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Shanghai Pudong Airport to try "ballot plus fee" allocation model for 14 slots

On Jan 6, Shanghai Pudong International Airport (PVG) announced that it will try a "ballot plus fee" allocation model, one week after the auction for nine slots at Guangzhou Baiyun International Airport (CAN). The move is intended to improve transparency in the allocation process.

Shanghai Pudong will be the first airport in China to launch the "ballot plus fee" allocation model for its 14 new slots. The ballot will take place around Jan. 20.

According to the CAAC East China Regional Administration, the airlines that are eligible to take part in the ballot will be divided into three groups - Shanghai-based airlines, new entrants in Shanghai and other airlines.

There will be two rounds of ballots—first, to determine the ballot order of the three groups, and second, to slot the airlines and their landing slot. It is expected that about half of the 14 slots could go to the Shanghai-based airlines.

The balloted slots will be valid three years from January 31, 2016 to January 30, 2019.

Industry insiders said the trial at Shanghai Pudong will not cost too much, so travelers do not have to worry that the air ticket prices might get raised because of it.

On Dec 30, 2015, seven carriers had bagged the rights to nine slots at the Guangzhou Baiyun International Airport for three years. It was China's first airport slot auction.

Officials say that the CAAC is to build a fair, efficient and transparent market-oriented allocation mechanism with the reform of airport landing slot allocation at Guangzhou Baiyun and Shanghai Pudong.

 
 
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