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Perth Airport - CEO Geatches on radio.

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Perth Airport - CEO Geatches on radio.

Old 25th Oct 2012, 09:12
  #81 (permalink)  
 
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I named my dog Metron... Gold!
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Old 27th Oct 2012, 16:52
  #82 (permalink)  
 
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i reckon this sums up Perth Airport Upgrade :P

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Old 30th Oct 2012, 00:34
  #83 (permalink)  
 
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Either way this is off topic. It is the facilities at Perth airport that we are talking about. Geatches also blamed pilots and AsA for the way we use the airspace. Again, everyone elses's fault. The latest brochure I saw the other day about RUNWAY OCCUPANCY times, once again blame the pilots for taking too long to get off the runway with no high speed exits. There would only be incremental improvements if everyone trimmed their occupancy by 10%, the structural flaws would remain.
This and similar sentiment that it's the airport corporation's responsibility to fund and build a new runway of its own initiative is ridiculous and ignorant of corporate law. As a registered corporation, any airport company in private hands is bound by law to maximise return to shareholders. Constructing something worth hundreds of millions that will take decades to pay off, if ever, is a stupid business decision, especially when all the current assets are working at capacity and there is no serious suggestion that doing so will increase revenue.

Imagine Perth Airport is a McDonalds store, the passengers are hamburgers, and the aircraft are cars queued at the drive through. You - the manager - have bought and paid for the store and its drive-through lanes as-is. Every day, around the clock, you have queues of cars waiting to buy your burgers and give you money. It costs you very little to take their money except to occasionally re-pave the car park and give the fibreglass statue of Ronald a clean. At peak times, you sell so many hamburgers cars are circling off your property and into the nearby streets, waiting to give you money. They begin to complain about the wait but none are willing to give up and try some chicken, so wait they will, no matter what.

At this point, looking at ways to serve your hamburgers faster and collect more money is good business sense. Re-mortgaging the business to open another drive-through lane isn't, especially since the number of cars waiting to buy your burgers won't change much - if the price of iron collapses further, it may even decline - and the government are so involved in regulating the price of your burgers you may not even be able to recoup construction costs in a reasonable time frame.

It's a crappy business decision and evidence why airports, whose infrastructure adds so much more value to the economy than can be measured in a corporate sense, should never have been privatised. Now they have been, blaming the operator for the crap decisions of past governments isn't really fair. Or productive.
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Old 30th Oct 2012, 01:05
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Except that in the land of McDonalds they have competition. Subway opens across the road, KFC around the corner, or in reality build another store! So all those cars in the queue decide that even though KFC or Subway cost more theyll go there and save half an hour of their time. Perth airport have no competition so can get away with outstandingly poor service. Announce a brand new airport on the northern outskirts of Perth with a train link and watch how quick YPPH builds a new runway and terminal.
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Old 30th Oct 2012, 01:51
  #85 (permalink)  
 
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Yes exactly neville. As I mentioned it's why privatising airports was a ridiculous thing to do. It is, however, done.

You'll have more luck petitioning Xenophon to re-nationalise airports (or partially so - best suggestion I've seen so far is re-acquire the hardware and lease terminal operations only) than you will asking Mr Geatches or his ilk to break their obligation to shareholders to maximise profit over efficiency. He's bound by various parts of corporations law to do so.
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Old 31st Oct 2012, 03:56
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Woodwork, no more naive than the airlines wanting to maximise the return to their shareholders by reducing delays and not paying for the infrastructure.

If your company is causing my company to operate inefficiently and standing in the way of my obligations to my shareholders under the corporations act by providing inadequate facilities then why shouldn't I complain long and hard?
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Old 31st Oct 2012, 05:55
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we talk as though if airports were government owned then all the problems would be solved, the 3rd runway would go in and there would be no congestion issues....would it actually be any different...? I doubt it...
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Old 31st Oct 2012, 06:53
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Except that pressure can be put on the government to improve services. If aviation companies and the miners lobbied a goverment you would have a awesome setup.

Just look how quickly Rio and BHP made the mining tax disappear.

