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Here is the EU proposal to waive the 80% ‘use it or lose it’ airport slot rule – and IATA is not happy

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The European Commission has published its draft proposals to relieve airlines of the obligation to operate a flight on 80% of its scheduled dates each season or forfeit the relevant take off and landing slots.

You can see the document here.

I think this is still just the draft proposal which will require approval by the European Parliament and the Council of the EU.

European Commission take off slots proposal 80% rule

Here are the key points as I see it:

Air carriers are experiencing a 40-60% year-on-year drop in forward bookings for the period March-June 2020

European airports are predicting a loss of 67 million passengers in the first quarter of 2020

All take-off and landing slots in March, April, May and June will be treated as ‘operated’

All take-off and landing slots used for flights to China and Hong Kong SAR will be treated as ‘operated’ from 23rd January

The regulation allows for an extension beyond 30th June if it is seen as necessary

For clarity, the ‘Summer’ airline season runs from 29th March to 24th October.  This means that, even with a credit for operating 100% of slots in April, May and June, airlines will still need to run roughly 65% of flights in July, August, September and October to hit the 80% average and retain their slots.

IATA is very grumpy and is insisting that a full slot waiver be granted immediately until 24th October.  This is dangerous, in my view, as it leaves the very real possibility of price gouging over the peak Summer season – assuming that coronavirus concerns have weakened sharply by the end of June as predicted – with airline deliberately grounding aircraft to force up fares.

Comments (81)

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  • Colin MacKinnon says:

    Edinburgh Airport now says it faces three months of “zero, or close to zero, passenger demand”.

    https://www.bbc.co.uk/news/uk-scotland-edinburgh-east-fife-51871561

  • James H says:

    And BA, Lufty in fight for survival?… “Please do not underestimate the seriousness of this for our company”
    https://www.theguardian.com/business/2020/mar/13/ba-says-jobs-will-go-as-airline-industry-faces-crisis-worse-than-9-11-coronavirus

    • Shoestring says:

      think about the cashflow – BA might have (or had) £5 billion cash at bank but that is nothing compared to the cashflows it generates from forward selling of tickets – now down massively, obvs

      it’s not profitability that makes businesses go bump – but cashflow

  • AJA says:

    This is a sensible solution from the European Commission. It gives airlines just over 3 months breathing space for the virus to get a lot worse and then hopefully die down by the end of June.

    I can see airlines parking planes now and battening down the hatches in preparation for a very lean few months.

    I feel very sorry for everyone working in the aviation and tourist industries. The airports and many resorts are going to be ghost towns. I do hope anyone laid off (temporarily one hopes) is given first priority to get their jobs back when it gets going again.

    I also feel very sorry for anyone with disrupted travel plans as a result of all this. I have a trip to Israel on 1 July so at this point I am assuming it will be cancelled but you never know. Hopefully I get to go as that is what I want to do.

    Keep well everyone.

    • Lady London says:

      Good time for airlines to bring forward major maintenance on aircraft if due soon enough?

  • AJA says:

    Others have said it but I will say as well Thanks Rob and all the team at HfP for keeping us all so well informed.

    • Trevor Gardiner says:

      Seconded

      • Colin says:

        Have to agree, I am a travel agent (sympathy appreciated thanks) and find that a lot of the info on HfP is far superior to a lot of the `official` trade guidelines. Well done Rob and the team!

    • Lux says:

      Word.

  • MT says:

    Sounds sensible, thanks for the summary. They seem to think the UK peak will have been passed by late July so this seems fairly sensible from the EU.

  • marcw says:

    I think it´s a fair ideas. Don´t think airlines will like it, because they´ll have to fill the remaining season regardless. But it´s fair. No one said an airline was an easy business… “you know, if you want to become a millionaire, be a billionaire and start an airline”.

    • Mark says:

      They’ll only have to fill the remaining season if there is no extension, which there presumably will be if circumstances warrant it…. And the fact that all slots are counted as flown up to the end of June means the threshold will still be lower as things recover anyway as Rob has pointed out.

      So I agree – it seems fair enough to me.

  • Tom Melaugh says:

    Hi Rob, with all this disruption to travel plans do you think that we need to put pressure on Avios to relax their rules on reward flights bookings and upgrade vouchers. I have a Llyods voucher expiring at the end of March but it is becoming increasingly difficult to decide where to fly to. The reward flight booking T&Cs say that the flights have to be taken within 12 months of the booking date. What happens if the arrangements I make now cannot be completed within this time period? anybody got any ideas.

