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Regarding the allocation of handling times at Keflavik Airport

10 February 2014
Snowcap Mountain

Leif Erikson Airport - Photo: kefairport.isOn Saturday, 8th February, a news article was published on visi.is which discusses the position of Frank Holton, the Co-ordination Officer for Keflavik Airport, regarding the allocation of handling times at the airport. It is necessary to respond to the misrepresentations contained in the article.

The following is quoted directly from Holton: „It might have been sensible if the people at the Competition Authority had contacted us, who are responsible for allocating these times, before they reached this conclusion.“ On this point, it is worth noting that in the decision in question No. 25/2013 It is stated that the views of Frank Holton were repeatedly sought during the handling of the case, and he put forward his views. The Competition Authority, among other things, met with the coordinator. This gathering of evidence was in addition to extensive communications with Isavia. The decision, among other things, cites Frank Holton's view that it is „foolish – indeed almost silly“ for WOW Air to expect to use the same departure times during peak periods as Icelandair. At a meeting with the regulator, the coordinator also stated that he does not take competitive considerations into account when allocating new handling slots.

The quote from the coordinator in the news article further supports the Competition Authority's main conclusion that Icelandair's competitors do not have the opportunity to compete with the company on a fair basis on flights to America. The decision states that Icelandair has been and is being given priority for the most desirable slot times at the airport in the mornings and afternoons. This also applies to new slot times that have become available due to Isavia's expansion of aircraft stands at the terminal.

Regarding other claims made in the news report, the Competition Authority once again refers to its decision. No. 25/2013, which can be found on the authority's website. It argues that the disputed, sought-after turnaround times provide a competitive advantage and that the allocation procedure has a detrimental effect on competition. The decision also discusses in detail the remit of the airport's responsible authority and the relationship between Icelandic competition law and European law. The decision also details that the rules on the allocation of handling slots in the European Economic Area contain a reservation which authorises national competition authorities to require changes to the allocation of handling slots on the basis of competition law. In light of this reservation and the provisions of competition law, the Competition Authority ordered the allocation of slots to WOW Air during peak periods to promote competition in transatlantic flights.

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