The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

THE LEGAL IMPACTS IN THE USE OF AIRPORT SLOTS 125 In one word, unpredictability is the key to determine the application, or not, of the rebus sic standibus clause. This unpredictability constitutes an unforeseeable or inevitable situation that cannot be associated with a risk that is inherent in contracts, so it is foreseeable that this fact may allow the circumstances of each contractual relationship to be reviewed. All these requeirments are met within the COVID-19 pandemic, as nothing could be more unpredicted. Courts have addressed very often this problem. For example, the Portuguese Supreme Court has determined, in the Ruling no. 187/10.4TVLSB.L2.S1, that under the terms of article 437 of the Portuguese Civil Code, in order to be able to resolve or, at least, modify the clauses of the contract based on abnormal changes in circumstances, it is necessary: (i) that the change occurred is not a foreseeable development known at the time of the conclusion of the contract and (ii) that such change makes compliance of the contract against the principles of good faith. In Spain, from the Ruling no. 333/2014 of the civil section of the Spanish Supreme Court (30-06-2014), a series of rules can be also extracted that could be applied to this situation of the COVID-19 pandemic: (i) it is a circumstance that is alien to what was agreed; (ii) there is no fault of the party affected by it (the airline carriers); (iii) It is supervening and unexpected; (iv) it could not be foreseen; (v) it has serious and relevant effects for airline carriers; (vi) it affects the possibility of compliance with contracts. Once more, COVID-19 pandemic fulfil all the requirements to support a change in the slot usage contracts based on the rebus sic standibus clause. 4. CONCLUSIONS Regarding all that has been said, the conclusions reached are these: a) The COVID-19 pandemic grounded almost the entire fleets of all European aircraft carriers; b) The 80/20 rule determines that airline carriers might lose their slots, even if they carry on paying without using them; c) The coronavirus crisis has resulted, in its first moment, in a considerable drop in the number of European flight bookings made and, secondly, in the full stop of the entire operation; d) The 80/20 rule must be suspended by a rule of law and the EU gave already signs that it will do so;

RkJQdWJsaXNoZXIy MTE4NzM5Nw==