VB/Corrigan unhappy over SYD Terminal
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VB/Corrigan unhappy over SYD Terminal
Corrigan blasts airport corporation over terminal delays
AAP SMH July 22 2002
Patrick Corp chief executive Chris Corrigan today said delays in giving Virgin Blue Airlines access to the former Ansett terminal slots in Sydney was a disgrace.
Virgin Blue, in which Patrick acquired a 50 per cent stake for $260 million in March, is seeking access to about eight of the 30 abandoned Ansett terminal slots from Sydney Airport Corporation (SAC).
Mr Corrigan today blamed lengthy bureaucratic procedures for the delays, and said he would prefer to deal with a government department.
"It's not fair to the passengers that they have to queue up in lines like this to get to the airport, to get through to their flights," Mr Corrigan told journalists at Sydney airport, pointing to queues spilling out of Virgin's temporary terminal and onto the footpath outside.
"It's really a disgrace that Sydney airport have got an empty terminal down the way with nobody in it, absolutely nothing in it - it's been like that for nine months or so, 10 months, they've owned it for two months - and what we're being told is that they're considering their options," Mr Corrigan said.
I don't know what options they've got, but clearly Virgin has an agreement to go in there, we've settled all the major terms and we're being told, 'we're considering our options and we may be able to get you there in September or November'.
"In the meantime, the travelling public are the losers because they're having to queue up in this obscene fashion that we're seeing here today."
AAP SMH July 22 2002
Patrick Corp chief executive Chris Corrigan today said delays in giving Virgin Blue Airlines access to the former Ansett terminal slots in Sydney was a disgrace.
Virgin Blue, in which Patrick acquired a 50 per cent stake for $260 million in March, is seeking access to about eight of the 30 abandoned Ansett terminal slots from Sydney Airport Corporation (SAC).
Mr Corrigan today blamed lengthy bureaucratic procedures for the delays, and said he would prefer to deal with a government department.
"It's not fair to the passengers that they have to queue up in lines like this to get to the airport, to get through to their flights," Mr Corrigan told journalists at Sydney airport, pointing to queues spilling out of Virgin's temporary terminal and onto the footpath outside.
"It's really a disgrace that Sydney airport have got an empty terminal down the way with nobody in it, absolutely nothing in it - it's been like that for nine months or so, 10 months, they've owned it for two months - and what we're being told is that they're considering their options," Mr Corrigan said.
I don't know what options they've got, but clearly Virgin has an agreement to go in there, we've settled all the major terms and we're being told, 'we're considering our options and we may be able to get you there in September or November'.
"In the meantime, the travelling public are the losers because they're having to queue up in this obscene fashion that we're seeing here today."
As strobes_on points out the complaint is very political. Both DJ and QF are desperate for SAC to lease each of them half of the AN terminal. At that point they would effectively control the slots even though it is unlikely DJ are anywhere near needing 8 gates at SYD presently.
The threat of a new Star competitor means the situation is more desperate and SAC's arm is strengthened in any negotiations.
As has been said many times, a new competitor is financially a worry to QF but is financial poison to DJ's shareholders who would see their potential windfall in any DJ float massively shrunk should a third compeitor get up.
The threat of a new Star competitor means the situation is more desperate and SAC's arm is strengthened in any negotiations.
As has been said many times, a new competitor is financially a worry to QF but is financial poison to DJ's shareholders who would see their potential windfall in any DJ float massively shrunk should a third compeitor get up.
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As usual DJ are attempting to use the media to assist them in their corporate goals.
Publicly bleating will not change one essential fact...if the price was good enough, DJ would already be in the terminal. Now that there is the sniff of a new entrant, its no surprise the owners of Sydney Airport are "considering their options" with a view to securing the best deal. It's known as doing business.
DJ will be desperate to tie up the infrastructure and operate from the terminal in order to frustrate any new entrant. To do this the solution is simple: be prepared to pay the most commercially acceptable price. More interest in the terminal means a higher price and a greater effect on the cost base, in direct opposition to the Virgin philosophy.
Considering the way DJ have publicly played off Boeing vs Airbus, it is indeed interesting to observe their reaction when the shoe is on the other foot.
