Qantas, Virgin hold biggest stakes in company that decides slots

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The system to decide take off and landing rights at Sydney Airport is “frankly ridiculous”, former ACCC chairman Rod Sims says.

The former competition watchdog Rod Sims says it is “outrageous” that Qantas and Virgin Australia have substantial shareholdings in the company that ultimately polices which airlines take off and land at Sydney Airport.Alex Ellinghausen

The slot system at Sydney Airport was “frankly ridiculous” and “outrageous”, he said, because the two carriers held substantial stakes in Airport Co-ordination Australia, which organises slots at airports across the country, at the same time they have been accused of so-called slot hoarding.– which means they book excessive landing rights at airports to prevent rivals from competing.

Mr Sims said the government should initiate more bi-lateral air service agreements to increase the number of international carriers coming to Australia, which would put downward pressure on airfares. “We need a bilateral aviation agreement that sets those arrangements to suit the Australian travelling public and the Australian economy, and it doesn’t really matter what the other side does.”

 

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