Some support for the embattled industry has at last come from the European parliament this week with the announced holiday on the 'use it or lose it' policy for European airport slots.
The industry - already trying to make sense of the serious decline in passenger and cargo revenues caused by the global economic turbulence found itself with an additional dilemma. That of balancing new reduced demand with supply and frequency reductions, leading to the potential for losing rights to airport slots if they remained unused.
No carrier is escaping the fallout from this economic contraction. The asset value of these slots is considerable for many airlines. Faced with the prospect of loosing both the slot and its asset value or wasting hard earned cash by flying for no commercial reason other than to protect its ownership had the potential creating a farcical situation . It would further stress the balance sheets of the already pressurised carriers and make the policy makers look stupid.
Sense has prevailed and operators are with immediate effect no longer required to fly loss making schedules solely for the purpose of slot protection.
Sense prevailing at last in Europe? Why has it taken 9 months to put in place a fix for which the arguments weighed so heavily in favour of the change? Good news for the airlines but with a downside for the airports, seeing a decline in their airside revenues now these slots become at least temporarily dormant.
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