Sydney Airport positive on LCCs driving growth

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Sydney Airport expects that low-cost carriers will drive increased passenger numbers and aeronautical revenues in the near future.

In an investor presentation, the company emphasised that international low-cost carriers have been a “major contributor” to its recent growth.

In addition, it says that low-cost carriers are “efficient users of infrastructure” due to their shorter turnaround times and higher capacity per aircraft, relative to full-service carriers.

International low-cost carriers Jetstar, Scoot and AirAsia X operate a number of flights from Asia to Sydney. They will soon be joined by Cebu Pacific Air, which is launching four-times weekly services from Manila on 9 September.

“The arrival of Cebu reinforced Sydney’s position as Australia’s largest international low cost carrier airport,” the airport says.

Even on the domestic front, the airport says it expects to see “a continuation of the trend of LCC growth.”

The latter comment comes in light of a recent dispute between the airport and Tigerair Australia, which saw the carrier launch a claim against it with the National Competition Commission over concerns about access to the multi-user Terminal 2.

That dispute was settled earlier this month following protracted negotiations over a new commercial agreement, and Tigerair Australia withdrew its complaint.