Airport's Slots

These slots are an essential mechanism for managing air traffic flow and ensuring the efficient utilization of airport resources. This system applies primarily to busy airports, categorized as "Level 3 Coordinated Airports" by the Worldwide Airport Slot Guidelines (WASG).

The first edition of the Worldwide Airport Slot Guidelines (WASG) was introduced by the International Air Transport Association (IATA) in the year 1969. These initial guidelines focused primarily on scheduling fairness and historical usage. WASG plays a critical role in maintaining a fair level playing field for airlines operating at busy airports. It ensures transparency and predictability in the slot allocation process, benefiting airlines, passengers, and airport operators.
The world of aviation thrives on efficiency and precision. The operational efficiency and precise decision making are the key abilities for airlines to generate valuable profits. Currently, airport slots are becoming incredibly expensive due to a combination of limited supply and high demand. And the main factors effecting the airport slots availability and their prices are
1. Location
Slots at major international hub airports are mostly consumed by the dominant carrier operating from that hub. In this case the remaining slots becomes crucial and the fight for obtaining those slots create scarcity which eventually affect price hike.
2. Time of the Day
Peak travel times like mornings and evenings see a higher demand for slots, leading to a price rise.
3. Seasonality
Slots during peak travel seasons like holidays can be more expensive. Similarly at some leisure airports, the price of slots increases in summer season.

How slot allocation works:

The slot allocation process at busy airports is designed to ensure smooth air traffic flow and efficient use of limited runway capacity. Here's a simplified breakdown:

1. Scheduling Season: Airlines submit proposed flight schedules for a specific season (usually summer or winter) to a designated slot coordinator.
2. Slot Allocation Criteria: The coordinator considers various factors when allocating slots, including:

• Historical Usage: Airlines with a proven track record of operating flights at a particular time and day are generally prioritized ("grandfather rights").
• Public Interest: Flights serving underserved communities or providing essential connections might be favoured.
• New Entrants: A portion of slots might be reserved for new airlines to promote competition.

1. Negotiation and Awards: Depending on regulations, airlines might negotiate with the coordinator or even buy/lease slots from other airlines if needed.
2. Final Schedule: The coordinator finalizes the slot allocation, and airlines publish their confirmed flight schedules based on the awarded slots.

Importance of Slots:

• Slots prevent airport chaos, optimize runway use, and make flights more predictable.
• Reserving slots for new entrants help maintain a balance between established airlines and fostering competition.
• Network airlines operate through a hub-and-spoke system, relying on major airports as central hubs to connect passengers to various destinations. Slots at these hubs are crucial for network airlines to offer more frequency as well as to maintain good on time performance.