Hello and welcome to the final edition of CONNECTIONS for 2013.
2013 has been a very busy year at Sydney Airport, across every part of our business.
Our key focus has been on delivering in areas including customer experience, stakeholder engagement, tourism development, and providing value and choice across the airport.
Some of the key achievements for 2013 have included:
I wish you a very Merry Christmas and all the best for the New Year.
Chief Executive Officer
Master Plan 2033
We’ve now submitted our draft master plan to the federal government for approval, detailing our vision for the development of the airport over the next 20 years to improve the airport experience for the 74 million passengers forecast by 2033.
The Master Plan process first started two years ago, when we began early engagement with airlines and other stakeholders on how to meet forecast aviation growth.
We listened to this feedback and incorporated it into our master plan, which now incorporates:
- Two integrated terminal precincts for international and domestic/regional services to spread peak passenger flows and increase flexibility;
- Transport interchanges and a dedicated inter-precinct transfer facility;
- Swing gates, more A380 gates, additional apron parking and taxiway enhancements to maximise capacity and efficiency;
- Our first ever ground transport plan to reduce congestion, and improve traffic flow, passenger connectivity and the door-to-door passenger experience;
- Provision for the development of engineering facilities;
- Retains the fuel facilities, with sufficient land and tenure to invest in additional capacity; and
- Retains the freight facilities in close proximity to the passenger terminals.
The plan will:
- Significantly improve the airport experience for airline passengers;
- Improve traffic flows in and around both terminal precincts, and improve the door-to-door passenger experience;
- Improve passenger connectivity by reducing inter-precinct transfers;
- Enhance airline efficiency on the airfield and in the terminal; and
- Most importantly, provide decades of additional capacity.
Driving tourism growth
A record 18.2 million passengers travelled through Sydney Airport in the first half of this year and traffic continues to grow steadily, particularly international traffic.
The key drivers of this growth include new airlines, new routes, upgauging from existing carriers and the rise of low cost carriers stimulating demand.
Sydney Airport is now the world’s fifth largest A380 airport and Australia’s largest low cost carrier airport.
Sydney Airport continues to work closely with Tourism Australia, Destination NSW, airlines and other tourism and business groups to drive tourism and business for Sydney, NSW and Australia.
This collaborative approach has delivered results – for example, securing Australia’s first ever Dreamliner passenger flight and direct services from India were a major win for Sydney Airport.
The new airline and new route was a direct result of cooperation with the Premier, state government, three airports and tourism groups.
We’ve also been working with our partners on bilateral agreements. AirAsia X increased from a daily to a double daily service thanks to the expansion of the Malaysian bilateral agreement with Australia. As a result, Malaysia Airlines also announced it would increase capacity by introducing a third daily service from February next year.
Over the past year, Emirates, China Southern, Etihad and Air China have upgauged existing services, while China Eastern, China Airlines, Hawaiian, Virgin Australia and Asiana have increased their frequencies to Sydney.
Looking ahead, Sydney Airport is set to welcome Sichuan Airlines from 20 December, with their route between Chengdu, Chongqing and Sydney opening up access to western China. We’ll then have five Chinese carriers serving five mainland Chinese cities.
With our prime location and China ready strategy, we’re uniquely positioned to serve the growing Chinese market, with Chinese nationals now our second largest international passenger group.
Improving the customer experience
Retail is an important part of our customers’ airport experience and we’ve been focused on improving our value proposition for customers by offering them well-known brands, choice and convenience, as well as responding to customer feedback.
Over the past year, we’ve introduced different brands across both our terminals as part of ongoing retail development, including:
- Coopers Alehouse/Hudsons Coffee;
- Veloce Café;
- National Geographic
- Gourmet gift store A Little Something;
- La Perla;
- A jewellery precinct featuring Australia’s iconic Kailis peals, Toscow opals and Cerrone fine jewellery;
- Penfolds wine boutique;
- A number of exciting pop-up stores, including Ghermez Cupcakes, Kiehl’s, Ace Insurance and TW Steel; and
- A diverse mix of other well-known Australian retail brands across T1 and T2.
Car Parking is also an important area where we’ve delivered on our promise to offer more choice, value and convenience to our customers
We recently opened our new Domestic car park, which has already gotten off to a strong start with our customers, who are taking advantage of opening deals such as $99 for seven days’ parking.
Online bookings are also proving very popular with our customers as they can now choose from more than 40 online deals across our car parks.
