Sydney Airport’s strategic priorities and opportunities

Increasing passenger numbers and aircraft movements
  • Focusing on attracting airlines from the Asia region, which Sydney Airport believes is an area of growth due to the increasing affluence of large emerging markets, particularly China and India
  • Broadening relationships with airlines and working with them to encourage increased aircraft size, increased flight frequency on existing routes and adding new routes
  • Working with tourism authorities and industry groups to develop marketing initiatives to increase the profile of Sydney as an international tourist destination
  • Working with the Commonwealth Government to increase air rights to priority markets ahead of demand
Improving the customer experience
  • Focusing on listening to customers and improving the experience at every stage of the journey through superior customer service, operational efficiency and technological innovation
  • Working collaboratively with airlines, government, on-airport businesses, staff and the community to invest in services and infrastructure that improve the safety, efficiency and amenity for those visiting or travelling through Sydney Airport
Leveraging the Retail business by enhancing our understanding of customer behaviour and meeting customer needs
  • Focusing on providing high quality retail space, maximising passenger dwell time in shopping areas and creating an exciting and vibrant retail environment
  • Continuing to develop a product and merchandise mix to meet the retail expectations of passengers and to identify appropriate retailers who can meet Sydney Airport’s service, operational and financial objectives
Growing the Property business
  • 32.8 hectares of development land is allocated for business activities. We seek to optimise the development of available land for commercial activities through the master planning and land use management process
Aligning the Parking and Ground Transport business to customer needs
  • Tailoring the range of car parking products to offer customers value and choice, and to meet evolving customer needs
  • Ensuring multi-modal access to the airport is increased and enhanced over time
  • Continuing to advocate for more affordable public transport services to the airport precinct
Building additional capacity and effectively using assets
  • Focusing on investments in additional capacity to meet demand from future growth
  • Maximising the utilisation and efficiency of Sydney Airport assets
  • Balancing activity throughout the airfield, terminals and roads to reduce congestion and improve infrastructure utilisation
Effectively managing the capital structure
  • Maintaining an efficient capital structure with financial flexibility
  • Maintaining a minimum credit rating of BBB/Baa2
Western Sydney Airport
  • Considering whether to accept or reject the Notice of Intention (NOI) to develop and operate Western Sydney Airport (WSA)

Significant risks

Sydney Airport is exposed to a range of risks associated with operating Australia’s busiest airport. The strategies developed by the SAL Board and management to address these risks are reflected in the table above and in the table below, which describes our four main revenue streams.

Failure to maintain passenger and aircraft movement volumes
  • The business operations and revenues are dependent on the number of passengers that use Sydney Airport, particularly international passengers, which may decline or experience growth constraints due to factors beyond the airport’s control
  • Airline customers may experience adverse financial and operating conditions, which could have a materially adverse impact on aeronautical revenues
  • Aeronautical activities may be limited by the regulations imposed on Sydney Airport’s operations
  • The business depends on Sydney Airport’s ability to maintain the aerodrome certificate and lease over the Sydney Airport site
Third-party dependencies
  • The operation of Sydney Airport depends upon third parties over whose performance we have limited ability to influence
  • The business operations may be adversely affected if restrictions are imposed on the sale of tax and duty free consumer goods in airports
Capital management
  • Sydney Airport has significant indebtedness and there is a requirement to refinance portions of this debt on a regular basis
Other
  • Business operations could be materially adversely affected by cyber attacks, terrorist attacks and the threat of war
  • Sydney Airport faces risks and liabilities associated with aircraft accidents
  • The airport faces competition for new business from other airports and may face increased competition if the Australian Government develops an additional commercial airport, or expands other modes of transport in the Sydney region