Australia looks to overhaul slot rules at Sydney airport to boost competition

SYDNEY (Reuters) – The Australian government said on Monday it would introduce rules to free up more takeoff and landing slots at Sydney airport, and make it easier for new airlines to get slots as it looks to boost competition at the country’s busiest airport.

The move comes roughly a week after airline Regional Express Holdings cut hundreds of jobs after it entered voluntary administration, the second small airline to do so this year, further consolidating the country’s aviation market.

The tender process for Sydney Airport Slot Manager will start on Monday, requiring prospective firms to demonstrate how they would manage and mitigate conflicts of interest in a transparent way, Transport Minister Catherine King said.

“Once appointed, they must comply with a statement of expectations including governance and transparency requirements,” King said in a statement.

Australia’s competition regulator has been urging the government to reform how airlines are allocated flight slots, especially on busy domestic routes, which critics say are controlled by Qantas and Virgin, keeping out new entrants.

The company that currently administers flight slots at Sydney Airport is majority-owned by Qantas and Virgin, which reject the accusation.

Qantas and Virgin Australia together control about 90% of the country’s airline market. Budget airline Bonza collapsed in April and its fleet was later repossessed by creditors.

Sydney Airport slot reforms, first proposed by the government in February, will be finalised in legislation expected to be introduced in the Parliament soon, King said.

Sydney is Australia’s busiest airport with about 39 million passengers using it in 2023, official data showed.