Sydney Airport plots expansion and a new terminal

Australia's busiest airport is planning a significant expansion, including a new "Terminal 4", as it moves to address robust aviation growth and competition from a second airport.

Outgoing Sydney Airport chief executive Kerrie Mather told the airport's annual meeting on Tuesday that a major investment program would provide additional aviation capacity for business expansion as the airport capitalises on what she described as a natural competitive advantage in terms of geography.

“Airlines serving Asia are able to fly to Sydney and return within 24 hours,’’ she said. “This is highly attractive from an aircraft utilisation perspective.’’

She noted the airport had been particularly successful in attracting Chinese carriers but said it was a “Pan-Asian story” that was not reliant on one or two particular countries for growth.

“In fact, passengers to and from Asia are forecast to contribute more than half of Sydney Airport’s volumes by the end of this year,’’ she said.

After a boost in international travel in 2016, Mather said the airport was “off to a great start’’ in 2017 with 7.2 per cent growth so far.

Sydney already serves 94 destinations, including those in Australia, on 44 airlines.

Passenger numbers have grown 14m in 1990 to more than 42m in 2016 but this has not been without angst from surrounding communities.

The airport will be working over the next 12 months to release a new Master Plan that looks  at development to 2039.

This is well beyond the proposed start-up date of a second airport at Badgerys Creek, south-west of Sydney, that the company which operates Sydney Airport declined to build despite having first call on it.

Mather said the planning had accounted for the opening of the Western Sydney Airport in 2026 and had identified areas available to develop its facilities,

“These include an expansion of our international Terminal 1, by adding new gates, baggage system expansions and apron capacity,’’ she said. “Also a new Terminal 4, which will provide new international gates adjoining (terminals) T2/T3. And also new aeronautical facilities in the south-south- east sector, south of General Holmes Drive.’’

The new terminal will mean the relocation of a Qantas maintenance facility to another part of the airport and appears in keeping with a plan launched some years ago to relocate alliance partners to different terminals to improve efficiency.

That plan was shelved after protests by Virgin that it would be disadvantaged by the move to the T1  international terminal because it was further away from the central business district and harder to access.