Airports Slot Allocation (Alleviation of Usage Requirements etc.) Regulations 2025

Regulation 95/93 sets out that air carriers must operate their airport slots 80% of the time in order to retain the right to those same slots the following year. This is known as the 80:20, or the “use it or lose it”, rule. Under normal circumstances, the 80:20 rule helps encourage the efficient use of airport capacity while allowing air carriers a degree of flexibility in their operations. However, throughout the Covid-19 pandemic, the 80:20 rule was waived to avoid environmentally damaging and financially costly flights with few or no passengers—so-called ghost flights. Using powers afforded to the Government in the Air Traffic Management and Unmanned Aircraft Act 2021—known as the ATMUA Act—a full waiver from the 80:20 rule was initially provided. However, as the industry recovered from the pandemic, usage ratios and other measures set out in that Act were amended, allowing a managed return to business-as-usual operations as demand for aviation recovered.

Due to the unpredictability of the Covid-19 pandemic, the powers granted under the ATMUA Act were necessarily time-limited; they expired in the summer of 2024. However, the experience of Covid-19 has shown that a permanent provision for slot alleviation relating to a pandemic, epidemic or other outbreak of disease is needed. This is to provide a means by which a collapse in aviation demand because of an event of a similar magnitude to Covid-19 can be managed as part of normal operations by the UK’s airport slot co-ordinator. Without this provision, if a health crisis similar to Covid-19 were to occur, the Government would need to bring forward further primary legislation, as was done through the ATMUA Act, in order to enable alleviation from the 80:20 rule.

Turning to the content of the statutory instrument, this draft instrument will amend Regulation 95/93 to change the definition of a new entrant carrier. The purpose of the new entrant rule is to stimulate competition. New entrant carriers are given priority in the allocation of slots, as the regulation requires that 50% of slots shall first be allocated to new entrants unless the requests made by new entrants are less than 50%. Currently, an air carrier is a new entrant if it has fewer than five slots at an airport on a given day. Under this instrument, a new entrant is defined as a carrier that holds fewer than seven slots at an airport. The update to the new entrant rule is designed to enhance the presence of new entrant carriers at slot co-ordinated airports.

As I said, the instrument will also build on previous regulations that provided carriers with slot alleviation during the Covid-19 pandemic by introducing a permanent provision for carriers in order to obtain slot alleviation where there are government-imposed measures relating to a pandemic, epidemic or other outbreak of disease, provided that certain conditions are fulfilled. This will put in place a much simpler process by which an event such as Covid-19 can be managed for slot co-ordination purposes.

In conclusion, in this instrument, the Government have recognised the need to update the definition of a new entrant and to provide additional reasons for allowing alleviation from slot usage rules in order to protect the aviation sector from the potential impact of another pandemic occurring, however remote that possibility might or might not appear. The provisions in the instrument were subject to consultation with the aviation sector in 2023 and received strong support from across industry. The Secondary Legislation Scrutiny Committee flagged these regulations as an instrument of interest but did not make any adverse comments. The Joint Committee on Statutory Instruments did not report this instrument. I hope that noble Lords will join me in supporting these measures. I beg to move.

It was to give the Secretary of State a power to deal with this. Even if competition is improved by these regulations, which I would support, that has nothing to do with where those slots are allocated. Maybe they are allocated to an airline, but they can fly anywhere. There is still a gap here. Now that we are not bound by the European regulation, will the Minister reflect on this? I appreciate that it is not in these proposals, but I am sure that he can see the rationale of ensuring this.

At the moment, we are well served—I have no issue with that. There are a number of airlines, albeit the competition has narrowed recently—but we are entirely at the mercy of the airlines. We have no ability to ensure that they travel on that route. It is a bit like the 80:20 rule; most of the time it works fine, but there could be circumstances in which it does not. We can also see that competition is limited and our fares are high, so there is a link to the consumer. The noble Lord, Lord Kirkhope, made that point; the consultation was wide, but consumer interests perhaps did not dominate to the extent that they should have.

I broadly support these proposals, but I ask the Minister to consider that with his department, because there is no guarantee that our key regions will have access, particularly to Heathrow. In those circumstances, the Secretary of State should have that power.

Conversely, is there a concern that while raising the slot threshold to seven could make it easier for new entrants, it might also limit opportunities for smaller carriers? Surely we need to ensure safeguards and encourage broader market diversity. Perhaps the Minister can clarify how the Government will ensure that the allocation of slots increases choice for passengers.

What conversations has the department had with the EU about its plans in this area? While I understand that this change would bring UK legislation in line with international guidelines, which were updated in 2020, in these areas it is often sensible to be aligned with our nearest neighbours, and it would be good to understand where the EU is in this particular field. In my view, it is not an area where divergence is necessarily needed.

I would appreciate some responses from the Minister to these questions—but, overall, the statutory instrument is acceptable in its current form.