SYDNEY (Reuters) – The Australian government said on Monday it would introduce rules to free up more take-off and landing slots at Sydney airport and make it easier for new airlines to get slots, as it eases competition at the busiest the country’s airport appears to be increasing.
The move comes about a week after airline Regional Express Holdings cut hundreds of jobs after entering voluntary administration, the second small airline to do so this year, further consolidating the country’s aviation market.
The tender process for the Sydney Airport Slot Manager will start on Monday, with potential companies required to demonstrate how they can manage and mitigate conflicts of interest in a transparent manner, Transport Minister Catherine King said.
“Once appointed, they must meet a statement of expectations, including governance and transparency requirements,” King said in a statement.
Australia’s Competition Authority has urged the government to reform the way airlines are allocated flight slots, especially on busy domestic routes, which critics say are controlled by Qantas and Virgin, locking out new entrants.
The company that currently manages flight slots at Sydney Airport is majority owned by Qantas and Virgin, who reject the accusation.
Qantas and Virgin Australia together control about 90% of the country’s aviation 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 finalized in legislation expected to be introduced in parliament soon, King said.
Sydney is Australia’s busiest airport, with about 39 million passengers using it in 2023, official data shows.
