{"id":43250,"date":"2023-09-07T06:39:25","date_gmt":"2023-09-07T06:39:25","guid":{"rendered":"https:\/\/lethal-industry.com\/?p=43250"},"modified":"2023-09-07T06:39:25","modified_gmt":"2023-09-07T06:39:25","slug":"government-prepares-for-airport-slot-reforms-amid-airline-competition-focus","status":"publish","type":"post","link":"https:\/\/lethal-industry.com\/world-news\/government-prepares-for-airport-slot-reforms-amid-airline-competition-focus\/","title":{"rendered":"Government prepares for airport slot reforms amid airline competition focus"},"content":{"rendered":"

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The federal government has given its strongest signal yet that it\u2019s about to move on recommendations to improve the regulation of airport slots, two years after they were first delivered, as consumer dissatisfaction surrounding high airfares continues.<\/p>\n

Transport Minister Catherine King released the government\u2019s long-awaited green paper into Australian aviation to 2050 on Thursday, and stated Sydney Airport\u2019s slot allocation scheme would be reformed \u201cin due course\u201d.<\/p>\n

<\/p>\n

Transport Minister Catherine King.<\/span>Credit: <\/span>Alex Ellinghausen<\/cite><\/p>\n

Sydney Airport is the biggest gateway into Australia, but is governed by outdated regulation that is regularly criticised by its own management and its airline, airport and tourism partners. The green paper was released for industry consultation ahead of a formal white paper, which is due by the middle of next year.<\/p>\n

\u201cWe have recently concluded targeted consultation regarding potential changes to the [slot-management] scheme, with a particular eye to modernising the slot allocation framework and strengthening compliance measures to ensure that slots are not being misused by airlines. I will have more announcements to make about these reforms in due course,\u201d King said.<\/p>\n

In 2020, former Productivity Commission chair Peter Harris delivered a report following an independent review into the slot management at Sydney Airport which called for an overhaul of its slot management system to make it easier for new entrants, both domestic and international, to fly in and out of the hub.<\/p>\n

Successive governments have not yet implemented his recommendations, to the chagrin of some airlines and the country\u2019s airports, who allege the domestic market is not competitive enough.<\/p>\n

Prime Minister Anthony Albanese declared earlier this week that Australia is the \u201cmost competitive aviation market in the world, bar none\u201d. But the green paper makes it clear the sector, where 95 per cent of passengers are carried by the country\u2019s two biggest airlines, could do more to address the concentration of the industry.<\/p>\n

\u201cThe Australian domestic aviation market is highly concentrated, and the market is experiencing structural change which may impact the competitive dynamic in the future. With airlines no longer competing \u2018head to head\u2019 and focussing on market niches, the Australian government recognises a reduction in competitive tension could adversely impact consumers and businesses that rely on aviation, potentially leading to higher prices and lower service outcomes,\u201d the green paper says.<\/p>\n

As it stands, Qantas Airways carries about 60 per cent of passengers through Qantas and Jetstar, while Virgin services more than 35 per cent. Regional Express has a little less than the remaining 5 per cent.<\/p>\n

Sydney Airport boss Geoff Culbert said he was pleased the government has committed to acting on the findings.<\/p>\n

\u2018The issues with respect to slots at Sydney Airport need to be addressed urgently to ensure fewer cancellations and delays for passengers.\u2019<\/p>\n

\u201cThe issues with respect to slots at Sydney Airport need to be addressed urgently to ensure fewer cancellations and delays for passengers, and to drive more competition,\u201d Culbert said.<\/p>\n

Australian Airports Association chief James Goodwin said the airports would work with the government ahead of the white paper\u2019s delivery, and said airline competition should be a core focus, \u201cso customers don\u2019t lose confidence in air travel\u201d.<\/p>\n

Qantas Airways, Virgin Australia, Regional Express and Bonza said they would review the paper and would work with the government on providing feedback ahead of the white paper\u2019s release.<\/p>\n

One senior airline executive who was not authorised to speak publicly said the industry \u201clives in hope\u201d the government will eventually implement the long-awaited reform at Sydney Airport.<\/p>\n

\u201cWe look forward to yet again providing the same feedback to the government ahead of the white paper\u2019s delivery, the timing of which is still unknown,\u201d another aviation executive said.<\/p>\n

Among the suggestions in the 224-page green paper, the government said it is considering implementing a standalone public inquiry into the pricing of domestic airfares on routes to and from regional areas.<\/p>\n

It also said it would look at ways to improve consumer dispute resolution systems for Australian travellers.<\/p>\n

\u201cThe Australian government is also seeking to understand whether options pursued in other jurisdictions \u2013 such as a customer rights charter or a stronger ombudsman model \u2013would deliver benefits to Australia\u2019s aviation sector\u201d, it said.<\/p>\n

The government will consider bolstering the independence of the aircraft noise ombudsman and review the industry\u2019s two regulators\u2013 the Civil Air Safety Authority and the Australian Transport Safety Bureau\u2013 to ensure they remain fit for purpose.<\/p>\n

The green paper also indicated the government is looking at how to establish a viable sustainable aviation fuel industry in Australia to assist the sector in its net-zero emissions transition.<\/p>\n

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