Restrictions on competition resulting from the arrangement for allocation of time slots to airlines at Keflavik Airport

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• Case number: 2/2015
• Date: 19/11/2015
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• Policy Area:
  • Transport and travel affairs
• Summary

  The Icelandic Competition Authority (ICA) has issued two opinions (no. 1/2015 and 2/2015) to recommend that the Minister of the Interior and the Icelandic Transport Authority facilitate actions to reduce restrictions on competition resulting from the arrangement for allocation of time slots to airlines at Keflavik Airport.
  
  For the past few years Icelandair's competitors have complained that Icelandair enjoys competitive advantage because the airline has priority when it comes to allocation of time slots between 7:00 and 8:00 in the morning and between 16:00 and 17:30 in the afternoon. This priority also exist when new time slots have been allocated.
  
  The ICA's investigation has revealed that departures in these time slots are highly important for airlines who wish to establish a route system in regular scheduled flights between Europe and North America, as Keflavik Airport is a connecting airport for passengers. The investigation has also revealed that Icelandair not only has priority to time that the airline holds on grounds of historic rights but also new time slots that have been allocated for the past few years due to increased capacity.
  
  It is the ICA's conclusion that the current arrangement for allocation of time slots of Keflavik Airport disrupts competition. It is recommended that the Minister of the Interior and the Icelandic Transport Authority take immediate action to reduce the competitive barriers. The actions taken should aim to encourage active competition, for public interest, in the operation of regular scheduled flights.

  *Text document is translated to English