conference.

The Slot Conference is an opportunity for operators to obtain slots that will give them the most desirable schedules in line with their individual route and network enhancement strategies. Airlines want to see a fair system of slot allocation applied, and an external, independent regulator can help ensure this. This regulator can also help airports maximise their capacity and airlines operate their most preferred schedules.

Slot allocation is based on the Worldwide Airport Slot Guidelines (WASG), jointly published by IATA, Airports Council International (ACI), and the Worldwide Airport Coordinators Group (WWACG). The regulatory body has been managing slot allocation since 1970. Any available slots are allocated through the WASG, aiming to balance airport access opportunities for new and existing carriers.

Flight schedules generally follow IATA's two seasons: summer and winter. The slot allocation process relies heavily on historical slots, but operators can have different allocations for each season. Slots are typically awarded by the Department of Transportation (DOT) and are sometimes given after a competitive application process. The DOT evaluates and awards slots based on factors like the benefit to consumers, competition among airlines, and connectivity for travellers.

It is important to note that there is a "use it or lose it" system in place for allocated slots. Airlines must use at least 80% of their slots in a season to retain them. Otherwise, they can be returned and given to other operators. This system ensures that scarce airport capacity is efficiently utilised and prevents unnecessary delays.

Independent slot coordinators

The allocation of airport landing slots is a complex process that involves multiple stakeholders and factors. One of the key components of this process is the role of independent slot coordinators. These coordinators are responsible for granting permissions to airlines to use the infrastructure of an airport designated as Level 3 (Coordinated Airport) for take-off and landing at specific times and dates.

The independence of these coordinators is essential to maintaining a fair and transparent allocation process. In the past, slot regulators were often representatives of national airlines, which could lead to potential conflicts of interest and corporate pressure influencing decisions. By appointing independent coordinators, airports can ensure that decisions are made in the best interest of all parties involved and that the process is free from bias.

The role of independent slot coordinators is particularly important at Level 3 airports, which have higher flight volumes and infrastructure needs. These airports, such as London Heathrow, Sydney Kingsford Smith, and New York JFK, require stricter management due to their high traffic and capacity constraints. Independent slot coordinators help maximize airport capacity and ensure that airlines can operate their desired schedules efficiently.

Twice a year, IATA holds a Slot Conference, where slot-coordinated airports and scheduled carriers meet to finalize their slot requirements. This conference provides an opportunity for operators to obtain slots that align with their route and network enhancement strategies. Independent slot coordinators play a vital role in facilitating these discussions and ensuring that the allocation process is fair and transparent for all participants.

Slot allocation rules

Airport landing slots are permissions granted by airport operators for an airline to land or take off at a specific time. They are needed by all airlines and can be extremely valuable. The allocation of these slots is governed by a set of rules and guidelines to ensure fairness and efficiency in the aviation industry.

The allocation of airport landing slots is based on a set of guidelines and regulations to ensure a fair and efficient process. The Worldwide Airport Slot Guidelines (WASG) serve as the foundation for the global slot allocation process. These guidelines are jointly published by the International Air Transport Association (IATA), Airports Council International (ACI), and the Worldwide Airport Coordinators Group (WWACG).

The key principles of slot allocation rules include neutrality, transparency, and non-discrimination. In the UK, for example, slot allocation is regulated by the Airports Slot Allocation Regulations 2006, which ensure that slots are distributed in a neutral, non-discriminatory, and transparent manner. The allocation process is undertaken by an independent slot coordinator, such as Airport Coordination Limited (ACL) in the UK. ACL is legally required to act in a neutral, transparent, and non-discriminatory manner and has a board of independent directors.

To ensure efficient use of airport infrastructure, the ''use it or lose it' system is a crucial part of the IATA slot rules. Under normal operating conditions, airlines must use their allocated slots sufficiently, typically with at least 80% usage over a season or a specified period, to retain their rights. If an airline does not meet this threshold, its slots can be reallocated to other operators. This rule has been temporarily suspended during exceptional circumstances, such as the COVID-19 pandemic, to prevent unnecessary financial losses and pollution caused by empty flights.

The allocation process also aims to balance opportunities for new and existing carriers. There are rules in place to allocate a proportion of available slots to new entrants, ensuring a level playing field for all airlines. The slot allocation process occurs twice a year, with IATA's Slot Conferences held before the start of each summer and winter season. Airlines and airports submit their plans and requests in advance, and the conferences provide an opportunity to finalise slot allocations and accommodate adjustments.

The scarcity of slots and regulations surrounding their allocation can make it challenging for airlines to obtain their desired slots, leading to high-value transactions and leasing opportunities. Slot trading has become a common solution at highly congested airports, such as London Heathrow.

Frequently asked questions