First impressions last, as the overused saying goes, so what impressions are being left by Sydney Airport on first-time visitors, particularly international ones?
Much better ones than 10 years ago, that’s for sure, but arguably not ones that would allow SYD to compete with some of the world’s best, like Singapore Changi, Dubai International or even London Heathrow (although it must be said if you’re using anything but T5, it can be a patchy experience).
Significant indoor/outdoor space? No. Large kids’ playing areas? No. Easy transition from international to domestic? No.
But it is much closer to the city than most other large airports, and there is a willingness to look at how things could be improved, especially with cross-town rival Western Sydney International coming online at the end of next year.
Sydney Gateway is an example of that – it might be a bit of a spaghetti junction, but it works well and provides even easier access to SYD from multiple directions. The five-year parking upgrade plan is another example of that.
This week, SYD dropped the draft Masterplan 2045, the biggest indication yet that it is more than serious about significantly adjusting that first impression.
This is, of course, an upgrade to what was already in play, Master Plan 2039, released in April 2019 under then CEO Geoff Culbert, prior to that small bump in the road in 2020.
Arguably of most importance operationally is the reconfiguration of Terminal 2 and Terminal 3 to be combined and have the capacity to handle international flights. That will include a common-use outbound terminal processor with segregated international arrivals.
T2 and T3 will be essentially unrecognisable, with a new western concourse between the two to link them properly, rotunda upgrades around that new section to accommodate new aircraft, new T3 north face upgrades and an extension to the north pier, and a new Pier C as part of T2.
Importantly, T1, now used for international operations, will still be used. According to the Master Plan, “Passengers will be processed through a common-use transfer lounge and can travel between the T1 International Operations Precinct and the T2/T3 Integrated Operations Precinct via an airside corridor”.
Hopefully that will be an easy and frequent system that allows passengers to zip from T1 to T2/T3 in a few minutes.
Why is this important? Because according to the Master Plan itself, traffic into SYD (not the whole of Sydney including WSI) is about to increase significantly.
Almost 73 million annual passengers will arrive at SYD by 2045, up from the 41.4 million currently served. The main driver of that growth will be international passengers, who are forecast to account for 36.4 million of the total by then – more than domestic will contribute.
To put that into context, the current split today is 16.3 million international and 25.1 million domestic. SYD is going to want to get the upgrades right if it’s to handle that level of passengers successfully and leave a great first impression. Imagine how many of those 36.4 million will be first-time visitors.
Over on the other side of town, WSI’s Master Plan 2045 suggests it will see 19.3 million passengers annually by that year, with 58% of those passengers being international.
By its own admission, “Since this initial forecast, subsequent airport demand and air space modelling, as well as further information regarding domestic and international airlines routes, have become available”, which indicated demand could be increased and timing pulled forward as much as one to two years for the hub’s 2033 forecasts.
The advantage WSI has is that it is far easier to build a modern and streamlined airport when you can start from scratch, not battling foundations of bygone eras.
To paraphrase Kevin McCloud, buildings have a funny way of dictating what happens.
Either way, forecasts combined from SYD and WSI make for happy reading for the travel industry. 19.3 million passengers per year in 2045 for WSI, 72.6 million for SYD. That’s almost 100 million passengers in one year for one city in Australia.
I believe they called that “rude health” back in the day.
The rest of the week…
It’s been a tough week for Corporate Travel Management (CTM), which is set for a much longer break from the ASX than originally anticipated.
Securities in CTM will remain suspended until at least November 2025 due to unresolved issues regarding its European accounts for FY25 and previous years.
KPMG has been engaged to conduct a thorough review of CTM’s 2023-2025 statements for the Europe region, however work will not be complete in time for CTM to finalise its full-year report by 25 September.
In more positive news, AmaWaterways quite casually announced eight new river cruise ships that will be progressively delivered over the next five years.
Once all ships are operational, the order will take AmaWaterways’ global fleet to more than 40 ships – double what it offered in 2020.
And Victorians will be celebrating after a backpedalling by the Victorian Government on funding cuts to tourism and marketing activities. All up, it will mean an additional $43.7 million over two years.
Finally, if you ever felt like making your thoughts known to a supplier (politely of course), you might be happy to know that some do indeed listen. Carnival Cruise Line for one.
After a mixed response from customers toward the revamped Carnival Rewards loyalty program, the line has made changes to its earning structure prior to launch.
Travel industry out for another week. Enjoy the weekend.
Damian