    Tom

  • Vit says:

    BA offers flexible changes for all bookings due to travel up to 31st May. Thanks Rob for advising me to wait before changing all of my flight due to travel in March and April.

    • Gavin says:

      What I’ve been waiting for

      What’s the impact on this voucher of an upgrade with avios? Would I get the Avios back?

    • Anna says:

      Does it apply to car hire/hotels? And does the voucher have to be used on a like for like basis – I.e. if you booked a car you can only redeem it for another car?

      • AJA says:

        T&Cs for Holidays
        1)To make a date change only to an existing booking please call 0344 493 0787 (Calls charged at local rate). To apply for a voucher, which enables the flexibility to change your whole booking (destination, dates etc.), please complete the form here.
        2)Applies for customers booked to travel up to 31 May 2020.

        3)If your holiday includes a non-changeable hotel and/or experience product and you wish to make a date change or apply for a voucher, the value of your original flights will be credited towards this. The amount paid for your original non-changeable hotel and/or experience reservation will be forfeited.

        4)Date changes must be made, or vouchers requested a minimum of 48 hours before the original departure date.
        5)Any voucher issued expires 12 months from the departure date of the original booking.
        6)Applies to holiday bookings based on British Airways or British Airways codeshare flights only, holidays including flights on other airlines may be subject to change fees.
        7)Excludes travel on franchise partner airlines (Comair and Sunair).
        8)If there is a difference in price from the original booking, any increase is payable by you at the time of re-booking and any decrease is refundable with a voucher.
        9)The voucher provided can be used towards British Airways Holidays or British Airways flights only.
        10)Vouchers must be redeemed in accordance with the instructions detailed within your voucher confirmation.
        11)Vouchers are non-refundable and non-transferable.

    • AJA says:

      Note for flights that it specifically states
      1) Applies to bookings made at any time for travel between 14 March 2020 – 31 May 2020
      2) Applies for customers booked to travel up to 31 December 2020
      3)Book direct via our contact centres, ba.com or trade outlets.
      4)Travel on British Airways marketed fares only
      5)Excluding franchise airlines (Comair and Sun-Air)
      6)Bookings made on BA tickets only
      7)Date changes must be made, or vouchers requested before check-in closes
      8)Any fare difference between existing booking and new booking must be paid for

      9) No cancellations or full refunds unless fare rules allow – so only allowing you to get a voucher

      10)Voucher can be used as part payment towards a future booking. It must be redeemed for travel on flights taken within 12 months from the departure date of the first flight in your original booking
      11)If you have already started your journey the voucher is not applicable.

      • Olly says:

        I have been trying all day to speak to BA CS about our cancelled flight to Dubrovnik without any joy. I say cancelled where’s it was Hobson’s choice in that, you can fly but have to self- isolate for 14 days when you land (and we can’t guarantee thr borders will be open for you to leave) What happens to flights booked in February that included car hire? Not to mention the near £80 wasted on taxis to and fro?

        • AJA says:

          Olly, Did you book the car and flights at the same time so that they became a linked booking? If so that’s a BA Holidays booking

          http://www.carhire-ba.com
          Flight & Car. Book your flight and Avis car together as part of a British Airways holiday package and save money. Book at ba.com …

          If so point 3 applies which says
          3)If your holiday includes a non-changeable hotel and/or experience product and you wish to make a date change or apply for a voucher, the value of your original flights will be credited towards this.

          But note that
          The amount paid for your original non-changeable hotel and/or experience reservation will be forfeited.

          That suggests your taxi transfers are forfeited along with the cost of the car hire.

          • Olly says:

            Thanks AJA,
            Both booked as a deal and only car hire for 6 days was only £7 above flights (inc luggage) only.
            Since posting I have received an email for my upcoming trip (This morning)) advising I will be receiving a full refund within 48 hours to the Platinum I paid for it with. Nice if it happens.

          • Anna says:

            Yes it looks like we’ll have to look to travel insurance for anything other than flights. Thanks BA.

          • Lady London says:

            If booked as a holiday you are governed by ATOL not the regular conditions you would be if each element was booked separately.

            If BA cancels or is unable to provide the complete holiday with all elements as booked then ATOL conditions should be checked as well as BA’s

            If it’s you wanting to change something or cancel and not BA/the holiday provider, then your position is much weaker and you might lose some or all.

            So same as pure flights, look at your ts and C’s (for holidays, for ATOL as well) and as it’s better for you if BA or other holiday provider cancels or tries to change and not you, work out when you must take action by if they haven’t done it from their side first, and ideally, wait.

    • Jo says:

      Yes thanks rob for advising to wait

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