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MARCH 2020

Week 11

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Regulators initiate slot relief for airlines

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March 13th 2020

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Regulators worldwide are easing some of the rules tied to the use of precious take-off and landing slots at airports to allow airlines the flexibility they need to deal with COVID-19. Read More »

Airlines have radically scaled back their schedules in response to the sharp decline in demand prompted by the spread of the coronavirus.

The network shrinkage has raised the possibility of airlines operating less than the 80% of their allocated slots at slot-controlled airports. Airlines need to maintain activity to retain their slots for the following season.

IATA has called for the 80/20 rule to be relaxed, as was allowed under exceptional circumstances provisions.

Regulators in Europe, Hong Kong, New Zealand, the U.S. and elsewhere have answered the call with announcements of relief measures for airlines.

This week, the EU said it would bring forward legislation to temporarily suspend the 80/20 rule.  It noted the situation was deteriorating on a daily basis with passenger traffic expected to decline further in coming weeks.

The EU Commission said the measure would release pressure on the whole aviation industry and, in particular, at smaller airlines while decreasing emissions from ‘ghost flights’, when airlines fly almost empty aircraft on short routes – such as from London Heathrow to London Gatwick - to keep slots.

“The temporary measure will allow airlines to adjust their capacity in view of the falling demand caused by the outbreak," EU Commissioner for Transport, Adina Vălean, said on March 10.

Similarly, New Zealand's Slot Co-ordination NZ Ltd said its board had decided airlines operating to and from New Zealand "should be granted alleviation from the 80/20 slot allocation rule for the forthcoming slot coordination season", running from March 29 2020 to October 24 2020.

"The board noted IATA’s statement that without certainty about how their slots would be treated, airlines faced the impossible choice of flying half empty planes, which would be environmentally and economically unsustainable, or risking the loss of access to airports that provide connectivity and economic growth," it said.

The U.S. Federal Aviation Administration (FAA) said on March 11 it was waiving the 80/20 rule for U. S. and foreign airlines to May 31 2020.

However, it cautioned foreign carriers may not be eligible for a waiver if the offer was not matched by that foreign carrier's national regulator.

"In doing so, the FAA expects U.S. airlines will be accommodated with reciprocal relief by foreign authorities at airports in their countries and may determine not to grant a waiver to a foreign carrier whose home jurisdiction does not reciprocate," the FAA said in a statement.

“The agency will continue to monitor the Coronavirus’s effect on travel demand and may adjust this waiver as circumstances warrant. The FAA will inform airlines of any decision to extend the waiver period as soon as possible.”

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