There's a long way to go on this one, but if the terminal issue for DJ isn't solved quickly, it may be worthwhile asking one essential question...
"Who's sharpening the pencil now, Mr Godfrey?"
Publicly bleating will not change one essential fact...if the price was good enough, DJ would already be in the terminal. Now that there is the sniff of a new entrant, its no surprise the owners of Sydney Airport are "considering their options" with a view to securing the best deal. It's known as doing business.
DJ will be desperate to tie up the infrastructure and operate from the terminal in order to frustrate any new entrant. To do this the solution is simple: be prepared to pay the most commercially acceptable price. More interest in the terminal means a higher price and a greater effect on the cost base, in direct opposition to the Virgin philosophy.
Considering the way DJ have publicly played off Boeing vs Airbus, it is indeed interesting to observe their reaction when the shoe is on the other foot.
There's a long way to go on this one, but if the terminal issue for DJ isn't solved quickly, it may be worthwhile asking one essential question...
"Who's sharpening the pencil now, Mr Godfrey?"
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I recently had the misfortune of joining a queue of approximately 800 people on the footpath outside the Virgin donger at Sydney airport. Our flight depated 90 minutes late and I would be surprised if any flight out of Sydney departed on time that morning. When we checked in we were directed to gate 3 , the screen said gate 5 and the loading PA was gate 4. Not really a big deal but amusing just the same.
I thought this was a one off, on a busy Sunday morning ,until I saw the same chaos on the news tonight.
This has got to be seriously embarrassing if it is happening on a daily basis.
What happens when it starts blowing 30 kts in driving rain and you have upwards of 500 passengers on the footpath.
Corrigan has good reason for concern if an operator with the financial muscle of SQ starts breathing down his neck.
It suprises me that Virgin is not already firmly established in the ex AN terminal and this has to be cause for concern in light of recent events.
This one will be entertaining to watch unfold.
I thought this was a one off, on a busy Sunday morning ,until I saw the same chaos on the news tonight.
This has got to be seriously embarrassing if it is happening on a daily basis.
What happens when it starts blowing 30 kts in driving rain and you have upwards of 500 passengers on the footpath.
Corrigan has good reason for concern if an operator with the financial muscle of SQ starts breathing down his neck.
It suprises me that Virgin is not already firmly established in the ex AN terminal and this has to be cause for concern in light of recent events.
This one will be entertaining to watch unfold.
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If Singapore are serious about this they will be moving to stitch up the Sydney terminal and will be conducting other enquiries including government.
No doubt with all terminal negotiations the power of the dollar will reign supreme. I hope for DJs sake they have capitalised to the maximum extent on the duopoly for if the move from SQ eventuates the gloves will be off again soon . One can only cringe at the ultimate expansion capabilities of Virgin if they cannot secure the terminal space.
Maybe QF can book a table with the minister again as the arrival of Singapore may mean its position would be "marginalised".
This one will probably be sorted out in the Oakroom in Canberra.
No doubt with all terminal negotiations the power of the dollar will reign supreme. I hope for DJs sake they have capitalised to the maximum extent on the duopoly for if the move from SQ eventuates the gloves will be off again soon . One can only cringe at the ultimate expansion capabilities of Virgin if they cannot secure the terminal space.
Maybe QF can book a table with the minister again as the arrival of Singapore may mean its position would be "marginalised".
This one will probably be sorted out in the Oakroom in Canberra.
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ABC News Online 22/7/02
Old Sydney Ansett terminal to be ready by Sept: airport
The new owners of Sydney Airport say the old Ansett terminal will be ready for use by September.
The owners were criticised by a director of airline Virgin Blue today, who said delays in gaining access to the terminal are the result of bureaucratic bungling by the new owners and are costing the airline customers.
Director of Aviation at the Sydney Airports Corporation, Greg Russell, says the Corporation has only owned the terminal for three weeks.
"We're trying to work to a schedule to upgrade systems in that terminal, security systems, building compliance codes, work on the taxiways, and that's going to take us some time," he said.
"The key thing is to have a terminal that's able to operate to serve not just one airline, but as many as five and that's going to take us some time."
