Dead air is expensive for Sydney - The Daily Telegraph

Sydney Airport. Source: The Daily Telegraph

SYDNEY is set to lose millions in tourism dollars, with another international carrier in negotiations to fly to Melbourne because of Sydney's curfew.

Avalon Airport chief executive Justin Giddings said the Melbourne airport was set to announce the airport's first international carrier in the coming weeks - but revealed the airline's original preference was to fly to Sydney.

"The airline we are speaking to now was looking to come to Sydney but the curfew is the killer," he told The Future of the Western Sydney Economy conference yesterday. "If they miss curfew the cost of putting up 400 passengers (in a hotel overnight) is exorbitant. It's a low-cost airline and they can't absorb that (cost)."

Last year Qatar Airways chief executive Akbar Al Baker said it was impossible to schedule flights to Sydney with its 11pm to 6am curfew.

Mr Giddings said Melbourne was the big winner from Sydney's lack of aviation capacity. "It's great for my business and it's great for Melbourne Airport's profitability."

He said each flight into Avalon Airport brought with it $24,600 in visitor spending to the region.

Last year Avalon Airport was given the green light to build an international terminal cementing its position as Melbourne's second airport.

Avalon, which like Badgerys Creek is 50km from the CBD, has struggled to attract an international carrier for a number of years, but Mr Giddings was confident an airport in Sydney's west would not face the same problems.

Sydney Airport's capacity constraints would force some airlines to relocate flights to the new airport.

"I think a staged approach is what you need," he said.

"Start off with domestic flights, one runway, one simple terminal.

"Maybe even portables - just get the thing going and build up as you go.

Federal Transport Minister Anthony Albanese told the conference he would release the scoping study into an airport at Wilton in the next few weeks, but hinted the government might not adopt its findings given it was the work of "outside consultants".

"The report is being done outside of government," he said.

"We will release it, (but) it doesn't mean we agree with it and it's not the government's position."