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Airlines Get Help In Tough Times
Thursday 7 May, 2009
Proposals that will temporarily freeze the 80/20 rule on airline slots to help companies hit by the downturn were cautiously welcomed today by Timothy Kirkhope MEP, Conservative transport spokesman, after they were adopted by MEPs. It is hoped that by freezing the 80/20 rule on airline slots it may prevent airlines from flying empty planes in order to maintain their allocated airport slots. The 80/20 rule is based on a "use it or lose it" system which means that slots must be utilised on 80 percent of occasions or the entitlement to them in future seasons will be lost.
The suspension will benefit the majority of airlines as not having to fulfil their allocation will give them greater leeway to ride out the economic downturn. Relaxing the rules should mean airlines will be less tempted to fly empty planes in order to retain their slots, and the commission claims slot coordinators will also have greater legal certainty as a result.
Certain parties are however opposed to relaxing the rules. No frills airlines are said to be furious about the plan, which they claim is anti-competitive. Airport operators are arguing that passengers are likely to be affected, as airlines may be tempted to cancel flights which are not profitable. While the biggest airports are likely to suffer most, the measures are all also sure to affect regional and small airports because airlines will concentrate on their most profitable routes. Lastly, pilots are bound to be affected - some are worried they might lose their jobs because of the drastic reduction in the number of flights on some routes.
Mr Kirkhope said:
"The freezing of the 80/20 rule is not the answer to the airline industry's woes. We reluctantly support relaxing the 80/20 rule as it would be economically and environmentally ludicrous for airlines to have to run empty planes in order to maintain their slots."
"Suspending the 80/20 rule is an anti-competitive measure which rewards the big carriers for their failure to adapt to current market conditions, and therefore should be a one-off in these exceptional circumstances.
"We need to see airport regulation relaxed, and incentives for investment in the smaller regional airports."
ENDS
