Changes to Sydney Airport slot management system passed by Parliament
The Sydney Airport Demand Management Act 1997 (Cth) (‘the Act’) was passed nearly 30 years ago and regulates the allocation and use of slots for aircraft to take off and land at Sydney airport.
The Sydney Airport Demand Management Amendment Bill 2024 (‘the Bill’) was passed by both Houses of Parliament on the 28th of November. This has the effect of amending the Act and introducing significant changes to the existing slow management regime under the Act. These changes are outlined below.
Civil Penalties for ‘Slot Misuse’
The Bill introduces a number of new civil penalty provisions which are designed to prevent slot practices that are considered inefficient or otherwise deemed to be barriers to competition. Upon the commencement of the Bill, it will be unlawful for air operators to:
· fail to use an allocated slot unless the Slot Manager has agreed in writing to the operator not using the gate movement, or the gate movement is covered by a declared exemption;
· engage in a no-slot movement unless the circumstances causing the gate movement were outside the operator’s reasonable control;
· engage in a gate movement which is an off-slot movement unless the circumstances causing the gate movement were outside the operator’s reasonable control or the gate movement is covered by a declared exemption;
· engage in a gate movement which does not comply with one or more requirements of the slot;
· apply for slots with no reasonable prospect of using the slots; and
· fail to return or transfer unused slots.
Breaching the new civil penalty provisions will incur civil penalties of up to $99,000 (in the case of corporations) for each contravention. The Minister, Secretary and an SES employee in the Department will all be given power to enforce the civil penalty provisions. Jurisdiction will be conferred on the Federal Court, the Federal Circuit and Family Court, and State and Territory courts with jurisdiction in relation to matters arising under the Act.
Recovery Period
In periods of disruption and severe weather (periods defined by the Act as ‘recovery periods’), the current legislative scheme comprising the Act, the Sydney Airport Demand Management Regulations 1998, the Sydney Airport Compliance Scheme 2012 and the Sydney Airport Slot management Scheme 2013 – together, the SADM Framework – permits up to 80 aircraft movements per hour. The Bill, if passed, will increase this number to 85 aircraft movements per hour for a maximum of two hours. Only flights scheduled to operate on the day of the recovery period will be able to take off and land.
The recovery period does not extend into curfew hours and the Bill will not change existing curfew arrangements or the daily movement cap at Sydney Airport.
Transparency
Upon commencement of the Bill, the Act will be amended to create new requirements for the provision and publication of information.
The Minister will be given new powers to require (by written notice) airlines to provide information on how they use slots and reasons for cancellations or major delays. Airlines will be subject civil penalties if they do not comply with notices of this kind.
The Bill also provides that regulations may be passed which can create obligations relating to the keeping of records in relation to the allocation and use of slots, and general compliance with the Act.
The Slot Manager will be required to regularly publish information relating to how slots are issued to airlines, how airlines use or misuse them, and to provide explanations for cancellations and delays. The extent and frequency of these publications will be specified in the regulations.
Airservices Australia will also be required to monitor, and may be required to publish, information about compliance with the maximum movement limit.
Compliance Committee
The Compliance Committee currently oversees slot use and allocation, gate movements, and general compliance with the Act.
Upon the commencement of the Bill, representatives of airline operators will no longer be able to be appointed to the Committee; the Chair of the Committee will be required to be independent from other members of the Committee, airport operators, airlines, Airservices Australia, and the Slot Manager.
Timetable for Commencement of the Bill
The Bill is yet to receive Royal Assent. Following the receipt of Royal Assent, the changes to the Act detailed in the Bill will commence on a date to be fixed by proclamation, or 12 months after the receipt of Royal Assent, whichever occurs first. Norton White will keep clients updated of developments regarding the commencement of these changes.
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