Rex and Bonza call for immediate overhaul of Sydney airport laws to increase competition

Rex Airlines, Bonza and Australia’s airports body are calling on the federal government to immediately make it easier for airlines to introduce flights at Sydney airport and challenge Qantas and Virgin, warning that higher air fares and poorer service will persist if nothing changes. The Australian Competition and Consumer Commission this week savaged policy shortcomings that are shutting out meaningful competition and have allowed for a duopoly to develop in Australia’s aviation market. The warning was issued in the ACCC’s domestic aviation monitoring report on Monday, amid concerns of stubbornly high air fares that have not fallen with the recent decline in the cost of jet fuel. The ACCC chair, Gina Cass-Gottlieb, noted the allocation of slots specifically at Sydney airport as a barrier to competition, with the number of take-offs and landings capped by federal legislation. Cass-Gottlieb said “access to peak time slots at Sydney airport is critical for new and expanding airlines seeking to build an intercity network”. Critics claim the current system benefits existing operators, as they can schedule more flights than they intend to run and selectively cancel them to still meet the “use it or lose it” rule of running at least 80% of a service to retain its slot and prevent competitors from introducing a rival service – dubbed “slot hoarding”. The CE of new budget carrier Bonza, Tim Jordan, said his airline was desperate to introduce flights in Sydney, but it has not been able to get any peak time slots that would make expansion viable. “It just seems wrong that we are unable to bring low-cost services to the Sydney basin, where almost a quarter of Australians choose to call home,” he said.<br/>