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Sydney Airport Corporation Limited reaches commercial agreement with Virgin Blue

24-May-2007

Sydney Airport Corporation Limited announced (23-May-07) that

it had reached commercial agreement with Virgin Blue about domestic runway charges

at Sydney Airport.

The CEO of Sydney Airport Corporation Limited, Russell Balding, said "Sydney Airport is pleased that this agreement has been directly negotiated and resolved on a commercial basis to the satisfaction of both Virgin Blue and ourselves. Virgin Blue is one of our most important customers and their performance over the last couple of years has been a key factor in the success of our T2 terminal – which is now the busiest of the three terminals at Sydney Airport."

The agreement is a sensible commercial outcome that provides for pricing based on maximum take off weight (MTOW), in place of a price per passenger charge.

As part of the agreement a new Virgin Blue lounge is to be established within the existing T2 Function Centre. The new lounge will provide improved facilities and more space for passengers, and enables Virgin Blue to provide an enhanced travel experience for passengers using the recently refurbished T2.

Mr Balding said that the pricing agreement and the announcement of the new lounge indicated the strength of the relationship between Sydney Airport and Virgin Blue and the common commercial interest that exists in working together to grow flights and passenger numbers to and from Sydney.

Virgin Blue has withdrawn the notification of a dispute to the Australian Competition and Consumer Commission under Part IIIA of the Trade Practices Act.

Sydney Airport and Virgin Blue have agreed that further details of the agreement will remain commercial-in-confidence.


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