Europe OKs suspension of strict ‘use-it or lose-it’ slot rules amid coronavirus outbreak
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
The European Commission has agreed to suspend strict requirements regarding airport slots in the light of the coronavirus outbreak. European Commission Chief Ursula von der Leyen said on Tuesday that the institution agreed that it would suspend the rule that requires airlines to operate a majority of their scheduled flights in order to avoid forfeiting their landing slots.
Currently, European Commission rules state that an airline must operate at least 80% of their allocated slots under normal circumstances. If an airline is found to have not operated the required amount of flights, it risks losing its right to the same slot in the next equivalent season.
However, the Commission will be suspending those rules temporarily.
“The Commission will put forward, very rapidly, legislation,” Von der Leyen said on Tuesday. “We want to make it easier for airlines to keep their airport slot even if they do not operate flights in those slots because of the declining traffic.”
Sign up for the free daily TPG newsletter for more airline news
Von der Leyen did not specify for how long the “use-it-or-lose-it” rule would be suspended.
Since the effects of the coronavirus have taken their toll on the travel industry, airlines around the globe have been forced to cancel routes and reduce operations in order to minimize losses. Until this point, some airlines had been forced to operate nearly empty flights, referred to as “ghost planes,” in order to keep the service in operation and remain complaint with usage requirements attached to valuable slots.
“Passenger demand for air travel has dramatically fallen due to Covid-19 and in some instances we are being forced to fly almost empty planes or lose our valuable slots,” said Virgin Atlantic CEO Shai Weiss, according to BBC.
Earlier in March, the International Air Transport Association (IATA) called on global aviation regulators, including the European Commission, to suspend the rules.
Additionally, U.K. Transport Secretary Grant Shapps asked the European Commission to relax its rules on airport slots during the coronavirus outbreak. In the U.K., strict European Commission slot rules apply to London Heathrow, London Gatwick, London Stansted, London Luton, London City and Manchester airports.
In-depth:These are the hotels and airlines offering elite status extensions for those impacted by coronavirus
With the European Commission’s consensus to suspend the slot-forfeiting rule, airlines won’t be forced to continue to operate flights that are nearly empty — a win for the finances of an airline and the environment.
“This temporary measure helps our industry but it also helps our environment,” Von der Leyen said. “It will relieve the pressure on aviation industry and in particular on smaller airline companies.”
In 2003, regulators relaxed the slot rules during the SARS outbreak as well as in the aftermath of 9/11.
European airports — London Heathrow in particular — are home to some of the most expensive and sought-after slots in the world.
Featured photo by Matthew Lloyd/Bloomberg via Getty Images.
Sign-up Successful!
Welcome to The Points Guy!
WELCOME OFFER: 80,000 Points
TPG'S BONUS VALUATION*: $1,600
CARD HIGHLIGHTS: 3X points on dining and 2x points on travel, points transferrable to over a dozen travel partners
*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.
- Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 when you redeem through Chase Ultimate Rewards®.
- Enjoy benefits such as a $50 annual Ultimate Rewards Hotel Credit, 5x on travel purchased through Chase Ultimate Rewards®, 3x on dining and 2x on all other travel purchases, plus more.
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards®. For example, 80,000 points are worth $1,000 toward travel.
- With Pay Yourself Back℠, your points are worth 25% more during the current offer when you redeem them for statement credits against existing purchases in select, rotating categories
- Count on Trip Cancellation/Interruption Insurance, Auto Rental Collision Damage Waiver, Lost Luggage Insurance and more.
Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.
Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.