Air France and Wizz CEOs spar over airline regulation

Traditional airlines need more time to recover before full competition for airport slots is restored, the head of Air France-KLM said on Monday, drawing a sharp response from Wizz Air counterpart Jozsef Varadi. The suspension of the “use-it-or-lose-it” rule has allowed major carriers to preserve airport access during the coronavirus crisis despite the collapse in traffic, sparking protests from low-cost rivals keen to expand into once-congested airports. Airlines were required to use 80% of pre-crisis take-off and landing slots or forfeit them to rivals. Major carriers are now pushing to extend a lower threshold and other accommodations through the coming northern winter season. “It was logical to give airlines a break on the use-it-or-lose-it rule,” Ben Smith said in a joint panel appearance with Varadi at the Paris Air Forum, adding that the time is not right for its return. “We don’t see our industry in a position yet to put that in place.” The Air France-KLM CE also cautioned against allowing budget rivals to “take advantage” of the crisis by expanding into crisis-hit national markets using crew on lower-cost foreign contracts. But Varadi, founding CEO of Hungary-based Wizz, said the suspension of slot rules discriminated in favour of state-backed carriers and undermined the European single market. France recently raised its stake in Air France-KLM to 28.6%.<br/>