Are wholesale UK airport slot allocation reform changes necessary?

The UK Government’s consultation on proposals to reform the airport slot allocation system closed in early March and while undoubtedly there is room for improvement, cargo could lose out.

It has been 50 years since the global slot system was last updated and while improvements are needed in a few specific areas of the system, such as more automation and increased transparency to help operational planning and forecasting, significant changes are not required.

In a complex global system, like slot allocation, seemingly minor changes in the UK could have a dramatic impact across the globe.

Airport ‘slots’, permission for an airline to operate from an airport at a specific date and time, are limited by the airport’s infrastructure and flight capacity. As aviation demand has grown, so of course has the pressure on the availability of slots and for the busiest airports slots are allocated by independent coordinators.

The current method gives the incumbent operator precedence through Historic Rights which are retained if they fly at least 80% of each series of slots during a season. This is known as the 80:20 rule and as long as airlines maintain usage at 80% and above each year then they retain that series of slots in perpetuity.

At present, approximately 92% of slots at the UK’s slot coordinated airports are allocated on the basis of Historic Rights. The percentage is even higher at the busiest airports (around 98% at London Gatwick Airport and more than 99% at London Heathrow Airport).

Once slots have been allocated based on Historic Rights, the remaining slots are placed in a pool and the slot coordinator allocates them based on additional secondary criteria that reflect factors such as connectivity, competition and operational conditions.

 Proposed changes 

It has been suggested to move the slot usage ratio from 80:20 to 90:10 but altering the current ratio could have detrimental consequences on operational efficiencies. If the slot usage ratio agreement is increased, it implies an increased strain on available slots, potentially leading to congestion and delays. In turn, it could lead to knock-on effects affecting cargo delivery timelines and causing disruptions to supply chains.

There is little appetite within the cargo industry to increase the usage ratio. Cargo airlines do not operate in the same way as passenger airlines and use forecasts rather than confirmed bookings to inform their network planning.

While the forecasting carried out by cargo operators is detailed and built on years of experience, it does not provide the certainty of a confirmed passenger booking. Increasing the usage ratio would put cargo carriers at a disadvantage given the differences in the airline business model.

It is believed that the excess demand for slots may lead to increased turnaround times for cargo planes, escalating operational costs for carriers and impacting overall service reliability.

Furthermore, higher slot usage ratios might strain ground handling facilities and compromise the timely processing of cargo, affecting the cargo industry’s ability to meet stringent timelines and maintain a seamless flow of goods.

The reform of the slot allocation system to better accommodate cargo operators is imperative in recognising the pivotal role of the air cargo industry in global logistics.

To enhance the efficiency and responsiveness of cargo operations, a revised system should include dedicated cargo slots, ensuring that freight carriers have the necessary infrastructure to meet burgeoning demand.

Recognising the unique characteristics of cargo aircraft and creating a system adaptable to market dynamics will contribute to a more streamlined and resilient slot allocation process.

Global systems require global standards

Where possible, government should always aim to align itself with Worldwide Airport Slot Guidelines (WASG). Deviating from the WASG is endangering a global standard, which is vital for airlines to efficiently operate their services.

There should also be no variance for any particular airport as there are no airports in the world that function in such a way that any divergence from the global norm is justified.

One major concern is the potential for political interference in the day-to-day management of aviation slots.

If decisions on slot allocation are influenced by political considerations rather than industry expertise and demand, it may lead to inefficient use of resources, suboptimal scheduling and disruptions to the normal functioning of the aviation sector.

There are also concerns within the industry that political intervention in slot coordination could result in a lack of transparency and fairness, creating an environment whereby certain airlines or interest groups receive preferential treatment based on political affiliations rather than operational merit. Such practices can undermine competition and hinder the growth of the aviation industry.

Now that the consultation has closed, the sector waits with interest to see the government’s proposals. While there is room for improvement to the slot allocation system, the government must recognise that slot allocation is a global system and wholesale changes are unnecessary when the risk of unforeseen consequences is far greater.

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