Coalition Calls for Special Inquiry into Sydney Airport Slot System

The federal opposition has called for a Senate Inquiry to properly scrutinise the government's attempt to shake-up the Sydney Airport slot management system—critical to sustaining a thriving aviation industry for the country.

Nationals leader David Littleproud welcomed the Sydney Airport's Demand Management Bill 2024 but expressed disappointment saying there was not enough time to scrutinise it.

"It's concerning that the government has sought to limit scrutiny on the bill," he told Parliament on Nov. 5.

Littleproud said the Senate Committee examining the bill only held one public hearing. Further this hearing was in Canberra, and not Sydney.

Public hearings allow sitting MPs to question experts on the pros and cons of changing the airport management system.

Scrutiny of Sydney Airport's slot management system comes amid the collapse of regional airline, Rex, which had serviced the country's remote towns for decades before a foray into the lucrative Sydney-Melbourne-Brisbane routes.

The limitation on available "slots" at Sydney Airport has been blamed for restricting Rex's access to the busy airport. Slots are scheduled timeframes where aircraft can take-off, land, and pick up passengers.

While Qantas and Virgin have been blamed for hoarding these slots and squeezing competition, Sydney Airport also has to contend with curfews, which limit the amount of air services that can go in and out of the city.

This is a major issue for the sustainability of Australia's aviation sector given the size and importance of the Sydney passenger market.

The current solution, until the completion of the Western Sydney Airport, has been to introduce more regulation over how slots are managed.

On Oct. 9, Transport Minister Catherine King introduced the Sydney slot reform bill to amend the Sydney Airport Demand Management Act 1997.

Meanwhile, Littleproud said the current system, established in the 20th century, had become less effective for modern demand.

"On behalf of the opposition, I want to state that the coalition wants to see a more affordable, reliable, and competitive aviation sector for all Australians," he said.

"We've also heard the evidence of competition experts through the Commonwealth bilateral Air Services Agreement Senate inquiry last year," he said.

In Parliament, Minister King said the government looked forward to the opposition's support.

She said this would be the most significant aviation reform in a decade.