For example, October online parking bookings were up by more than 50 per cent compared to the same month last year.
As well as opening a new car park, we’ve also given the Blu Emu car park a facelift, with a new garden, expanded area, and improved shuttle bus route and performance.
We’ve also updated the bus area at T1, refurbished the Domestic Pronto Valet Lounge and refreshed all of our Domestic terminal signage.
To make it even easier for you to access information about Sydney Airport, we’ve developed new apps and a mobile website, as well as featuring online booking and destination travel guides on our website. The apps and mobile website are also available in Chinese.
We’ve added more Chinese-speaking Red Ambassadors to assist Chinese passengers ahead of Chinese New Year. Our Red Ambassadors complement our Gold Ambassadors in providing helpful advice to travellers in our terminals.
We were pleased that our passenger satisfaction ratings were the highest in 10 years and we were the only Australian airport to improve on our ratings. We’ll continue to focus on offering a world-class airport experience in 2014.
In terms of major projects, we have a number of works finished or nearing completion this year, which are increasing capacity and enhancing the customer experience.
At the end of last year, we completed a 4500 square metre extension of the T2 terminal. The final T2 expansion works were completed in July this year, including a new bussing lounge on ramp level, terminal building infills and upgrades of gate lounges and seating facilities at Gates 36 to 39.
In T1, the Pier C improvements are due to be completed by the end of the year, and include enhancements and upgrades to gate lounges 51, 53 and 56 to allow secondary security screening of US flights.
We’re also upgrading the ‘Pier Link’ between Piers B and C, as well as upgrading the dual aerobridge loading from the current single facility at Gates 51 and 53.
In the area of security, we’ve completed Optimal Screening Technology (OST) works at T1, as well as Radar Video Surveillance in the South East Sector to enhance security and associated risk mitigation measures across the airport.
We’re also working on Enhanced Inspection Area (EIA) at a number of locations across the airport to enhance security and intruder preventative measures, with a staged delivery of new facilities by the end of 2013.
We’ve done a lot of work on apron development and we’re upgrading aircraft parking bays to ensure they’re A380-capable.
Our High Intensity Approach Lighting (HIAL) system for runway 34L is due for staged completion from the end of this year, and will improve the airport’s capacity to deal with fog and low visibility events.
We’re enhancing energy efficiency with LED lighting and improving environmental efficiency with upgrades to the recycled water treatment plant.
Other recent major projects include new lifts at T2, upgrades of escalators/elevators in T1/T2, and T1 bathroom upgrade works.
We’ve invested around $2.3 billion in airport improvements over the past 10 years and we will continue to invest in line with demand as we implement our Master Plan.
Strengthening community and stakeholder engagement
Throughout 2013, we’ve strengthened our community engagement through our support of charities, community organisations and events.
We’ve donated hundreds of thousands of dollars and provided in-kind support to:
- Charities including the Salvos, Youth Off The Streets, Sailability and Kookaburra Kids;
- Staff involvement in the Sydney to the Gong Bike Ride in support of the Multiple Sclerosis Society;<
- Legacy Week and Daffodil Day;
- St George Hospital;
- Our school grants program which is now in its 12th year and supported 16 local schools in 2013
- Local sporting clubs such as the Surf Life Saving Nippers, Marrickville Cricket Club, Sutherland Shire Netball Club, Newtown Junior Jets, Marrickville Football Club, St. George Cricket Club and Randwick Petersham Cricket Club;
- Local festivals including Marrickville Children’s Festival, Kurnell Festival, IBM Cook Community Classic and Newtown Festival;
- Tourism initiatives including Chinese New Year, Sydney Festival, Sydney Fringe Festival and the Australia Day Council; and
- Airport stakeholders including Qantas Jumbo Joy Flight and Virgin Starlight Charity Flight.
For the second year running, we launched the Sydney Airport Christmas Giving Appeal which runs for six weeks over the Christmas period. Last year, we raised more than $116,000 for the Starlight Children’s Foundation and we hope to build on the success of last year’s appeal with our support of Variety – the Children’s Charity in 2013.
We also held our second annual Lost Property auction which received huge support from the public, raising more than $130,000 for charity.
Through our master plan consultation, we also engaged with hundreds of stakeholders including government, business and industry groups, tourism groups, aviation stakeholders and most importantly, the local communities around Sydney Airport and the broader surrounds.