The CMA’s response endorses the proposed changes in the consultation, aimed at improving the current system. The response also explains why the CMA recommends going further and makes the case for market-based mechanisms to allocate airport slots, by drawing upon the CMA’s previous advice and consultation responses in this sector.
The CMA is the UK’s principal competition and consumer authority. It is an
independent non-ministerial government department, and its responsibilities
include carrying out investigations into mergers and markets and enforcing
competition and consumer law. The CMA helps people, businesses and the
UK economy by promoting competitive markets and tackling unfair
behaviour.1 The CMA has a role in providing information and advice to
government and public authorities.2 The CMA’s advice and recommendations
are made with a view to ensuring that policy decisions take account of the
impacts on competition and consumers.
The CMA’s strategy includes “getting about and travelling” as an area of focus
and which continues in the CMA’s Annual Plan 2024-25. The transport sector
has great significance in supporting economic activity. The aviation sector
helps the UK trade and allows people to travel internationally and domestically
for work and pleasure. The air transport sector alone contributed £5.47 billion
to the UK economy in 2019, with the entire aviation industry contributing
almost £22 billion.
However, airport capacity is scarce and needs to be
allocated efficiently. We welcome measures to improve competition in this
sector in the interests of passengers, such as through reform to airport slot
allocation.
The CMA has engaged extensively with the Department for Transport (DfT)
on the issue of airport slot allocation system reform since 2018. We have
consistently made the case for using market-based approaches in allocating
airport slots. The CMA believes that, as well as improving competition in the
interests of passengers, market-based approaches can improve dynamism and innovation in one of the UK’s largest services export markets, making a
sizeable difference to the economy.
