Australia Introduces New Rules to Increase Competition at Sydney Airport

The Australian government is set to introduce new rules to increase competition at Sydney Airport by freeing up more takeoff and landing slots. The move aims to make it easier for new airlines to enter the market. This decision comes after small airline Regional Express Holdings cut hundreds of jobs and entered voluntary administration.

The Australian government announced on Monday plans to implement rules to free up more takeoff and landing slots at Sydney Airport, aiming to boost competition at the country's busiest airport. The initiative seeks to facilitate entry for new airlines and strengthen market diversity.

This decision follows the voluntary administration and job cuts by Regional Express Holdings, the second small airline to face such a situation this year, highlighting consolidation trends in the aviation sector.

Transport Minister Catherine King stated that the tender process for a new Sydney Airport Slot Manager will commence on Monday. Prospective firms must demonstrate their capability to manage conflicts of interest transparently. A new statement of expectations including governance and transparency requirements will be mandated once appointed.

The push for reform is fueled by Australia's competition regulator, which has pressed the government to overhaul flight slot allocations, particularly on busy domestic routes dominated by Qantas and Virgin Australia. Qantas and Virgin, which control approximately 90% of the market, have denied claims that they block new entrants.

With Sydney Airport witnessing around 39 million passengers in 2023, these reforms, initially proposed in February, are expected to be introduced to Parliament soon.

(With inputs from agencies.)