AAA Supports Sydney Airport Slot Reform Efforts

The Australian Airports Association (AAA) has expressed strong support for the Australian government’s plans to reform slot rules at Sydney Kingsford Smith Airport (SYD). The initiative aims to increase competition by making more takeoff and landing slots available.

On August 5, the Australian government issued a competitive tender to appoint a slot manager at SYD. This move is part of a broader strategy to address the challenges faced by airlines, particularly after the voluntary administration of Rex on July 30 and the earlier collapse of Bonza. Both airlines struggled to secure adequate peak-hour slots at Australia’s busiest airport.

Natalie Heazlewood, AAA’s head of policy and advocacy, highlighted the urgent need for these reforms. “The recent collapse of two domestic airlines within a short period underscores the necessity for a different approach to enhance competitiveness in Australian aviation,” Heazlewood said. “Increasing transparency and addressing potential conflicts of interest in slot allocation should foster greater competition and benefit consumers.”

The tender process requires prospective slot managers to demonstrate their ability to implement the proposed reforms effectively and ensure transparency. The government has already taken several steps towards reform, including conducting an independent audit of slot usage and reestablishing the Compliance Committee for Sydney Airport.

Upcoming legislation will focus on finalizing these reforms, which include revising the slot allocation process and redefining “new entrant” criteria to facilitate access for new carriers. Additional reforms will modernize compliance measures, introduce penalties for anti-competitive behaviors, and require airlines to regularly report and publish slot usage details.

In the first half of 2024, SYD served 20.1 million passengers, a 10.4% increase from the same period in 2023. Domestic passenger numbers rose by 5.6% to 12.1 million, while international passengers grew by 18.6% to 7.9 million. According to OAG Schedules Analyser data, Qantas holds a 36.1% share of departure seat capacity from SYD in August 2024, with Jetstar at 17.2% and Virgin Australia at 18.9%.