EC set to ease quota rules to help airlines

The European Commission today threw a lifeline to airlines struggling in the wake of the war in Iraq and the outbreak of the …

The European Commission today threw a lifeline to airlines struggling in the wake of the war in Iraq and the outbreak of the Sars virus.

Officials proposed waiving strict EU rules that normally oblige carriers to use their quotas of take-off and landing slots at European airports or risk losing them.

With the massive downturn in air travel due to terrorism fears and the risk of the spread of Severe Acute Respiratory Syndrome, many airlines are now risking financial disaster keeping up uneconomical services just to keep their prized slot allocations.

Subject to formal agreement from EU transport ministers next month, the rules will be relaxed for the whole summer season airline schedule in Europe.

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The same concession was made temporarily after the terrorist attacks of September 11th, 2001, following a sharp fall in demand for air travel.

Today the Commission said airlines once again needed protection.

Under the so-called "use-it-or-lose-it" rule, airlines have to use a minimum of 80 per cent of their "slots" at EU airports or give them up to other airlines - something they are reluctant to do with so more and more carriers competing for limited take-off and landing access.

But the Commission said the industry was now faced with a situation where daily air services are either cancelled, or re-routed or operated with changed aircraft to cope with the continuing reductions in demand.