No New Eu Rules On Airport Slots For 18 Months

The European Commission is about to propose revising rules on airport take-off and landing slots but it could be at least 18 months before a new law takes effect, a senior aide to European Transport Commissioner Neil Kinnock said yesterday.

Philip Lowe, Kinnocks chef de cabinet, told a conference on European air transport services that whatever rules were brought in, they would not apply to the alliance between British Airways and American Airlines currently being examined by the European Commission under EU competition rules.

He hinted strongly that Kinnocks view was that slot trading should be made legal but warned that the issue was still being discussed as recent evidence from the United States indicated that it could lead to unfair competition.

 

After an extensive period of consultation of interested parties, the Commission is about to propose some improvement to this regulation (on slot allocation).

For those who think any of the changes can be of immediate application, Im sorry to tell you that, though we are determined to push ahead with it, the process of getting this sort of EU legislation through...is a long one and it could take us at least 18 months before the revised regulation becomes law, Lowe said.

He therefore warned against mixing up the revision of the rules and how to solve the competition problem posed by the BA/American alliance.

He said the new regulation would look at the possible introduction of a secondary market in slots while at the same time ensuring that this would take place in a transparent way.

Slot trading is allowed in the US, but recent experience has shown it has contributed to reinforcing dominant positions, Lowe said later.

What we want to see is whether there is any way to ensure that a carrier who is buying new slots is not preventing competitors from entering the market.