Airfares could fall as competition increases under new laws targeting Australia's two biggest airlines for blocking access to the nation's busiest airport.
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 in Sydney, with 80 available each hour during 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.
The system will also be made more transparent, with the government gaining the power to compel airlines to produce information on slot use.
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, welcomed the added transparency which they said would prove claims of slot hoarding wrong.
Qantas said it was operating more than 90 per cent of its allocated slots, above the international standard of 80 per cent.
A Virgin spokesperson said the company had always been to committed to fair slot allocation and supported greater transparency on how airport charges were determined.
If passed, the bill would allow the government to 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.
As part of the changes, the government will be able to increase access for new entrants and NSW regional airlines, potentially bringing down airfares and ensuring regional connectivity, the Australian Airports Association said.
Catherine King says the changes will make the airport slot system more efficient. (Mick Tsikas/AAP PHOTOS)
"The current slots system has provided an unfair advantage for the airline duopoly at Sydney Airport, so these reforms are going to help level the playing field," the association's head of policy and advocacy Natalie Heazlewood said.
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.
Sydney Airport welcomed the provision and said it looked forward to seeing the legislation pass.
"This is an important and positive step that will deliver better results for passengers by reducing cancellations and delays," said CEO Scott Charlton.
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.