PARIS—The European Commission (EC) has agreed to extend the slot waiver until the end of the 2020/2021 winter season, in a move aimed at helping the aviation sector recover from the devastation caused by the COVID-19 pandemic.
The EC had initially agreed to waive the 80/20 slot rule back in March as COVID-19 travel restrictions and mass flight groundings took hold.
The 80/20 slot rule requires that carriers use slots at regulated airports at least 80% of the time to avoid losing them in the next equivalent season,
Carriers have since been calling for that waiver to be extended to help them through the winter season.
European commissioner for transport Adina Vălean announced Sept. 14 her intention to extend the rule until March 27, 2021. The industry is expected to abide by the agreed conditions voluntarily during the 2020/21 winter season pending the adoption of fully enforceable conditions.
Vălean’s announcement came on the same day Eurocontrol released a more pessimistic forecast for the coming months. Eurocontrol said it now expected that in 2020 the total number of flights in Europe would be down 55% on 2019, compared with a previous forecast of a 45% drop. Eurocontrol also said it expected the region’s airlines, airports and ANSPs could now see a loss of revenues of €140 billion ($166 billion) for 2020, up from the €110 billion loss it predicted in April.
“The coronavirus pandemic has had a tremendous impact on air travel and the aviation sector as a whole. Today’s report shows that air traffic levels remain low, and more importantly, they are not likely to recover in the near future,” Vălean said. “In this context, the lack of certainty over slots makes it difficult for airlines to plan their schedules, making planning difficult for airports and passengers.”
Earlier in September, organizations representing airlines and airports put forth a set of jointly agreed upon conditions which they said would allow for the waiver to remain in place through the winter season. The organization hopes the conditions will encourage the EC to decide quickly on the extension.
Airlines and airports had previously expressed differing views on slot strategy. Airports said that the flexibility the slot waiver granted airlines could lead to lost revenue opportunities for airports.
The conditions they jointly put forth included: applying the waiver only to slots held on Aug. 31 and not to slots newly allocated for the winter season; excluding operators that permanently ceased operations at an airport; and having carriers quickly return slots that they do not intend to use to allow for reallocation.
Vălean praised that agreement but signaled that the EC would want to take a closer look at slot rules once the crisis has passed.
“The initial slot waiver–adopted in the early days of the crisis–has allowed airlines to make financially sound decisions on whether to run flights, as well as avoid ghost flights,” Vălean said. “Nonetheless, our report also highlights certain problems with the current waiver, which are preventing airlines from using airport capacity efficiently.” Vălean noted that slots were not always relinquished in time for other users or airports to plan operations as they would like.
Vălean added that competition may also be distorted if airlines seek to benefit by increasing their market presence without using their slots and airport capacity correctly. “Such behavior can hamper competition and can, therefore, harm EU passengers and freight customers,” Vălean said. “This must be remedied.”
Vălean said the EC was consulting the public and stakeholders on how to return eventually to a normal slot regime. She said she hopes to present a proposal before the end of the 2020.
Related Content
