GE’s Geoff Culbert takes the helm at Sydney Airport

The General Electric Australia head will replace the long-standing CEO Kerrie Mather.

Geoff Culbert, the new chief executive at Sydney Airport. Picture: Renee Nowytarger

Sydney Airport has appointed General Electric’s Australian head to replace long-time chief executive Kerrie Mather, as it benefits from a surge in international flyers but faces the prospect of competition from a proposed second airport in the nation’s biggest city, and a sharpening focus on charges.

Sydney Airport chairman Trevor Gerber said Geoff Culbert would start in the job by the end of January.

Ms Mather announced her resignation after 15 years at the company at the end of March and the market had been waiting for a management update on her replacement amid a global search.

Mr Gerber said Mr Culbert had “strong and established relationships with many of Sydney Airport’s key airline and business partners, and across all levels of government”.

He stands to be entitled to a grant worth up to $2.3 million in securities and cash for forgone incentives at the multinational conglomerate, although his fixed annual remuneration of $1.5m, including superannuation, is below the $1.8m in fixed-base salary and super awarded to Ms Mather in 2016. He will be eligible for a short-term cash bonus and long-term incentives, subject to performance hurdles.

Industry veteran Peter Harbison, the CAPA-Centre for Aviation executive chairman, said Mr Culbert would take the job at a time when airports were facing a “much keener” focus on their charges and regulation.

A pivotal Productivity Commission review of airport regulation is expected next year, while former competition tsar Graeme Samuel has been appointed to chair the new group Airlines for Australia and New Zealand, which has signalled it wants to take on airport fees and charges.

Mr Harbison said the issue was “quite important to the long-term financial position of the airport”.

“It’s probably been less controversial because Qantas in particular has been making very good profits,” Mr Harbison said. “If we revert to sort of typical times for airlines, who knows what will happen, that pressure will become stronger.”

Last month, analysts at Morgan Stanley noted the government’s attention was on rising energy prices and domestic airlines had positive cash flows, making the risk of intervention low.

Mr Harbison said that government relations would be important to the job as “aviation is highly political”.

Another key issue facing the airport is the need to develop its updated master plan, which will factor in the impact of the proposed airport at Badgerys Creek due to open in 2026.

Sydney Airport refused the option to build Sydney’s second airport, prompting the government to spend up to $5.3 billion to build it, which will put an end to Sydney Airport’s monopoly in the Sydney basin.

The airport is pursuing plans to invest in capacity, a move some analysts have said will further entrench its position before Badgerys Creek is up and running.

Mr Culbert became head of GE Australia, New Zealand and Papua New Guinea in 2014 after joining GE in 2002.

In the airport operator’s statement to the ASX, he said he was “excited about the contribution the airport makes to the broader economy”.

“If we continue to capture the increasing demand for travel, particularly from developing markets, the flow on benefits for the NSW and Australian economy will be huge,” Mr Culbert said.

Mr Gerber said the appointment followed a “rigorous” global search and the board was impressed by Mr Culbert’s “commitment to contributing to the social and economic development of Sydney, NSW and Australia, his interest in public policy and lifelong passion for aviation”.

“Aviation is one of the most dynamic and fast-changing positions in the world,” he said.

Mr Culbert’s focus on innovation would “position Sydney Airport for future success”.

Sydney Airport shares closed down 4c at $7.17.