Sydney Airport chief executive Kerrie Mather says plans to expand Terminal 1 and the introduction of international flights at the Terminal 2/3 precinct will ensure Mascot has the necessary aviation capacity to meet the expected growth in passenger traffic in the years ahead.
Speaking at the company’s annual general meeting in Sydney on Tuesday, Mather said Sydney Airport has begun preparing its 2039 master plan, which factors in the opening of the proposed airport at Badgerys Creek in 2026.
Mather, who announced in March her intention to step down at chief executive once a successor is appointed by the board, said that initial work showed Sydney Airport was able to “meet significant aviation growth within our existing footprint”.
“Over the next 12 months, we will be preparing for the release of our 2039 Master Plan, and importantly progressing our expansion plans,” Mather said in prepared remarks. “This includes a greater focus on co-location, new terminals, and differentiated products.”
“These include an expansion of our international Terminal 1, by adding new gates, baggage system expansions and apron capacity. Also a new Terminal 4, which will provide new, international gates adjoining T2/T3. And also new aeronautical facilities in the SSE sector, south of General Holmes Drive.
“It is important these plans remain flexible, and that we deliver an integrated solution for passengers, terminal connectivity and ground access, whilst improving the customer experience, and optimising the capacity and operations at the airport.”
Earlier in May, Sydney Airport said it would not take up its right of first refusal (ROFL) to build and operate the proposed airport at Badgerys Creek. The Commonwealth said it would build the airport.
At the time, the company said the risks associated with the development and operation of the proposed airport were “considerable and ensure for many decades without commensurate returns for our investors”.
Although Sydney Airport will not be involved in Badgerys Creek, its chairman Trevor Gerber said the consultations with the federal government and others regarding the development would be useful in compiling the 2039 master plan.
“Over the past three years, the Western Sydney Airport consultation has allowed us to gather extensive and valuable information on future Sydney Basin demand, which will help us prepare for the release of our 2039 Master Plan, and importantly progressing our expansion plans in consultation with our stakeholders,” Gerber said in prepared remarks.
“We have no doubt that the new airport, which is expected to be operational late 2026, will create jobs and encourage significant investment in the region. Importantly, the additional aviation capacity Western Sydney Airport will provide for both the Sydney Basin and Sydney Airport, will ensure that NSW continues to compete both nationally and internationally competitive.”
Asked by a shareholder what the impact of Badgerys Creek would be on Sydney Airport’s profitability, Gerber said “looking a decade out is awfully difficult”.
Gerber confirmed previously issued guidance of a 33.5 cent distribution per stapled security for calendar 2017, with an interim distribution of 16.5 cents per stapled security.