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Slot constraints
What it is
A slot is permission to use runway and terminal capacity at a specific time. At congested airports, peak-hour slots are finite and allocated administratively, with incumbents holding historic rights
Delhi and Mumbai operate near capacity at peak times
Impact on industries
- Historic slot holdings at congested hubs are a genuine barrier to entry that no amount of capital can replicate quickly
- Caps growth for incumbents too - an airline cannot add peak frequencies where no slots exist, regardless of demand
- Forces expansion into off-peak times or secondary airports, both of which yield lower fares and worse aircraft utilisation
- New terminal and runway capacity, and the 25-airport privatisation programme, gradually relieve the constraint