The Australian government will introduce new legislation to boost competitiveness at Sydney airport, including freeing up more take-off and landing slots and easing barriers for new operators.
The new rules are part of “overarching reforms” to Sydney’s slots system, which has come under scrutiny in recent months following the collapse of two smaller operators.
Transport minister Catherine King says Canberra will also release a tender on 5 August for slot managers at Sydney airport. King adds that prospective firms must demonstrate “how they manage and mitigate conflicts of interest in a transparent way”.
“Once appointed, they will need to comply with a statement of expectations including governance and transparency requirements,” the statement adds.
The announcement comes a week after Australian operator Regional Express (Rex) entered voluntary administration – the second carrier to suspend operations this year – and axed its mainline domestic operations.
The airline began mainline domestic operations between Australia’s major cities – including Sydney – in 2021, but had found it difficult to access slots at Sydney, which limited its competitive prospects.
Similarly, now-shuttered low-cost operator Bonza had said it was unable to gain slots to operate to Sydney. The short-lived carrier collapsed in May after it was unable to secure sufficient funding to pay off debts.
Critics have noted the current slots manager for Sydney airport is owned by Qantas and Virgin Australia – the country’s two largest operators – allowing them to have control over slots and keep out new entrants.
The Australian government in February first raised the prospect of slot reform at the country’s busiest international gateway. Other aspects of the reforms that will be passed into legislation include updating penalties for anti-competitive behaviour, as well as closer scrutiny on how airlines utilise their slots.
