"Australian airport cashes in on security measures"

Friday, October 26, 2007

Airport cashes in on security measures
By Danny John
Australia - The Sydney Morning Herald


NEW restrictions on the type and amount of aerosols and gels that passengers
can put in their carry-on luggage have produced a revenue bonanza at Sydney
Airport.

The rules, which were introduced in March after authorities foiled a
terrorist plot to detonate liquid bombs on British flights, resulted in the
airport's income from additional security measures jumping by more than a
third in its latest set of financial results.

Like other airports, Sydney recovers the bulk of the extra costs from
airlines, which pass on their charges to passengers in the form of higher
ticket prices.

More detailed screening of baggage and hand checking of carry-on luggage saw
the amount of revenue from what the airport describes as "aeronautical
security recovery" rise 43 per cent to $51.3 million in the nine months to
September 30, compared with the same period last year.

A third of that $51 million was earned in the latest three months, when
revenue rose by 37 per cent to $17.4 million.

The percentage increases outstripped those recorded for the number of
passengers going through the airport and the amount of money they spent at
the airport's shops, restaurants and bars - even though security income
accounts for just under 10 per cent of Sydney's total revenue.

By comparison, income from passengers using the airport rose $16 million to
just under $220 million, while the retail business was up nearly $11 million
at $128 million.

Overall revenue was ahead by 10 per cent to $551 million, which produced an
almost equal percentage increase in pre-tax profit of $439 million for the
last nine months.

Sydney, which is 72 per cent owned by Macquarie Airports, continues to
benefit from more and more passengers, particularly those travelling
internationally. Jetstar and the Middle Eastern airline Etihad have added to
their services over the past quarter.

Further growth is expected as a result of the arrival of the new
super-jumbo, the Airbus A380, which made its debut commercial flight into
Sydney yesterday.

Able to carry 470 passengers a flight and initially operated by Singapore
Airlines, the jet's influence will be shown in the figures for the final
quarter of the year.

The airport has just begun a $500-million revamp and expansion of the
international terminal. It is adding extra duty-free operations that will
open by the end of this year. These will be followed by an eight-storey car
park with space for 3000 vehicles.

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