Airlines around the world are experiencing serious falls in demand, as a result of the effects of the rapidly spreading disease Covid-19 (the novel coronavirus disease), the International Air Transport Association (Iata) has reported. Iata is the representative body for the global airline industry.

One airline, the association reported, had, in comparison to last year, suffered a 26% fall in demand across its whole operation. “Many” airlines had reported 50% passenger “no-shows”, spread over several markets. A hub airline has experienced a 108% collapse in its bookings to Covid-19 hot spot Italy (bookings have fallen to zero and the airline is having to make refunds). Across the industry, bookings for future flights are declining.

As a result, airlines are planning to ground aircraft, pay rises are being frozen, and crews are being sent on unpaid leave. “Iata research has shown that traffic has collapsed on key Asian routes and that this is rippling throughout the air transport network globally, even between countries without major outbreaks of Covid-19,” reported Iata director- general and CEO Alexandre de Juniac.

Consequently, Iata has called on all aviation regulatory agencies to immediately suspend the rules controlling the use of ‘slots’ at airports, and to maintain this suspension for the 2020 season. (At airports that handle high volumes of traffic, airlines are allocated specific times their aircraft may land and take off. These time periods are called ‘slots’.) Some 43% of all airline passengers take off from more than 200 slot-coordinated airports around the world.

Normally, the regulations require that an airline use a minimum of 80% of its slots. If it does not do so, it loses its right to that slot for the next equivalent season. But, in exceptional circumstances, the regulators can waive this requirement. And Iata has affirmed that the industry now finds itself in exceptional circumstances. Consequently, airlines need to be able to flexibly modify their operating schedules to meet any extraordinary developments in demand.

Already, because of Covid-19, regulators have, on a rolling basis, been suspending slot rules in Asian markets, mainly regarding flights to and from China and Hong Kong. But now the effects are being felt worldwide. “There are precedents for previous suspensions of the slot rules and we believe the circumstances again call for a suspension to be granted,” he highlighted.

Waiving the slot rules for the duration of the 2020 northern summer/southern winter season (that is, up to October) would allow airlines to plan ahead and adjust to market conditions. They would be able to adapt their capacity and not have to operate empty flights to retain their slots. Aircraft could be ‘parked’ or reallocated to other routes.

“We are calling for regulators worldwide to help the industry plan for today’s emergency and the future recovery of the network by suspending the slot-use rules on a temporary basis,” he urged. “The world is facing a huge challenge to prevent the spread of Covid-19 while enabling the global economy to continue functioning. Airlines are on the front line of that challenge and it’s essential that the regulatory community work with us to ensure airlines are able to operate in the most sustainable manner, both economically and environmentally, to alleviate the worst impacts of the crisis,” De Juniac concluded