UK's Move to Soften Airport Slot Rules Prompts Mixed Industry Reactions --Update
January 24 2022 - 11:30AM
Dow Jones News
By Anthony O. Goriainoff
The U.K. government's move to relax airport slot rules for
summer 2022 has prompted mixed responses from the sector.
On Monday the U.K.'s Department for Transport said it had laid
out regulations before parliament which would ease airport slot
rules in a move intended to support the recovery of the airline
sector.
The government said that for the summer 2022 season, airlines
will now need to use their slots at least 70% of the time to keep
them, down from 80%. It added that the list of situations where
airlines can justify not using a slot was being widened
further.
Heathrow Airport said it welcomed the government's new rules and
that the decision was fair to both airports and airlines.
"It strikes the right balance between driving recovery and
promoting competition, which is positive for consumers, while
recognising that the industry still faces uncertainty and needs
support," the airport said.
Gatwick Airport added that the government's decision was welcome
and would "support the hard-hit aviation sector and wider economy
by sending a clear message that markets are returning to normal as
we learn to live with Covid-19."
Meanwhile, Wizz Air called the move a "step in the right
direction" and said this was a great opportunity for U.K. aviation
to get back on its feet. But the budget airline said it would
continue to urge the government to eventually transition to the
full reinstatement of the 80% slot usage rules "so that consumers
will once again benefit from a competitive U.K. aviation
market."
However, others in the industry weren't so supportive of the
government's decision.
Luis Gallego, chief executive of IAG--which owns British Airways
and Iberia, among others--said that under the current circumstances
the decision would force airlines to operate flights with low load
factors, thus generating unnecessary CO2 emissions. "This is bad
for the environment and detrimental to aviation's efforts to tackle
climate change," Mr. Gallego said.
As is the case in the current winter season, the government said
the move will cover situations where Covid-19-related restrictions
at either end of a route result in a severe reduction in demand.
For the summer season, it will no longer be necessary for carriers
to show that the measures were unforeseeable.
The measures will allow airlines in these circumstances to keep
their historic rights to the slots even if passenger demand doesn't
justify operating a flight, the government said.
Without this regulation, the usage threshold would default back
to 80% and no additional flexibility on justified non-use, thereby
increasing the risk of ghost flights, the department said.
"Today's extension marks a step back towards normal rules,
helping the sector to recover and grow as travel returns while
protecting it against any future uncertainty," U.K. Transport
Secretary Grant Shapps said.
IAG shares at 1515 GMT were down 7% at 146.68 pence. Wizz Air
shares were down 5% at 4,251 pence.
Write to Anthony O. Goriainoff at
anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
January 24, 2022 11:15 ET (16:15 GMT)
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