Australian airlines are being likened to a “mafia of the sky” for allegedly strategically canceling flights they never intended to operate, according to claims made by Monique Ryan, the independent member for Kooyong in Melbourne. Ryan is urging the urgent implementation of compensation laws to deter airlines through immediate penalties. The calls come in response to recent allegations by Sydney airport’s outgoing CEO, Geoff Culbert, who accused Qantas and other airlines of engaging in “slot hoarding” – scheduling more flights than they intend to run and strategically canceling them to impede competition.
Ryan advocates for the swift introduction of mandatory compensation schemes for airline passengers, emphasizing the urgency of such laws, which should not wait until the government’s aviation white paper expected by mid-next year. Culbert’s frustration with the alleged practice of slot hoarding, where airlines cancel flights strategically to retain slots, was voiced as a hindrance to healthy competition. Despite awareness of the issue, Culbert expressed surprise that it persists.
Culbert pointed to September cancellation data, indicating that Jetstar had canceled 9.9% of flights, Virgin 9.3%, and Qantas 7.4% on the Sydney-Melbourne route, while the formerly regional carrier Rex had a zero cancellation rate. Qantas Group and Virgin Australia have denied engaging in slot hoarding, with both airlines holding firm against the accusations.
While smaller airlines and airports are urging the government to respond to the Harris review’s recommendations for legislation to address such behaviors, Ryan proposes a broader compensation scheme, similar to those in the UK and the EU, to ensure airlines adhere to their schedules. Ryan contends that Qantas and other airlines are behaving more like the “mafia of the sky” than national treasures, emphasizing the need for federal intervention to protect consumers and introduce robust compensation laws for delayed or canceled flights, especially during a cost of living crisis.
