Explainer: Why are airport slots getting so much attention?

Qantas, in particular, is benefiting from a system that is coming under the fire of calls from reform.

A QantasLink plane prepares to land at Sydney Domestic Airport. Picture: NCA NewsWire / Jeremy Piper

What are airport slots and why do they matter?

Airport slots are the time windows allocated to airlines for access to that particular airport. As a “slot constrained” airport, Sydney slots are considered particularly valuable especially in peak periods. Without access to Sydney in peak periods, airlines can struggle to survive because of the city’s large population and the demand from business people.

Who controls them?

The Sydney Airport Demand Management Act is the legislation covering slot management, and Airport Coordination Australia is the body responsible for administering the legislation. ACA is funded by Qantas, Virgin Australia, Sydney Airport and the Regional Aviation Association of Australia but slot manager Petra Popovac says she operates independently of the board.

How does this benefit Qantas?

As the oldest and largest airline in Australia, Qantas has access to more slots in Sydney than other airlines. The current 80-20 rule – which means airlines must operate flights in a particular slot 80 per cent of the time, allows carriers to cancel up to one in five flights and still retain the slot.

What is the aviation white paper proposing?

The aviation paper has reaffirmed the government’s commitment to the recommendations of a slot management review by former Productivity Commissioner Peter Harris. These include a slot audit, and tender for a new slot manager.

The paper has also tasked the next Productivity Commission review of airports to consider tightening the 80-20 rule, and limit the period for which slots can be grandfathered. “Grandfather rights” apply to airlines that use a particular slot for at least 80 per cent of the time – meaning they keep that slot for the next six months.

Airlines will also have to provide details of why flights were delayed or cancelled to the government, to help determine whether slots should be retained.

Is it likely to succeed?

Airlines vehemently deny gaming the system and insist they are already using their Sydney slots 90 per cent of time.