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WSI’s International Growth Potential

Initial services from Air New Zealand, Singapore Airlines, Fiji Airways and Vietjet Air should provide a platform for growing international operations at the new Western Sydney International Airport, says Australia’s competition regulator.

WSI opens for international operations with NZ operating three return flights a week to Auckland, commencing from 26 Oct. SQ will follow with daily return flights to Singapore from 23 Nov. Forecasts show 11.8 million annual passengers by 2035, including 6.4 million domestic passengers at WSI, a 24/7 airport unlike Sydney International Airport, which is subject to an overnight curfew.

The Australian Competition and Consumer Commission (ACCC) says WSI international passenger numbers are forecast to grow by 80% between 2030 and 2035.

This growth is supported by air service negotiations.

Recently negotiated deals with the UAE and Qatar allow direct services from those hubs to WS Airport, should airlines choose to utilise the available capacity.

“As similar arrangements are reached with other countries, WSI Airport may be better placed to attract a broader range of international carriers,’’ the ACCC says.

. . . Domestic Potential

While WSI could attract a mix of domestic carriers, low-cost carriers will likely be a key source of growth at the airport, 50km from central Sydney.

SYD will likely remain the preferred airport for full-service carriers and corporate travel. Low-cost carriers, however, typically prefer airports that can offer significant capacity and competitive airport charges.

Founder of short-lived regional carrier Bonza Airlines, Tim Jordan, says that the lack of available peak period slots at SYD acts as a major barrier to entry.

WSI presents an opportunity to increase regional airline competition and access to Sydney for regional communities, the ACCC says.

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