Major airlines are pushing back against the prospect of $20,000 fines for cancelling flights to Sydney as part of an Albanese government overhaul of managing arrival and departure slots to improve competition.

Airline executives, including Qantas representatives, as well as airport bosses, transport bureaucrats and the competition regulator will appear at a Senate inquiry hearing on Tuesday into proposed laws that would put greater scrutiny on how airlines operate at Australia’s busiest airport.