The Australian Federal Government’s reforms for Sydney Airport’s demand management scheme will boost efficiency and competition at Australia’s major international gateway and improve the experience for the more than 40 million passengers who use the Airport annually.
The reforms followed an expert report and industry consultation overseen by former Productivity Commission Chair Mr Peter Harris AO, and represent the first enhancements in 27 years to the rules that govern how Sydney Airport operates.
The changes will provide increased transparency around how landing slots are allocated and used by airlines, including reasons for cancellations and delays.
New, independent audits of slot usage will form an important part of a modernised compliance regime, aligned to international standards.
Passengers will benefit from the implementation of a ‘recovery period’ following weather disruptions and continued connectivity for regional communities.
The recovery period will temporarily allow up to 85 movements an hour for two hours (an increase from the usual 80) following weather disruptions to permit delayed services to depart on the same day, meaning fewer overnight stays and less cancellations.
“I would like to thank Minister Catherine King and the Federal Government for staying the course on the Harris Review and bringing forward these really practical and sensible improvements to the rules that govern how Sydney Airport operates. These changes will promote competition and efficiency by ensuring landing slots are used as they are intended," said Scott Charlton, Sydney Airport’s CEO.
“Importantly, the more than 40 million passengers that come through Sydney Airport annually also stand to benefit from these reforms. Sydney Airport is the biggest hub in Australia’s aviation network, so when we get disrupted, the whole system is severely impacted. Every year, we have examples of where a two-hour weather disruption leads to dozens if not hundreds of domestic cancellations, and the impacts are still being felt days later."
Charlton said an example of this was on the first Friday of the July school holidays last year, we had 150 weather-related cancellations, with a further 40 on each of Saturday, Sunday and Monday. Most of the cancellations across the weekend and into Monday were a consequence of Friday’s disruption, as the flight cap worked against airlines recovering their schedules.
“On Monday this week we had storm activity for around 45 minutes which led to 50 domestic services being cancelled. In the future, with a recovery mechanism, hopefully, it won’t be necessary for the airlines to cancel these flights, which is a great outcome for passengers and a great outcome for the efficiency and resilience of Sydney Airport overall."
Chalmers said the airport had also recognised the importance of regional communities’ access to Sydney Airport, which will be preserved through these changes. The airport is eager to work with the Government to implement these reforms and realise the benefits as quickly as possible.
