Europe Set to Lift Airport Slot Rules to Ease Pressure on Airlines -- Update 1
March 10 2020 - 12:21PM
Dow Jones News
By Benjamin Katz
The European Commission proposed a suspension of airport-slot
rules that would allow airlines to cut back capacity without
risking the loss of lucrative takeoff and landing rights.
The move, reported earlier by The Wall Street Journal, could
provide significant relief for domestic and international carriers
operating in Europe. Some have been operating near-empty flights in
and out of congested hubs, like London's Heathrow, to retain the
slots.
Under the so-called "use-it-or-lose-it" airport slot rules,
airlines must use a takeoff or landing slot at a level of at least
80%, to keep the flying rights for the next season.
European Commission President Ursula von der Leyen said Tuesday
she would soon put forward legislation to help airlines keep their
airport slots even if they don't operate due to the declining
traffic. "This will be a temporary measure. It will relieve
pressure on the aviation industry, especially for our smaller
airlines, and reduce the emissions of so-called ghost flights --
where airlines fly empty planes only to keep their slots."
The proposal requires approval by the European Parliament and
the Council of the EU, according to a statement from the
Commission, though passage through both bodies is widely expected
after the commission's support.
Airlines around the world have cut back capacity sharply amid a
steep fall off in bookings. American Airlines Group Inc. and Delta
Air Lines Inc. both said Tuesday they planned to reduce the number
of flights across their networks. Ryanair Holdings PLC cut is
traffic guidance for the year by three million passengers to 151
million. Norwegian Air Shuttle ASA said it was cutting 3,000
flights from its schedule.
Carriers and trade groups in Europe have asked for relief from
governments, including tax breaks and a relaxation of European
Union compensation rules for cancellations and delayed flights.
Relief from airport slot rules has been a top request amid these
talks.
The rule change would pave the way for carriers to cut
significantly more capacity and give airlines more flexibility to
navigate the crisis.
A position paper from the European Airports Coordinators
Association, a body that represents all national entities inside
Europe that assigns and manages the slots, recommended suspending
the rules until the end of June 2020, with an option to extend the
waiver. The suspension has previously been put in place during the
SARS outbreak, in the wake of the 9/11 attacks and during the
financial crisis.
Write to Benjamin Katz at ben.katz@wsj.com
(END) Dow Jones Newswires
March 10, 2020 12:06 ET (16:06 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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