Draft Airports Slot Allocation (Alleviation of Usage Requirements) (No. 2) Regulations 2021

Martin Docherty-Hughes Excerpts

Tuesday 19th October 2021 General Committees

[Robert Courts]

Thank you, Mr Davies. If I may, I will make some progress and return to the hon. Gentleman’s point in a moment.

Owing to the continued uncertainty and low passenger demand forecasts, we set out a package of measures on 19 July to alleviate slot usage requirements for the winter 2021 season, which runs from 31 October 2021 to 26 March 2022. That package was developed following consultation with the aviation industry and careful consideration of responses. It is fair to say that there were a range of views, from calls for a full waiver to support for no alleviation.

The draft instrument applies to England, Scotland and Wales. It is a devolved matter for Northern Ireland and does not therefore apply to it.

In the draft instrument, we have set out a package of alleviation measures that are designed to work together. They include changing the minimum usage ratio to 50:50, meaning that airlines are required to sue their slots at least 50% of the time to retain the right to operate those same slots in the following year. The reintroduction of a utilisation rate should encourage efficient slot use while also supporting sector recovery. There is a utilisation rate rather than a full waiver that we have seen in the past.

The draft regulations would also allow airlines that hand back a full series of slots to the slot co-ordinator before the start of the season to retain the right to operate that series of slots the following year. That will provide an opportunity for other airlines, including new entrants, to apply for and operate those slots on a temporary or ad hoc basis. The measure will apply to traded and leased slots, but not to newly allocated slots. That will prevent carriers from acquiring slots with no intention of using them. However, airlines that have announced that they have permanently ceased or will permanently cease operations at an airport before the start of the winter 2022 season will not benefit from the regulations in winter 2022.

The draft regulations expand the reasons that airlines may use to justify not using slots to include covid-19 related restrictions. That provides a guard against the risk of unforeseen covid-19 related measures or restrictions being imposed during the season. It will apply where unforeseen covid-19 related measures, including flight bans, quarantine or self-isolation requirements are applied at either end of a route and have a severe impact on demand for the route or the viability of it. That will apply where restrictions could not reasonably have been foreseen in time to hand back the full slot series. There will be a three-week recovery period during which the provisions, sometimes known as force majeure, may still apply following the end of the covid restrictions. That gives airports and airlines time to respond to any unforeseen restrictions. The measures will cover the winter 2021 scheduling period, from 31 October 2021 to 26 March 2022.

We are currently considering alleviation for summer 2022 and we plan to consult with industry and interested Members to inform our policy later this year.

The instrument provides the necessary relief for the aviation sector for the winter 2021 scheduling period. Through this package of measures we have aimed to strike a balance between supporting the financial health of the sector while encouraging recovery.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

The Minister said that Northern Ireland is excluded from the measure due to devolution. Can he expand on why it is good for them and not good for the rest of us?

[Robert Courts]

The reason is that aerodromes are a devolved matter in relation to Northern Ireland. There are also no co-ordinated slot airports in Northern Ireland, so the Northern Ireland Executive have agreed that it was not necessary for the powers of the 2021 Act to extend to, or apply in relation to, Northern Ireland.

I am conscious that I promised to respond to the query from the hon. Member for Blackley and Broughton.