Old Sydney Ansett terminal to be ready by Sept: airport
The new owners of Sydney Airport say the old Ansett terminal will be ready for use by September.
The owners were criticised by a director of airline Virgin Blue today, who said delays in gaining access to the terminal are the result of bureaucratic bungling by the new owners and are costing the airline customers.
Director of Aviation at the Sydney Airports Corporation, Greg Russell, says the Corporation has only owned the terminal for three weeks.
"We're trying to work to a schedule to upgrade systems in that terminal, security systems, building compliance codes, work on the taxiways, and that's going to take us some time," he said.
"The key thing is to have a terminal that's able to operate to serve not just one airline, but as many as five and that's going to take us some time."
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Sydney Airport says SIA eyes terminal
SYDNEY, July 22 (Reuters) - Sydney Airports Corp Ltd said on Monday it had held talks with the Star Alliance group of carriers, led by Singapore Airlines , about leasing terminal space at Australia's biggest airport.
The Star Alliance is the fourth group to express interest in the terminal as speculation grows that Singapore Airlines plans to launch a third Australian domestic carrier by the end of this year.
"We've had discussions with the Singapore Airlines-led group about access to the former Ansett terminal and whether there would be terminal gates and passenger lounges available for them," Sydney Airports spokesman Peter Gibbs told Reuters.
Gibbs also said the Star Alliance group had been talking to Melbourne and Brisbane airport authorities.
Sydney Airports purchased the terminal space in May after the collapse of the nation's second largest carrier, Ansett Australia, left the facility empty.
It plans to covert the terminal into a multi-user facility which can be used by a number of airlines. The terminal is scheduled to re-open by September.
Qantas Airways Ltd and Richard Branson's Virgin Blue have also put their hands up for the terminal space as both struggle with congestion in existing terminals due to extra traffic following Ansett's collapse last year.
Gibbs also said Sydney Airports had been approached by regional Australian carrier Australiawide Airlines about the terminal space.
The Sydney Airports board will meet on Friday to discuss the terminal space.
Singapore Airlines shares were 40 cents weaker at S$12.70 on Monday. Qantas was up two cents or 0.5 percent at A$4.45 in a lower overall market.
SYDNEY, July 22 (Reuters) - Sydney Airports Corp Ltd said on Monday it had held talks with the Star Alliance group of carriers, led by Singapore Airlines , about leasing terminal space at Australia's biggest airport.
The Star Alliance is the fourth group to express interest in the terminal as speculation grows that Singapore Airlines plans to launch a third Australian domestic carrier by the end of this year.
"We've had discussions with the Singapore Airlines-led group about access to the former Ansett terminal and whether there would be terminal gates and passenger lounges available for them," Sydney Airports spokesman Peter Gibbs told Reuters.
Gibbs also said the Star Alliance group had been talking to Melbourne and Brisbane airport authorities.
Sydney Airports purchased the terminal space in May after the collapse of the nation's second largest carrier, Ansett Australia, left the facility empty.
It plans to covert the terminal into a multi-user facility which can be used by a number of airlines. The terminal is scheduled to re-open by September.
Qantas Airways Ltd and Richard Branson's Virgin Blue have also put their hands up for the terminal space as both struggle with congestion in existing terminals due to extra traffic following Ansett's collapse last year.
Gibbs also said Sydney Airports had been approached by regional Australian carrier Australiawide Airlines about the terminal space.
The Sydney Airports board will meet on Friday to discuss the terminal space.
Singapore Airlines shares were 40 cents weaker at S$12.70 on Monday. Qantas was up two cents or 0.5 percent at A$4.45 in a lower overall market.
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I'm sure that they are complaining! And they are welcome to use the ansett terminal - but they will get the access and then they will complain about the rates.
No frills airlines need to run from tin sheds, or the airfares will have to rise.
No frills airlines need to run from tin sheds, or the airfares will have to rise.
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VIRGIN BLUE AND MELBOURNE AIRPORT REACH TERMINAL DEAL
TUESDAY 23 JULY 2002: Melbourne Airport and Virgin Blue have reached a 10-year agreement for the airline to operate from the former Ansett/Southern Domestic Terminal, providing Virgin Blue with much needed room to expand as well as a more efficient, comfortable facility for the increasing number of Virgin Blue Guests.
