Global industry bodies call for the extension of slot relief

The leading global associations of airlines, airport operators, and slot coordinators have called upon the legislators to extend slot relief for the Summer 2021 season. However, they do not postulate the prolonged abolishment of these rules. In a joint press release, Airports Council International (ACI World), the International Air Transport Association (IATA), and the Worldwide Airport Coordinators Group (WWACG) proposed to lower the threshold of slot usage from the standard 80% to 50%. As such, airlines which use half of their allocated slots would be able to retain them. In regular times, airlines which fail to operate more than 20% of their planned flights lose slots. The industry bodies also appealed for a more specific definition of force majeure, which permits the cancellation of flights with no consequences regarding slot allocation. In particular, they suggested adding quarantine measures or border closures to the definition. Finally, the organisations also want to allow airlines to return slots on a temporary basis voluntarily. Those which do so by the end of February 2020 would be allowed to regain the same slots for the Summer 2022 season. “The existing slot rules were never designed to cope with a prolonged industry collapse. Regulators temporarily suspended the rules for Summer and Winter 2020 to give the industry vital breathing space. International air traffic, though, is only expected to return to about 25% of 2019 levels by summer 2021. To preserve connectivity while air traffic recovers, a more flexible system of slot regulation is essential,” the organisations said. The Worldwide Airport Slot Board (WASB), which comprises the three organisations, plays a crucial role in allocating slots and mediating compromises between the airlines and airports. However, it has no power to set the underlying legal rules, which are the prerogative of respective legislatures around the world. The European Union, which has the world’s most formalised slot allocation system, has suspended all normal rules, including the 80/20 usage requirement, for the entire Summer 2020 and Winter 2020/21 seasons. The US Federal Aviation Administration, which regulates slots at only seven gateways, has similarly waived the use-it-or-lose-it rule for the time being. Wizz Air and Ryanair have been vocally opposing the extension of slot relief. Both airlines argue that by restoring normal rules, the regulators would facilitate the takeover of slots by airlines willing to expand even in the current market – i.e., by the low-cost carriers.