Last edited by neville_nobody; 31st Oct 2012 at 06:54.
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Old 31st Oct 2012, 08:31
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and a government could build infrastructure quick enough to keep pace with 20% traffic growth....
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Old 31st Oct 2012, 10:34
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we talk as though if airports were government owned then all the problems would be solved, the 3rd runway would go in and there would be no congestion issues....would it actually be any different...? I doubt it...
I would guess better infrastructure but less efficient/more expensive. DCA as was used to employ full time motor mechanics to service the radio techs cars. A modern business probably outsources the outsourcing of stuff like that.
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Old 1st Nov 2012, 01:49
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If your company is causing my company to operate inefficiently and standing in the way of my obligations to my shareholders under the corporations act by providing inadequate facilities then why shouldn't I complain long and hard?
Presumably, the boards at Qantas and Virgin, when actually concentrating on the economics of running their airlines properly, have considered whether there'd be a benefit to trying to take over the airport and build the runway themselves, and have decided against it. No one wants to be left holding the stinky can of debt if the mining boom dries up and the runway isn't needed anymore. It's why only a competent government (hah!) can really be expected to fund this kind of development.
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Old 1st Nov 2012, 05:17
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competent government (hah!) can really be expected to fund this kind of development.

Do we have such a thing in Australia???????
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Old 1st Nov 2012, 09:19
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What always makes me laugh is how in Adam Smith's model of capitalism it was the government that provided the infrastructure and that is why you pay tax.

Yet in our so-called 'free market' system we have all these privatised infrastructure monopolies which were mainly created by Liberal governments!
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Old 1st Nov 2012, 11:06
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Yet in our so-called 'free market' system we have all these privatised infrastructure monopolies which were mainly created by Liberal governments!
To pay off the massive debt inherited from the previous Labor government!

I'm totally against airports, railways etc being privatised as they are essential infrastructure that should be provided as part of our tax structure - unfortunately, Labor's free-spending ways created so much debt that the Howard government was forced to sell the farm which has been causing grief for the all tax-payers ever since. The current Labor government didn't learn from their predecessors and are driving us into massive debt yet again.

The current owners of Australian airports are good at building car parks as they begin to return revenue immediately but runways (who would have thought that an airport needed runways) tie up capital for many years during the construction phase before any revenue is created. Brisbane Airports Corporation recently tried to circumvent this problem by asking airlines to pay a surcharge for the new runway while it is being built - I don't know the legality of that but it sounds shonky.
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Old 1st Nov 2012, 12:03
  #95 (permalink)  

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The You Tube vid is pure Gold.

I heard the Geatches interview whilst driving and had to pull over I was laughing so much. At first I thought for a moment he was talking about another airport altogether
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Old 1st Nov 2012, 13:07
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Where ya bin, Gaunty?!
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Old 5th Nov 2012, 07:50
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Buswell on a Mission for the third runway...

Buswell pushes on third runway
By Geoffrey Thomas Aviation Editor
Exclusive, The West Australian
Updated November 5, 2012, 3:47 am

The State Government is demanding answers from Perth Airport on a range of issues including plans and the timeline for a third runway and its commitment to an integrated international and domestic terminal.

In a frank letter, Treasurer and Transport Minister Troy Buswell also questions the way commercial leases for warehouses are structured and if they will limit the airport's ability to fund critical airfield infrastructure, such as another runway.

The letter, obtained by _The West Australian _, asks for a meeting with Perth Airport Pty Ltd's chief executive Brad Geatches and its chairman David Crawford.

The company has held a 49-year lease on the Commonwealth airport land since 1997, when the airport was privatised.

Mr Buswell warned last month that if the airport did not build a third runway to handle demand "it would be an impediment to the State's development".

Mining giants also question the quoted cost of the runway of $580 million given they build suitable runways for $50 million in the Pilbara where costs are higher.

Perth Airport is experiencing extraordinary growth, with a 40 per cent lift over the past five years and the growth is accelerating.

The letter opens with Mr Buswell reminding the airport "that both the State and Federal governments are committed to investing approximately $1 billion to upgrade the road network that services the airport".

"Given this commitment and the importance of the airport to the State's continued economic growth, I am seeking assurances that the planning and investment commitment of the State Government is adequately supported by Perth Airport," he said.

Mr Buswell says he wants details of the timeline for building the third runway and its anticipated capital cost supported by detailed financial and other information used to arrive at the estimate.

