Albanese Government strengthens aviation competition at Sydney Airport

The Albanese Government will strengthen competitive settings through an open approach to market for the Sydney Airport Slot Manager, as part of overarching reforms to the slot system at Sydney Airport. 

The competitive tender to be released today (Monday 5 August) will require prospective slot managers to demonstrate how they will deliver on the Government reforms announced earlier this year, following recommendations from the Harris Review and the ACCC. 

The competitive process will also require prospective tenderers to 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.

This is part of a suite of reforms to the Sydney Airport slot system which were announced in February. 

The Government has already implemented a number of these commitments including an independent audit of slot usage, with results to be released once completed; and has re-established the Compliance Committee for Sydney Airport that manages compliance with the slot regime. 

The reforms will be finalised with forthcoming legislation which will include changing the allocation process to free up more slots and changing the definition of ‘new entrant’ to make it easier for new airlines to obtain slots.

Other reforms include modernising the compliance regime with penalties that address anti‑competitive behaviours, updated and strengthened enforcement tools for the Government to watch airlines more closely and take effective legal action where necessary, and requiring airlines to provide regular information on how they use slots, such as reasons for cancellations or major delays, which will be regularly published.

Quotes attributable to the Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King: 

Our reforms to the slot system at Sydney Airport are an important part of improving competition and significantly increase transparency.

We are getting on with the job of delivering the reforms that were announced in February.

The recommendations for change were handed to the previous Government in February 2021.

On coming to office, it was clear that the previous government had shown little interest in issuing a serious response to the findings.

In contrast, the Albanese Government started the White Paper process and undertook consultation, including targeted consultation, on responding to the Harris Review. 

We are serious about making long term reforms to aviation in Australia that are much needed after a decade of neglect.