Bonza Airlines CEO Tim Jordan has called for access to “meaningful” Sydney Airport access to launch new routes from the nation’s largest city.
The call comes after yesterday’s ACCC report which was critical of the Sydney Airport slot system put in place by the previous Federal Government.
Mr Jordan told AirlineRatings.com that he would like to base about six aircraft in Sydney and operate morning and afternoon flights to 20 markets.
However, Bonza would need early morning, midday and evening slots to make it viable.
“Most of the routes we are targeting are not served at all (50%) or not by a low-cost carrier (90%),” Mr Jordan said.
The ACCC in its report said that “rules allowing airlines to retain slots in perpetuity exacerbate capacity constraints by limiting the opportunities for new or expanding airlines to acquire slots needed to launch new services and compete.”
It added that “airlines can exploit the scheme by acquiring and hoarding slots for strategic reasons, such as to prevent competitors’ access to slots, resulting in inefficient slot use and further diminishing opportunities for increased competition. The impact of these flaws in the demand management scheme is more than theoretical.”
One of ACCC’s focuses was the high cancellation rate at Sydney Airport by the incumbent airlines.
In a statement to Australian Aviation, Sydney Airport, which has no control over the slots, backed the ACCC’s criticism.
“We endorse the ACCC’s common-sense position that the slot management scheme should foster efficiency and robust competition. Making it easier for new domestic and international airlines to access slots will lead to more choices for travellers. The problem is that the current rules don’t work,” Sydney Airport told Australian Aviation.
Mr Jordan reflected that “as an industry, we are better than this.”
