Crowds increase at Sydney Airport
Sydney Airport Holdings Limited (ASX:SYD) is the busiest and worst performing airport in Australia, according to the consumer watchdog.
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Sydney Airport needs to either increase investment in its infrastructure or another airport should be built in the city.
That is the verdict of the competition and consumer watchdog, which delivered another damning verdict on the airport on Monday, finding it was the country's worst, but also most profitable, airport.
The report highlighted the airport's high parking costs, and poor facilities for both the airlines and passengers that use it.
High costs, poor facilities: Sydney Airport. Photo: Reuters
But the Australian Competition and Consumer Commission's yearly monitoring report also focused on the declining number of flights that arrive on time at Sydney and at other airports across the country.
''Where you've got a story of declining service, potential lack of investment, and on-time arrivals falling … it all comes together to tell a story that is potentially quite telling,'' ACCC chairman Rod Sims said.
Mr Sims would not say that the ACCC's latest report card demonstrated the need for another airport in Sydney. But he said something had to change. ''If you can't do any more with the site, then maybe you need a second airport,'' he said. ''If you can do something more with the site, then maybe that needs to be done.''
Federal Transport Minister Anthony Albanese insists Sydney needs a second airport, partly because the existing airport is running out of room. At 907 hectares, Sydney Airport is small compared with other international airports.
The ACCC report noted that in the past two years and among all airports in Australia, Sydney has invested comfortably the least amount as a proportion of its total value into its own infrastructure.
At the same time, Sydney Airport, listed on the stockmarket with a value of $6.4 billion, makes $14.96 for each passenger, almost $4 more than any other airport.
It makes more than $7600 a year for every car space it has, the highest in the country, and more than $5200 of that is profit. Among passengers, Sydney Airport had the lowest ranking for customer satisfaction in the country. However, the level of satisfaction had improved.
Chief executive officer of Sydney Airport Kerrie Mather said the airport had listened to its customers.
''Even though we've made significant investment, the [ACCC] report acknowledges that our price increases have been the lowest of all the airports and passengers appreciate the results with the highest quality of service rankings in a decade,'' Ms Mather said in a press release.
Mr Albanese is likely to release next week a study of whether a second airport should be built at Wilton, in Sydney's south-west. If, as expected, that report shows a Wilton airport is not viable, an airport in western Sydney could return to the agenda.
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