Airlines will be slapped with fines of almost $100,000 for misusing valuable flight slots at Australia's busiest airport.
Reforms passed by federal parliament on Thursday aim to increase competition in the airline sector at Sydney Airport following allegations carriers were deliberately cancelling services to maintain valuable slots at terminals.
Under the changes, the federal transport department will be responsible for the slot management scheme at Sydney Airport and will have the power to force airlines to provide information about their misuse.
Carriers will be fined $99,000 if they apply for slots with no prospect of them being used, not properly using them or not meeting slot requirements.
Carriers will be fined $99,000 if they misuse slots in a crack down on airline misbehaviour. (Dan Himbrechts/AAP PHOTOS)
Transport Minister Catherine King said the changes would help to level the playing field.
"Our reforms directly address these issues, allowing better access for new entrants and cracking down on airline misbehaviour," she said.
"We'll continue to put the interests of Australian travellers first and deliver the aviation reform that Australia needs."
Slots at Sydney Airport are limited to 80 take-offs and landings per hour.
The laws will allow for the number of flights per hour at Sydney Airport to be increased if there is bad weather.
If flight landings or take-offs were affected by weather, the cap would be lifted to 85 flights per hour for two hours.
But the number of flights in total would not increase and would still be subject to the airport curfew.
The laws come after an independent audit of slots at Sydney Airport was handed down on Wednesday.
The audit confirmed more oversight was needed to make sure flights out of Sydney Airport were being managed effectively.
Major airlines Qantas and Virgin had faced allegations of deliberately cancelling flights in order to keep their slots.
At a Senate inquiry earlier in November, Qantas executives denied the airline had acted improperly.
Sydney Airport chief executive Scott Charlton said the laws were the biggest change to the slot system in nearly three decades.
"Implementation is now the priority, and making sure the new regulations are developed and implemented as early as possible in the new year," he said.
"The sooner we can get these changes put into practice, the sooner thousands of passengers can start to benefit from a more reliable and resilient aviation network."