Sydney Airport Profit Margins
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Sydney Airport Profit Margins
Well no wonder aviation is a 'tough business' when you are getting flushed out by what was once considered 'infrastructure'.
Sydney Airport and the country's three other largest airports are continuing to rack up "high profit margins" from car parking and the fees they charge airlines, which are eventually passed on to passengers.
That's the finding from the competition regulator's annual report on the nation's biggest airports, which shows Sydney Airport made a profit of almost 72¢ on every dollar it gained from people parking at its terminals.
Those fat profit margins are eclipsed by only Melbourne Airport, which made 73.2¢ in profit from each dollar in car parking revenue last financial year.
Sydney Airport also snared a profit of 50¢ for every dollar in revenue it gained from airlines in the form of so-called aeronautical charges, which was the highest of any airport in Australia over the past 11 years.
"The high profit margins of the airports indicate that they do not face much competitive pressure," Australian Competition and Consumer Commission chairman Rod Sims said.
The regulator also found that booking online to secure a car park ahead of time at Sydney Airport was little cheaper than turning up on the day of a flight and finding a park.
Significant savings kicked in only when passengers parked for seven days or more.
In its 180-page report, the regulator said "online booking is not leading to significant savings to many customers" who park at the domestic terminal.
Likewise, booking online for the long-term car park known as Blu Emu "only becomes noticeably cheaper for those parking for seven days".
Sydney and Melbourne airports would not allow the regulator to publish the average online fees for parking, citing commercial in confidence.
The airport, whose message in recent years has been that "big savings" can be made from booking online, disputed the ACCC's findings.
Sydney Airport chief executive Kerrie Mather said online parking rates were lower than "drive-up rates across all time bands", and the further ahead customers booked, the more they could save.
"The ACCC's weighted average of drive-up and online rates includes optional online extras such as car washing and parking in the shaded area at the Blu Emu car park," she said.
While more people are booking online, the airport still makes the majority of its car parking revenue from passengers who simply turn up and park.
The fees for doing that at the international terminal are $16 for one hour, $24.50 for two, and $33 for three. Parking for between four hours and a day costs $58.50.
According to the ACCC, the real cost of parking at the international and domestic terminals rose for all of the short-term charges last financial year, except for the one-hour period.
The competition regulator said the overall quality of service at Sydney Airport was again rated as "satisfactory". That put Kingsford Smith equal with Melbourne's Tullamarine on the lowest rating of the country's four largest airports that the regulator casts its eye over every year.
In contrast, Brisbane and Perth airports were found to offer "good" quality of service.
Read more: Sydney Airport flies high on fat profit margins for car parking and airline fees
Follow us: @smh on Twitter | sydneymorningherald on Facebook
That's the finding from the competition regulator's annual report on the nation's biggest airports, which shows Sydney Airport made a profit of almost 72¢ on every dollar it gained from people parking at its terminals.
Those fat profit margins are eclipsed by only Melbourne Airport, which made 73.2¢ in profit from each dollar in car parking revenue last financial year.
Sydney Airport also snared a profit of 50¢ for every dollar in revenue it gained from airlines in the form of so-called aeronautical charges, which was the highest of any airport in Australia over the past 11 years.
"The high profit margins of the airports indicate that they do not face much competitive pressure," Australian Competition and Consumer Commission chairman Rod Sims said.
The regulator also found that booking online to secure a car park ahead of time at Sydney Airport was little cheaper than turning up on the day of a flight and finding a park.
Significant savings kicked in only when passengers parked for seven days or more.
In its 180-page report, the regulator said "online booking is not leading to significant savings to many customers" who park at the domestic terminal.
Likewise, booking online for the long-term car park known as Blu Emu "only becomes noticeably cheaper for those parking for seven days".
Sydney and Melbourne airports would not allow the regulator to publish the average online fees for parking, citing commercial in confidence.
The airport, whose message in recent years has been that "big savings" can be made from booking online, disputed the ACCC's findings.
Sydney Airport chief executive Kerrie Mather said online parking rates were lower than "drive-up rates across all time bands", and the further ahead customers booked, the more they could save.
"The ACCC's weighted average of drive-up and online rates includes optional online extras such as car washing and parking in the shaded area at the Blu Emu car park," she said.
While more people are booking online, the airport still makes the majority of its car parking revenue from passengers who simply turn up and park.
The fees for doing that at the international terminal are $16 for one hour, $24.50 for two, and $33 for three. Parking for between four hours and a day costs $58.50.
According to the ACCC, the real cost of parking at the international and domestic terminals rose for all of the short-term charges last financial year, except for the one-hour period.
The competition regulator said the overall quality of service at Sydney Airport was again rated as "satisfactory". That put Kingsford Smith equal with Melbourne's Tullamarine on the lowest rating of the country's four largest airports that the regulator casts its eye over every year.
In contrast, Brisbane and Perth airports were found to offer "good" quality of service.
Read more: Sydney Airport flies high on fat profit margins for car parking and airline fees
Follow us: @smh on Twitter | sydneymorningherald on Facebook
Neville,
Thnk you for this. It is an absolute outrage and as a friend of mine pointed out, SACL have paid not one cent in tax between privatisation and 2013.
Can someone remind me what we fought to protect in WW1 and WW2?
I understand that Vietnam was protecting us against the Communist Tide, but was it truly meant to deliver we, the people, into the hands of the world's corporations and bankers?
Vive le Revolucion, comrades.
Thnk you for this. It is an absolute outrage and as a friend of mine pointed out, SACL have paid not one cent in tax between privatisation and 2013.
Can someone remind me what we fought to protect in WW1 and WW2?
I understand that Vietnam was protecting us against the Communist Tide, but was it truly meant to deliver we, the people, into the hands of the world's corporations and bankers?
Vive le Revolucion, comrades.
Funny how you should mention Vietnam.
Park at Ho Chi Minh Ciity (TSN)Airport about 2USD for and hour while waiting to pick up friends and family,even chepaer for a motor bike.
Plus taxis and uber only charge about 50 cents to "use" airport to pick you up and leave the premises!
Livin the dream workin the nightmare,
The Kid.
Park at Ho Chi Minh Ciity (TSN)Airport about 2USD for and hour while waiting to pick up friends and family,even chepaer for a motor bike.
Plus taxis and uber only charge about 50 cents to "use" airport to pick you up and leave the premises!
Livin the dream workin the nightmare,
The Kid.
