December 20, 2016

Badgerys Creek Airport: Questions raised about Sydney Airport Group

The Sydney Airport Group, which currently owns Sydney's Kingsford Smith Airport, is now looking at whether to exercise its option to develop and operate the new Badgerys Creek Airport.

Some questions are being raised by business, community and regulatory groups about the organisation's current practices and how they could affect future users if it does become the new operator.

No limit to what they can charge: ACCC Chairman

The Australian Competition and Consumer Commission chairman Rod Sims said Sydney Airport was sold in 2002 without any restrictions on what it could charge users of the airport.

The Howard government received $5.6 billion for that sale.

Mr Sims said the conditions of sale back then had amounted to carte blanche for the company over what it charges users.

"Sydney Airport has turned out to be a bumper investment.

"It has the highest profit margins on aeronautical services, very high profit margins on car parking.

"But on the other hand it has not invested as much as other airports, and it has consistently had the lowest ratings on the quality of service." Mr Sims said.

"I think the taking off of any regulation on the airport charges was an attempt by the then government to maximise the proceeds from sale, with I think insufficient regard to what the company buying the airport would then do."

Macquarie Bank is now the majority owner of Sydney Airport Group and its former Macquarie Bank CEO, Allan Moss, said at the time he believed it was a good purchase.

Congestion and inflated carpark fees major concerns

The consumer public transport group, Action for Public Transport said it is worried about what it calls Sydney Airport's high charging culture, particularly affecting car parking, taxis and public transport options at Sydney's existing airport.

Spokesman Jim Donovan said the company has made it hard for travellers on all levels.

"They make a massive amount of money out of the Kingsford Smith carpark.

"I understand it has the right to ask the RMS (Road Maritime Services) to widen the airport to get even more cars in there."

Sydney Airport has also had issues in the past with its taxi ranks and problems with heavy traffic in the area.

The New South Wales Taxi Council said it has a good relationship with Sydney Airport with the $4 plus access fee for taxis being passed onto passengers for curb side management.

Mr Donovan said it looks like the new Western Sydney Airport will be relying on the road network, including carparks.

"You need a rail link at Badgerys Creek that will also service surrounding suburbs, otherwise there will be a major impact on roads out there."

Last week, the Federal Government said rail options were still being considered and it was working with the New South Wales Government to map out road and rail linkages to the site, with no concrete plan for a direct rail link.

Transport for NSW said a final report on the rail needs for the whole of western Sydney is due next year.

Aircraft noise likely to remain an issue with residents

Aircraft noise has been a major electoral issue for successive governments with aircraft movements from Sydney's Kingsford Smith.

The Sydney Airport Community Forum (SACF) was established in July 1996 to address the noise impacts from Sydney Airport in consultation with affected residents.

The Western Sydney Regional Organisation of Councils president Stephen Bali said the same or similar issues exist for Badgerys Creek.

"In the end, as Badgerys Creek is slated to be a 24/7 airport, we are relying on a corporation to take in the needs of local residents in western Sydney, particularly regarding noise and so forth.

We need the Federal Government to impose regulations to safeguard the community."

No comments:

Post a Comment