COLIN BAKER LONDON
EasyJet's angry salvos over slot allocation at Paris Orly represent a further warning sign of the battles that lie ahead as low-cost carriers begin to surge out of the UK market into continental Europe.
French carrier Air Lib, which was born out of the collapsed AOM/Air Libert‚ late last year, had promised, as a condition of its restructuring, to give up Orly slots which it was not going to use for the summer 2002 season. This was expected to release 20,000 annual slots into the pool, but Air Lib decided that it needed more than was originally envisaged, and only 12,000 were made available, equivalent to 16 services a day.
EasyJet Switzerland was given around 2,100, which it plans to use for three daily rotations to either Zurich or Geneva, but the parent is biding its time. The UK low-cost carrier has been vocal in criticising Air Lib's decision, claiming that although it is half the size of the former AOM/Air Libert‚, it has returned only 15% of its slots. "It is a piece of blatant anti-competitive behaviour," says easyJet chief executive, Ray Webster.
Although easyJet is keeping up the pressure on the French government, it does not plan to take any formal action. The future of Air Lib is in doubt as its restructuring has been badly hit by the bankruptcy of former parent Swissair, which was due to provide a vital capital injection. However, no decision on its future is expected before French presidential elections in May.
Mindful of this, easyJet plans to keep a close eye on Air Lib's slot use once the summer season starts in April. Under the European Commission's "use-it-or lose-it" rule, carriers are meant to relinquish a slot unless they use it for at least 80% of the time, apart from exceptional circumstances. No account was taken of events such as 11 September when these rules were drawn up, but an amendment going through the European Parliament will provide for a suspension of the 80% rule for the winter 2001 season and possibly for summer 2002 as well.
There is no specific mention of 11 September in these proposals, and John Balfour, partner at law firm Beaumont & Son, says that, if passed, this legislation could well provide Air Lib with a means of hanging onto unused slots.
EasyJet has been lobbying members of the European Parliament to get this changed, complaining that Air Lib's problems are not directly due to the US attacks. The legislation has to be passed by the end of March if slot co-ordinators are to have enough time to take account of them for the next season
Source: Airline Business
