Exclusive | Cathay Pacific can cut schedules until March 2021, aviation bosses say, as they relax ‘use it or lose it rule’ for airlines on runway slots
- Civil Aviation Department in Hong Kong extends waiver for winter 2020
- Policy is a global requirement that incumbent airlines operate at least 80 per cent of runway slots per flight scheduling season
The global airline industry was granted an initial six-month waiver worldwide that started in March this year, as the virus swept across the world.
A further six-month extension was sought in recent weeks as it became clear few carriers would be able to operate a full schedule for years to come.
“In consideration of the situation and to facilitate planning by airline operators, the office has informed airline operators at HKIA that the ‘use it or lose it rule’ will continue to be suspended for operations at the HKIA for the Winter 2020 (i.e. from 25 October 2020 to 27 March 2021)”, it said.
In a statement, Cathay Pacific said: “We welcome the decision which affords our airlines greater flexibility to plan our network and flight schedules over the coming months in accordance with market demand and the easing or tightening of travel restrictions around the world.”
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A spokesman for Hong Kong Airlines also welcomed the slot waiver extension, and said it would give the carrier “the flexibility to adjust our operation based on market demand for the Winter 2020-21 season and also preserve our respective slots for future service recovery”.
Runway slots are governed by the use it or lose it policy, a global requirement that incumbent airlines operate at least 80 per cent of runway slots per flight scheduling season, or face losing them in future.
Authorities in Hong Kong only last week initially offered a “conditional waiver … on the principle of reciprocity”. Among its conditions were that Hong Kong-based airlines would receive “reciprocal relief” from other airports.
If a foreign airport does not offer a waiver, Hong Kong may not grant one to the airline based in that country for flights to and from the city.
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The airport and the Cathay Pacific Group, which controls about half of all runway slots, have both seen a 99 per cent collapse in monthly passenger traffic. Cathay normally carried 100,000 travellers a day, but is now used to flying hundreds during the pandemic.
During the pandemic, Cathay Pacific has been operating a skeleton flight schedule of less than 90 per cent of the capacity it offered at the same time last year.
The airline was saved from collapse by the government, which pumped HK$27.3 billion into the carrier as part of a HK$39 billion bailout. The rest of the money would come from shareholders.
Globally, of the 171 airports monitored by the International Air Transport Association, its database showed 39 airports had offered some sort of alleviation, but only 15 were unconditional.
Alexandre de Juniac, the association’s director general and CEO, said the slots waivers were not as quickly forthcoming as the industry would like.
“In some countries we have obtained that waiver already, but in Europe we are still struggling to have a decision made at least by September for this waiver, so it’s heavily dependent on that part of the world. But we are pretty optimistic we will obtain these waivers almost everywhere,” he said.
The association warned of a slower than expected recovery for airlines in the second half of 2020, while a full recovery would not take place until 2024.
Cathay Pacific Group has been contacted for comment.
