Qantas Denies Slot Hoarding Claims as Government Pushes for Change

Qantas Domestic CEO Markus Svensson said slots are applied for with the intent to operate and denied allegations of slot hoarding.

A Qantas Airlines Boeing 737-800 plane travels down the runway as a Qantas Boeing 717 plane lands at Sydney International Airport on June 7, 2024. DAVID GRAY/AFP via Getty Images

Qantas officials have backed proposed laws to combat airport slot hoarding, noting they will enhance transparency for customers.

Appearing before a Senate Enquiry, the airline denied any wrongdoing in relation to allegations of slot misuse at Sydney Airport.

Qantas Domestic CEO Markus Svensson defended the airline’s slot management practices.

“We do not apply for slots without having intention to operate them ... we categorically deny that we slot hoard and try any games,” he told the inquiry.

Svensson said that despite best efforts, flight cancellations are sometimes inevitable due to the unpredictable nature of the industry.

However, when asked to give data on how many allocated Sydney slots were regularly affected by cancellation, he said he did not have the numbers.

“It’s not physically possible, because things are unpredictable in this industry,” he said.

The scrutiny of Sydney Airport’s slot management system comes amid the collapse of regional airline Rex, which faced challenges gaining access to slots at the busy airport.

Limited slot availability has been blamed for restricting Rex’s access to the airport’s lucrative routes. While Qantas and Virgin have been accused of hoarding slots, the airport also faces curfews that further complicate slot allocation.

These constraints have made it increasingly difficult for smaller airlines to compete with the larger, established players like Qantas.

Opposition transport spokesperson Bridget McKenzie, who was part of the Senate Committee, 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 ... and you use that power to your advantage. That’s what we’re seeking to change here,” she said.

She also expressed concern that Virgin Australia had not appeared before the inquiry.

“Qantas has been under a lot of criticism publicly for their use of the existing slot system, and it does you credit that you’ve actually taken advantage to front up ... I wish Virgin had have done the same,” she said.

Qantas Backs Sydney Slot Reform Bill

The federal government introduced the Sydney Slot Reform Bill 2024 on Oct. 9, with the aim of overhauling the current slot management system until the completion of Western Sydney Airport.

The reform bill seeks to create a more competitive environment by penalising slot hoarding and ensuring better transparency in slot allocation.

When asked if Qantas backed the changes, Svensson said there were “some good things in it.”

“Having more movements in case of disruption, that’s a good thing. Transparency is a good thing,” he said.

Opposition Calls for Further Scrutiny

The federal opposition has called for a Senate Inquiry to properly scrutinise the government’s attempt to shake-up the Sydney Airport slot management system—critical to sustaining a thriving aviation industry for the country.

The proposed Sydney Airport reform bill includes measures to penalise slot hoarding, public record keeping, and the creation of the first Aviation Industry Ombudsman Scheme.

Nationals’ leader David Littleproud expressed disappointment over the limited scrutiny given to the bill, with only one public hearing held in Canberra. He believes more discussions in Sydney are needed to properly assess the implications for the aviation industry.

Littleproud added that the current system, established in the 20th century, had become less effective for modern demand.

“On behalf of the opposition, I want to state that the coalition wants to see a more affordable, reliable, and competitive aviation sector for all Australians,” he said.

AAP has contributed to this article.