Sydney Airport Reforms to Boost Competition: Travel… | kbnmart

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The Federal Government continues its commitment to a fairer airspace by launching a tender for a slot manager at Sydney Airport. This is part of a wider overhaul of the hub’s slot management system, which allocates daily slots for aircraft to take off and land.

Addressing anti-competitive behavior

Sydney Airport’s flight schedule system came under scrutiny last year for anti-competitive behaviour that hampered smaller, newer airlines such as Rex and Bonza. Following the liquidation of Bonza and Rex’s entry into administration, these issues have taken centre stage as reforms aim to improve the 80-aircraft-per-hour limit at Australia’s busiest airport.

Prospective slot managers will have to demonstrate their ability to implement reforms announced in February 2024, based on recommendations from the Harris Review and the Australian Competition and Consumer Commission (ACCC). In addition, the competitive process will require applicants to transparently manage and mitigate conflicts of interest.

The upcoming legislation will include changes to the allocation process to allow for more opportunities and redefine “new entrant” to make it easier for new airlines to gain access to opportunities.

Promote compliance and transparency

Aviation reforms already underway include an independent audit of slot usage and the re-establishment of the Sydney Airport Compliance Committee to manage slot compliance. Other reforms to the slot demand management framework include:

• Modernize the compliance regime by imposing penalties on anti-competitive behavior.
• Update and enhance implementation tools.
• Requiring airlines to provide regular information about the use of flight slots, such as the reasons for cancellations or significant delays, which will be published regularly.

Industry Feedback

Australian Travel Industry Association ATIA has welcomed the government’s announcement of flight schedule management reforms at Sydney Airport. “The reforms announced by the Federal Government today are a sound approach to improving competition in our aviation sector,” said ATIA Chief Executive Dean Long.

“By opening up the process for appointing a new area manager through competitive bidding, we are moving towards a more transparent and fair system that will benefit all airlines and, ultimately, consumers.”

However, Long noted that many of the previously announced reforms have yet to be implemented. “These reforms include changing the allocation process to allow for more slots and reviewing the definition of ‘new entrant’ to make it easier for new airlines to access slots,” he added. “We urge the government to act on these reforms as soon as possible and call on Parliament to support the necessary legislation.”

Support competitive growth

ATIA will continue to advocate for the 80-20 rule to deliver better outcomes for Australian travellers and the many travel businesses that support them. “It is essential that this standard is updated to reflect current market conditions and support the growth of a competitive domestic aviation sector,” Long added.