The International Air Transport Association (IATA) has started contacting aviation regulators around the world to request the suspension of "use it or lose it" slot rules due to the ongoing COVID-19 epidemics.
"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 the previous suspension of the slot use rules, and we believe the circumstances again calls for a suspension to be granted," IATA Director General and Chief Executive Alexandre de Juniac said.
Under the current rules, airlines can be stripped of their slots at over 200 slot-coordinated airports if they fail to use at least 80% of them in the previous season. In general, the rule has been used to prevent airlines from hoarding slots beyond their actual operational needs. However, given the current level of network cuts caused both by travel restrictions and a plunge in demand, airlines now risk falling beneath the 80% threshold.
"The collective view of the airline industry is that the application of the 80% rule during the upcoming season is inappropriate. Flexibility is needed for airlines to adjust their schedules according to extraordinary demand developments," IATA said.
The association listed several extreme examples, including a hub carrier which reported bookings to Italy - the European centre of the epidemic - down by 108% as refunds grow and new bookings hit zero. Another airline has reduced its total capacity by 26% compared to last year, while many carriers are reporting an up to 50% level of no-shows.
