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Sydney Airport Aeronautical Agreements

During its investor day in early December, the airport informed shareholders that it wanted to conclude flexible agreements allowing „gradual changes in infrastructure and service“. Morgan Stanley analysts, however, have warned that low rates will make it harder for the airport to justify the increase in fees it charges airlines. Qantas is ready to invest in major projects if the price is right, and Sydney Airport is ready to enter into interim price agreements if necessary, while discussions on longer-term agreements continue. Aviation charges at Sydney Airport with Qantas covering all Qantas passengers But JAMES Nevin, RBC`s capital markets analyst, said it could be difficult to convince airlines of the value of investing in large projects at a time when they have reduced capacity and the airport needs to focus on developing better relationships with them. Geoff Culbert, Sydney Airport`s chief executive, is trying to improve travellers` perception of the airport and renamed it SYD last year by splashing digital images of the city`s landmarks such as Bondi`s Iceberg pools and the Harbour Bridge on a new wall in the international terminal. The aviation renegotiations do not concern Qantas` T3 terminal in Sydney, which has a ten-year contract that only expires in 2025. Geoff Culbert, CEO of Sydney Airport, has built a new wall at the international airport that shows images of the city`s landmarks like the Bondi Icebergs Pool. James Brickwood The airport has previously proposed to build a fourth terminal, T4, which would provide long-term international and domestic flights as well as cargo flights, and informed investors in early December that the „collocation“ of its domestic and international services would be reviewed. „With a number of large – and therefore expensive – projects being proposed to increase airport capacity, we believe Sydney Airport needs the strong relationship to convince airlines of how some of these development plans are also beneficial to them, instead of just increasing the cost per passenger by increasing passenger fares,“ Nevin said.

The airport said it was too early to comment on the final form of the agreements, but had always cooperated constructively with the airlines` partners. The pricing agreements in the agreements are important for the airport`s future profits, given that air services account for nearly half of the company`s revenue and contributed $361 million in the six months to June, an increase of 4.7% over the same period a year earlier. .

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