AAP
AAPNew Virgin Blue airport deal
By Caroline Gammell
November 06, 2002
VIRGIN Blue has resolved its six-month feud with Sydney Airports Corporation Ltd (SACL), signing a 17-year deal for access to the former Ansett terminal.
The budget airline's founder Sir Richard Branson and SACL sealed the deal at midnight (AEDT) last night.
Sir Richard today said Virgin Blue hoped to move to terminal two at Sydney's Kingsford Smith Airport by mid-December, in time for the Christmas rush.
He said the deal was a victory for the travelling public and claimed the agreement was pretty much the same as an original proposal made six months ago.
"Fares will not go up by one cent," he said.
"We have not made any concessions and are now going to bury the hatchett with Macquarie Bank."
Virgin Blue claimed that after the airport was sold to a Macquarie Bank-led consortium, SACL's management reneged on a handshake deal with Sir Richard to lease the terminal.
In a mock Indian ceremony today, Sir Richard, wearing a colourful feathered headdress, and SACL chief executive Tony Stuart laid a stone outside the old Ansett terminal, symbolising the burying of the hatchett.
"May it never be undug," the carved stone read.
Surrounded by blonde models in war paint and Indian outfits, the two men posed happily for the cameras.
"I am very pleased with this deal," said Mr Stuart.
"(Terminal) 2 is too good a dancing floor for us not to be dancing together."
Mr Stuart said the deal was good for both Virgin Blue and SACL, but both he and Sir Richard would not say why it took so long to resolve the access issue.
"The important thing is that it has been a very tough six months but there were very many reasons why this has taken so long," said Virgin Blue chief executive Brett Godfrey.
"We were prepared to take this to the court steps, but so far as we are concerned we have got a great result."
Sir Richard said some of the people involved had taken the dispute personally, referring to Patrick Corporation chief executive Chris Corrigan, whose company has a 50 per cent stake in Virgin Blue.
Mr Corrigan had earlier accused Macquarie Bank of trying to "extort ridiculous charges from the travelling public".
"The fact was that Chris felt that he might have been let down personally, he felt very strongly about it, but we have got to move forward if we are going to work (with SACL) for the next 17 years," Sir Richard said.
The company chiefs said Virgin Blue hoped to expand to 40 aircraft but would remain a single-class airline.
Sir Richard also confirmed a frequent flyer deal was under discussion with Star Alliance.
AAP