SYDNEY- Australia’s Sydney Airport (SYD) has appointed Airport Coordination Limited (ACL) as its new slot management provider, effective April 1, 2025. This was following a competitive process initiated by Australia’s Minister for Infrastructure.
This marks the first change in slot coordination at Sydney Airport (SYD). ACL will bring international expertise to address utilization issues with the current system.
Sydney AirportPhoto: AirbusACL to Provide Slot Efficiency
Airport Coordination Limited (ACL) manages slot regimes at some of the world’s busiest airports. These include- Heathrow (LHR), Gatwick (LGW), Stansted (STN), Manchester (MAN), Dublin (DUB), Auckland (AKL), and Dubai (DXB). This extensive experience positions the company to address Sydney Airport’s slot utilization challenges.
Garwood’s company operates with a unique ownership structure, being part-owned by British Airways (BA), EasyJet (U2), Jet2 (LS), Virgin Atlantic (VS), and charter operator TUI Airways (BY).
“80:20 Rule” & Allegations of Slot Misuse
Under globally accepted slot management principles, airlines can cancel 20 percent of their flights in a particular season while retaining access to their slots, commonly known as the “80:20 rule” or “use it or lose it” provision.
Smaller airlines and travel industry representatives have accused major carriers Qantas (QF) and Virgin (VA) of manipulating this system by rotating cancellations across different slots to avoid losing them.
These allegations prompted the Australian government to establish a formal auditing system for flight cancellation reasons. Garwood acknowledged that while airlines need flexibility, the current system “can turn into something a bit more than just flexibility,” allowing the rule “to become compromised.”
The Australian Travel Industry Association commissioned former Qantas chief economist Tony Webber to analyze slot misuse patterns. Their latest findings reveal cancellation rates remain higher than pre-pandemic averages across all airlines.
Neil Garwood, CEO, ACL; Photo- AFRRole of ACL
Neil Garwood, CEO of ACL, has already signalled that major Australian carriers will face increased scrutiny regarding their slot usage. “Qantas (QF) and Virgin (VA) were not using their allocated capacity anywhere near the levels at overseas airports such as Heathrow (LHR),” Garwood told AFR Weekend, indicating that airlines will be pressed to use more of their allocated slots or risk losing them.
ACL plans to publish slot information from its database to ensure maximum capacity utilization at Australia’s largest commercial airport. Sydney Airport served over 41 million passengers in 2024.
“We are committed to delivering effective and transparent slot management… Drawing on our extensive experience managing slots at nearly 80 airports worldwide, we’re committed to boosting efficiency with advanced automation and a faster, more responsive service.”
-Neil Garwood, CEO, ACL
Sydney Airport CEO Scott Charlton expressed support for the appointment, stating: “The appointment of the Airport Coordination Limited group marks another step toward a more competitive, transparent, and efficient slot framework at Sydney Airport (SYD). ACL brings extensive global experience which will benefit passengers, our airline partners, and future entrants.”
Qantas & Virgin Australia; Photo- Aero Icarus from Zürich, Switzerland; Wikimedia CommonsQantas and Virgin Australia Risk Losing Slots
Industry experts note that slot management has been a contentious issue at Sydney Airport (SYD), which operates under a movement cap of 80 flights per hour. It faces significant capacity constraints during peak periods. The introduction of a new, independent coordinator is expected to create opportunities for new entrants and potentially challenge incumbent carriers’ historical slot holdings.
Garwood and ACL Commercial Manager Denise Chapman will exhibit at Routes Asia in Perth (PER) from March 25-27. Both of them will plan to discuss further growth opportunities that could lead to more regional jobs in the aviation coordination sector.
Aviation analysts suggest that more rigorous enforcement of “use it or lose it” provisions could benefit low-cost carriers and international airlines seeking to expand services to Sydney, potentially increasing competition on domestic and international routes currently dominated by established carriers.
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Sydney Airport Make New Changes to Slots System After 27 Years
The post Qantas and Virgin Australia Risk Losing Slots at Sydney Airport appeared first on Aviation A2Z.
