European Regions Airline Association

On 18 May, the UK Department for Transport (DfT) and the UK CAA held a workshop for aviation industry stakeholders to review the European Commission's Airport Slot Regulations proposal and to discuss the issues, risks and impacts associated with the changes.

UK DfT Perspective

At the workshop, each stakeholder group had the opportunity to present their position and reasoning followed by an open discussion with all the attending delegates. The workshop was well attended by a diverse set of interested parties within the industry. Below is an overview of this session, for a more detailed Report, please click here.

The UK DfT has a strong interest in ensuring an effective Regulation, given the importance of aviation for the UK and the pressure on its major airports, such as Heathrow Airport. In a broad sense the DfT supports the underlying purpose of the proposed Regulation, i.e. allowing airlines to have fair and equal access to airports across the EU through independent and transparent slot allocation procedures.

The DfT is of the view that the existing Regulation provides reasonable levels of efficiency and market access in the UK. Furthermore, the DfT recognises the importance of regions' access, and highlight the need for effective Regulation. They will seek clarification on the Commission's proposals for increased intervention (e.g. airport designation and capacity assessment).

Airport Coordinators

Airport Coordinators' views, presented by ACL, are supportive of the recognition of market mechanisms particularly secondary trading.  ACL already provides a level of transparency on slot trading through disclosure of aggregate data via this website: www.slottrade.aero. There are 24 different coordinators in Europe, with some coordinating smaller airports, so there are benefits for encouraging transparency and disclosure, as well as a stronger integration among them (i.e. successful practice of a Coordinator covering multiple States)

Airlines

Most UK-based airlines (with the exception of EasyJet) do not see any need for reform, but highlight a need for better implementation of the current regulations, consistently across the EU. From their perspective, the Proposal will not promote efficiency or better utilisation of slots. They state that any changes to slot Regulations should be applicable through IATA and world-wide scheduling guidelines.

Airports

Broadly speaking, supportive of secondary trading, welcome "85-15" and the extended length for slot series. They support slot reservation fees, as it would be administratively manageable. They oppose differentiation between EU and Non EU new entrants as they do want any restriction to access for the emerging economies

ERA's Perspective

ERA's Nick Mower presented the association's position and highlighted the impact of the Proposal on regional airlines, please click here for the presentation slides. Mainly highlighting the risks that the proposed Regulation amendments would lead to:

• severe decline in air services between the regions and the major hub airports of the EU 
• the major implications for local and regional economic development and prosperity in the developing parts of the EU
• severe reservations about the quality of the economic impact study upon which these amendments are based

In conclusion, ERA's position is that the proposed changes must be amended to ensure vital regional air service connectivity is maintained and EC regional economic and air service policies remain consistent

Next Steps and Key Dates

• the European Parliament is currently undertaking the first reading of the slots proposals, due to publish its report by 20 July 2012
• European Council: the Cypriot Presidency of the European Council is expected to take forward consideration of the Slot Regulation Proposals
• discussion of the proposals in Council Working Group is expected to start in July 2012
• the Council will then adopt a  "General Approach" on Slot Proposals during December 2012 at the December Transport Council
• the second reading of proposals is expected to be tabled for Trilogue discussions (between EC, EP and the Commission) under the Irish presidency 2013 (during the first half), and if successful the Better Airport Package could be published during late 2013 and to come into force during 2014