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)

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