Rapid expansion has seen Virgin Blue outgrow the Domestic Express Terminal, which Melbourne Airport built for them and Impulse Airlines back in December 2000, when all existing domestic gates were controlled by Ansett and Qantas.
Once Virgin Blue moves up to the Southern Domestic Terminal, which could be in the next 30 days, there will be no terminal or gate constraints on the growing low fare carrier. The Domestic Express Terminal currently provides Virgin Blue with five gates. The new terminal will initially provide seven, an increase of 40%, with further gates to be made available as required.
Virgin Blue Chief Operating Officer, Rob Sherrard, said “The agreement means we can forge ahead with our accelerated growth plans which involve more flights in and out of Melbourne, and more low fares for people travelling to and from Melbourne. We are excited to have reached a mutually beneficial agreement with Melbourne Airport which will allow Virgin Blue to move in to the bigger terminal at a reasonable cost, providing our Guests with a more convenient, efficient and user-friendly facility.”
He continued, “It also means that we’ve moved towards addressing the needs of our growing number of corporate and business travellers in two out of three of Australia’s biggest airports.”
Melbourne Airport’s CEO Chris Barlow is also pleased to be welcoming Virgin Blue back into the main terminal building. “It seems like only yesterday that we officially opened the Domestic Express Terminal. Virgin Blue has expanded rapidly while running a well managed on-time airline and I'm so pleased that we are in a position to provide them with the extra space they need to continue to grow. And it’s wonderful to welcome them back into the main terminal building, this time with surety of expansion potential.
“We also have plans to refurbish our domestic terminal to provide a totally seamless experience for passengers connecting to and from international flights.
“Additionally, now that we have a multi-user domestic terminal in Melbourne, it means that no airline will face the same difficulty Virgin Blue and Impulse Airlines did in trying to obtain terminal space. We will be able to offer space to any airline wishing to fly to and from Melbourne. It’s a great outcome for the travelling public,” he said.
Virgin Blue will operate from Gates 1 – 7 on former Ansett Concourse A. Virgin Blue will share the Southern Domestic Terminal with Kendell Airlines.
FAST FACTS
* Virgin Blue operates 70 flights per day to and from Melbourne.
* Virgin Blue now flies non-stop from Melbourne to Adelaide, Brisbane, Cairns, Canberra, Gold Coast, Launceston, Perth, Sydney and shortly Hobart. Information can be found at Virgin Blue’s website: www.virginblue.com.au
* Melbourne Airport acquired the former Ansett Terminal – now known as the Southern Domestic Terminal – in May this year at a cost of $25 million, and is currently assessing plans for a multi-million dollar upgrade program for the terminal. The upgrade will not interfere with airline operations and passenger convenience.
* Melbourne Airport built the Domestic Express Terminal in December 2000 for Virgin Blue and Impulse Airlines at a cost of around $9 million. When Virgin relocates, the terminal is likely to be used as a freight facility. The forward lounge will be dismantled and put up for sale.
* Melbourne Airport handled just over 13.5 million domestic passengers in financial year 2000-2001.
TUESDAY 23 JULY 2002: Melbourne Airport and Virgin Blue have reached a 10-year agreement for the airline to operate from the former Ansett/Southern Domestic Terminal, providing Virgin Blue with much needed room to expand as well as a more efficient, comfortable facility for the increasing number of Virgin Blue Guests.
Rapid expansion has seen Virgin Blue outgrow the Domestic Express Terminal, which Melbourne Airport built for them and Impulse Airlines back in December 2000, when all existing domestic gates were controlled by Ansett and Qantas.
Once Virgin Blue moves up to the Southern Domestic Terminal, which could be in the next 30 days, there will be no terminal or gate constraints on the growing low fare carrier. The Domestic Express Terminal currently provides Virgin Blue with five gates. The new terminal will initially provide seven, an increase of 40%, with further gates to be made available as required.
