Lavish rescue packages to keep incumbent airlines flying threaten to prevent bolder carriers from expanding
damage from covid-19 to aviation, look up. Where once a criss-cross of vapour trails told of holidaymakers heading for the sun or executives keeping businesses on track, the wide yonder is now a brilliant blue. This year nearly 5bn passengers might have been expected to take to the skies, but the actual number is likely to be only half as big. A fragile recovery is susceptible to new waves of infection.
Start with carbon emissions. The dramatic declines this year are a distraction because as people resume flying, emissions will start to rise again. Neither should the industry’s sorry financial state today relieve it of recent pressure to decarbonise in the future. For many years aviation mostly had a free pass when it came to regulations of the type that forced carmakers to clean themselves up. Before the pandemic that had been changing.
These efforts to keep incumbent airlines flying threaten to prevent bolder carriers from expanding. Waivers on airport-slot rules will further hamper new entrants. Regulators around the world suspended use-it-or-lose-it rules for the summer to help stricken carriers. Incumbents want an extension to cover the winter, too. But if slots cannot be reallocated, rivals will be constrained. In Europe agile, low-cost carriers like Wizz Air are rightly calling for slot-blocking to end.
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