Call to relax airport rules amid coronavirus chaos

International airlines are reporting ‘no shows’ by 50 per cent of passengers as the coronavirus crisis deepens.

Members of Spring Airlines ground staff stand in front of the check-in counter at Haneda in Tokyo. Picture: Getty Images

International airlines are reporting “no shows” by 50 per cent of passengers as the coronavirus crisis deepens.

The International Air Transport Association has revealed the extent of the impact on member airlines, with one reporting a 108 per cent fall in bookings to Italy, as demand collapses to zero and refunds grow.

Another carrier had experienced a 26 per cent reduction across their entire operation compared to last year, people cancel bookings as far in advance as October.

In response to the crisis, IATA has called for aviation regulators to suspend rules governing airport slots immediately, until the end of the 2020 season.

At present, the rules for slot allocation mean that airlines must operate at least 80 per cent of their allocated slots under normal circumstances.

Failure to comply with this means the airline loses its right to the slot the next season.

“In exceptional circumstances, regulators can relax this requirement,” said the IATA statement. “The COVID-19 crisis has had a severe impact on air traffic. Airlines are experiencing serious declines in demand.”

IATA director general and CEO Alexandre de Juniac said even countries without major outbreaks of COVID-19 were experiencing decreases in air traffic.

“There are precedents for previous suspension of the slot use rules and we believe the circumstances again calls for a suspension to be granted,” Mr de Juniac said.

“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 said airlines were on the “front line” of the challenge to prevent the spread of COVID-19 and it was essential the regulatory community work with them to ensure they could operate in the most sustainable manner.

Such a move could be crucial for airlines like Virgin Australia which was granted a coveted slot at Tokyo Haneda Airport last year, with flights due to start late March.

If travel restrictions prevent the use of the slot, the airline would risk losing it. At this stage, Virgin Australia remains committed to the services from Brisbane.

In Australia, only Sydney Airport has a regulated slot scheme, and a Department of Infrastructure, Transport, Regional Development and Communities spokesman said consideration was being given to IATA’s request.

“The slot manager at Sydney Airport has made a similar request, supported by a number of Australian and international airlines,” said the spokesman.

“The government is considering this request in line with relevant legislation and regulations.”

Qantas, Jetstar, Virgin Australia and Tigerair have all been caught up in the coronavirus fallout, slashing flights and capacity across international and domestic networks.

Qantas was expecting an impact of up to $150m on its full year result, and Virgin Australia forecast the coronavirus to wipe up to $75m off earnings.

In the US, United Airlines cancelled its investor day this week because it was “not practical to expect to have a productive conversation focused on its long-term strategy”.