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Newly minted Sydney Airport boss Scott Charlton says inbound tourism will continue to be hampered until capacity increases on routes to Europe and the Middle East.<\/p>\n
The airport is expecting 2.6 million passengers over the three-week December holiday peak \u2013 500,000 more than in 2022 \u2013 but still 5 per cent below 2019.<\/p>\n
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Sydney Airport is slowly returning to pre-pandemic levels.<\/span>Credit: <\/span>Peter Rae<\/cite><\/p>\n \u201cDestinations like China, Vietnam, South Korea and the US are all above pre-pandemic capacity, but it\u2019s really those Middle East and Europe flights that need to increase their load factors,\u201d he said.<\/p>\n Of the 2.6 million people, 1.1 million will be travelling through the international terminal \u2013 almost 35 per cent more than 2022. The number of domestic travellers is forecast to increase by just 16 per cent on 2022 to 1.5 million.<\/p>\n \u201cThe passage of time will get us [above pre-COVID capacity] within the next year. Our supply chain has been rebuilding, so it\u2019s just taking a bit longer,\u201d Charlton said.<\/p>\n \u201cOur focus is on the next phase, which is how to make the airport more efficient and how we can bring more airlines and passengers in.\u201d<\/p>\n Melbourne Airport became the first major airport to return to 100 per cent of international capacity this week, with New Caledonian carrier Aircalin recommencing services for the first time in three years.<\/p>\n Charlton\u2019s first week coincides with the deadline for the industry to submit recommendations to the federal government ahead of the looming aviation white paper, which will set out industry policy to 2050.<\/p>\n Charlton said he was hopeful the government would finally implement long-awaited reforms to the airport\u2019s regulation, but conceded that amending infrastructure regulation was no easy feat.<\/p>\n \u201cWe\u2019re hopeful that through the green and white paper process that the government will take some incremental steps to improve performance to the benefit of everyone,\u201d Charlton said.<\/p>\n Sydney Airport boss Scott Charlton says flights from the Middle East and Europe need to increase.<\/span>Credit: <\/span>Eamon Gallagher<\/cite><\/p>\n \u201cReform would make the airport more resilient and reliable for the good of all the airlines and customers … It\u2019s not about bashing up a particular group, it\u2019s just what we can do to make the industry more efficient.\u201d<\/p>\n The movement cap restrictions and tight curfew which rule the airport are 20 years old and are a point of frustration for airlines, airports and passengers in the event of disruption, as the airport is restricted in its ability to quickly catch up.<\/p>\n A 2019 productivity commission inquiry examined the regulation that governs Sydney Airport to see if it enabled carriers to hoard slots. The inquiry led to a review of Sydney Airport and its complicated governing legislation, dubbed the Harris review.<\/p>\n The review recommended the government introduce a stronger compliance regime and an overhaul of Sydney Airport\u2019s outdated regulation, but its recommendations are yet to be implemented.<\/p>\n The Australian Airports Association submitted to the government to implement the Harris Review recommendations as part of the white paper.<\/p>\n The body, which represents 340 Australian airports, also called for the competition watchdog to conduct an inquiry into anticompetitive behaviour in domestic aviation, consider implementing an independent airline ombudsman and create a local sustainable aviation fuel industry as part of its recommendations.<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. <\/i><\/b>Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\n<\/p>\n
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