An audit of Sydney Airport’s domestic slot usage has highlighted inefficiencies in slot allocation, concluding that more effective regulatory oversight is required to ensure slot allocation is “fair, efficient and transparent.”
Conducted by To70 Aviation for the Australian government, the audit examined slot utilization across three scheduling seasons from October 2022 to March 2024, supporting proposed legislative reforms under the Sydney Airport Demand Management Amendment Bill 2024.
The findings showed that domestic slot non-utilization improved significantly, dropping from 17.8% in the winter of 2022-23 to 8.1% in winter 2023-24, as operating conditions normalized post-pandemic. However, regional slots saw a sharp increase in non-utilization, rising to 24.4%, primarily due to operational challenges affecting specific carriers.
Airlines were found to comply with existing slot rules but leveraged regulatory gaps to retain valuable peak-time slots. The audit highlighted that carriers often spread non-utilization across multiple slot series to meet the 80/20 “use it or lose it” rule while maintaining flexibility over high-demand slots.
High-frequency routes, such as Sydney-Melbourne and Sydney-Brisbane, exhibited “disproportionately high non-utilization rates compared to other domestic routes.” Airlines said that cancellations on these routes allowed them to quickly reaccommodate passengers on alternative flights and stabilize network operations. However, the audit found that while the practice complies with existing regulations, it limits opportunities for new entrants and reduces overall efficiency during peak periods.
The audit also identified weaknesses in the 80/20 rule during off-peak times, where excess capacity and limited competition allowed airlines to reacquire underutilized slots without meeting historic utilization thresholds. “With minimal consequences for underutilization ... this weakens the intended regulatory pressure to ensure efficient use of slots year-round,” the audit found.
Transport Minister Catherine King said the findings validate the need for reforms included in the Sydney Airport Demand Management Amendment Bill 2024, which recently passed the Australian House of Representatives. The legislation aims to enhance compliance measures, introduce higher penalties for slot misuse, and increase transparency in slot allocation.
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