Wirraway

Thurs "Melbourne Age"

Airports, Qantas at terminal odds
By Brian Robins, Mark Todd
Sydney
August 22 2002

Optimism over strong profit growth at Sydney Airports Corp yesterday was marred by Qantas' decision to upgrade its existing terminal facilities at the airport.

The Qantas move came as Virgin Blue was finalising plans to launch legal action over access to the Ansett terminal.

The move by Qantas to spend $100 million adding three gates capable of handling Airbus A330 aircraft, puts into question the carrier's negotiations with Sydney Airports over access to the Ansett terminal.

Virgin Blue plans a $12 million upgrade of its terminal at the airport, and has flagged that it plans to take legal action against Sydney Airports later this week over what it claims was an earlier agreement to access the Ansett terminal. Virgin claims it had negotiated a long-term deal to pay between $18 million and $18.5 million a year for use of 40 per cent of the terminal's gates.

Qantas is in talks with Sydney Airports to access the Ansett terminal for its regional operations and some of its low-volume tourist services.

"While we expressed a great deal of interest in moving a significant part of our operations into the Ansett terminal, that is no longer the case," Qantas managing director Geoff Dixon said yesterday.

Qantas still wants to access the Ansett terminal but on a common-user basis, as opposed to being a permanent tennant. Mr Dixon said it would cost the airline less on a per-passenger comparison to have the traffic come though its own terminal.

He said the decision was not made due to any action by Sydney Airports but noted that the talks had "dragged on a bit".

"We have no complaints about SACL at all, but our circumstances have changed," he said. "There always comes a time when you have to take things into your own hands."

The progressive revival of the international air-traffic market helped Sydney Airports to a net profit of $87.1 million for the year to June 30, well up from $22.8 million a year earlier.

Revenue rose a modest 20 per cent to $454 million.

Earnings were constrained by privatisation costs of $5.3 million, the write-off of Ansett bad debts of $4.1 million and costs associated with the Sydney Olympics totalling $5.5 millio

Keg

Even with three A330 gates I reckon we are still going to struggle for space and at least part of the AN terminal could be a goer. We still have the Dash 8s out at the swamp and I'm sure QF don't like it like that!

Interesting times. i wonder if this is QF being a bit more subtle with the Aiport managment than VB has been in the last few weeks about the cost of the AN terminal.

1A_Please

Not too much of a "blow" given that QF admit they want to use the terminal on a Common User basis which is exactly what SACL wants. There is obviously some argy bargy about pricing but fundamentally QF and SACL agree.

DJ has a different request; they want dedicated gates and terminal branding which is the opposite of what SACL and QF want.

Ultralights

ahem, whisper, hanger 96 and the old ansett hanger next to it wont be around much longer. whisper.................

Pimp Daddy

Ahem - read the press report in Wirraways last post in this thread

Qantas stock is halted

Bit more than a whisper when it comes out of the CEO's mouth.

Keg

Although one of the old hangars down there in that row is heritage listed and has to be preserved. Will be interesting to see where they move it to if they move it at all.

TIMMEEEE

I believe Mr Dixon wouldnt mind joining together the existing Sydney QF terminal with the Ansett concourse B area to provide access for both domestic and regional aircraft.

I actually recall seeing an Ansett B747-400 and an SQ 747 parked on AN bay 31 some time back during the AN 767 crisis.

Reackon Geoff Dixon is hanging out to do a deal with SACL for the terminal space on his terms.
Watch Mr Corrigan do the same.

Airtart

Sydney Airports Corp and Qantas Airways Ltd today said they had reached agreement on the long term use by Qantas and QantasLink of the former Ansett domestic terminal.

Qantas will use six of the 18 gates in the terminal on a first right basis in accordance with Sydney Airport's common use gate allocation criteria.

"The agreement acknowledges Qantas' need for additional gate capacity at the same time as it recognises Sydney Airports' requirement that the terminal operates on common use principles which will allow access by other parties such as Virgin Blue, Regional Express, or a new domestic entrant," Sydney Airports Corp said.

