Award of slots on Milan – Rome route

Italian Competition Authority
(Autorità Garante della Concorrenza e del Mercato – AGCM)

Advising AGCM on the process to open the Milan Linate to Rome Fiumincino route to new market entrants.

Aviation Economics was asked by the Italian Competition Authority, the Autorità Garante della Concorrenza e del Mercato (AGCM) to provide an opinion and make recommendations on the submissions by applicants for the slots being divested by Alitalia on the Milan Linate (LIN) – Rome Fiumicino (FCO) route.

A number of airlines submitted proposals, demonstrating the three key requirements to be eligible to receive the slots, namely:

  • A commitment to operating the Milan Linate-Rome Fiumicino route for at least the next six IATA seasons;
  • Being completely independent from Alitalia-CAI (corporate, financial and commercial independence) and
  • Being independent of the SkyTeam global alliance.

Our appraisal process focussed on the financial strength and stability of the applicants, their ability to compete with Alitalia on the route, as well as their product offer to passengers. Other criteria for applicant comparison included: current market shares in the Italian domestic market, aircraft type and availability, proposed fares, and proposed schedules and use of the available slots.

Following the appraisal process and our recommendations to AGCM on the re-allocation of Alitalia’s slots on this highly important trunk route, the AGCM awarded the slots to easyJet which started services on the route in March 2013.