Sydney Airport is on the Australian Competition and Consumer Commission (ACCC) radar to implement reforms on the slot allocation system. As pet the latest report by the ACCC, the current system is not working well and it gives incumbent airlines an unfair advantage.
The regulator found that the allocation policies were shutting down meaningful competition in the airline industry and allowing the duopoly between major carriers Qantas and Virgin Australia to develop.
It recommended that the government introduce a new system that would be based on merit and would give all airlines an equal chance of securing slots.
The report was welcomed by Rex and Bonza who have been asking for the overhaul of the slot allocation system.
“The system is broken and needs to be fixed,” said Rob Sharp, Chief Executive, REX. “The current system is designed to protect the interests of the two major airlines, Qantas and Virgin Australia. It makes it very difficult for new airlines to get a start at Sydney airport, and it means that passengers are paying higher fares for less choice.”
Tim Joyce, Chief Executive, Bonza said: “We’re confident that there is a market for our services at Sydney airport, but we need the government to make it easier for us to get started.”
The government has not yet responded to the ACCC’s recommendations.
