Britain's Airport Coordination beats Qantas-Virgin JV to manage slots in Sydney

By Nikita Maria Jino

(Reuters) - Britain's Airport Coordination Limited (ACL) won a government-led tender to manage takeoff and landing slots at Sydney Airport, Australia's transport minister said on Tuesday, replacing a joint venture between Qantas and Virgin Australia.

ACL is the slot coordinator for more than 76 airports worldwide, its website shows, including busy and complex ones like London Heathrow, Dubai, Abu Dhabi and Auckland.

The British entity will take over from Airport Coordination Australia, the joint venture between Australia's largest carrier Qantas and Bain Capital-owned Virgin Australia that has allocated slots in Sydney since the original scheme was legislated in 1997.

Slot management at Australia's busiest airport has been under growing government scrutiny over allegations the country's two leading airlines were exploiting their influence by hoarding slots during peak times and often cancelling flights at the last minute on routes with high frequencies like Sydney-Melbourne.

Sydney Airport CEO Scott Charlton said the appointment of "a new, independent slot manager marks another step toward a more competitive, transparent, and efficient slot framework at Sydney Airport."

"Sydney Airport will continue to work constructively with all stakeholders on the implementation of further commitments, including a recovery period and a strengthened compliance regime," he said.

Qantas and Virgin Australia did not immediately respond to request for comments.

Transport Minister Catherine King paved the way for a new slots manager at Sydney Airport in February 2024 and vowed tougher rules if the Qantas-Virgin joint venture won the role again.

Slots at Sydney Airport are extremely sought after during the peak hours of the day, where only a limited number of planes can land every hour due to various noise restrictions.

"The decision to go with a foreign firm to handle slots at Sydney airport has no doubt ruffled a few feathers in the Australian aviation industry," said Tim Waterer, chief market analyst at KCM Trade.

"ACL has been given a 3-year contract, so time will tell if the change brings about improved slot allocations."

(Reporting by Nikita Maria Jino in Bengaluru; Editing by Subhranshu Sahu and Jamie Freed)