Stepping into Summer: ACL’s Summer 23 Outlook

The sun is shining, leaves are on the trees and new life is sprouting everywhere. Spring is finally here and for Airport Coordination Limited (ACL) that means the Summer season is now in swing. So what does ACL’s data show us about how airlines are gearing up for their busiest time of year?

Recovery continues to be at the forefront of the industries minds and the Secretary of State for Transport appears to be in agreement. The government issued guidance on Summer 2023 acknowledges the pandemic continues to impact air traffic and that the road to recovery is ongoing.

ACL’s position as the UK’s designated slot coordinator provides unique insight into UK Level 3 airports, and the impact of the alleviation offered for the Summer 2023 season. Airlines had the opportunity to gain alleviation on up to 5% of their historic slots, which were cancelled between the hand-back deadline (HBD – 01 February 2023) and 14 February 2023 (HBD+14).

 

Across the UK Level 3 network, London Heathrow Airport saw the smallest reduction in slots between initial coordination (SAL – 03 November 2023) and the time of the HBD, with a slots hand-back rate of 0.71%. In contrast, Birmingham Airport saw the greatest rate of hand-backs, observed at 14.05%. This was also the case between SAL and HBD +14 (-4.73% & -16.73% respectively). Overall ACL observed a hand back rate of just under 5% at the time of the HBD, increasing to 7.5% at HBD +14.

During the 14 days period after hand backs, London Stanstead Airport surprisingly saw minor growth in the airport schedule with ITA Airways adding over 1,300 slots and Jet2 a further 250 more than offsetting any reduction. London Gatwick saw the greatest reduction in slots (3.96%) with easyJet making up more than half of this reduction. 

In general we didn’t see carriers taking up their full 5% allowance between HBD and HBD+14, only 2.86% was taken on average across Level 3 airports. Looking back at the similar process for Winter 22/23 season where carriers could hand back 10% of slots for 7 days after HBD they handed back around 8%. Read into this what you will, however this could be read as a sign that airlines are ready to operate more in S23 and start to get back to S19 levels.

BA CityFlyer Sanction April 2023

ACL issued BA CityFlyer a Notice of Final Decision on 30 March 2023 for five operations without a slot during Winter 2022 at London City airport.  Please see here

IB Sanction March 2023

ACL issued Iberia a Notice of Final Decision on 10 March 2023 for three operations without a slot during Winter 2022 at London Heathrow airport.  Please see here.

Case M.6447 IAG/bmi – Slot Release Procedure for Winter 2023/2024

In March 2012, the European Commission (EC) granted regulatory clearance to the acquisition by International Consolidated Airlines Group (IAG) of British Midland Limited (bmi), subject to the Commitments entered into by IAG to release London Heathrow (LHR) slot pairs on selected short-haul and long-haul city pairs.

In order to resolve the competition concerns raised by the EC, IAG was obliged to make a number of daily landing and take-off slots available at LHR.

For the IATA Winter 2023/2024 Season, two (2) slot pairs will be available for each day of the week. In addition, there will be four (4) slots pairs available on Saturday only and two (2) slot pairs available on Sunday only (20 slot pairs in total). These slot pairs may be used for operations on LHR-Aberdeen, LHR-Edinburgh, LHR-Nice, LHR-Cairo and LHR-Riyadh only.

Please see the link for further details on the process that must be followed by airlines wishing to apply for these slots.

http://www.mazars.co.uk/Home/Our-Services/Audit-assurance/Monitoring-trustee-services/IAG-BMI-CASE-NO.-M.6447

Published: March 2023

BA Sanction January 2023

ACL issued British Airways a Notice of Final Decision on 3 January 2023 for one significantly off-slot operation during Summer 2022 at London Heathrow airport.  Please see here.

EZY Sanction January 2023

ACL sent a Notice of Final Decision to EasyJet on 30th January 2023 for one operation without a slot during Winter 2022 at London Gatwick airport.  Please see here.

Department for Transport lays new SI providing alleviation for Summer 2023

The Department for Transport has laid a new Statutory Instrument (SI) in Parliament to provide alleviation for the Summer 2023 season.  The full text is available here.  This SI provides a utilisation rate of 80% with a pre-season hand-back option for up to 5% of slots held.  This new SI retains and widens the justified non-use provisions.  ACL will issue guidance shortly.

Debra Bowen Rees appointed as Non-Executive Director

Airport Coordination Limited, the world’s leading airport coordinator is pleased to announce the appointment of Debra Bowen Rees as Non-Executive Director, joining the business from the 1st January 2023.

Debra brings with her 35 years of aviation experience in both military and commercial roles including as CEO of Cardiff International Airport. Debra also holds non-executive roles at Milford Haven Port Authority and Glas Cymru (Welsh Water) as well as Trustee and Board Member at Hijinx Theatre Group.

Debra said “Having spent the majority of my career in the aviation sector, I know ACL well.   I’m absolutely thrilled to be joining the Board at this hugely important and exciting time for the company, as it plays such a pivotal and innovative role in the recovery and growth of the sector following the devastating impact of the pandemic.”