Virgin Blue Chief Operating Officer, Rob Sherrard, said “The agreement means we can forge ahead with our accelerated growth plans which involve more flights in and out of Melbourne, and more low fares for people travelling to and from Melbourne. We are excited to have reached a mutually beneficial agreement with Melbourne Airport which will allow Virgin Blue to move in to the bigger terminal at a reasonable cost, providing our Guests with a more convenient, efficient and user-friendly facility.”
He continued, “It also means that we’ve moved towards addressing the needs of our growing number of corporate and business travellers in two out of three of Australia’s biggest airports.”
Melbourne Airport’s CEO Chris Barlow is also pleased to be welcoming Virgin Blue back into the main terminal building. “It seems like only yesterday that we officially opened the Domestic Express Terminal. Virgin Blue has expanded rapidly while running a well managed on-time airline and I'm so pleased that we are in a position to provide them with the extra space they need to continue to grow. And it’s wonderful to welcome them back into the main terminal building, this time with surety of expansion potential.
“We also have plans to refurbish our domestic terminal to provide a totally seamless experience for passengers connecting to and from international flights.
“Additionally, now that we have a multi-user domestic terminal in Melbourne, it means that no airline will face the same difficulty Virgin Blue and Impulse Airlines did in trying to obtain terminal space. We will be able to offer space to any airline wishing to fly to and from Melbourne. It’s a great outcome for the travelling public,” he said.
Virgin Blue will operate from Gates 1 – 7 on former Ansett Concourse A. Virgin Blue will share the Southern Domestic Terminal with Kendell Airlines.
FAST FACTS
* Virgin Blue operates 70 flights per day to and from Melbourne.
* Virgin Blue now flies non-stop from Melbourne to Adelaide, Brisbane, Cairns, Canberra, Gold Coast, Launceston, Perth, Sydney and shortly Hobart. Information can be found at Virgin Blue’s website: www.virginblue.com.au
* Melbourne Airport acquired the former Ansett Terminal – now known as the Southern Domestic Terminal – in May this year at a cost of $25 million, and is currently assessing plans for a multi-million dollar upgrade program for the terminal. The upgrade will not interfere with airline operations and passenger convenience.
* Melbourne Airport built the Domestic Express Terminal in December 2000 for Virgin Blue and Impulse Airlines at a cost of around $9 million. When Virgin relocates, the terminal is likely to be used as a freight facility. The forward lounge will be dismantled and put up for sale.
* Melbourne Airport handled just over 13.5 million domestic passengers in financial year 2000-2001.
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Call me jaded but frankly I'm getting tired of hearing VB's whining. Last time I looked, VB marketed itself as a value aka budget airline. VB made the choice to operate from the tin shed that is the VB Sydney Terminal to save $$$ and in turn have the ability to undercut the market and offer cheap as chips airfares.
They are always crying that everyone treats them so unfairly, that they are the underdog here to save Australia from evil over-priced airlines.
Jeez.. give me a break!
SG
They are always crying that everyone treats them so unfairly, that they are the underdog here to save Australia from evil over-priced airlines.
Jeez.. give me a break!
SG
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SydGirl,
Darl, I don't think jaded is the word.
When VB started up I can't remember them being asked where & how they would like to check in & board guests. I think your looking at this topic with blinkers on & you should look at this rationally. I do agree that VB do have a winge every now & then, but it is normally when all other avenues have been tried and rejected. I don't think they want you ton feel sorry for them, just maybe understand that it is now getting ridiculously cramped in the Sydney terminal at present & there is a vacant terminal sitting empty up the road.
Darl, I don't think jaded is the word.
When VB started up I can't remember them being asked where & how they would like to check in & board guests. I think your looking at this topic with blinkers on & you should look at this rationally. I do agree that VB do have a winge every now & then, but it is normally when all other avenues have been tried and rejected. I don't think they want you ton feel sorry for them, just maybe understand that it is now getting ridiculously cramped in the Sydney terminal at present & there is a vacant terminal sitting empty up the road.
BHP - I'm sure if they are willing to pay the price they would be in there. As stated already, you get what you pay for. You want cheap fares, don't expect clubs, dinner and fancy a check in.
