European airlines are using the fuel price crisis to press the UK and Brussels to roll back a host of regulations they oppose, including plans to allow passengers two free cabin bags on every flight.
Lobby groups are pushing politicians to drop a number of measures that the industry has been fighting for years, including the incoming baggage allowance rules, environmental payments and changes to passenger compensation schemes.
They have argued that such requirements already put EU and UK carriers at a disadvantage and should be withdrawn to help them contend with the doubling of jet fuel prices in recent weeks.
József Váradi, chief executive of Wizz Air, said: “I didn’t start a war in Iran. So why do I have to bear the consequences of that?” He said governments should waive the rules that force airlines to pay compensation if fuel shortages mean they are unable to fly, adding that many of the rules imposed on the industry are “politically driven”.
EasyJet has already said it will make a bigger than expected loss in the spring months, while Germany’s Lufthansa has cancelled 20,000 flights, saying higher fuel costs would have made them unprofitable. Virgin Atlantic also told the FT recently that it would struggle to turn a profit this year.
“We have been very consistent in calling for a level playing field,” said one senior airline executive. “The crisis has deepened,” they added. “These are some of the measures that they can take even on a temporary basis to bring some relief.”
Hand luggage rules
Among the most eye-catching changes, the European parliament is considering whether passengers should be allowed to bring a second larger piece of hand luggage on board for free, in addition to a smaller item.
While some airlines, such as BA, already allow this, low-cost carriers argue this would force them to increase ticket prices and create problems for their business model, which relies on a quick turnaround when the aircraft lands.
“We compete internationally,” said the airline executive. If the US and Canada implemented similar compensation and baggage rules, “I would be happy, but until then, we do not need them here.”
The industry would also like changes to “tankering” rules, which prevent airlines filling up with cheaper fuel before they enter the region.
Virgin Atlantic said recently that it would struggle to turn a profit this year. © Photo credit: NurPhoto via AFP
“Temporarily suspending the anti-tankering obligation, and as soon as possible, will help bring some clarity as airlines navigate this new set of challenging circumstances,” Ourania Georgoutsakou, head of industry group Airlines 4 Europe, wrote on LinkedIn last week.
“Over 50 days have passed since this conflict started and it will take weeks for supply to go back to usual – we need temporary adjustments to EU rules to weather this latest challenge.”
Reduced compensation
Airlines are also lobbying for changes that would reduce the cost of passenger compensation for cancelled flights, according to two people with knowledge of the discussions.
Changes to rules on airport slots, which require airlines to use or risk losing them even if there is limited demand, are also on the industry’s list of requests.
The UK government has already said it will allow airlines to apply for an exemption to the “use it or lose it” rule “if fuel shortages prevent them from flying”.
It added: “This means airlines can focus on minimising disruption for passengers, rather than feeling pressure to operate flights purely to protect their slots.”
In Brussels, policymakers are reluctant to rewrite legislation regulating the industry, but countries such as Portugal have raised concerns about the effect of high jet fuel prices on tourism.
So far, European officials have said they are willing to give some ground to the industry, which supports more than 5 million jobs across the region, but only temporarily.
“We will allow flexibilities on airport slots, anti-tankering, public service obligations and passenger rights,” transport and tourism commissioner Apostolos Tzitzikostas said last week, promising “temporary changes to the legislation” if the situation worsens.
Tzitzikostas said he would not, however, tell people to fly less in response to the crisis. “There is no need at this point to intervene in how people live, work or travel.”
