The Government’s Aviation White Paper lands
The 56 new initiatives in the Aviation White Paper provide a broad roadmap to the Government’s vision for the future of aviation and the initiatives it will pursue to drive growth and innovation in the sector up to 2050. It provides us with an indication of the direction of travel for regulatory change to benefit consumers, address agreements between airlines and airports and cover a range of airport and off-airport initiatives to ensure a safe, competitive, productive and sustainable sector going forward, although many details are still to be settled.
The Federal Government has released the long-awaited Aviation White Paper to set out its vision for aviation towards 2050. It sets out a wide range of initiatives to ensure a safe, competitive, productive and sustainable sector.
The implementation of these 56 initiatives will be publicly tracked, with annual status updates published. In 2029, the Government will conduct a formal evaluation of the Aviation White Paper.
The policy initiatives fall into the following 10 key areas.
A better passenger experience
There is a clear emphasis on improving the aviation customer experience and protecting the rights of the travelling public. One of the key initiatives in the Aviation White Paper is to legislate for an Aviation Industry Ombuds Scheme which will have the power to direct airlines and airports to provide remedies to consumers and investigate customer complaints, including the power to impose penalties. There will also be a "show cause” requirement where airlines will be required to report the reasons for delays.
The intention is to establish the Aviation Industry Ombuds Scheme through legislation in 2026. In the meantime, an interim ombudsperson will be appointed and will have a limited set of powers and functions during 2024-25.
The Aviation Industry Ombuds Scheme will establish a new Aviation Customer Rights Charter, outlining minimum customer service levels and providing customers with greater certainty. The development of this charter will be consulted on by the interim ombudsperson in 2024-25.
There will be improved access to aviation services for people with a disability.
A competitive and efficient aviation sector
- Aeronautical Pricing Principles (APPs): While the Government does not consider that mandating the APPs is necessary at this time, there are new proposed additional principles that the Government will consult on:
- that pricing agreements between airports and airlines should not contain anti-competitive clauses, including clauses that limit airports' ability to offer more favourable terms to another airline; and
- that airports should provide such information and data to airlines as necessary to ensure transparent pricing negotiations (including detailed disaggregated data about airport revenues, costs and assets, and methodology for how costs and revenues are allocated to different line items).
In its submission to the Aviation White Paper Terms of Reference dated March 2023, the ACCC was advocating for the APPs to be strengthened on the basis that the APPs may not be assisting airlines in negotiation as intended (because the APPs are unenforceable and there is no independent oversight of application). However, the APPs will remain a voluntary high-level framework for the time being.
- Productivity Commission: The next Productivity Commission inquiry into the Economic Regulation of Airports will be tasked with investigating whether airports are misusing their market power and if the current framework allows large airlines to unduly delay beneficial airport expansions. The Productivity Commission will also look at whether a negotiate-arbitrate regime should be adopted for aeronautical pricing agreements. The inquiry will be conducted after the implementation and analysis of the effects of the White Paper policies. That is, this inquiry could be some time away.
- Enhanced ACCC monitoring: The Australian Government will consult on implementing an enhanced version of the ACCC's monitoring of pricing and service quality at major Australian airports: Sydney, Melbourne, Brisbane and Perth. This will include an Impact Analysis to consider whether to require the collection of more detailed data and whether a revised set of quality-of-service indicators is warranted.
- Reforms to slot management at Sydney Airport to improve efficient in the allocation and use of take-off and landing slots and reduce incentives for anti-competitive misuse.
A skilled, secure and productive aviation workforce
Introduce training, licensing and gender equity initiatives to address worker shortages and diversity and representation issues.
Maximising aviation’s contribution to net zero
Establish a domestic low carbon liquid fuels market and supporting emerging and low and zero emission aviation technologies.
Connecting regional Australia
Improve connectivity for regional and remote communities, acknowledging the critical role of aviation in supporting essential services such as healthcare, education and freight.
Regenerating General Aviation
Reduce the regulatory burden on GA operators and support the development and implementation of new technologies in the GA sector.
A balanced approach to airport planning and noise
- The new Aviation Industry Ombuds Scheme will include a new Airport Noise Ombuds Scheme which will conduct independent investigations into noise complaints, publish reports, make recommendations to Government and engage in community consultation processes.
- Amend the Airports Regulations 2024 to require airport master plans and major development plans to include information on how the airport's planning will address: climate resilience, decarbonisation, disability access and requirements of the National Airports Safeguarding Framework (mentioned further below). The Minister will also have regard to additional factors when making decision about airport master plans and MDPs, including plans for noise mitigation for new or changed runways.
- Review the Airports Act 1996 by 2030 to support any decision on airport lease renewals. The Australian Government will conduct a comprehensive review of the legislative and regulatory arrangements for the ownership, planning, development and environmental management of the 22 Leased Federal Airports.
- Strengthen the National Airports Safeguarding Framework (NASF) by including provisions relating to consideration of the NASF in the Airports Act 1996 and updating NASF Guideline A to describe best-practice approaches for including aircraft noise exposure notifications on property titles for new developments or subdivision of lands by 2027.
- Continue to implement a national response to PFAS contamination. Per and poly-fluoroalkyl substances (PFAS) chemicals are well known to have been used across civilian airports leading to legacy contamination concerns. Whilst the White Paper has referred to its voluntary PFAS Airports Investigation Program in 2021-22 (with an expected completion date of 30 June 2027) and existing responses to PFAS, no new initiatives have been proposed in the White Paper.
World-leading safety, security and airspace regulation
Maintain Australia's world-leading standards of safety, security and airspace regulation through updates to national safety programs and plans and reforming the administration and management of Australia's airspace.
Enabling new aviation technologies
Introduce an Advanced Air Mobility strategy in 2024 and other drone related initiatives to encourage innovation and prevent drone misuse.
Connecting Australia to the world
Pursue initiatives to promote a competitive and efficient international aviation sector, including adding capacity ahead of demand in bilateral air service agreements and negotiating "open skies" style agreements.
Key takeaways
Beyond the specific initiatives set out in the Aviation White Paper, we now have a broad understanding of the direction for upcoming regulatory changes, although the details are still to be settled. This includes a wholesale review of the Airports Act 1996, which will be undertaken by 2030 in advance of any of the Federally Leased Airports exercising their options to extend their lease. Not only does this indicate that the Commonwealth is starting to take a long-term view of the regulatory landscape but will likely also inform their approach to the sunsetting of key airport regulations in 2025.
We now have clarity that the Government does not consider that mandating the APPs is necessary at this time, although there are new proposed additional principles that will be consulted on. We know consultation will occur on a potentially enhanced role for the ACCC in monitoring Phase 1 Airports, and that the next Productivity Commission Inquiry will advise on whether stronger regulation is needed.
Further the White Paper has sought to move more responsibility for hot button issues, like noise, away from key industry participants to the newly created Ombuds or to off-Airport regulation through the revamping of the National Airport Safeguarding Framework and its adoption by the States and Territories. This is a clear pivot in the regulatory stance taken towards Airports and may have more interesting general implications for the regulation of airport activities going forward.
Consultation is now open on the Aviation Industry Ombuds Scheme, including on the design of the scheme, complaint handling, show cause arrangements and scheme compliance. Interested parties should respond by 17 October 2024.