The federal government will have the ability to impose civil penalties on carriers that hoard coveted slots at Sydney Airport, as part of legislation introduced to parliament on Wednesday.
Commercial flights require a slot to land at Sydney Airport, with 80 available each hour of its 6am-11pm operation.
Australia's dominant airline duopoly of Qantas and Virgin have been accused of intentionally taking up slots for flights they never intend on running to prevent competitors from gaining market share.
Virgin and Qantas deny hogging slots for flights they never intend on running to stymie competition. (Darren England/AAP PHOTOS)
Virgin and Qantas Group, which also owns budget carrier Jetstar, have consistently denied they partake in the practice.
If passed, the bill would enable the government impose civil penalties on airlines that fail to use a slot, apply for slots with no reasonable prospects of using them, and fail to return or transfer unused slots.
Transport Minister Catherine King said the changes would make the slots system more efficient and competitive and improve travel outcomes for passengers.
The system will also be made more transparent, with the government gaining the power to compel airlines to produce information on slot usage.
High concentration of market power in the aviation sector - with Qantas Group and Virgin together accounting for more than 95 per cent of domestic seats - has been blamed for higher airfares.
Competition has declined further this year since the collapse of Bonza and the withdrawal of regional airline Rex from metropolitan routes.
The collapse of Bonza and the withdrawal of Rex has given consumers less choice. (Alan Porritt/AAP PHOTOS)
As part of the changes, the government will be able to increase access for new entrants and NSW regional airlines, potentially paving the way for increased competition.
No changes will be made to the curfew system or the overall daily movement cap.
But a recovery period will be introduced for major disruptions such as extreme weather, adding further flexibility and hopefully reducing cancellations.
Following disruptions, the airport will temporarily be allowed an extra five movements per hour so that airlines can catch up with their schedule.
The legislation builds on measures already announced by the government, including a new manager to oversee slot allocation at Sydney Airport and an independent audit of slot usage, to be released in November.
"These reforms are all about delivering better outcomes for the travelling public, by supporting an efficient, resilient and competitive Sydney Airport, and we look forward to the opposition's support for the legislation," Ms King said.
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