ARC NEWS
​EU's 80:20 slot rule set to return with built-in flexibility
July 14, 2022
The European Commission plans to reinstate its 80:20 airport slot allocation rule on 30 October, but will keep in place a clause that enables airlines to dip below the threshold if their operations are affected by events such as epidemiological emergencies or widespread political unrest. Early on in the Covid-19 pandemic, the Commission relaxed the rules and instead of requiring airlines to operate 80% of their slots at slot-constrained airports in order to hold onto them the following season, they were only required to use half. The threshold rose to 64% from 28 March 2022, but this is set to expire on 29 October. The Commission has now proposed returning to its 80:20 rule on 30 October but prolonging the use of its "justified non-use of slots" (JNUS) tool, which was created during the pandemic. The tool makes exceptions for airlines unable to meet the slot requirements as a result of disruptions caused by epidemiological emergencies, natural disasters or widespread political unrest. The proposal also suggests enhancing transparency in awarding JNUS exceptions, and strengthening co-operation between slot co-ordinators in EU member states to ensure consistency. "Demand for air traffic is clearly back, and the time has come to return to normal slot-use rates to ensure the efficient use of airport capacity, with fair and competitive access for airlines, to the benefit of passengers. But we must make sure we are better prepared for the unexpected," states EU transport commissioner Adina Valean. "The justified non-use of slots clause has provided us with a particularly effective tool to manage crisis situations. Maintaining this tool will give us sufficient flexibility – an insurance – to act in case of a new deterioration of the public health situation, or indeed if we are faced with further fallout from the Russian war in Ukraine." As a last resort, the Commission has also proposed holding the power to lower the use rate in the event that air traffic levels fall below 80% of 2019 levels for four consecutive weeks "due to Covid-19, another epidemiological situation, or as a direct result of Russia's military aggression against Ukraine". The Commission is also proposing measures to restore air connectivity between the EU and Ukraine "when the time comes". These include a 16-week recovery period before slot-use requirements become applicable, once Ukrainian airspace has reopened, as well as the possibility to adopt a Delegated Act to lower the use rate on routes between the EU and Ukraine. Airports body ACI Europe has welcomed the proposals, and is urging the EU Council and European Parliament to support them and expedite approval. "Airports understood and accepted the need for slot waivers for airlines during the pandemic. But there is no question these waivers also came with forgone connectivity and forgone revenues for airports," states ACI Europe director general Olivier Jankovec. "Going back to the normal slot-usage rule while still giving airlines the flexibility and protection they need when faced with travel restrictions or the impact of the war on specific markets is the right thing to do now that air traffic is finally recovering." Airlines for Europe has likewise welcomed the Commission's proposal, adding: "In light of continued pandemic uncertainty and new external factors which could disrupt air travel, we also welcome the proposal to set a lower slot use rate for future seasons, should this prove necessary." If adopted, the relief provisions in the Commission's proposal will remain in place until 26 March 2024.


Heathrow introduces cap and asks airlines to stop selling tickets
July 13, 2022
London Heathrow will cap the number of departing passengers at 100,000 between July and September, and is asking airlines to "stop selling summer tickets", in an attempt to minimise congestion as the UK airport grapples with strong demand and staff shortages. In an open letter to passengers published on 12 July, Heathrow chief executive John Holland-Kaye says new employees are "not yet up to full speed" and the airport is "still significantly under-resourced" in certain critical areas, particularly ground handling. This has led to "periods when service drops to a level that is not acceptable", writes Holland-Kaye. In a bid to reduce queues, delays and last-minute cancellations, Heathrow will introduce a capacity cap of 100,000 departing passengers a day from 12 July until 11 September – 4,000 fewer than the forecast daily average over the summer. Heathrow says it waited to make the decision until the effects of the UK government's airport slots "amnesty" became clear. But while "some airlines have taken significant action…others have not", says Holland-Kaye, meaning "further action is needed now to ensure passengers have a safe and reliable journey". He adds: "Our assessment is that the maximum number of daily departing passengers that airlines, airline ground handlers and the airport can collectively serve over the summer is no more than 100,000. The latest forecasts indicate that even despite the amnesty, daily departing seats over the summer will average 104,000 – giving a daily excess of 40,000 seats." Of these 4,000 seats, Heathrow estimates that only 1,500 have so far been sold, and is asking airlines "to stop selling summer tickets to limit the impact on passengers". By making the intervention, Heathrow aims to "protect flights for the vast majority of passengers" and "give confidence" to those who do travel that their journey will be smooth and they will arrive at their destination "with their bags". Heathrow's largest carrier British Airways has already wiped an additional 10,300 flights from its summer schedule, on top of 16,000 service cuts announced earlier this year. It is unclear whether BA will need to cut any more flights in light of Heathrow's new cap.


​Boeing's June deliveries include 43 Max jets
July 13, 2022
Boeing delivered 43 737 Max aircraft in June and booked 50 new aircraft orders. The US airframer also delivered seven widebodies last month. These included three 767 freighters and three 777 freighters. Of the 50 new orders, 49 were for Max aircraft – one from American Airlines while the remaining 48 from unidentified customers. Boeing also received an order from FedEx for a 777F. The airframer recorded 35 order cancellations, including 28 Max jets for Norwegian and one for Aerolineas Argentinas. Norwegian last month finalised a new order for 50 Max 8s. June's cancellations also included six 787-9s: three for WestJet, two for Avianca, and one for Norwegian. Boeing says it "continues to make progress" towards stabilising 737 production at 31 aircraft a month while "balancing the need to increase the production rate to position us to meet demand over the longer term". In the second quarter, Boeing delivered 121 commercial aircraft, up from 79 in the same period last year. This year's total comprised 103 737s, two 747s, seven 767s and nine 777s.


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