ACCC urges Labor to move on Sydney Airport overhaul
In an interview the chairwoman of the competition watchdog, Gina Cass-Gottlieb, said it was “a key time” for the chance to expand and provide competitive constraint. Qantas has announced that it is reviewing the ACCC allegations and is offering customers an alternative flight when a flight is cancelled. The competition regulator also investigated Qantas' largest rival, Virgin Australia, but found no evidence of similar behaviour. The ACCC is also pushing for an overhaul of how Sydney Airport slots are awarded, with rivals Bonza and Regional Express arguing that Qant as well as the Transport Department's aviation green paper expected to be released this week. The government has changed its position on whether aviation will be included in a review process run by Assistant Minister for Competition Andrew Leigh.
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In a statement on Monday, Qantas said it was reviewing the ACCC allegations, adding that it was the airline’s “longstanding practice ... that when a flight is cancelled, customers are offered an alternative flight as close as possible to their original departure time”.
“The ACCC’s allegations come at a time when Qantas’ reputation has already been hit hard on several fronts. We want the community to know that we hear and understand their disappointment,” the statement read.
The competition regulator also investigated Qantas’ largest rival, Virgin Australia, but found no evidence of similar behaviour.
But the airline was unable to say if it was still selling tickets on cancelled services on Monday. A spokesman declined to comment on whether the airline had investigated if the alleged practice has been stamped out by late on Monday.
Qantas’ rivals are also pushing for an overhaul of how Sydney Airport slots are awarded. Under current rules, airlines retain their rights in perpetuity as long as they use 80 per cent of their allotted slots.
Mr Harris recommended flight cancellations should be independently audited by a third party to ensure airlines have legitimate reasons for not flying the services, before allegations of slot hoarding can be properly tested.
Ms Cass-Gottlieb said the ACCC supports a review of the “use it or lose it” rules at the country’s busiest airport, after complaints that airlines rotate cancellations across services in and out of Sydney to ensure they use each “slot” at least 80 per cent of the time.
“What happens in Sydney Airport has effects through the whole network and the capacity for there to be broader competition,” Ms Cass-Gottlieb said in an interview, conducted as part of a conference hosted by Allens, Herbert Smith Freehills and King & Wood Mallesons.
“So competition is very important; we’re looking at it closely in relation to airlines and airports.”
Ms Cass-Gottlieb also said she would like to see the Qatar Airways landing rights reviewed from the perspective of competition, but understands the actual decision is beyond the scope of the ACCC.
“We certainly favour and are keen for increased capacity and the chance for that to lead to increased competition through the competition lens,” she said. “But we’re conscious there are a number of factors that may be considered in the national interest.”
The Transport Department’s aviation green paper is expected to be released this week, and is likely to lay out in more detail the terms of reference for a white paper guiding the sector until 2050, due by the middle of next year.
“With Qantas coming out last week in support of the Harris Review we now have industry consensus on what needs to change, so there’s no need to delay – we want to work with the government to get it done as quickly as possible,” Sydney Airport chief executive Geoff Culbert said.
Bonza and Regional Express argue that Qantas, Virgin Australia and Jetstar are stopping them from getting into Sydney Airport or expanding their flights to capital cities by rotating cancellations to keep their foot on slots.
“The Harris Review highlights positive steps that could be implemented to support meaningful change. It really is time for positive action on this important subject that can help reduce airfares and improve access for consumers across the country,” said Bonza chief executive Tim James.
The government has changed its position on whether aviation will be included in a review process run by Assistant Minister for Competition Andrew Leigh, agreeing last week to address it after initially ruling it out.
Topik: Australia