Sydney works together with its major airlines
By Doug Newhouse |
In a move that will hopefully inspire elsewhere, Sydney Airport says it has reached a new agreement with the Board of Airline Representatives Australia (BARA) over the provision and pricing of airport services to its member airlines for the next five years, commencing 1 July 2015.
Sydney Airport management says BARA represents ‘the large majority’ of international airlines at Sydney Airport and the agreement is the culmination of ‘an unprecedented level of engagement’ between Sydney Airport, BARA and our airline partners.
Airport management now believes that the result is an agreement under which it can work closely with its airline ’partners’ to improve the passenger experience and airport operations.
Significantly, it also incorporates a five-year investment strategy aimed at delivering ‘world class passenger experience improvements’, plus additional capacity to meet new demand and more efficient operations.
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Sydney Airport also plans to invest in improvements to its terminal presentation standards, while bringing in the latest technology.
“The new commercial agreement provides the framework for a closer working relationship with our airline partners to deliver an improved experience for passengers – our common customer,” said Sydney Airport Managing Director and CEO Kerrie Mather.
“This negotiation also demonstrates the benefits of commercial airport agreements that prioritise passengers, airline operating requirements and efficiencies, airport capacity and a service quality culture.
“We look forward to continuing to work with BARA and its members to improve the services and facilities at Sydney Airport for our airline partners and passengers.”
According to airport management, the agreement also provides the ability to deliver ‘an appropriate return’ on the investment Sydney Airport is making in aeronautical infrastructure, which it describes as ‘significant’. It also provides five-year pricing certainty for both airlines and Sydney Airport.
Interestingly, aeronautical charges under the new commercial agreement will follow an agreed price path over the five-year period from 1 July 2015. At the same time, the per passenger international charge will reduce by $0.18c to $24.00 per passenger for the period of 1 July 2015 to 30 June 2016.
Charges will also increase by an average of 3.8% per annum over the subsequent four years of the agreement.
Sydney Airport management adds that it is now in the process of contracting with BARA airlines individually, while it is also engaged in advanced discussions with the Qantas Group and Virgin Australia.
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