Aviation
Airport slot
Permission to use a busy airport at a set time to land or take off.
Last reviewedWhat does Airport slot mean?
A slot is the right to schedule a landing or takeoff at a busy (slot-coordinated) airport at a specific time on a specific day. Slots at crowded airports such as London Heathrow are scarce and can be worth a lot of money. They are allocated under the Worldwide Airport Slot Guidelines, published by IATA with airports and slot coordinators, which include a use-it-or-lose-it rule: an airline must usually operate a slot at least 80 percent of the time to keep it next season. Example: an airline holding a daily pair of morning slots at a full hub can run a route that rivals simply cannot start. Slots are a major barrier to entry, and competition authorities often require merging airlines to give some up.
Where does it come up in case interview prep?
Related terms
- Barriers to entryWhat makes it hard for new competitors to enter a market.
- Hub-and-spoke networkAn airline network that routes passengers through a central airport to connect many cities.
- Freedoms of the airThe international rights that let airlines fly over, land in and carry passengers between countries.
- ASK (available seat kilometre)One seat flown one kilometre: the standard measure of airline capacity.
- RPK (revenue passenger kilometre)One paying passenger flown one kilometre: the standard measure of airline traffic.
- Load factorThe share of seats filled with paying passengers: RPK divided by ASK.
- Yield (airlines)Passenger revenue per revenue passenger kilometre: the average fare per kilometre.
- RASK (revenue per available seat kilometre)Total airline revenue divided by ASKs.