Airports Slot Allocation (Alleviation of Usage Requirements) Regulations 2026

Lord Grayling Excerpts

Wednesday 10th June 2026 Grand Committee

Finally, I want to say that we have to be very careful when dealing with this subject. Although I understand and sympathise with what the Minister is suggesting—and it will certainly help in organising the routes and for the current financial position of the airlines that will benefit from it—I would not like to see this becoming a deterrence to airlines extending their business. One of the greatest things that this country has is the nature and status of those that provide air services.

[Lord Grayling (Con)]

My Lords, I welcome these regulations. This is a core part of the current responsibility of the department in difficult times internationally. It is absolutely the right thing to do to try to ease pressures on airlines in this environment, as the current geopolitical situation has made many routes much less viable than they were and led to cutbacks around the world in the number of planes flying at the time being.

However—and I think we will come back to this at greater length in debates on the forthcoming aviation Bill—that we are having this debate today indicates that this is a heavily regulated area. We inherited a lot of that regulation from the European Union, and I had hoped, and it remains my view, that this sector should be regulated less than it is. It probably should not need a debate in Parliament to enable an airline, in an international crisis, to take a decision to scale back some of its activities temporarily without the risk of long-term damage to its business. So, in my view, this debate should not need to happen but, in the context of the current laws, it is absolutely essential.

I have a particular concern that I want to raise with the Minister about the impact on some individual airlines. The choice of 5% or 10% does not make complete sense to me, in the context of an environment where the most affected routes are those through the Middle East. I will take a practical example: if an airline like Emirates had two flights a day to a UK airport, they would not currently be viable because of the geopolitical situation. The reality is that tourist numbers to the Middle East have dropped very sharply. I had an email myself today from a hotel in Oman that I stayed in some while back begging me to come back and offering me a good deal to do so, so there is no doubt that numbers have fallen sharply. It is therefore very probable that running two planes a day is not viable for the time being and you can afford only, in practical business terms, to run one plane a day. That is a 50% drop. But if you can only cut 5% or 10%, that does not quite work arithmetically. I am slightly concerned that the inflexibility of the numbers in this regulation will not fit with the practical reality facing a number of airlines, and I would be grateful for the Minister’s comments about that.

My final point is that there were a couple of airlines that did not want this to happen. I am very interested to hear from the Minister why that was. There may be practical reasons, or this may be simply anti-competitive pressures—we can imagine one or two airlines that might want to get in the way of sensible changes to ease pressures on their competitors.

In particular, I want to press the Minister on the issue of the 5% or 10% figures, because it seems to me that for some airlines, if you have very large numbers of slots for Heathrow or Gatwick, fine, that makes perfect sense, but if you have a relatively small number of slots, then you are worse affected than other airlines by the geopolitical situation and it may very well not work at all. I will be interested in the Minister’s comments on that.

[Viscount Stansgate (Lab)]

My Lords, I rise briefly to support my noble friend and the statutory instrument that he has moved. I understand entirely that it is designed to support a resilient aviation sector, and I just want to ask one question.

The Secondary Legislation Scrutiny Committee referred, as indeed did my noble friend, to the example of 2022, when, as I understand it, there was a 30% hand-back of slots. I just want to ask, if the information is to hand: what happened afterwards, when the temporary provision ended? Did the slots go back in precisely the same way to the airlines that had them at the time? The reason I ask is because I am curious as to whether, in the current conditions, a 10% hand-back will result in these eventually being handed back to the same airlines. It may or may not be the case, but I would be interested if the Minister has anything he might be able to add on this.

--- Later in debate ---

[Lord Hendy of Richmond Hill (Lab)]

I thank all noble Lords for their consideration of these draft regulations and for the thoughtful points that have been raised. I will attempt to answer as many as I can now. On those that I cannot, I will write to the noble Lord concerned and to other noble Lords present.

I thank the noble Lord, Lord Kirkhope of Harrogate, who has considerable experience. I cannot find in the draft statutory instrument any reference to a five-year term. The measure put forward today is about only the summer season and the winter season of 2026. He will find the permanent proposition for slot regulation in the civil aviation Bill, which I have no doubt he is studying more or less as we speak. I hope that will satisfy him, but if not we can discuss it afterwards.

My understanding about the three types of airport and what might trigger a change in categorisation is that it is triggered by the airport itself and by the level of potential use and, therefore, congestion. The company itself, Airport Coordination Limited, is clearly very efficient, with 40 employees, but there is a wider point that goes to some of the questions. A lot of this is about the stability of both the airlines and the airports sector. We are good at this in Britain, and we want the airline sector to prosper. We have to give it some stability in circumstances in which the international situation has destabilised it a bit.

I cannot answer the noble Lord, Lord Grayling, about the impact on individual airlines. He is clearly right that airlines that fly directly to the Middle East will be more affected than those that do not. On the impact of the wider geopolitical circumstances for any potential fuel shortage, I am very happy to confirm that the Government do not currently believe that there is an airline fuel shortage, but there could be in future, and if there is, we need to make adequate preparation for it in advance. It is quite hard to know where that might apply, so we have to apply some general thought to how we manage this. A lot of what is going on here is about giving some stability and certainty to airlines to resume normal business when they can, and it is about what happens, proportionately, to airports that rely on a throughput of passengers.

[Lord Grayling (Con)]

The question I raised with the Minister is absolutely central to the Government’s decision to take a 5% or 10% figure. He said that the airlines wanted more. I explained a very specific circumstance in which one particular airline—there will be many others affected in that way—would need more. He therefore needs to explain why the Government have fixed on this figure when the airlines said that it was not the right figure and common sense says that many would need more.

[Lord Hendy of Richmond Hill (Lab)]

I thank the noble Lord. The answer is that the airlines provided little or no evidence of any figure but would prefer more because that would give them more flexibility in circumstances where airports would have preferred this not to happen.

[Lord Grayling (Con)]

I am not interested in what the airlines said they wanted, because the department took the decision to alight on a particular figure. The Minister has not explained why the department took that decision, when simple common sense says that many airlines would need a different figure because of the basic arithmetic I described to him earlier.

[Lord Hendy of Richmond Hill (Lab)]

The answer to that point, whether or not it satisfies the noble Lord, is that we have to do something in general in these circumstances. Previous circumstances of various sorts have produced different figures. The Covid figure was 30%; I do not know how that was calculated. We feel the need to do something because we have to give some certainty both to airlines and to potential airline passengers. I take his point about the geographical differences and will certainly write to him further about what individual airlines in those circumstances said. I have no evidence that certain airlines proposed huge differences, but I will certainly go away and find out about that.