QANTAS: We are not a landing slot hoarder!

At a parliamentary inquiry today (Tuesday, 12 November 2024), Qantas domestic CE Markus Svenson denied that the airline is a landing slot hoarder. The airline has been accused of being a slot hoarder in peak times at Sydney Airport to hold off competition. He denied that Qantas misused its allocation by cancelling flights to stay as top domestic airline, at 94% were used.

“I categorically deny that we slot hoard or trying to play any games here. We do use our slots, … and that’s why we have so many of them.”

Markus Svensson, of Qantas in response to a question from Nationals senator Bridget McKenzie

Qantas has long been criticised for dominating the Sydney market, and using slot hoarding and flight cancellation as a tool to prevent rivals such as Virgin Australia from gaining more market share. McKenzie has even accused Qantas of ‘gaming the system.

“It’s been part of your business plan to game that system, and you’ve been very successful at it, because you are the gorilla in the room.

“You use that power to your advantage. That’s what we’re seeking to change here.”

Briget McKenzie Nationals spokesperson on transport

Background

Sydney Airport has a curfew and is limited to 80 takeoff/landing slots an hour. This puts landing slots at a premium, and the two major airlines have been accused of slot hoarding for years to keep out the opposition.

Landing slots are determined by Airport Coordination Australia, a joint venture between Virgin Australia, Qantas, Sydney Airport, and the Regional Aviation Association of Australia. Their control of slots was legislated in 1997.

Various enquiries, including one by the Productivity Commission, have advised that the approach to slot allocation needs to be reformed, but no decisive action has been taken so far.

Sydney Airport crowed about some minor reforms back in February 2024, but most critics see room for much more.

2PAXfly Takeout

The current Senate enquiry is yet another look at the system. It will doubtless come to the same or similar conclusion as previous parliamentary and other enquiries. That conclusion is that something needs to be done to make the allocation of slots fairer, independent, and transparent.

The question is, and has been for a while, when will the government do something about it?

Precedent would show that it is not advisable to hold your breath.