The reforms will allow better access for new airlines looking to fly in and out of Sydney and will create the conditions to drive more competition and improve the traveller experience.
These are the most significant reforms to slot management at Sydney Airport in 25 years, setting the scene for a more competitive and more resilient aviation sector.
Effective management of slots is particularly important at Sydney Airport, where capacity is limited to 80 aircraft movements an hour and a curfew is in place from 11pm to 6am.
A slot is a permission for an aircraft to either enter or leave an airport gate at a particular day and time. Slots guarantee arrival and departure times for domestic and international airlines and manage aircraft movements on airport runways and terminals, particular at peak times.
The recently-released independent audit of slot management at Sydney Airport found evidence of airlines utilising the current slot system to maintain their existing slots and optimise schedules. The new legislation will improve the efficiency and transparency of slot allocation, introducing stronger compliance measures and stricter penalties to encourage efficient and fair management of slots.
The strengthened penalty regime increases the civil penalty provisions for slot misuse to six, up from two in the current legislation. Alongside the current penalties for ‘no-slot’ and ‘off-slot’ movements, four new civil penalties include:
- Failure to use an allocated slot
- Flight operations not in accordance with slot requirements
- Applying for slots with no reasonable prospects of use
- Failure to return or transfer unused slots
The slot misuse offences will be enforceable through the courts, which could issue civil penalties of up to $99,000 per offence.
There will also be new powers to increase transparency by compelling the production and publication of information about slot allocation and usage from airlines. Failure to provide this information may also attract civil penalties.
The legislation also introduces a recovery period to help get flights back on track after major disruptions so more travellers reach their destinations. The recovery period increases the maximum limit of aircraft movements from 80 to 85 per hour for a maximum of two hours, but does not change the overall movement cap of 1360 a day or the existing curfew arrangements.
The Government will release its new demand management regulations and slot management scheme In 2025.