Find out more about our ACL Board Members here

About Airport Coordination Ltd

ACL is the world’s first independent airport slot coordinator. It is headquartered in Staines, Middlesex, near London Heathrow Airport. ACL provides world-leading coordination, facilitation, and data collection services at 72 airports across four continents from its offices in the UK, New Zealand and the United Arab Emirates. ACL recently added 26 airports in the Kingdom of Saudi Arabia, enhancing ACL’s global position as the world’s leading and largest independent coordinator.

For more information visit www.acl-uk.org

The Real Facts Behind Summer 2022

ACL go back to the raw data to reveal what really happened to UK flight recovery in the Summer 2022 season.

Following two years of the Covid pandemic impacting the ability to travel, there was hope that Summer 2022 (S22) would see recovery. Regulators moved utilisation targets closer to the standard 80/20, passengers were signalling a desire to get travelling, and recruitment across the industry was in full swing.

What was not clear at the start of the season was the impact that the resource shortage was going to have on the ability to satisfy the returning demand. Media reports were soon appearing across all channels showing long queues as passengers were processed through airports. While reports of on the day cancellations lead to further inconvenience for the travelling public. With the industry tying to meet demand, recover lost revenue from previous years and ensure they didn’t lose the historic entitlement to slots, the pressure was on to operate.

The UK Government took the unusual step to intervene mid-season by legislating at speed to provide the pressure release the industry required.  Alleviation from the already reduced utilisation threshold of 70% was granted for a further 30% of slots held at that point. During the two week return window a total of 45,529 slots were handed back across UK coordinated airports. That equates to 32% of the possible cancellations under the amended Regulation and a 10% reduction in slots for the remainder of the season. Very few airlines made use of the full 30% which lead to London Heathrow mandating further cancellations to reduce demand. This was to ensure a safe operation across the airport.

All of the above factors impacted the performance of S22 when compared to the previous three seasons with particular focus on comparison against pre pandemic levels in Summer 2019 (S19).

Note: S19 and S20 seasons were 30 weeks in length, and S21 and S22 seasons were 31 weeks in length. S19 and S20 movement numbers have been normalised to ensure a like for like comparison

As you would expect the movement numbers season on season across the UK’s Level 3 coordinated airports have shown a gradual improvement following the initial shock in Summer 2020 (S20). Despite the strong indication that demand was returning at the initial coordination stage for S22, the impact of resourcing issues and the lingering effect, albeit reducing, of Covid meant that S22 numbers continued to be below that of S19 levels. In our start of the season update, Airport Capacity Analyst, Christakis Christodoulou, reported that scheduled movements across these same airports sat at 4.58% below S19.  https://www.acl-uk.org/news/a-shaky-summer/

S22 season saw most UK Level 3 airports double their scheduled movements compared to S21, despite the issues experienced which demonstrates the potential strong demand following the Covid-19 pandemic. Out of these airports, London Gatwick Airport (LGW) saw the strongest recovery, with carriers such as British Airways scheduling to operate 13 times more of slots than held in the S21 season. LGW’s biggest operator, easyJet, also contributed to the recovery of the airport, scheduling 3 times as many slots than in the S21 season.

Despite the recovery, S22 did not exceed or meet the same levels of demand which was observed in 2019. London City Airport (LCY), which saw the largest decrease in demand since S19, was significantly impacted in 2020 with the loss of Flybe. Even though the Flybe brand has returned to the sky under new ownership in 2022, the operator has yet to return to LCY. Bristol and London Stansted both recovered to be only single percentage digits behind S19 levels.

All the signs were there for S22 to be far better than materialised. Without the impact of the resourcing issues, we believe we would have been reporting a more positive review of the season. As we move into Summer 2023 (S23) planning, the question remains if such operational disruption will continue to impact recovery. Government has started its consultation of potential alleviation measures for the season. Only when this concludes will we get our first indication of the optimism of the industry.

ACL will continue to report on what we’re seeing from our extensive database of planned flying at UK airports including a summary of initial coordination for S23.

By Head of Commercial and People, Jon Rowell

 

ACL Airports’ World Cup Flight Statistics

Airport Coordination Limited (ACL) coordinate 72 airports worldwide, including 26 UK and Republic of Ireland airports and 35 airports in the Middle East. With all eyes on Qatar for the FIFA World Cup, the region has looked to their Middle-eastern partners to support getting the 1.2 million fans from across the world into the country. Nine of ACL’s Middle-Eastern Airports are supporting this venture.

Here we share our infographic of the passenger flight statistics so far…

Click here for larger PDF view

Did you know?
ACL have a long history of coordinating major international sporting and political events. To find out more, and discover how we can help your airport manage extreme demand, visit our Special Events page – Special Events Coordination

Did you know?
ACL hold all the flight data for slot schedules at our 72 airports, worldwide. Businesses can use this data to support their own planning, operations and analysis. If you would like to know more about our data and get in touch, visit our Data Services page – Data Services

 

Data analysis by Airport Coordinator, Oliver Thompson. Imagery by Denise Wakeford, Sales and Marketing Lead.