EU discusses sale of airline `slots'

The European Commission is discussing controversial proposals that would allow a limited public auction of airline take-off and landing slots.

The plan, due to be tabled at a full Commission meeting on September 6th, would end the practice whereby big airlines exchange redundant slots with each other, making it more difficult for newcomers to break into the market.

The proposals, put forward by the EU's transport commissioner, Ms Loyola de Palacio, would allocate a pool of unused slots to be sold by auction. They would be sold for a term of 10 years after which airlines must relinquish them back to the pool.

Ms de Palacio's proposal is likely to run into opposition from big airlines that have often resisted opening up the market for slots.

Mr Karel Van Miert, the previous competition commissioner, insisted there could be no sale of slots as they were not owned by airlines. A spokesman for Mr Mario Monti, the current competition commissioner, said he was keen to see as much competition as possible and it was necessary to find the best system for achieving that.

Ms de Palacio believes the introduction of an open market in slots "will contribute considerably to the flexibility at highly congested airports". She wants it to take effect from the end of 2001, if it is approved by the Commission.