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Yorkshire Airports Hit By Commission Slot Freeze
Brussels, Wednesday 18 March 2009
Yorkshire MEP Timothy Kirkhope expressed his dismay at the state of the aviation industry as the Commission announced a temporary freeze of the 80/20 Rule, a measure designed to soothe the impact of the economic downturn on beleaguered airlines.
The 80/20 Rule is based on a "use it or lose it" system which means that slots must be utilised on 80% of occasions or the entitlement to them in future seasons will be lost. The Commission's suspension will help the majority of airlines: not having to fulfil their allocation will give them greater leeway to ride out the economic downturn. It also means that airlines won't be tempted to fly empty planes in order to retain their 'grandfather' rights, and the Commission claim it will give slot coordinators greater legal certainty.
However, not everybody is happy. The so-called "no frills" airlines are said to be furious about the plan, which they claim is anti-competitive. Airport operators are also saying that this will have a knock-on effect on passengers, as airlines may be tempted to cancel flights which are not profitable. Whilst it is the biggest airports that will suffer most, the measures are all also bound to affect regional and small airports, like Leeds-Bradford in Mr Kirkhope's constituency for example, because the airlines will concentrate on their most profitable routes.
Mr Kirkhope, the Conservative Transport Spokesman, expressed his reluctant support for the freeze yesterday:
"We are becoming aware of the far-reaching impact of the current economic downturn, which is hitting the Aviation industry very hard indeed. It's clear measures needed to be taken. Clearly bailouts shouldn't be an option - in any case most airlines don't want state aid.
"The freezing of the 80/20 rule shows a lack of imagination by the Commission and must be a "one-off" temporary measure. The Commission must also adopt measures that deal with the pain of the airport operators otherwise this will undoubtedly worsen the impact of the crisis on airports to the advantage of the airlines. I would like to see the regulation of airports relaxed, and incentives for investment in the smaller regional airports. The national authorities and the Commission must act fast."
ENDS
