Authorities allege Simon John Dunham, 50, committed his crime on an Emirates flight from Dubai to Sydney around midnight on April 27.
Following an investigation, police charged Dunham in June with one count of indecent assault without consent.
During a brief hearing at Downing Centre Local Court in Sydney on Monday, a not guilty plea was entered on behalf of Dunham.
After receiving a complaint from a passenger, the flight crew notified Australian Federal Police officers, who were waiting for the plane to arrive in Sydney.
A statement from AFP said police officers investigated the allegations, including interviews with passengers and crew.
Dunham attended the Australian Federal Police office at Sydney Airport on June 10 and was given a notice to appear in court.
Acting Sydney Airport Commander Dom Stephenson said all passengers had the right to feel safe and free from abusive behaviour.
“When travelling through an airport and on an aircraft, people comply with Australian law and if there is evidence that someone has committed a criminal offence, the Australian Federal Police will take action,” he said.
“The Australian Police are committed to supporting airport staff and airline partners and will continue to protect law-abiding Australians while maintaining a zero tolerance policy for inappropriate behaviour.”
The case is scheduled to return to court on September 10.
