Draft Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025
(3 days, 22 hours ago)
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The Parliamentary Under-Secretary of State for Transport (Mike Kane)
I beg to move,
That the Committee has considered the draft Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025.
It is a pleasure to serve under your chairmanship, Ms McVey—as constituency neighbours, we share runway 2 between us. In fact, I was on speed dial with your predecessor and another neighbour, the former Chair of the 1922 Committee—I was probably the most powerful Back-Bench Labour MP in the place at the time. I thought that would get more of a rise—
Chris Kane
Thank you. Let’s get down to business.
The regulations will be made under powers conferred by the Retained EU Law (Revocation and Reform) Act 2023, also known as the REUL Act. The regulations amend Council Regulation (EEC) No. 95/93, which sets out the rules for the allocation of airport slots. Slot allocation rules apply only in co-ordinated airports where capacity at the airport is unable to meet demand for slots. There are now nine airports covered by these rules, including London City, Gatwick, Heathrow and London Stansted, as well as Birmingham, Bristol, Leeds Bradford and Manchester.
The regulations will update the definition of a new entrant carrier—or airlines as they are known—for slot allocation purposes. That will allow air carriers with a small presence at a co-ordinated airport the opportunity to benefit from greater priority when it comes to the allocation of airport slots. The change aligns UK regulations with international guidelines and has the potential to provide more choice for consumers in terms of route, destinations and carriers.
In addition, the regulations will amend assimilated EU law to enable the UK to respond in the event of a pandemic, epidemic or other outbreak of disease, such as the covid-19 epidemic. It will remove the need for emergency legislation to provide alleviation from slot usage rules, as was the case during covid-19. That will protect consumers, the environment, and the aviation sector.
The draft statutory instrument will amend regulation 95/93 to change the definition of a new entrant carrier. The purpose of the new entrant rule is to stimulate competition. New entrant carriers are given priority in the allocation of slots, as the regulation requires that 50% of slots shall first be allocated to new entrants. Currently, an air carrier is a new entrant if it has fewer than five slots at an airport on a given day. Under these regulations, a new entrant is defined as a carrier that holds fewer than seven slots at airports. The update is designed to enhance the presence of new entrant carriers at slot co-ordinated airports.
The instrument will also build on previous regulations that provided carriers with slot alleviation during the covid-19 pandemic. It will introduce a permanent provision for carriers to obtain slot alleviation where there are Government-imposed measures relating to a pandemic, epidemic or other outbreak of disease. Consequently, it will simplify the process by which an event such as covid-19 can be managed for slot co-ordination purposes.
The provisions were subject to consultation with the aviation sector in 2023, and received strong support from across the industry. In the regulations, the Government have recognised the need to update the definition of a new entrant, and to provide additional reasons for allowing alleviation from slot usage rules. I commend them to the Committee.
Gareth Bacon (Orpington) (Con)
It is a pleasure to serve under your chairmanship, Ms McVey, and I thank the Minister for his opening statement. The regulation of slot allocation is an important part of maintaining the efficient operation of the UK’s busiest airports, which are often constrained by capacity. The core objective of airport slot co-ordination is to optimise the use of available transport infrastructure, benefiting consumers and industry alike. Airport slots are allocated by independent co-ordinators to airlines for their planned operations, particularly at airports such as London Heathrow, London Gatwick and others, as the Minister outlined, where demand consistently exceeds available capacity.
Historically, the system has adhered to the principles of historical rights and the “use it or lose it” rule. Those principles prioritise airlines based on past usage, requiring them to operate at least 80% of their allocated slots in order to retain them for future use. However, as the Minister said, recent events, particularly the covid-19 pandemic, have exposed vulnerabilities in that framework, which this statutory instrument seeks to address. The Opposition do not intend to oppose the SI or divide the Committee on it—quite the opposite. We support it, because it implements measures proposed by the previous Government’s consultation on airports slot allocation.
