The Albanese Government has passed the first major slot management reforms at Sydney Airport in 27 years, with Australian travellers set to benefit from the significant changes.
According to Federal Transport Minister Catherine King, the move lays the foundation for a more competitive aviation sector in which passengers will gain from improved reliability, enhanced choice and increased competition.
In a statement, Minister King highlighted the need to “crack down on airline misbehaviour” and improve access for new entrants. The government believes these reforms will do that.
The move follows an independent audit that identified issues with the current slot system that often favours incumbent airlines.
What’s changed?
Key changes include a tougher penalty regime for slot misuse, with fines increasing to a maximum of $99,000 per offence.
Airlines could face penalties for failing to use allocated slots, operating outside slot requirements, applying for slots without intending to use them or failing to return or transfer unused slots.
Courts will now enforce these penalties alongside new powers requiring airlines to provide slot usage data.
Less delays
One of the most traveller-focused reforms is a new recovery mechanism to minimise flight delays and cancellations.
Sydney Airport’s current limit of 80 aircraft movements per hour leaves little room to adjust for disruptions such as bad weather.
However, these changes introduce a two-hour window allowing five extra movements per hour to help flights get back on track.
The government plans to release new demand management rules and a slot management scheme in 2025 as it looks to further level the playing field and prioritise traveller interests.
Positive reaction
Sydney Airport has welcomed the reforms, saying they will improve the overall traveller experience.
“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,” Sydney Airport CEO Scott Charlton said.
“It represents a win for common sense and proves that sensible change is possible.
“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.”
The Australian Airports Association (AAA) has also applauded the passage of the reforms, which it says will help bring Australia’s slot systems in line with international standards.
“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,” AAA CEO Simon Westaway stated.
“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.
Echoing Charlton’s remarks, Westaway said the focus should now be on working “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.”
In other Sydney Airport news, travellers passing through the T2 Domestic terminal can look forward to a faster and more seamless experience, thanks to a $200 million redevelopment set to modernise Australia’s busiest domestic terminal. Read all about that here.
