The International Air Transport Association (IATA) requests that the rules governing use of airport slots to be suspended immediately and for the 2020 season, due to the impact of COVID-19 (the Coronavirus)on air traffic.
At present, the rules for slot allocation mean that airlines must operate at least 80% of their allocated slots under normal circumstances. If an airline does not comply with this minimum usage level the airline loses its right to the slot the next equivalent season.
Alarm and fear of COVID-19 contagion has resulted in a contraction in operations for airlines worldwide including IATA members, so action is needed to avoid the dammaging effects of the slot rules in this scenario.
Bookings down, not only to Asia
The Association reports on one air carrier experiencing a 26% reduction across their entire operation in comparison to last year. Also on a hub carrier reporting bookings to Italy down 108% as bookings collapse to zero and refunds grow. Many airline members are reporting 50% no-shows across several markets. And future bookings are softening and carriers are reacting with measures such as crew being given unpaid leave, freezing of pay increases, and plans for aircraft to be grounded.
“IATA research has shown that traffic has collapsed on key Asian routes and that this is rippling throughout the air transport network globally, even between countries without major outbreaks of COVID-19. There are precedents for previous suspension of the slot use rules and we believe the circumstances again calls for a suspension to be granted. We are calling for regulators worldwide to help the industry plan for today’s emergency, and the future recovery of the network, by suspending the slot use rules on a temporary basis,“ said Alexandre de Juniac, IATA’s Director General and CEO.
“The world is facing a huge challenge to prevent the spread of COVID-19 while enabling the global economy to continue functioning. Airlines are on the front line of that challenge and it’s essential that the regulatory community work with us to ensure airlines are able to operate in the most sustainable manner, both economically and environmentally, to alleviate the worst impacts of the crisis,” he said.
Given the above mentioned facts, the collective view of the airline industry is that the application the 80% rule during the upcoming season inappropriate. Flexibility is needed for airlines to adjust their schedules according to extraordinary demand developments.
Suspending the requirement for the entire season (to October 2020) will mean, saus IATA communication to the media, that airlines can respond to market conditions with appropriate capacity levels, avoiding any need to run empty services in order to maintain slots. Aircraft can be reallocated to other routes or parked, crew can have certainty on their schedules.
Further Government action than on the slot regulation needed
Leaving aside the suspension of slot regulations, IATA calls for other kind of support from Governments, that “have an important role to play in this crisis” in the view of the Association.
First, in the operations field: airlines depend on governments to also follow the IHR so we have an effective global approach to containing the outbreak. “We have learned a lot from previous outbreaks. And that is reflected in the IHR. Governments need to follow it consistently,” said de Juniac.
In fact, airlines have developed standards and best practices linked to the International Health Regulations (IHR) to manage effectively and efficiently in times of public health emergencies.
Second in the leadership field, it is important as well that governments take the lead in shoring up their economies.
The Singapore government, for example, is allocating SGD 112 million to provide financial relief to airlines and the aviation sector struggling to economically maintain connectivity. “Airlines and governments are in this together. We have a public health emergency, and we must try everything to keep it from becoming an economic crisis. Relief on airport costs will help maintain vital air connectivity. Other governments should take good note and act quickly,” said de Juniac.
Image over the headline.- Alexandre de Juniac (Director general and CEO IATA).© IATA
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