1012. Allocation of scarce capacity.

In order to comply with the EU obligation1 to ensure a distribution of traffic rights among eligible Community air carriers on the basis of a non-discriminatory and transparent procedure, regulations have been made to set out the regime for distributing such traffic rights where scarce capacity exists2. Where the Secretary of State3 believes that within six months there will be scarce capacity on a route, he must notify the CAA of that belief4, stating why he believes there will be scarce capacity on the route5. The notification may state what issues the Secretary of State believes the CAA will