The Federal Government has taken the next step to increase competition at Sydney Airport, introducing new legislation to reform the allocation of slots.
The changes introduced through this legislation were recommended by the Harris Review and will:
- Improve efficiency and competition by delivering new civil penalty provisions for failing to use a slot, applying for slots with no reasonable prospects of using them, and failing to return or transfer unused slots
- Replace the current compliance and enforcement regime with one that is based on modern, international standards
- Reform the Compliance Committee to ensure it can provide independent advice to the government to effectively inform compliance action
- Deliver new transparency powers to support the strengthened compliance and enforcement regime, including giving the government power to compel airlines to produce information on slot usage
- Allow the government to make changes to get increased access for new entrants and more access for New South Wales regional airlines
Community protections will be maintained, with no changes to the existing curfew arrangements or the overall daily movement cap at Sydney Airport.
This follows reform work already underway, including an independent audit of slot usage and an open, competitive tender to select the slot manager.
These reforms will increase Sydney Airport’s resilience by introducing a recovery period, which will be used following major disruptions such as severe weather events.
This will temporarily permit an extra five movements per hour for a maximum of two hours following the disruption.
Only flights already scheduled to operate on that day will be able to take off or land, and the recovery period will not extend into the curfew hours, meaning this will not increase the number of movements at Sydney Airport across the whole day.
Federal Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said the reforms mean the aviation network can recover and return to schedule faster, so travellers can reach their destinations on time.
“These reforms are all about delivering better outcomes for the travelling public, by supporting an efficient, resilient and competitive Sydney Airport, and we look forward to the opposition’s support for the legislation,” Minster King said.
“From better monitoring airline performance and pricing to improving outcomes for travellers with disabilities and creating the first Aviation Industry Ombuds Scheme – the Albanese Government is undertaking the most significant aviation reform agenda in a decade, delivering reforms that were left in the too hard basket by the previous government.
“Along with the opening of Western Sydney International Airport in 2026, this reform package will enable a more competitive, transparent and productive aviation network for years to come.”
Australian Airports Association response
The Australian Airports Association (AAA) has welcomed the decision by the Federal Government.
AAA’s Head of Policy and Advocacy, Natalie Heazlewood, said, “The current slots system has provided an unfair advantage for the airline duopoly at Sydney Airport, so these reforms are going to help level the playing field.
“The AAA commends the government for introducing the first reforms in 27 years to the rules that determine how Sydney Airport is run.
“We hope to see them move as quickly as possible through Parliament so reforms can be enacted. Every day these changes are delayed is another day of constrained operations at Australia’s biggest airport, a key link for the domestic aviation network.
“We urge the government and opposition to work together on this much-needed legislation to ensure Australian passengers aren’t disadvantaged unnecessarily.”
