Zali Steggall (Warringah, Independent) Share this | Hansard source

I rise to speak on the Sydney Airport Demand Management Amendment Bill 2024. I welcome that this is finally here, and I urge the government to do more when it comes to increasing the choice for consumers when it comes to airlines in Australia. We need to make sure we don't have locked-in monopolies or duopolies and that there is competition. This bill addresses a longstanding issue that has compromised both the integrity of our aviation sector and the trust of Australian travellers. For years airlines, airports and industry leaders have raised concerns about large airlines engaging in slot hoarding, particularly at Sydney airport. This practice involves airlines scheduling more flights than they intend to operate, only to cancel them strategically, allowing these airlines to attain valuable slots at the expense of potential competitors. Long-term cancellation data is showing that one in 10 flights between Sydney and Melbourne is routinely cancelled.

The Australian public needs an aviation industry that is reliable, transparent and above all ethical. The challenges with Sydney airport's slots management are not a new problem. Last August, the ACCC launched legal action against Qantas for failing to inform travellers of flight cancellations, alleging the behaviour was partly motivated by a desire to hold onto slots at Sydney airport. The now-defunct airline Bonza—and we know Rex has gone the same way—said that they had been shut out of Sydney airport because of slot hoarding by the duopoly of Qantas and Virgin. This shows how the misuse of airport slots can directly affect consumer experience and industry competition. The 2021 Harris review of the Sydney airport demand management scheme recommended a number of initiatives to improve the situation, but they have not been acted upon by the former government and are only being acted upon slowly by this government. When one considers our reliance on air travel in Australia, it's imperative that the government enact those recommendations with urgency to ensure more competition is available for Australian consumers and travellers.

In Warringah, my community relies heavily on tourism. Tourism plays a critical role nationally, in our broader economy, but also locally, in Warringah. Local businesses and jobs are reliant on a steady influx of domestic and international visitors. We know the COVID years were incredibly difficult for so many local businesses, and the difficulty that travellers experienced in dealing with airlines was often unacceptable. That's why so much more rigour and scrutiny needs to be applied to this sector.

A number of my constituents have written in, very concerned about the lack of competition in the airline industry in Australia. Constituents have also raised their concerns about the government's rejection, earlier this term, of the Qatar Airways application to increase flights to Australia. This was a decision that directly affected consumer choice and market fairness. It's incredibly important for the government to make sure it enacts all recommendations of the Harris review but also ensures there is greater choice.

The Sydney Airport Demand Management Amendment Bill 2024 introduces much-needed reforms to crack down on slot misuse, enhance transparency and foster a more competitive aviation industry, but more can be done. First, this bill will modernise compliance by establishing new civil penalties for slot misuse. This will provide a clear deterrent for airlines that may otherwise take advantage of the current system. The proof will be in whether or penalties are high enough for that deterrence to happen. That will be something to monitor, to make sure that airlines don't just think of this as the cost of doing business. Second, the bill strengthens transparency by mandating that airlines regularly disclose slot usage. This includes reporting how slots are allocated, how they're used and when slots are lost due to rule violations. By making this information public, this bill increases accountability and gives consumers and stakeholders insight into airline practices. Third, it enhances access for regional communities by allowing these services to apply for any available slot during any new peak-period hours. This provision is critical, as it offers regional travellers improved connectivity and addresses the often uneven accessibility that regional communities face.

Additionally, the bill introduces a new extreme weather recovery period, which allows for a temporary increase in flights following severe weather disruptions. Given the rising frequency and intensity of extreme weather events, due to climate change and warming temperatures, this measure is particularly important. We know this is going to happen more and more—it's a fact—so many of our systems, including in this area, have to adjust to those realities. This provision will ensure airlines have the processes in place to respond to weather disruptions, reducing delays and minimising the impact on passengers.

Overall, the aim of this bill is to increase competition, demand greater accountability from airlines and offer better protections for Australian travellers. I welcome that. These are much-needed reforms to the slot management system, in particular at Sydney airport. Any measure that promotes integrity and transparency in business operations is a welcome measure, but there are further recommendations that need acting upon, and I urge the government to do so as soon as possible.

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