Technical Paper Managing Airport Demand The Role Of .

TECHNICALPAPERMANAGING AIRPORT DEMAND: THE ROLE OF AIRPORT SLOTSThis Technical Paper is published with the WAYPOINT December 2019report and discusses issues on the role of slots in managing airport demand.EXECUTIVE SUMMARYA slot is a permission given to airlines to utilize the full range of airportinfrastructure that is related to their take-off or landing operations. Slot allocationis widely used to address airport congestion. An airport is classified as congestedwhen its infrastructure is incapable of coping with the demand at almost all times(Level 3) or during peak periods (Level 2). This classification is based on theInternational Air Transport Association (IATA) Worldwide Slot Guidelines (WSG),which is the primary document guiding slot allocation internationally. Globally,there are approximately 200 Level 3 airports, 12 of which are in Southeast Asia.For Malaysia, only KUL is classified as a Level 3 airport. However, nine otherairports also face terminal capacity constraints, handling more passengers thantheir terminals’ respective design capacities. In addition, there are also concernsover efficient infrastructure utilization due to constraints on aircraft movementsin airports such as KUL. Certain congestion issues may require infrastructureexpansion as a long-term solution. However, other solutions such as increasingairports’ operational efficiency, upgrading air traffic management system, andimproving slot allocation practices should first be exhausted.Slot allocation in Malaysia is carried out by the National Slot CoordinationMalaysia (NSCM) in accordance with the WSG. However, the WSG only provideskey principles for slot allocation. As done in other jurisdictions, Malaysia shoulddevelop accompanying guidelines to the IATA WSG to prescribe complementingmetrics on the application of the key principles and enhance slot allocationpractices, considering the local aviation environment.The Malaysian Aviation Commission (MAVCOM), as the economic regulator of thecivil aviation industry, is responsible for supervising the slot allocation. MAVCOMis responsible for monitoring the management of the slot allocation process, aswell as, ensuring that the practices are not anti-competitive, given its authorityover competition matters in aviation services. Slots related measures are alsorelevant as possible remedies in competition applications or cases, such as inexemption applications or mergers.In addition to slots, airlines services are also subject to the availability of air trafficrights (ATRs). The exchange of ATRs between States, allocation of ATRs and slotsto airlines, and application for landing permits are undertaken separately. In thisregard, MAVCOM has developed the Aerofile system as a ‘one-stop’ centre forairlines for landing permit filings, integrating the processes of the NSCM for slotallocation, MAVCOM for ATR allocation, and the Civil Aviation Authority ofMalaysia (CAAM) for technical approval.MALAYSIAN AVIATION COMMISSION DECEMBER 2019DECEMBER 2019

t CFHKDFSCGBPGoMHALIATAAirports Coordination AustraliaAustralian Competition and Consumer CommissionAirports Council InternationalAirport Coordination LimitedMalaysian Aviation Commission Act 2015Slot Coordination – Spanish AirportsAena SME, S.A.Australia Productivity CommissionAir Services AgreementAssociation of Southeast Asian NationsAir traffic rightAustralia DollarBritish Airports AuthorityBritish Midlands Airways LimitedBelgium Slot CoordinationCivil Aviation AuthorityCivil Aviation Authority of MalaysiaCivil Aeronautics BoardCanada DollarCentre for AviationCapital expenditureCompetition and Consumer Commission of SingaporeCompetition and Markets Authority, UKAirport Coordination FranceDepartment of Commerce, USDepartment of Justice, USEuropean CommissionEuropean Economic Community

EWR Newark Liberty International Airport, US FUK Fukuoka Airport, Japan FRA Frankfurt am Main Airport, Germany . SYD Kingsford Smith Airport, Australia (Sydney) SZB Skypark Terminal Sultan Abdul Aziz Shah Airport, Mala