Evertonian
BHP...ALL the terminals were for sale you know.
Corrigan has just had his crash course of "whingeing" from Godfrey and seems to have gotten himself a High Distinction!
HA!!! I'm sure they were when they had a small fleet, but they're nothing like that now, for obvious reasons.
You've got to admit, they excell at BS and making the punters think they're a battler. If only we got Virgin Blue service everywhere else!!!
Corrigan has just had his crash course of "whingeing" from Godfrey and seems to have gotten himself a High Distinction!
Virgin Blue has expanded rapidly while running a well managed on-time airline and....
You've got to admit, they excell at BS and making the punters think they're a battler. If only we got Virgin Blue service everywhere else!!!
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Agree with Sydgirl and ozbiggles.
I am also tired of VB's consistent whingeing and bagging of others. Their poor attempt at advertising with the John Travolta ad and trying to pass themselves off as the little aussie battler (must have been watching too much of A Current Affair) was a joke. And as for QF being promoted by an 'ageing actor', it could be worse, QF could be owned by an ageing pommy hipster! (What's with men wearing pink shirts too!)
Don't blame SACL for adopting a 'wait and see' attitude with the Star Alliance bid, I know who'd be paying them more for the terminal there!
Oh and as for VB service everywhere, if someone answers my mobile while I'm taking a leak I will punch his bloody lights out!!
I am also tired of VB's consistent whingeing and bagging of others. Their poor attempt at advertising with the John Travolta ad and trying to pass themselves off as the little aussie battler (must have been watching too much of A Current Affair) was a joke. And as for QF being promoted by an 'ageing actor', it could be worse, QF could be owned by an ageing pommy hipster! (What's with men wearing pink shirts too!)
Don't blame SACL for adopting a 'wait and see' attitude with the Star Alliance bid, I know who'd be paying them more for the terminal there!
Oh and as for VB service everywhere, if someone answers my mobile while I'm taking a leak I will punch his bloody lights out!!
Last edited by Skypatrol; 23rd Jul 2002 at 13:04.
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SydGirl - I hear what your saying.
I also remember that Red Headed,Pink Shirted Englishman just after start up proudly boasting of the fact that because they dont have to operate from a flash terminal with lounges and other facilities that they can offer cheaper rates.
That was then,this is now and here we have Chris Corrigan - a very serious individual (the Patrick Stevedoring Strike-breaking saga using scab labour is testimony to this) and businessman. He is very cognizant of the fact that expanded terminal access at Sydney Airport with many more gates is the key to his future and VB's success.
Certainly, I agree that the new owners of the old AN terminal could do things a little faster but this time around they will be seeking instead of the current $X/pax being paid to the airport operator for the use of the tin shed, VB will now have to pay big $$ to secure a lease in the new terminal and in advance also.
I reackon VB/QF will should have the upper hand as I know Chris Corrigan has got his back to the wall but moreso than Geoff Dixon.
SQ could possibly be a very serious threat if they indeed carry out this proposed third airline.
As a recent investor in VB Mr Corrigan definitely does not want to see his investment in VB under threat.
I also remember that Red Headed,Pink Shirted Englishman just after start up proudly boasting of the fact that because they dont have to operate from a flash terminal with lounges and other facilities that they can offer cheaper rates.
That was then,this is now and here we have Chris Corrigan - a very serious individual (the Patrick Stevedoring Strike-breaking saga using scab labour is testimony to this) and businessman. He is very cognizant of the fact that expanded terminal access at Sydney Airport with many more gates is the key to his future and VB's success.
Certainly, I agree that the new owners of the old AN terminal could do things a little faster but this time around they will be seeking instead of the current $X/pax being paid to the airport operator for the use of the tin shed, VB will now have to pay big $$ to secure a lease in the new terminal and in advance also.
I reackon VB/QF will should have the upper hand as I know Chris Corrigan has got his back to the wall but moreso than Geoff Dixon.
SQ could possibly be a very serious threat if they indeed carry out this proposed third airline.
As a recent investor in VB Mr Corrigan definitely does not want to see his investment in VB under threat.
Last edited by TIMMEEEE; 23rd Jul 2002 at 15:40.
