Controversy Arises Over Consultation Process Regarding Albanese Government’s Reforms at Sydney Airport

Shadow Minister for Infrastructure Senator Bridget McKenzie criticized the Albanese government’s plan to reform Sydney Airport’s management of takeoffs and landings per hour—known as slots—without public consultation.

“It has taken the collapse of two regional airlines before the Albanese Government decided to act, and even then, Labor were dragged to the table,”

The amendment bill, introduced to revise the Sydney Airport Demand Management Act 1997, aims to address flight cancellations and delays that have adversely impacted Australia’s domestic aviation sector.

However, McKenzie argues that the government’s approach undermines public scrutiny.

“After two years of sitting on the Minister’s desk, it is insulting for the government to say this matter must be dealt with in a few weeks with limited community scrutiny,” she added.

In response, the Albanese Government maintains that these reforms are necessary to modernize the slot management system and enhance consumer choice.

A government statement on Oct. 9 stressed that current curfews and daily flight caps would remain unchanged, as they are vital for managing aircraft noise over surrounding communities.

The government also pointed to its Aviation White Paper process, published on Aug. 26, 2024, as evidence of prior consultation, and commitment to ongoing consultations.

Still, McKenzie cautioned that the limited engagement risks failing to address the root causes of the delays and cancellations.

The urgency of resolving Sydney Airport’s slot management issues is heightened by the recent collapses of Bonza and Regional Express (Rex), which have put additional pressure on the government to act decisively.

On April 30, Bonza, a low-cost airline focused on regional holiday routes, ceased operations after just 15 months in business. Three months later, Rex, which had been flying for 22 years primarily in regional areas, announced that it was entering voluntary administration.

Both Bonza and Rex failed due to financial losses, rising operational costs, and competitive pressures. Bonza struggled with low passenger demand on regional routes, while Rex faced challenges from expanding into capital city routes, compounded by pandemic-related disruptions, leading to their collapse in 2024.

The Coalition has long advocated for changes to the Sydney slots, asserting that the current system disproportionately benefits major airlines while inhibiting competition.

“The Sydney Airport take-off and landing slots, held by the major airlines, have been a major impediment to a more competitive airline system in Australia,” McKenzie emphasized.

The reforms aim to enhance efficiency, compliance, and competition at Sydney Airport, addressing what the government deems an outdated cap of 80 scheduled slots per hour.