He also wants answers about the "practice of structuring commercial leases for airport land with large upfront payments and relatively low ongoing annual payments and its impact on the airport's ability to fund ongoing works".

Mr Geatches responded, saying "leases with upfront payments represented 2.6 per cent of Perth Airport's total revenue over the past five years" and claims "there are no sub-leases entered into by Perth Airport that would compromise timely construction of a third runway, or its design or operation".

Mr Geatches said Perth Airport's credit rating was upgraded this year by both Moody's and Standard & Poor's.

"The company has excellent support from shareholders and lenders to continue our major investments and Perth Airport has both the capacity and preparedness to bring forward the third runway, if airlines require it," he said.

Last month Qantas said it wanted a third runway.

Mr Buswell also wants a firm timeline on the development of the new consolidated international and domestic terminal.

'Perth Airport has both the capacity and preparedness to bring forward the third runway.'"Perth Airport's *Brad Geatches *
Runway key to capacity
The West Australian
Updated November 5, 2012, 3:51 am

Air traffic control provider Air- Services Australia says only an extra runway will solve Perth Airport's growth problems.

AirServices manager corporate communications Rob Walker said though an operational efficiency program under way would help increase capacity, it was "not the silver bullet".

"Only a new third runway will give us the 50 per cent increase in capacity the airport needs," Mr Walker said.

AirServices, in conjunction with Perth Airport and airlines, has been conducting an airport capacity enhancement with the help of British air traffic control provider NATS.

The report has identified about 25 ways to improve runway capacity, with a potential improvement of up to 20 per cent over two years, though that translates into only six to seven extra movements an hour at key times.

Perth Airport believes that in the afternoon traffic pattern it will achieve a 30 per cent gain, but that will meet only current demand with no provision for growth.

The improvements include pilots exiting runways faster or taking off without delay, installing more high-speed taxiway exits and the way planes are controlled.

Under the new system, pilots must be ready to roll the moment they are given line-up clearance. They will be asked for maximum braking and thrust reverse to leave the runway as fast as possible.

Perth Airport will build high-speed taxiways that are angled off - rather than at right angles - to the runway.

Geoffrey Thomas
Skippers fears for rural routes
Geoffrey Thomas, The West Australian
Updated November 5, 2012, 3:52 am

Perth Airport has moved to assure smaller airlines they will not be penalised under a new slot system to manage congestion.

Skippers Aviation, which has nine of the 11 regulated air routes to small regional centres, fears it will be excluded from the morning peak departure period despite having some of the routes for 22 years.

Skippers chairman Stan Quinlivan says it appears to regional communities and some mid to large mining companies that any plane with fewer than 46 seats has no right to use take-off slots they have used, in some cases, for 20 years.

Mr Quinlivan said documentation showed smaller planes would be excluded from the slot system.

He suggested that if this was the case, WA should consider similar legislation to that in NSW, where protection was given at Sydney Airport to flights from rural areas.

Mr Quinlivan said congestion at the airport was setting the airline back an average of 30 minutes on departures, with delays on most days for each service.

This put additional workloads and stress on pilots and made it necessary on most days to carry an extra 15 minutes of fuel, a payload equal to one passenger.

Delays at the airport cost an estimated $24 million a year.
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Old 5th Nov 2012, 09:05
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I wonder where Skippers were flying on a regional route 22 years ago?
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Old 5th Nov 2012, 13:11
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And never let the Perth Airport leaseholders forget, they are NOT the "owners" of the airport they only hold a lease to operate the airport as an airport on behalf of the Commonwealth Government for and in the interests of the "Public" aka the actual owners.

That means runway infrastructure not warehouses.
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Old 5th Nov 2012, 14:26
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As an aide memoir, can anyone advise how long the Canadians have control of the lease?

I simply ask this because if there are many years to run...this thread on PPRuNe will need it's own cloud computing centre, to be located next to the finger pointing centre.

The airport is a disgrace and the general consensus indicates this is not in dispute. The problem is that there is no one organisation responsible to fix it. Until that is achieved, it will not be fixed.

Meantime a couple of high speed exits on 03/21 would help....but as was said, without sufficient apron space and bays, what's the point?

As to METRON...perhaps it should be re-named MOGADON.
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