The Federal Government continues its focus on fairer skies, launching a tender for the Sydney Airport Slot Manager role as part of reforms to the hub’s slot system management that allocates a daily number of time windows for aircraft to take off and land.
The Sydney Airport slot system came under scrutiny last year for anti-competitive behaviour that made it difficult for smaller and entrant airlines, such as Rex and Bonza, to set up services.
In the aftermath of Bonza’s liquidation and Rex entering administration, slot misuse and anti-competitive behaviour are in sharp focus as reforms seek to optimise the 80 aircraft movements per hour cap at Australia’s busiest airport.
Prospective slot managers will need to demonstrate how they will deliver on the reforms announced in February 2024, following recommendations from the Harris Review and the Australian Competition & Consumer Commission (ACCC).
In addition, the competitive process will require applicants to demonstrate how they manage and mitigate conflicts of interest transparently.
Upcoming legislation will include changing the allocation process to free up more slots and changing the definition of ‘new entrant’ to make it easier for new airlines to obtain slots.
Sydney Airport slot system reforms
Aviation reforms already underway include an independent audit of slot usage and the re-establishment of the Compliance Committee for Sydney Airport to manage compliance with the slot system.
Other reforms to the Sydney Airport slot system demand management framework include modernising the compliance regime with penalties that address anti‑competitive behaviours, updated and strengthened enforcement tools and requiring airlines to provide regular information on how they use slots, such as reasons for cancellations or major delays, which will be regularly published.
Travel industry reacts
The Australian Travel Industry Association (ATIA) has welcomed the government’s announcement on reforms to Sydney Airport slot management, saying the move would be a positive step towards enhancing aviation competition.
“The reforms announced today by the Federal Government are a common-sense approach to improve competition in our aviation sector,” ATIA CEO Dean Long said.
“By opening up the process to appoint a new Slot Manager through a competitive tender, we are moving towards a more transparent and fair system that will benefit all airlines and, ultimately, consumers.”
But Long added that there are “still several reforms previously announced but yet to be implemented”.
“These include changing the allocation process to free up more slots and revising the definition of ‘new entrant’ to make it easier for new airlines to obtain slots,” he remarked.
“We urge the Government to act on these reforms as soon as possible and call on parliament to support the necessary legislation.”
“ATIA will continue to call for action on the 80-20 rule to deliver better outcomes for travelling Australians and the many travel businesses who support them.
“It is essential to modernise this benchmark to reflect current market conditions and support the growth of a competitive domestic aviation sector.”
