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Virgin Australia has urged the federal government not to fine airlines for “every cancellation” in advance of a proposed change to how Sydney airport take-off slots are managed.
In a submission to a Senate inquiry on the matter, the airline argued that penalties, which could be up to $20,000, should be considered annually because delays are often due to a variety of factors that aren’t known immediately.
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It comes after Transport Minister Catherine King introduced legislation to Parliament in October to stop the apparent practice of larger airlines gaming the slot rules to block out smaller carriers from the most popular takeoff times.
Both Qantas and Virgin strongly deny any wrongdoing.
In a statement, Virgin said it was concerned a penalty could be applied for “every cancellation that occurs on any given day” and the proposed exceptions “may not cover all realistic factors that are outside of the airline’s reasonable control”.
“Additionally, Virgin Australia has concerns regarding the interpretation of causal factors leading to an off-slot movement and whether those factors could trigger a civil penalty,” it added.
“Delays may be due to a combination of factors, and it is possible that a delay may initially appear to be within an airline’s reasonable control, but on closer examination, may be partly or entirely due to factors outside of an airline’s reasonable control.
“Virgin Australia would prefer that the explanatory statement, and associated Bill, either provides clarity or more open language to enable a fair assessment prior to the enforcement of penalties.
“For instance, using the existing compliance committee/s and taking a holistic assessment annually to determine patterns of behaviour, rather than once-off application of penalties.”
The Sydney Airport Demand Management Amendment Bill implements a number of changes to takeoff slots in Sydney, though stops short of changing the controversial “80/20 rule”.
Currently, an airline can keep a takeoff slot indefinitely as long as it operates the slot at least 80 per cent of the time, meaning one in five services can be cancelled without punishment.
It’s led to accusations – denied by both Qantas and Virgin – that major airlines are gaming the rules to block out competitors, known as “slot hoarding”.
In its statement, Virgin also said it wishes to “clearly state that Virgin Australia does not hoard or misuse slots” and uses the current system with “the clear intention to provide a reliable and competitive service to our customers”.
Other legislative reforms include improving access to peak slots for new entrants and regional carriers and implementing a “recovery period” to temporarily boost the airport’s capacity after major disruptions.
The bill comes months after the government released its Aviation White Paper, which has consumer protections at the forefront.
“These reforms are all about delivering better outcomes for the travelling public by supporting an efficient, resilient and competitive Sydney Airport, and we look forward to the opposition’s support for the legislation,” said Minister King earlier.
“From better-monitoring airline performance and pricing to improving outcomes for travellers with disabilities and creating the first Aviation Industry Ombuds Scheme – the Albanese Government is undertaking the most significant aviation reform agenda in a decade, delivering reforms that were left in the too-hard basket by the previous government.
“Along with the opening of Western Sydney International Airport in 2026, this reform package will enable a more competitive, transparent and productive aviation network for years to come.”
The government has already moved on several steps to address slot issues at Sydney, including an independent audit of slot usage; a competitive tender process has also been opened up for slot management, which is currently handled by Airport Coordination Australia (ACA).
