Opinion ID: 73842
Heading Depth: 2
Heading Rank: 1

Heading: Slot Allocation Process

Text: The transatlantic airline industry is a highly regulated business controlled, to a great extent, through negotiations among national governments.2 The governments of the United States and the United Kingdom have signed two bilateral treaties which control many aspects of the transatlantic industry, including 2 Although in the past decade there has been an increased push to deregulate the international air transportation business in order to increase competitiveness, national governments remain highly involved. 3 factors such as the number of carriers, fares, capacity, and route designations.3 As a result of these international agreements, a backdrop of national sovereignty pervades discussions about transatlantic air transport issues. While bilateral treaties control the number of entrants into the MiamiLondon market and designate the U.S. airlines given access to London's Heathrow Airport, forcing Laker to land at London's Gatwick Airport, the gravamen of Laker's complaint is that BA conspired with ACL to prevent Laker from being allocated desirable landing and take-off slots at Gatwick.4 We must first consider, then, the United Kingdom's procedure for slot allocation. On January 18, 1993, the Council of the European Communities issued a regulation setting forth the common rules for the allocation of slots at Community airports. See Council Regulation 95/93, 1993 O.J. (L 14). This regulation required Member States to “ensure the appointment of a natural or legal person” to act as airport coordinator, after consultations with the air carriers regularly using the airport facilities. Id., art. 3 Agreement Between the Government of the United States of America and the Government of the United Kingdom of Great Britain Relating to Air Services Between Their Respective Territories, Feb. 11, 1946. U.S.-U.K., 60 Stat. 1499 [Bermuda I], and 23 July 1977, 28 U.S.T. 5367, T.I.A.S. No. 8641 [Bermuda II]. 4 Although Laker receive slots at Gatwick Airport for the summer 1997 season, it contends that BA and ACL acted in tandem to prevent Laker from obtaining time slots that are more commercially advantageous. Laker asserts that slots allowing for arrival in London in the early morning hours and departures between 10:00am and 1:00pm local time are the most commercially desirable because they allow for convenient connections to other flights and enable passengers to reach Miami before dark. 4 4(1). The coordinator is then responsible for the allocation of slots. Id., art. 4(5). The regulations further provide that the Member State “shall ensure that the coordinator carries out his duties . . . in an independent manner.” Id., art. 4(2). The coordinator is to act in “a neutral, non-discriminatory and transparent way.” Id., art. 4(3). Finally, the regulations provide that “[s]lots may be freely exchanged between air carriers or transferred by an air carrier from one route, or type of service, to another, by mutual agreement or as a result of a total or partial takeover or unilaterally. Any such exchanges or transfers shall be transparent and subject to confirmation of feasibility.” Id., art. 8(4). To implement the European Community regulation, the Parliament of the United Kingdom enacted The Airports Slot Allocation Regulations 1993, S.I. 1993, No. 1067 (”ASAR”). This legislation provides that the appointment of any person as a coordinator must be approved by the Secretary of State for Transport, the Minister designated for the purpose of monitoring, among other things, the allocation of slots. The Secretary may withdraw approval of a coordinator if he has not performed in an independent manner. ASAR, ¶ 4(3). ACL is the designated slot allocation coordinator for London's Gatwick Airport. ACL is composed of a representative of all United Kingdom airlines who wish to participate. Each member of ACL may designate a representative to the Board of 5 ACL. Each representative, or director, has an equal, single vote in the actions of the organization. Laker alleges that by virtue of its size and importance in the airline business, BA has been able to control the decisions of ACL.