Qantas rivals seize on woes to call for end of market dominance

Qantas’ fall from grace has prompted rival airlines, airport operators and travel agents to call for swift structural reform to open the market to more carriers and rein in the giant. In just the past month, Qantas has been hit by a class action over its retention of Covid-era travel credits and sued by Australia’s competition regulator for allegedly selling seats on already canceled flights. Amid the outcry, then-CEO Alan Joyce brought forward his retirement. In the latest blow to the airline’s reputation, Australia’s highest court this week ruled that Qantas illegally sacked almost 1,700 staff during the pandemic. The controversies at the country’s largest carrier have created a trigger for potential change — before a government review early next year sets out aviation policy for the coming decades. Sensing a rare opportunity, an Australian aviation ecosystem that’s normally ruled by Qantas is piling in. At a conference in Brisbane this week, industry executives demanded action to bring in more competition. “There’s an opportunity for competition to be grasped,” said Tim Jordan, CEO of new low-cost airline Bonza. “Now is the time to do it.” Jordan called for access to takeoff and landing slots at Sydney airport, the country’s main gateway. Bonza could serve 20 destinations from Sydney if it was allowed to operate from the airport, and its tickets would cost less than half rivals’ fares, he said. In an interview, Jordan described slots at Sydney airport as “a national asset.” Qantas, which has a 60% market share, has long been accused of hoarding slots at Sydney so rivals can’t get them. It denies the allegations. The competition regulator has said shaking up slot allocations would be the most effective way of limiting Qantas’ dominance. Virgin Australia has about one third of the Australian passenger market.<br/>