The Federal Government has passed legislation to reform Sydney Airport’s slot system, paving the way for a more competitive aviation sector.
The legislation passed on 28 November 2024 and marks the most significant reforms to slot management at Sydney Airport in 25 years.
An independent slot audit released by the Federal Government identified significant issues with the slot system at Sydney Airport and the ways in which the existing rules benefit incumbent airlines.
The reforms directly address these issues, allowing better access for new entrants and cracking down on airline misbehaviour.
The strengthened penalty regime increases the civil penalty provisions for slot misuse to six, up from two in the current legislation. Alongside the current consequences for ‘no-slot’ and ‘off-slot’ movements, behaviours that can incur penalties include:
- Failure to use an allocated slot
- Flight operations not in accordance with slot requirements
- Applying for slots with no reasonable prospects of use
- Failure to return or transfer unused slots
The slot misuse offences will be enforceable through the courts, which could issue civil penalties of up to $99,000 per offence.
Supporting the penalty regime are powers to compel the production and publication of information about slot allocation and usage from airlines. Failure to provide this information may also attract a civil penalty, under these reforms.
The legislation also introduces a recovery period to help get flights back on track after major disruptions so travellers reach their destinations on time.
The government will release new demand management regulations and a new slot management scheme next year which will further level the playing field for new entrants.
Sydney Airport response
Sydney Airport has commended the Federal Government for seeing through the process and thanked the Coalition and crossbench for their engagement with the legislation.
Sydney Airport CEO Scott Charlton said “This is a great outcome for passengers. The passage of this bill will help minimise cancellations and delays and make air travel to and from Sydney more reliable.
“Implementation is now the priority, and making sure the new regulations are developed and implemented as early as possible in the new year. The sooner we can get these changes put into practice, the sooner thousands of passengers can start to benefit from a more reliable and resilient aviation network.”
AAA response
The Australian Airports Association (AAA) has released a statement applauding the Federal Government for getting the reforms through parliament. The AAA also acknowledged the work of the Coalition in passing the legislation.
AAA CEO Simon Westaway said “Sydney Airport operates as the linchpin in Australia’s aviation network and this legislation will create a more efficient and transparent system to ultimately benefit passengers.
“These are the first meaningful reforms in 27 years to the rules that determine how Sydney Airport is run, so this is groundbreaking reform that’s been a long time coming.
“This legislation levels the playing field for airlines and allows better management of recovery from severe weather or unexpected outages.
“For many regional communities, access to Sydney Airport’s slots is a lifeline for connection to family, health, legal and government services, and critically to economic participation.
“We hope the Federal Government can now work quickly and transparently to implement new regulations, allowing Sydney Airport to be operating at its optimal best by April next year in time for the European summer travel season.
“Aviation is central to Australia’s economy and connects people and goods across the country and the world, so it’s in everyone’s interest to keep the airports network as dynamic and competitive as possible.”
