Refer to figure.
Slant range, also known as line-of-sight range is the distance along a slant direction of 2 points that are not at the same height. An aircraft is flying at a specific height and a specific lateral distance from the DME station. The aircraft sends out a radio signal to the DME station and uses the time it takes to travel to calculate the slant distance from the aircraft to the DME station.
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Austro Control