Qantas Airways Ltd.’s woes deepened after the government said it’s looking to shake up the way takeoff and landing slots are granted in Sydney in order to help smaller rivals like Rex and Bonza.

Airline access to Australia’s biggest aviation hub “has not kept pace with global developments,” a review of the aviation sector said Thursday. The government wants to modernize slot allocation at the airport and tighten regulation “to ensure that slots are not being misused by airlines,” it said.

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Qantas’ Troubles Mount With Looming Shakeup of Airport Slots