Airlines have urged the new Australian government to develop a second Sydney airport.
Flag carrier Qantas and low-fare carrier Virgin Blue have both become increasingly dissatisfied with the conditions at the current Sydney Airport.
Both airlines believe congestion is becoming a major problem, and that in order for Sydney to remain competitive compared with the other growing hubs in the wider Asia-Pacific region the government needs to start making plans for a second Sydney airport development.
Brett Godfrey, Virgin Blue's Chief Executive, said the new Australian Prime Minister Kevin Rudd's government should "be courageous" in taking the decision.
He said: "[A second airport] will introduce some competitive tension, it will mean lower airfares, less congestion and it will provide an economic stimulus not just for this state but for travellers."
Godfrey added: "I just feel that's what governments are meant to do, aren't they - take courageous decisions?...Someone has to stand up and do it".
Qantas said that a second airport must be built "as soon as possible" to alleviate congestion problems.
The existing Sydney Airport, operated by Macquarie Airports (MA) - part of the Macquarie investment and property group - has been criticised by both airlines for not having the capacity to cope with the anticipated increase in passengers and air movements in the wider Asia-Pacific region, and the expansion planned by each airline.
In 2004 the Sydney Airport Masterplan stated the airport's present facilities would be able to cope with the forecasted 68 million passengers passing through the airport each year by 2023.
However, the airlines say Sydney - which is currently handling around 30 million passengers per year - is becoming overcrowded. They point to on-time figures for flights declining by up to 10% over the past 18 months as evidence that congestion difficulties are mounting. Virgin Blue said that air traffic control facilities are also struggling to cope with the growing volume seen in recent years.
Qantas' executive general manager John Borghetti said this proved there was a need for a second airport in Sydney.
Borghetti said: "The airport's future needs will exceed its capacity. Given the long lead times to identify, plan and develop sites, Qantas believes that consideration must turn as soon as possible to meeting the needs of the growing number of passengers of the Sydney basin".
The government have so far refused to comment about plans for a second airport in Sydney.
Currently, the government is preparing an Australian Aviation White Paper due for release in 2009 which will look at aviation needs around the country.
The government says part of this White Paper will include a Sydney Airport Masterplan that will update the 2004 plan, but that no decisions would be made on the issue of a second Sydney airport until after the White Paper has been released.
Federal Transport Minister Anthony Albanese said recently: "We have said that we will consider [the second airport] as part of the consideration of the masterplan for Sydney airport in 2009. But we want to have all these considerations in the context of a national plan".
Source - Airport International's Far East Correspondent
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