[Peetwo]

Dicky King too little too late??

Via Oz Aviation:

Sydney slot management out to tender
August 5, 2024


The Federal Government has put slot management at Sydney Airport out to tender, a week after Rex went into voluntary administration.

Announced in February as part of a slew of government reforms, the competitive tender process will require prospective slot managers to demonstrate how they would deliver on those reforms, and “manage and mitigate conflicts of interest in a transparent way”.

The company that currently manages the slots, Airport Coordination Australia (ACA), has board representation from Qantas, Virgin, the Regional Aviation Association of Australia, and the airport itself, and was last week criticised by former ACCC chair Rod Sims.

“We are getting on with the job of delivering the reforms that were announced in February,” said Federal Transport Minister Catherine King.
“The recommendations for change were handed to the previous Government in February 2021. On coming to office, it was clear that the previous government had shown little interest in issuing a serious response to the findings.

“In contrast, the Albanese Government started the White Paper process and undertook consultation, including targeted consultation, on responding to the Harris Review. We are serious about making long term reforms to aviation in Australia that are much needed after a decade of neglect.”
Petra Popovac, CEO of ACA, has stood by her company’s reputation.

“We welcome an open tender, this is not the first open tender at Sydney,” she told Australian Aviation.

“We are exceptional at our job and are recognized globally by positions that we hold within industry advisory groups, such as the World Airport Slots Board, where I am Chair.”

The Government earlier this year announced a major package of reforms for Sydney Airport, though stopped short of ditching the controversial “80/20 rule”, which allows airlines to keep a take-off slot indefinitely as long as they operate it at least 80 per cent of the time.

“The Government has already implemented a number of these commitments including an independent audit of slot usage, with results to be released once completed; and has re-established the Compliance Committee for Sydney Airport that manages compliance with the slot regime,” the Government said in a press release.

“The reforms will be finalised with forthcoming legislation which will include changing the allocation process to free up more slots and changing the definition of ‘new entrant’ to make it easier for new airlines to obtain slots.

“Other reforms include modernising the compliance regime with penalties that address anti‑competitive behaviours, updated and strengthened enforcement tools for the Government to watch airlines more closely and take effective legal action where necessary, and requiring airlines to provide regular information on how they use slots, such as reasons for cancellations or major delays, which will be regularly published.”

And from Oz Flying:

RAAA calls for Broad Regional Focus

5 August 2024




The Regional Aviation Association of Australia (RAAA) has called on the Federal Government to consider the challenges facing all regional airlines in the wake of Regional Express going into voluntary administration.

Although REX was placed in administration last week, only the B737 services on trunk routes have ceased, with SAAB 340 operations into regional centres continuing. Training and charter/aeromedical operations are also not affected.

The Federal Government has been under some pressure to provide support to REX to ensure regional centres remain connected, but the RAAA says the problem is not isolated to one carrier alone.

“Aviation is the lifeblood of regional Australia and RAAA member airlines connect people, communities and businesses across our vast nation every day,” RAAA CEO Rob Walker said in a statement released today.

“Whilst Government considers the support required to ensure the continuation of essential regional air routes, the RAAA urges government to carefully consider all regional airlines that are currently servicing or are capable of servicing affected routes, and not to focus on any one individual operator."

The RAAA said it shared community concerns about the administration of REX, highlighting the plight of regional
communities serviced by the airline, and the REX staff that face an uncertain future.

"The RAAA highlights the importance of industry playing a key role in working with Government to ensure the best possible outcome for these communities, long term sustainability of regional aviation, and the Australian taxpayer," the statement says.

RAAA Chair Malcolm Sharp said the future of regional aviation required an all-of-industry approach.

"All sectors of the Australian aviation industry must step up and work together," Sharp said. "Governments, regulators, aviation agencies, airlines, airports, and industry suppliers must ensure regional aviation thrives and grows stronger for the benefit of the regional communities we serve."

The RAAA also said it hoped that the government’s long-term strategies for the aviation industry would "go beyond a focus on decarbonisation and address real cost reductions, equity in investment of training costs, ongoing removal of red tape, and consideration around the true costs of providing regional services in modern aircraft."

Last week, Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said her department was looking into what could be done for REX.

"REX is an important airline for regional and remote communities and REX’s continuation is in the best interests of regional Australians, the travelling public, its workers and the aviation sector," King said.

"The government will work closely with the administrator to determine a path forward that ensures regional aviation has a strong future in this country."

MTF...P2