The Albanese Government is building a more competitive aviation industry, with legislation passing the House of Representatives to reform Sydney Airport’s slot management system.
The legislation strengthens the compliance and enforcement regime to better crack down on slot misuse, with much stricter civil penalties.
It also helps level the playing field for new airline entrants by reducing advantages currently held by incumbents.
The legislation was drafted from the key competition recommendations laid out in the Harris Review, which the Coalition Government failed to act upon after receiving it in 2021.
We urge the Senate to now pass these reforms which will boost competition and improve the experience of Australian travellers.
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 allowing the Minister 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.
Importantly, community protections are maintained, with no changes to the existing curfew arrangements or the overall daily movement cap at Sydney Airport.
Representing the most significant changes to the Demand Management System in 25 years, the legislation modernises the framework and brings it in line with international standards.
It will not only improve efficiency, resilience and competition at Sydney Airport, but Australia’s broader domestic network.
The changes follow the first stage of reforms already underway, including an independent audit of slots, the results of which are set to be announced by the end of the year.
These reforms are yet another demonstration of the Albanese Government’s commitment to delivering better outcomes for the travelling public
In 2025, the government will release new demand management regulations and a new slot management scheme.
