Sydney Airport Outlines New Vision

Posted 06/12/2011

Australia’s busiest international air gateway Sydney Airport has announced this week that it will open consultations with its stakeholders to develop a revised customer offering based on two airline alliance-based precincts that will integrate international, domestic and regional services under the one roof.  The airport currently operates with separate domestic and international terminals but believes that by developing these as complimentary facilities for its major domestic airlines and their international partners, would increase efficiency, improve the customer experience and provide increased capacity for growth.

“This initiative has the potential to transform aviation in NSW.  First, it would improve Sydney Airport’s attractiveness as a global hub and deliver a better passenger experience every day. Second, as Sydney Airport invests in its future it would bring with it growth in tourism and business travel which would lead to job creation and contribute to NSW’s economic prosperity,” said Kerrie Mather, Chief Executive Officer, Sydney Airport. 

The concept requires detailed design and analysis, negotiations with commercial parties and the necessary approval of the 2014 Master Plan and could be completed as early as 2019.  Under the proposal it is envisaged the current domestic terminals, T2 and T3, will accommodate the Qantas Group, including Jetstar and international partners.  The current international terminal precinct, T1, would accommodate Virgin Australia and its international partners, while Sydney Airport’s other international airline partners would operate from T1 as is the case today.

“Under the proposal, the passenger experience is improved through faster connect times and more efficient airline and airport operations.  From an airport operations perspective this would reduce aircraft turnaround times, largely eliminate towed main runway crossings and produce a better environmental outcome through reduced aircraft emissions,” said Kerrie Mather.

Sydney Airport will now commence broader external stakeholder consultation regarding this proposal, engaging proactively with all airline partners, airport related businesses, border agencies, regulatory authorities, local, state and federal governments and the community, before making any decisions to formally proceed.  It has already signed non-binding Memoranda of Understanding (MoUs) with its major domestic airline customers, the Qantas Group and Virgin Australia to progress the proposal.

The proposal has already been welcomed by the senior management of the airport’s two largest users, each echoing the airport’s sentiments that the vision responded to the challenges and opportunities facing Sydney Airport, with a focus on bringing airline alliances together.

"The proposed new terminal precinct would have significant benefits for all passengers travelling with both Qantas and Jetstar,” said Alan Joyce, Chief Executive Officer, Qantas. “As passenger numbers grow over the next decade, it is vital that airlines and airports work closely together to deliver a seamless travel experience.

“We believe there is potential in Sydney Airport’s proposal,” added John Borghetti, Chief Executive Officer, Virgin Australia.  “We look forward to working with all stakeholders to explore its merits in detail, in particular how it supports the growth of Virgin Australia and its alliance partners.”

The table below highlights the ten largest operators at Sydney Airport based on available seat capacity for the week commencing December 14, 2011…

WEEKLY SEAT AVAILABILITY AT SYDNEY AIRPORT (non-stop weekly flights; December 14-20, 2011)
Rank	Airline	Weekly Flights	Weekly Seats	% Capacity
1	Qantas	1,002	166,460	37.0 %
2	Virgin Australia	694	94,616	21.0 %
3	Jetstar Airways	306	57,762	12.8 %
4	Emirates Airline	35	14,322	3.2 %
5	Air New Zealand	67	11,657	2.6 %
6	Singapore Airlines	28	10,647	2.4 %
7	Regional Express (REX)	254	8,636	1.9 %
8	United Airlines	21	7,623	1.7 %
9	Tiger Airways Australia	35	5,670	1.3 %
10	Cathay Pacific Airways	28	5,432	1.2 %
(others)		292	66,873	14.8 %
TOTAL		2,762	449,698	-

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