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The Government’s Sydney Airport slot reforms have passed Parliament, the first major changes to the system in a quarter of a century.
The legislation, approved by the Senate on Thursday after passing the House last week, introduces steeper penalties for airlines that “misuse” takeoff slots, compels carriers to increase transparency about their slot use, and creates a “recovery period” after significant disruptions.
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In addition to the current penalties for “no-slot” and “off-slot” movements, airlines will be penalised for failure to use an allocated slot; flight operations not in accordance with slot requirements; applying for slots with no reasonable prospects of use; and failure to return or transfer unused slots.
Courts will be empowered to impose penalties of up to $99,000 per offence, as well as penalties for failing to produce and publish information about slot usage and allocation.
The legislation comes as an independent audit this week found major airlines are using the slots system at Sydney Airport to their advantage even as they stay within current rules.
“This is the next step in the Albanese Government’s comprehensive plan to boost competition and improve the experience of Australian travellers, including strengthening customer rights, adding more capacity through international air services agreements and ensuring fair access for travellers with disabilities,” said Federal Transport Minister Catherine King.
“Our independent slot audit, released this week, identified significant issues with the slot system at Sydney Airport and the ways in which the existing rules benefit incumbent airlines.
“Our reforms directly address these issues, allowing better access for new entrants and cracking down on airline misbehaviour.”
The Australian Airports Association has welcomed the reforms, with CEO Simon Westaway calling them “the first meaningful reforms in 27 years” to the rules around how Sydney Airport is run.
“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,” he said.
“This legislation levels the playing field for airlines and allows better management of recovery from severe weather or unexpected outages.
“For many regional communities, access to Sydney Airport’s slots is a lifeline for connection to family, health, legal and government services, and critically to economic participation.
“We hope the Federal Government can now work 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.”
The Government next year plans to introduce a new Sydney Airport slot management scheme, as well as new demand management regulations.
