aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

Landing Fees And Slot Fees Any Differ?

Wed Sep 19, 2007 12:25 am

Hello all

I was wondering are Landing fees and Slot fees are two different category? What is the difference between those two fees?
 
futurecaptain
Posts: 1918
Joined: Sat Sep 09, 2006 1:54 am

RE: Landing Fees And Slot Fees Any Differ?

Wed Sep 19, 2007 12:41 am

Landing fees are charged by most major airports. Usually by the weight or capacity of the aircraft. The fee to land, only paid when wheels touch pavement.

Slots are a reserved time to land or takeoff. It is a commodity which can be sold, leased, ect.
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commavia
Posts: 9809
Joined: Mon Apr 25, 2005 2:30 am

RE: Landing Fees And Slot Fees Any Differ?

Wed Sep 19, 2007 12:54 am

Quoting AirCanada014 (Thread starter):
I was wondering are Landing fees and Slot fees are two different category? What is the difference between those two fees?

They are two fundamentally different things.

A landing fee is a fixed price -- usually based on the gross weight of the aircraft upon landing and takeoff -- that is charged by the airport to the airline (and thus passed along to consumers in the ticket price) that is used to fund airport operations. For the vast majority of the world's airports, landing fees are their primary source of revenue.

A slot, generally speaking, is not usually affixed to a "fee" per se. A slot is -- at its most basic form -- just a right. It represents the right of an airline to take-off or land an airplane, generally at a specific time or during a specific time window (0900-0959, etc.). It can also have different restrictions attached to it depending on the airport, time of day, etc., including noise regulations, aircraft size regulations, etc. The airport gets to decide what rules they want to set for their slots, if they have any. Generally, slots are rare within the United States: in the entire country of several thousand commercial airports, only a handful have slot restrictions. Outside the U.S., however, slots are almost a given - at least at most major-market airports (including virtually every single major airport in Europe, for example).

Slots - unlike landing fees - can be either issued by the airport directly to airlines or, in the case of some airports where slots are so heavily in demand - an aftermarket for trading slots among airlines generally develops. A great example of this is London's Heathrow Airport, which has about the most active slot demand of any airport on earth. Just about every airline in the world would kill to get into Heathrow, either because it is very, very lucrative and high-yielding or because, in the case of smaller airlines and smaller countries, it is a source of enormous prestige. In these cases, slots can be sold among airlines in the aftermarket (or, in some cases, black market). That is, I think, what you mean by "slot fees." In the case of Heathrow, for example, regulations actually make slot "sales" illegal and only allow slot "swaps," so when you hear that an airline purchased a slot-pair at Heathrow, what they actually did was trade slots.

Example: in the case of Gulf Air recently selling a slot-pair to AA at Heathrow, for say, 0900, what actually happened was that AA requested from the Heathrow slot issuance authority a slot pair at a time that nobody would ever want like, say, 0300, and then, they "traded" it with Gulf Air for their 0900 slot and also, oh yeah, minor detail a small fee of say $20-30 million.
 
cornish
Posts: 7651
Joined: Fri Feb 18, 2005 8:05 pm

RE: Landing Fees And Slot Fees Any Differ?

Wed Sep 19, 2007 12:57 am

Quoting Futurecaptain (Reply 1):
It is a commodity which can be sold, leased, ect.

Not everywhere. In the UK yes, but in some other countries it is still not possible. This is likely to change across the EU in the future to a more market based system where they can be traded as in the UK.
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