Sydney Airports Corp chief executive officer Tony Stuart said that it took this opportunity to invite Virgin Blue to reopen negotiations and to discuss access to the terminal.

"This is an excellent result for both parties, providing Sydney Airport with a core terminal partner, flexibility of terminal use as a whole and Qantas with certainty and growth potential," he said.


"Above all, it is a win for travellers and our tourism industry partners."

QantasLink will base the majority of its Boeing 717 fleet in the former Ansett Terminal and will have the ability to use the terminal for other aircraft as required. Qantas estimates an annual throughput in excess of two million passengers.

The terms of the agreement remain confidential to the parties.

The terminal will be operational as planned from September 2 and Qantas was expected to commence operations by mid September.

Virgin Blue chief executive Brett Godfrey said earlier this month that the Macquarie Bank-led Sydney Airports Corporation had agreed to allow Virgin to lease 40 per cent of the the Ansett terminal for $18-18.5 million a year for 15 years.

Sydney Airports Corp has said there was never any "confirmed deal" with Virgin on the Ansett terminal and no price had been set.

Macquarie Airports managing director Kerri Mather said today the agreement reached between Sydney Airports Corp and Qantas was a significant milestone for the domestic aviation industry.

Macquarie Airports has a total interest of 44.7 per cent in Sydney Airport.

AAP

Airtart

01 Sept 2002



Sydney Airport re-opens former Ansett terminal (“T2”) on 2 September in the context of an improving outlook


SACL today confirmed that the former Ansett terminal, now known as T2, will re-open on Monday 2nd September.


The re-opening of T2 as a multi-user facility represents a new phase in positioning Sydney Airport for domestic growth among the Corporation’s domestic and regional airline partners and potential new entrants.


On 23 August 2002 SACL and Qantas Airways Limited announced they had reached an agreement on the long-term use by Qantas and QantasLink of T2.


Qantas will use six of the 18 gates at the terminal on a first right basis in accordance with Sydney Airport's common use gate allocation criteria. Additionally, the regional carrier Regional Express (“REX “) is already operating out of the terminal on an interim basis.

Since taking ownership of T2 on 1 July, Sydney Airport has upgraded key IT security systems, building safety systems and aircraft aprons to manage the operational requirements of multiple airline users.

T2, in Sydney Airport’s domestic precinct, is a completely redeveloped world-class airport facility with business lounges and an international transfer facility.

SACL believes T2’s close proximity to the airport rail link, the undercover multi-storey car park and to the other main terminal in the airport’s domestic precinct all provide for strong reasons as to why domestic passengers will benefit from the terminal’s re-opening on Monday 2 September.

T2 offers domestic travellers in Australia a world-class airport terminal facility. SACL believes it is in the interests of all domestic and regional airlines operating out of Sydney Airport to be able to provide this facility to their customers.

SACL’s CEO, Tony Stuart, said that the re-opening of T2 was great news for the travelling public and Australia’s tourism industry. “We are commissioning a major increase in supply. Importantly, this ‘new capacity’ will be available for new entrants, as well as existing players.

"It is a win for travellers and our tourism industry partners. The recommissioned terminal will be 'on line' from Monday this week, with Rex already operating there and Qantas moving in shortly, and can handle up to 10 million passengers a year in comfort".

The re-opening also represented another milestone for Sydney Airport and its recovery from the effects of September 2001.

“We delivered an extremely strong financial performance for the last financial year, highlighting the robust and resilient nature of the airport business. Our July trading performance, against a decline of some 8.1 per cent in international traffic, has again been outstanding”.

“More recently, we’ve seen the traffic gap continue to close substantially in August as we track towards a double-digit in seat capacity in the coming schedule changes.

“And now, in September, we are celebrating a return of domestic travellers to this great facility at Sydney Airport”, Mr Stuart said.

SACL have confirmed that traffic expectations are more positive going forward. Future passenger traffic performance is expected to improve gradually in coming months. From November 2002 international airlines serving Sydney Airport have a planned 11.8% increase in international seat capacity for the Northern Winter season (starting at the end of October).

Independent analysis by Airports Co-ordination Australia confirms that this planned capacity increase for Sydney is above the national average.