Select Committee on European Scrutiny Twenty-Eighth Report


9. Allocation of airport slots

(24485)

8757/03

COM(03) 207

Draft Regulation amending Council Regulation (EEC) No. 95/93 on common rules for the allocation of slots at Community airports.

Legal baseArticle 80(2) EC; co-decision; QMV
Document originated24 April 2003
Deposited in Parliament8 May 2003
DepartmentTransport
Basis of considerationMinister's letter of 12 June 2003
Previous Committee ReportHC 63-xxiii (2002-03), paragraph 3 (4 June 2003)
To be discussed in CouncilNot known
Committee's assessmentPolitically important
Committee's decisionCleared

Background

9.1 The allocation of landing and taking-off slots at Community airports is regulated by Council Regulation No. 95/93,[24] the purpose of which is to ensure an efficient distribution of slots in a transparent and open manner. In November 2002 the Commission presented an amended draft Regulation to amend Regulation No. 95/93, which we have recommended for debate in European Standing Committee A.[25] Last month we considered an additional draft amending Regulation which would suspend temporarily the so-called "use-it-or-lose-it" rule.

9.2 Under Regulation No. 95/93 an air carrier which uses a slot in one season has first claim on it in the next corresponding season, under "grandfather rights". This is subject to use of the slot for at least 80% of the time — the "use-it-or-lose-it" rule. Given the hostilities in Iraq and the outbreak of Severe Acute Respiratory Syndrome (SARS) in East Asia, the European Commission has proposed temporary increased flexibility in the application of this rule. The draft Regulation would allow airlines to retain slots allocated to them for summer 2003 during summer 2004, even if they have not been able to use the slots for 80% of the time. It would achieve this by amending the main amending draft Regulation referred to above.

9.3 In reporting on this new proposal we said we wished to hear the Government's view on the consequences for consumer interests of the alleged trade restraint and anti-competitive aspects of the proposed measure. We also noted the possibility that this proposal might be separated from the main proposal.

The Minister's letter

9.4 The Minister of State, Department of Transport (Mr John Spellar) now tells us the Government believes that rather than returning slots to the pool, as some claim would happen, airlines would continue with their existing flight patterns, even with empty planes, in order not to lose those slots. He says this would not further consumer interests. The Minister says that if, unexpectedly, the airlines did surrender slots for badly hit routes, such as Hong Kong, China and Kenya, they would be taken by low-cost carriers operating mainly to European leisure destinations. The Government thinks such an exchange would not be in the interests of consumers. Therefore it supports the temporary suspension of the "use-it-or-lose-it" rule.

9.5 But the Minister emphasises that the Government takes seriously the competitive and consumer interest issues in relation to airport slot allocation and that it will continue to pursue these issues in the context of the continued discussions of the main proposal.

9.6 The Minister also tells us it has been decided to separate the proposal for temporary suspension of the "use-it-or-lose-it" rule from the main proposal and that it is now likely to proceed quickly. He says that on 5 June 2003 the Council agreed a "general approach" in favour of the proposal.

Conclusion

9.7 We are grateful to the Minister for this further explanation of the Government's view of this proposal. We have no further substantive questions on the document and now clear it.

9.8 We note that separating this proposal from the main proposal now renders redundant our earlier suggestion that this document would be relevant to the debate we have recommended in European Standing Committee A on the main draft amending Regulation.


24   OJ No. L 14, 22.1.93, p.1. Back

25   (22519) 10288/01 and (23997) 14205/02: HC 63-v (2002-03), paragraph 2 (18 December 2002). Back


 
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