Sydney Airport – planning for the future Institute of Transport and Logistics Studies

Kerrie Mather, Chief Executive Officer

Economic engine of NSW

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One in every $10 generated in NSW comes from the airport-Port Botany precinct

Australia’s most significant piece of infrastructure

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Sydney Airport contributes $27.6 billion to the economy a year, supporting 28,000 full-time jobs across 800 businesses and organisations

• Australia’s gateway – 42 per cent of all international arrivals

• 37 million passengers in 2012

• Close to 40 airlines flying to a network of 100 destinations

• A significant freight hub – 550,000 tonnes a year.

• 8km from the city centre

• Sydney Airport precinct generates $27.6 billion a year, comprising:

- $9 billion directly generated by the airport; - a further $18.3 billion in tourism and freight; - equivalent to 6 per cent of the NSW economy.

• 28,000 direct full-time employees across more than 800 businesses and organisations and a further 22,000 employed across the precinct

• Total employment of 234,000 FTEs when jobs generated in the tourism and freight sectors is taken into account

Capacity – the facts

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Sydney Airport has capacity to expand to more than 78 million passengers and will accommodate demand until at least 2045

• 39 per cent of our runway slot capacity remaining

• New generation larger quieter aircraft like the A380 are changing the way our capacity is being used.

- Sydney Airport is the world’s sixth busiest A380 airport – more than 120 services a week in December.

• Domestic carriers using larger, wide-bodied aircraft on trunk routes – eg SYD-MEL is served every 15 minutes.

• New airlines want to use our off-peak capacity.

• Passenger growth of 50 per cent since 2000, aircraft movements up less than 10 per cent

Secondary airport

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The Joint Study on aviation capacity in the Sydney region found that we should be maximising the location of Sydney Airport as NSW’s and Australia’s primary airport now and in the future

• We support government identifying a site for a second airport and preserving the transport corridors to this site for future decades

• Wilton report expected shortly

• Industry consensus is Badgerys Creek

• Development of any site must demand-driven

Operating restrictions

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Noise is regulated by operating restrictions and managed by Airservices Australia

• Four operating restrictions:

- Cap - Curfew - Long Term Operating Plan (LTOP) - Regional ring fence

• Can result in:

- Delays across eastern network and greater environmental emissions

- Greater cost for airlines and inconvenience to the travelling public

Transport

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Operationally, we move 150,000 people a day – comprising passengers, visitors and staff – the size of a major event daily

• Recommendations to improve public transport access and patronage:

- Reduce station access fee for international and domestic stations - Increase number of public bus services

• Major projects expected to improve ground access include:

- WestConnex - Pinch points strategy – O’Riordan St and Bourke Rd to become one-way pair

• Ground transport plan to be included in next master plan, out mid-year

The opportunity

Sydney Airport is well-poised to capitalise on growth in Asia – with 52 per cent of the world’s population now in reach of Sydney

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Taking the lead in tourism

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Sydney Airport has taken a leadership role in tourism, working in partnership with government and industry to attract new routes and markets to Sydney

Trends in aviation

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Aviation is a fast-paced industry which is driving change at a rapid pace

• Rising middle class in emerging markets like China, India and southeast Asia

• Low cost carriers driving demand to travel – changing travel habits from one trip every few years to shorter trips more often

• New aircraft like the A380 and Boeing Dreamliner driving passenger growth with improved environmental and noise outcomes

• Airlines moving away from traditional alliances and extending their networks through multiple bilateral partnerships – eg Qantas and Emirates and potentially South America’s LATAM

An airport for the future

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Flexibility to meet changes in aviation

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Consultation • 2 years of stakeholder consultation with:

• Airlines and airport forums; • State and federal governments; • 25 local councils; and • The broader community

Design Principles • Improve ground transport • Increase airline efficiency • Enhance passenger experience • Maximise flexibility • Develop in line with demand

Development Concept • Integrated international, domestic and

regional terminals • Additional contact gate capacity • Ground transport interchanges in the T1

and T2/T3 precincts • Pinch point improvements in and around

the T1 and T2/T3 precincts

Delivering these Outcomes: • Improved ground transport access; • Simplified transfer passenger journeys; • Enhanced airline efficiency on the airfield

and in the terminals; • Facilitates airlines’ product development; • Maximising flexibility; • Adaptability embedded into the

development concept; and • Greater productivity of existing assets

The draft Master Plan preserves flexibility to expand in line with demand and meet constantly evolving airline customer needs

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Thank you for your attention