A slot is an agreement between an airport operator and an airline that allows the latter to operate take-offs and landings at specific times. Airlines schedule their slots a year ahead of time, and the International Air Transport Association rules state a carrier must use 80 per cent of its allocated rights to a time slot, or face losing it.

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Successive governments have sat on the recommendations, to the frustration of some airlines and the country’s airports, who say the domestic market is not competitive enough.

The white paper has committed to implementing the Harris review. This would include a binding direction that airlines be more transparent about flight cancellations and an expansion of what constitutes “slot misuse”, so airlines will be less able to cancel flights without consequences.

The government will also improve the level of data collected by the Bureau of Infrastructure, Transport and Research Economics every month so that airline performance can be more closely scrutinised. It will also consider limiting the ability of airlines to roll over their slot rights from year to year.

The government had already moved to suspend Rex’s “use it or lose it” conditions to protect its slots during its administration period, expected to finish in September.

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“This will protect Rex’s NSW’s regional slots at Sydney Airport until late March 2026 as the administration process continues,” King said. “The government, of course, remains absolutely committed to supporting our regional communities to ensure that they stay connected to our major capital city destinations.”

The new scheme replaces the existing airline customer advocate which was funded by the carrier businesses and had no binding powers. The new ombudsman will have the power to direct airlines and airports to provide remedies to customers through the customer rights charter.

The productivity commission has been directed to look at the economic regulation of airports to see whether they are misusing market power and if airlines are unduly delaying airport expansion. It will also look into the pricing and service quality at major airports.

Sydney Airport boss Scott Charlton welcomed the reforms while also calling for changes to the regulation of aircraft noise, which has been unchanged for 27 years.

“We believe there are genuine reform opportunities that will improve both noise outcomes for our local community and the operation of Australia’s most important infrastructure asset,” Charlton said.

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