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Recorded at CAPA Australia Pacific Aviation Summit, 4-5 Aug 2016

Sydney Airport Update

Sydney Airport's international traffic was up 10% in the first seven months of 2016, representing a significant acceleration over the 4% growth rate from 2015. Over the last year Sydney Airport attracted seven new airlines with new international routes. Sydney Airport executive director aviation services Shelley Roberts discusses opportunities for further international growth. The airport expects further growth to China, where it now has 10 links, and the Americas. It is also working with Southeast Asian airlines to add frequencies and up-gauge existing flights. Ms Roberts also discusses the future role of the new West Sydney Airport, which will be constructed at Badgerys Creek, and initiatives to improve Sydney Airport's level of service.

Transcript

Shelley Roberts:It's a very, very exciting time, as we've been talking about today. I think there's been a lot of discussion around the China market. What we're seeing in terms of the Chinese market is in fact that having started with the development of the primary centres— Beijing, Shanghai, Guangzhou— we're now seeing the regional centres come online. And when we say regional, we really mean cities of 20 million people. What are some of the key cities? So it's fantastic to have those direct services into Sydney. We already have 10 destinations in mainland China served in and out of Sydney Airport, and it's fantastic to continue to grow that. We're also seeing significant development in the American, US market as well, and we're seeing further proliferation of the hubs. For example, Dallas has come online as a significant hub. We've obviously got the traffic through LA, and we continue to— in fact, last year we had American Airlines as one of the first carriers. So exciting times in the North American market. And then just coming back to Southeast Asia, lots of opportunities still in working with carriers who already serve those markets to continue to grow their frequencies and in fact increase the size of their aircraft as well in those markets. Yeah, well, it's really interesting. If you look at our growth pattern, you tend to see that about half of our capacity growth comes from existing carriers. So those might be carriers who are taking delivery of new aircraft, upgauging their aircraft. So for example, when the A380 came online, a lot of the carriers put the A380s onto the Sydney market. And then we see new routes and new carriers coming into the market. And just last year, we introduced actually in a total of 12 months, we had 7 new carriers serving 7 new routes. So it was really exciting. Yeah, well, as you'll know, the Commonwealth is currently working on a project to build an airport in Western Sydney. Western Sydney, in fact, as an economy, is the 4th largest economy in Australia. So it's very much going to be about an airport for Western Sydney, serving the people of Western Sydney, and it's a very exciting project that we've been lucky to be involved in. We've been working very, very closely with all of our on-airport stakeholders to really look at the passenger experience right the way through the journey, and one of the most recent improvements in that regard has been the installation of eGates on the outbound border. So today, 100% of outbound passengers are now processed in 30 seconds through an eGate, which is just a fundamental transformation of the passenger experience. So we'll continue to work with all our airport partners to continue to automate the service, to continue to increase and deliver bespoke information, particularly on iPhones and beacons and new technology, in order to provide a tailored service to each and every passenger. And in addition, when you look at new greenfield airports that are developed globally, They're often developed in a system together with the primary airport, so it's a really fantastic opportunity to have the Western Sydney Airport coming online to complement the airport that we already have at Kingsford Smith. Thank you.

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