As the Minister said, this SI proposes two key changes to the existing rules. Its first provision revises the definition of a new entrant in the context of airports slot allocation. As we heard, the amendment increases the threshold for airlines to qualify as new entrants from those holding fewer than five slots a day to those holding fewer than seven. This change is a significant shift in policy, with the potential to broaden access to congested airports for smaller carriers, thereby encouraging greater competition. The change is intended to make it easier for smaller airlines to obtain slots at busy airports, because the threshold for being considered new has been raised. We hope that it will encourage greater competition by giving smaller airlines a chance to access slots at crowded airports.
The second provision introduces more extensive alleviation measures. These measures, previously temporary, will be made permanent and apply in cases in which airlines cannot meet their slot usage targets because of Government-imposed restrictions. The alleviation provisions state that those restrictions must significantly affect the viability of air travel—for instance, through flight bans, border closures, health crises or severe restrictions on airport operations. The goal of the changes is to make the aviation sector more resilient to unexpected events, such as another pandemic or health crisis.
However, the introduction of permanent alleviation raises questions, particularly about the long-term impact. With the broad discretion given to co-ordinators in determining eligibility, there is a real need for clarity and oversight. I note that in the other place, the noble Lord Hendy of Richmond Hill did not outline how the Government will monitor and assess the effectiveness of the alleviation measures, so I would like to take this opportunity to ask the Minister to reassure the Committee as to how the Government intend to ensure that the alleviation measures are applied judiciously, fairly and consistently.
Robin Swann (South Antrim) (UUP)
It is a pleasure to serve under your chairmanship, Ms McVey. May I just ask the Minister a couple of questions, particularly about how these provisions apply to Northern Ireland? Regulation 3, which the explanatory note says
“makes transitional and saving provision with regard to the omission of paragraph 4(g) of Article 10 of Regulation 95/93”,
does not apply to Northern Ireland in regard to setting the date, so may I ask the Minister how this particular regulation and the date are applicable to Northern Ireland?
Also I note that the explanatory memorandum states:
“Aerodromes (and therefore slots) are a transferred matter in relation to Northern Ireland. The Northern Ireland Executive has however agreed that the UK Parliament can legislate to extend and apply the relevant provisions to Northern Ireland.”
Although I have no objection to that, I ask the Minister to clarify by what method those decisions will be taken in this place.
Mike Kane
I thank hon. Members for being here for the consideration of the draft regulations. Let me respond to the hon. Member for Orpington, in particular, by saying that the Department will write to industry and stakeholders now to make them aware of the provisions that are coming into force. The airport slot co-ordinator will take into account the new entrants as part of the co-ordination activities for winter 2025. There is no indication of a pandemic, but the hon. Member is right that we do not know what is around the corner. There are press reports today of bird flu in the UK, and we have seen reports of monkeypox. As he rightly said, the regulations will help with resilience. We will monitor the legislation and ensure that it is implemented is through the course of normal activity within the Department.
In response to the hon. Member for South Antrim, let me say that when the measures providing slot alleviation because of covid-19 were introduced, they did not apply to Northern Ireland. There were no slot co-ordinated airports there, and because the measures were temporary and lasted for six months—or one scheduling session—at a time, after which they needed to be reviewed, the Northern Ireland authorities were happy with that approach. However, the position is now different. The new measures are permanent, and it made sense to apply them throughout the whole of the UK.
Robin Swann
I thank the Minister for that clarification, because my concern has been protecting those slots that are vital to the economy of Northern Ireland and to people coming across to the rest of the UK. Giving permanency to that slot provision is very welcome.
Mike Kane
That is great, and I am sure that if the Minister in Northern Ireland is not happy then the hon. Member for Strangford (Jim Shannon) will ask an urgent question in the House before we know it.
I thank Members again for their consideration and for their questions. To conclude, the regulations will make two permanent changes to regulation 95/93, as the hon. Member for Orpington said, reducing barriers to entry at UK airports and making the slot allocation system more resilient. They are putting the UK on the front foot, and ensuring we build on the lessons learnt from covid-19.
Question put and agreed to.