How are slots allotted to airlines for operation form an Airport?

With the increase in air traffic at the major airports in the country, the capacity of many airports has been constrained. Therefore to ensure most efficient use use of airport infrastructure and in order to maximise the benefits to the greatest number of airport users, the Airport Authority of India (AAI) has a policy for allocation of constrained or limited airport capacity to airlines and other aircraft operators, through a transparent and equitable mechanism so as to ensure viable airport and air transport operations.

An airport is categorised into different levels by an authority by following thorough demand and capacity analysis and in consultation with stakeholders and interested parties. Airports offering commercial passenger service are subdivided into three classes according to the level of congestion they experience. Those “where the capacities of all infrastructure at the airport are generally adequate to meet the demands of users at all times” are classified as “Level 1”; those “where there is potential for congestion during some periods of the day, week, or season which can be resolved by schedule adjustments mutually agreed between the airlines and a facilitator” as “Level 2” (or “facilitated”); and those where “it is necessary for all airlines and other aircraft operators to have a slot allocated by a coordinator in order to arrive or depart at the airport during the periods when slot allocation occurs” as “Level 3” (or “coordinated” or “schedule coordinated”) [IATA 2019]. In colloquial terms, the three levels correspond, respectively, to “un-congested”, “mildly congested”, and “seriously congested”. The International Air Transport Association (IATA) publishes list of Level 2 and Level 3 airfield of the world twice in a year catering for summer and winter schedule.

Above Table shows the number of airports designated as Level 2 and 3 in India, Asia Pacific Regions and the world. There are roughly 200 Level 3 airports which represent only about 6% of the more than 3000 airports around the globe where commercial airline service is offered. But despite their relatively small number, Level 3 airports are of immense importance to the global air transport system, as they include the great majority of the busiest airports in the world. They serve more than 40% of the total number of the world’s airport passengers.

India has total 153 airports out of which 29 are International Airports, 10 are Custom Airport, 91 are Domestic Airport and 23 are Domestic Civil Enclave Airport (Defence). Out of these Chennai, Delhi, Kolkata and Mumbai are LEVEL 3 airport; where as Ahmadabad, Bengaluru, Calicut, Goa, Hyderabad, Jaipur and Thiruvananthapuram are classified as LEVEL 2 Airports.

It is evident from the table that any public perceptions about the performance of the entire air transport system in the country is shaped by performance of these level 3 airports – Chennai, Delhi, Kolkata and Mumbai. The number of air traffic movement and passenger travelling by air transport system is continuing to increase in the country. The Level 3 airports in India face severe infrastructural constraint in increasing capacity of the airports. Coordination is not a solution to the fundamental problem of a lack of airport capacity. In addition present system of slot allocation has many shortcomings out of which major ones are mentioned below:-

(a) The core principles of the slot allocation process have remained largely unchanged for years, despite huge increase in demand and technology.

(b) Single set of allocation principles and rules are applied for all airports whereas the issues affecting Level 3 airports are diverse and unique to them.

(c) The process relies on purely administrative decision-making mechanisms, with no economic (“market-based”) considerations playing a role in the allocation of scarce capacity.

(d) Slot allocation criteria may be further enhanced to better align with today’s realities like – environmental cost, comparative aircraft passenger capacity for same route, and historical On Time Performance and Slot Utilisation data which will further enhance passenger experience and value.

(e) Use it or Loose it. With increase in aircraft reliability, its availability has increased. The 80% utilisation rate should be increased to 90% which will reduce the slot wastage.

IATA Worldwide Slot Guideline (WSG) dated 01 Aug 2019 recommends best practices for slot allocation. However, AAI has not revised its guidelines which is dated 13 May 2013 – “Revised guidelines for Slot Allocation” available at its website. Developing airport specific criteria for allocating the slots will preserve long term competitive environment, improve domestic/international connectivity and enable sustainable growth of traffic. The suggestions are neither comprehensive or complete but there is a need to diversify the allocation criteria for slot. Time has come to test feasibility of these concepts.