(Bloomberg) -- The European Union plans to help airlines cope with the impact of the coronavirus pandemic by suspending an obligation regarding their use of airport slots for at least several months, according to an EU diplomat.
The European Commission, the bloc's regulatory arm, intends to propose a “general waiver” of a requirement that carriers use at least 80% of their takeoff and landing positions or risk losing them the following year, the official said on Thursday on the condition of anonymity.
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The draft law, due on Friday in Brussels, will foresee a waiver from the EU's slot-use rule “for a number of months, with the flexibility to extend if necessary,” the person said.
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The proposal, which will then need the approval of EU governments and the European Parliament, would pave the way for airlines to reduce flights without losing slots, which are worth millions of dollars. Once it gets final approval from national governments and the 27-nation Parliament, the draft law could be applied retroactively, according to the diplomat.
The EU is responding to a mounting global health scare that started in China, with carriers being among the hardest-hit industries. The bloc last suspended the “use-it-or-lose-it” slot rule in 2009 as a result of the financial crisis.
Airlines for Europe, an association representing operators including Deutsche Lufthansa AG and Air France-KLM, appealed on Thursday for the EU to suspend the rule until the summer season ends on Oct. 25.
In an emailed statement, the Brussels-based lobby group also invoked the coronavirus outbreak to plead for changes in EU legislation on air-passenger rights so as to limit the industry's financial liability. The association, known as A4E, furthermore called for a deferment or waiver of any new aviation taxes at national or EU level.
“A4E airlines are demanding immediate action from European and national governments to reduce the economic impact of the crisis on the aviation sector,” the association said.
To contact the reporter on this story: Jonathan Stearns in Brussels at jstearns2@bloomberg.net
To contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, Nikos Chrysoloras
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