{"id":13081,"date":"2020-06-22T13:02:42","date_gmt":"2020-06-22T11:02:42","guid":{"rendered":"https:\/\/ftpa-new.eliott-markus.digital\/slot-allocation-a-key-issue-for-airlines\/"},"modified":"2021-06-11T13:07:41","modified_gmt":"2021-06-11T11:07:41","slug":"slot-allocation-a-key-issue-for-airlines","status":"publish","type":"post","link":"https:\/\/ftpa.com\/en\/slot-allocation-a-key-issue-for-airlines\/","title":{"rendered":"Slot allocation: a key issue for airlines"},"content":{"rendered":"<p>Article written by FTPA Aviation Law team: Claire Vaquette, <a href=\"https:\/\/ftpa.com\/lequipe\/nathalie-younan\/\" target=\"_blank\" rel=\"noopener noreferrer\">Nathalie Younan<\/a> et <a href=\"https:\/\/ftpa.com\/en\/lequipe\/agathe-robles\/\" target=\"_blank\" rel=\"noopener noreferrer\">Agathe Robles<\/a>.<\/p>\n<div style=\"text-align: justify;\">\n<p><span style=\"font-weight: 400;\">In a hundred years of existence, the aviation sector has undergone fundamental changes and turned to become one of the most efficient transportation modes. While constantly evolving, carriers face many challenges.\u00a0<\/span><span style=\"font-weight: 400;\">Since the 90\u2019s, due to the densification of air traffic and the increase of the number of airlines operating on the market, the issue of airport capacity and congestion arises.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With these new challenges, European states have adopted common rules on the allocation of slots.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A slot is defined as \u201c<\/span><i><span style=\"font-weight: 400;\">the scheduled time of arrival or departure available or allocated to an aircraft movement on a specific date at an airport coordinated under the terms of this Regulation<\/span><\/i><span style=\"font-weight: 400;\">\u201d<\/span><span style=\"font-weight: 400;\">.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The allocation of slots between airlines is now regulated at the European level by Regulation 95\/93 dated 18 January 1993 (\u201cRegulation 95\/93\u201d), setting common rules for slot allocation in European Union airports.<\/span><\/p>\n<h3><b>The slot allocation in airports at European level\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Regulation 95\/93 provides that the allocation of airport slots falls under the responsibility of a coordinator appointed in each Member State.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Article 4 of the Regulation stipulates that the coordinator must be \u201c<\/span><i><span style=\"font-weight: 400;\">a natural or legal person with detailed knowledge of air carrier scheduling coordination as airport coordinator after having consulted the air carriers using the airport regularly, their representative organizations and the airport authorities. The same coordinator may be appointed for more than one airport.\u201d<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">The coordinator must act in a neutral, transparent, and non-discriminatory way.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In France, the <\/span><i><span style=\"font-weight: 400;\">Association pour la Coordination des Horaires<\/span><\/i><span style=\"font-weight: 400;\"> (hereinafter \u201cCOHOR\u201d), bringing together most French airlines and airport managers, is the appointed coordinator.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Before slot allocation is carried out, the availability in each airport concerned should be determined. To that end, the competent authorities meet twice a year, based on the summer and winter seasons, and then communicate the collected data to the coordinator.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The slot allocation procedure, governed by Article 8 of the abovementioned Regulation, is based on the following logic: \u201c<\/span><i><span style=\"font-weight: 400;\">a <\/span><\/i><i><span style=\"font-weight: 400;\">slot that has been operated by an air carrier as cleared by the coordinator shall entitle that air carrier to claim the same slot in the next equivalent scheduling period.\u201d<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Thus, if the air carrier has sufficiently operated its slot, the slot will be reassigned to it. To keep its slot, the airline must nevertheless operate at least at 80%. If not, the slot will then be reallocated.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Indeed, Article 10 of Regulation 95\/93 provides for the creation of a \u201cpool\u201d grouping the unused slots, newly created or abandoned slots or slots which have become available.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Finally, it should be noted that the non-use of a slot may be justified, then allowing the airline to keep it. However, the justifications are limited.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The situation of a pandemic such as that of Covid-19 is not considered.\u00a0<\/span><\/p>\n<h3><b>The impact of Covid-19 on slot allocation in airports\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Since the beginning of 2020, the aviation sector has been massively impacted by the Covid-19 crisis, which led to an unprecedented fall in air traffic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To comply with the rule introduced by Regulation 95\/93 requiring airlines to use at least 80% of allocated slots, air carriers were forced to maintain flights with low occupancy rates.\u00a0\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Besides the fact that this situation seems disastrous from an economic point of view, it also generates an unnecessary environmental cost.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To remedy this situation, many air transport stakeholders called for more flexibility to be introduced at European level.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thus, on 13<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> March 2020, the European Commission submitted a draft amending Regulation 95\/93, considering the current context. The text was adopted on the 26<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> March by the European Parliament and the Council and amends Article 10 of the Regulation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The new measure provides that the rule requiring that airlines use at least 80% of their slots is suspended until 24<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> October 2020.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This derogation shall take effect from 1<\/span><span style=\"font-weight: 400;\">st<\/span><span style=\"font-weight: 400;\"> March 2020. An extension of the measure may be considered in accordance with the evolution of the health situation.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, this derogation also applies to non-operated slots allocated for the period from the 23<\/span><span style=\"font-weight: 400;\">rd<\/span><span style=\"font-weight: 400;\"> January to 29<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> February 2020 for flights between the European Union and China.\u00a0<\/span><\/p>\n<p><b>The flexibility of the rule imposed by Article 10 of Regulation 95\/93 will therefore have a considerable impact on the air transport sector, both at economic and environmental levels. Airlines are now free to cancel flights whose continuity is not justified until 24<\/b><b>th<\/b><b> October 2020.\u00a0<\/b><\/p>\n<p>\u00a0<\/p>\n<p>To download the PDF of the article <span style=\"color: #e19800;\"><a style=\"color: #e19800;\" href=\"https:\/\/www.cjoint.com\/doc\/20_06\/JFwlb5kuAAV_Article---Slot-allocation-2195340.1-VF-eng-.pdf\"><u>clic here<\/u><\/a><\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Article written by FTPA Aviation Law team: Claire Vaquette, Nathalie Younan et Agathe Robles. In a hundred years of existence, the aviation sector has undergone fundamental changes and turned to become one of the most efficient transportation modes. While constantly evolving, carriers face many challenges.\u00a0Since the 90\u2019s, due to the densification of air traffic and [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-13081","post","type-post","status-publish","format-standard","hentry","category-publications-en"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Slot allocation: a key issue for airlines<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ftpa.com\/en\/slot-allocation-a-key-issue-for-airlines\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Slot allocation: a key issue for airlines\" \/>\n<meta property=\"og:description\" content=\"Article written by FTPA Aviation Law team: Claire Vaquette, Nathalie Younan et Agathe Robles. 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