LONDON: With the threat of aviation fuel supplies potentially running short, airlines have begun taking remedial action to reduce usage and conserve stocks. This has so far primarily taken the form of flight cancellations and frequency reductions.
Yet, with flight cancellations comes a risk that ‘use-it-or-lose-it’ slot rules could be broken as airlines fail to meet mandated usage levels for some of the world’s most congested airports.
Now, with IATA calling for special dispensation for airlines should usage fall below the required level, the UK has become the first country to provide some concrete guidance on this issue.
With the closure of the Strait of Hormuz now in its eighth week, international concern is growing about the global stocks of aviation fuel and whether supplies could run dry over the peak summer period.
Europe is particularly affected by this blockade since the continent imports around 30% of its jet fuel requirements, and the majority of these imports come via the Strait of Hormuz.
With some airlines making cuts to their summer flying programmes, ostensibly to conserve fuel usage, governments and industry bodies are turning their attention to the issue, primarily to alleviate the growing fears of the travelling public.
However, there is also growing concern among airlines that they could be penalised should they fail to use slots at airports due to possible fuel shortages impacting the industry.
On 24 April, the UK government updated its guidance to airlines on the use of landing and take-off slots at some of the UK’s most important airports. These slots are a valuable commodity at airports where demand for these slots outweighs the supply.
A slot is an allocated period of time (normally around five minutes) in which an aircraft must land or take off from that airport, which helps the airport operator to plan and regulate movements during any 24 hours.
Slots are allocated following an application process by the airlines, and are usually allocated on a seasonal basis, based on the published International Air Transport Association spring/summer and autumn/winter scheduling seasons.
Under normal slot usage rules, airlines must use at least 80% of their allocated slots during a season to keep them for the following year (known as ‘grandfather rights’). If they fall below this threshold, those slots can be reassigned to another airline.
This is known as the ‘use it or lose it’ rule, otherwise the ‘80/20’ rule, which ensures that valuable slots are not allocated but then left unused by airlines.
On 24 April, Airport Coordination Limited (ACL), the independent body that manages slot allocation at the major UK airports, updated its guidance so that airlines will not lose their slots if fuel shortages prevent them from flying.
Airlines can now apply for an exemption from the use it or lose it rule in these circumstances. This means airlines can focus on minimising disruption for passengers, rather than feeling pressure to operate flights purely to protect their slots.
