Sydney Kingsford Smith Airport
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- 10 Arrivals Court
Sydney International Airport
- Domestic | International
- Airport Type
- Other airports serving Sydney
- Sydney Bankstown Airport
Sydney Camden Airport
- 2530m x 45m
3962m x 45m
2438m x 45m
- Airlines currently operating to this airport with scheduled services
- Air Canada
Air New Zealand
All Nippon Airways
China Eastern Airlines
China Southern Airlines
Delta Air Lines
Indonesia AirAsia X
Polar Air Cargo
Regional Express (Rex)
Tasman Cargo Airlines
- Airlines currently operating to this airport via codeshare
- Aegean Airlines
Air Tahiti Nui
CSA Czech Airlines
KLM Royal Dutch Airlines
South African Airways
Virgin Atlantic Airways
Formally known as Kingsford Smith Airport, Sydney Airport serves Australia's largest city, Sydney. Hosting domestic, regional and international passenger and cargo services for over 35 airlines, the airport is a major hub for airlines including Qantas, Virgin Australia, Jetstar, QantasLink and Rex. The airport is operated by Sydney Airport Corporation.
Location of Sydney Kingsford Smith Airport, Australia
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Ground Handlers and Cargo Handlers servicing Sydney Kingsford Smith Airport
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2,669 total articles
183 total articles
Competition could again intensify on Australia-Bali routes, despite the upcoming withdrawal of AirAsia X. The long haul low cost group drove 7% growth in the Australia-Bali market in 2015 but is suspending services to Bali from Melbourne and Sydney at the end of Aug-2016.
The Lion Group and Turkish Airlines are both looking to launch services between Bali and Australia, which could potentially fill the void left by AirAsia X in the Bali to Melbourne and Sydney markets. The Lion Group could also fill the void in the Bali-Brisbane market left by Garuda Indonesia, which suspended services to Brisbane in early 2015.
The Australia-Bali market has grown steadily and nearly quadrupled in size over the last decade. However competition is intense, making it difficult for any new entrant – as AirAsia X discovered.
Australia-Philippines market faces overcapacity concerns as Cebu Pacific, PAL plan further expansion
Passenger traffic between Australia and the Philippines grew by 39% in 2015, making it Australia’s fastest growing international market. The Australia-Philippines market is poised for more rapid growth driven by expansion at Cebu Pacific Air and Philippine Airlines (PAL).
PAL is planning to use its new A321neo fleet to launch new nonstop flights to Brisbane and potentially add a second frequency to Sydney. Cebu Pacific plans to launch service to Melbourne as it expands its A330-300 fleet.
However, overcapacity is a major concern. Cebu Pacific’s entrance has stimulated demand but impacted load factors and yields. In 2015 the average load factor on Australia-Philippines flights was less than 67%, including a dismal 60% at PAL and only 64% at Cebu Pacific.
Virgin Australia's long haul network will double in 2017 as Abu Dhabi and Los Angeles are complemented with daily flights to Beijing and Hong Kong, which Virgin intends to launch from an undisclosed Australian city on 01-Jun-2017. The A330-200 flights help Virgin move widebodies out of the domestic Australian market. The Beijing and Hong Kong flights will be part of an alliance with mainland China's HNA Group, which has announced an investment of 13% in Virgin with the intent of taking it up to 19.99%.
Beijing is the home of the HNA flagship Hainan Airlines, while Hong Kong is home to HNA's Hong Kong Airlines. Restrictions in China and bilateral constraints in Hong Kong mean that the HNA group airlines cannot fly trunk routes. Virgin Australia is free of the restrictions that Hainan Airlines faces in China, and can use the available frequencies for Australian airlines to Hong Kong (Hong Kong-based airlines have exhausted their allocation).
Virgin will however need to secure slots in these opaque markets – Beijing especially. Its partners could help or even give slots, but protective action by competitors should not be underestimated. The focus turns to the commercial arrangement and whether it will be profitable for Virgin. Hong Kong will generate some outbound Australia traffic, but the routes will be heavily sold by HNA – its airlines and travel agency partners. The Hong Kong service will be able to tap into Hong Kong Airlines' mainland China network, with some connections more efficient through Hong Kong than Beijing.
HNA/Hainan Airlines' 13% stake in Virgin Australia for USD114 million expands HNA's equity airline network outside mainland China to nine airlines on five continents – two airlines more than Etihad has invested in. Even once HNA grows the Virgin Australia stake to 19.99%, as it intends, it will not be HNA's largest in equity or percentage; but it is the most momentous and strategically important yet. It is accompanied by a strategic alliance, subject to approval, through which Virgin Australia will fly to mainland China and Hong Kong.
HNA's past investments have either not met their originally anticipated strategic value (Aigle Azur) or are airlines (Africa World, Comair) that do not have HNA services and are unlikely to be significant in the near future. HNA's Virgin stake is different: Australia is China's largest outbound long haul market after the US but Hainan has had a limited presence. Hainan has previously focused on the US market while regulatory constraints (in both mainland China and Hong Kong) and lack of partnerships have restricted growth.
Chinese visitors are reshaping tourism flows and aviation opportunities in many markets. This has been readily apparent in Australia, where China Southern in the space of a few years has become a household name, and Chinese tourists are the second largest visitor source. The next manifestation could be a Chinese airline purchasing the stake in Virgin Australia that Air New Zealand is looking to divest itself of. China Southern and Hainan Airlines are evaluating the opportunity, according to the Australian Financial Review.
China Southern would benefit from a stronger local partner after its previous partner Qantas formed a JV with the rival China Eastern. With every Chinese visitor taking two to three domestic Australian flights, an equity stake could allow the Chinese airline to capture back revenue streams. China Southern could also invest as a defensive move. Hainan serves Australia seasonally and its use of Virgin could be more radical, with an outcome of Virgin flying to mainland China and Hong Kong, accessing routes that Hainan's HNA Group (including Hong Kong Airlines) is unable to serve. Hainan already has an airline investment portfolio but Virgin would be its most significant. For China Southern, a Virgin stake could start state-owned Chinese airlines buying foreign airlines as they seek to be at the centre of most things in the world; including, one day, global consolidation.
The pace of change in Chinese aviation can be daunting. The growth of Chinese airlines in international markets in 2015, one year, was the same as in the previous three years combined. Chinese airlines are growing outside their hubs to have wider coverage. Shanghai's lucrative market has drawn Air China and Hainan Airlines to launch long haul flights.
Now, in a matter of months, Shenzhen in southern China has gone from having no long haul routes to having six air services launched by four airlines during 2016. The Sydney route has already been opened and it could be followed by Auckland, Frankfurt, Los Angeles, Melbourne and Seattle – with surely more to come. Shenzhen did not meet an earlier target, but this is an impressive roster, even if mostly backed by handsome subsidies.
The expansion is notable given Shenzhen's underdevelopment in short haul international, let alone long haul. International traffic has flowed to other hubs, notably Hong Kong, which has excelled in becoming an intermodal transport hub by enlarging its catchment area through a network of ferries and coaches. Even as Hong Kong comes under a capacity crunch, it will not want Pearl River Delta traffic to flow back to Shenzhen, even if this is inevitable.