The Australian government has introduced legislation for slot reform at Sydney airport, with changes to include civil penalties for airlines found to be hoarding slots.
The legislation – introduced in parliament on 9 October – comes about 27 years since slot allocation at the country’s busiest airport was last tweaked.
Key changes include new civil penalty provisions for “failing to use a slot, applying for slots with no reasonable prospects of using them, and failing to return or transfer unused slots”. It also calls for the government to “make changes” to allow access for new entrants and regional operators.
Transport minister Catherine King says the reforms will result in an “efficient, resilient and competitive” Sydney airport.
Other areas of reform will include how major disruptions are handled – including during weather events.
A so-called “recovery period” will temporarily permit an extra five movements per hour for a maximum of 2h following the disruption.
Sydney airport’s movements are capped at 80 per hour, with no additional provision for disruptions. King says the new system will not increase the number of movements across the day, but will ensure faster recovery.
The issue of slot reform at Sydney airport was thrust into the spotlight again in recent months amid turmoil in the Australian airline sector.
In late July, Regional Express entered voluntary administration 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.
The Australian government in February first raised the prospect of slot reform at the country’s busiest international gateway. King in August confirmed her ministry would be introducing legislation on Sydney airport slot reform.
