Research and analysis

The Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025: impact assessment - RPC opinion (green-rated)

Regulatory Policy Committee opinion on The Department for Transport's impact assessment (IA) in respect of the regulations

Documents

RPC Opinion: The Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025

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Details

An airport “slot” is a permission to use all necessary airport infrastructure at a specified date and time for take-off or landing. Slot allocation is regulated only at “co-ordinated airports” where the capacity of the airport is unable to meet the demand for slots at that airport. Rules apply to the maintenance of existing slots and to the allocation of any new, or unused, slots. These regulations make amendments to the rules for allocating slots at congested UK airports. They also update the definition of which airlines can qualify as new entrants in slot allocation, and provide additional reasons for allowing alleviation from slot usage rules, and enable airlines to apply for an exemption to the rules governing slots at airports:

  • They amend the definition of a “new entrant carrier” from an airline which has fewer than five slots at an airport on a given day, to one which has fewer than seven. Airlines with a smaller presence at an airport benefit from greater priority in the allocation of slots; expanding the definition means more, smaller airlines can benefit, which in turn is expected to increase competition.

  • Airlines must use 80% of their allocated slots in the preceding winter or summer season to retain the same slots in the following season. An airline is not required to comply with this rule where it can demonstrate it was justified in not using slots; this is known as “slot alleviation”.

As originally scrutinised, the IA was deemed not fit for purpose. The Department has now correctly identified the direct impacts on business in the EANDCB. The Department estimates that the impact of expanding the justified non-utilisation of slots’ provisions (Option 1) is unquantifiable as a point estimate, but indicatively estimates that Option 1 will save businesses £23.7m per year, consisting of savings on operator costs minus the impact of reduced airport profits.

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Published 21 February 2025

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