Sydney Airport calls for border freedom to come with jab

Sydney Airport’s boss has called for border restrictions to be eased in line with the rollout of the Covid vaccine.

Sydney Airport’s bottom line has been hit hard by the COVID crisis which reduced international travel to historic lows. Picture: Bianca De Marchi/AAP

Sydney Airport’s boss has called for domestic and international border restrictions to be eased in line with the rollout of the Covid vaccine to help build public confidence in the vaccination process.

Announcing the airport’s $145.6m loss for the 2020 full year, chief executive Geoff Culbert said he was hopeful of a recovery in 2021, on the back of the vaccine program.

But he said each phase of the program needed to deliver some benefit to the Australian community, in the form of personal freedoms.

“If you get the vaccine you get your life back. That’s significant motivation and encouragement, and importantly we need to plan for this,” Mr Culbert said.

“There’s the potential for a significant economic upside for the country if we get this right. We would be the best country to study in, the best country in the world to work in, the best country in the world to holiday. But we need to get ahead of this.”

He said a plan devised by the Business Council of Australia’s tourism and transport task force which he chaired, would see domestic borders permanently reopen once vulnerable members of the community were vaccinated.

That would be followed by a reopening of international borders to select groups including Australian residents and foreign students; before a full return to inbound and outbound travel once the balance of the adult population was vaccinated.

Mr Culbert said New South Wales Premier Gladys Berejiklian had supported the idea of rolling back restrictions as the vaccine rolled out, and he hoped other states would too.

“I’ve discussed this with the federal government and they’re supportive, they understand it, they get it,” he told The Australian.

“Their focus right now is getting the vaccine out but now that has started it’s time to start thinking how the phased rollout of the vaccine ties in to a phased roll back of restrictions.”

 

He admitted the reopening of borders was critical for Sydney Airport’s return to profit, after the gateway’s $403m gain in 2019 nosedived to a $145.6m net loss last year.

A 75 per cent plunge in travellers dragged down revenue in every part of the airport’s operations, from aeronautical and retail to carparking and ground transport.

Overall revenue fell 51 per cent to $803.7m with the airport providing rental relief to dozens of retail and property tenants, most of whom had stayed put.

An investor presentation highlighted the lag in Australia’s domestic traveller recovery compared to other countries as a result of ongoing snap border closures.

Mr Culbert said the lack of certainty was the only thing “holding us back”, and suggested the public appetite for border restrictions in the name of “safety” had waned.

“I think the mood of the nation has changed. We’re no longer obsessing over the daily Covid cases,” he said.

“We’re now looking forward to getting our lives back.”

When international travel was allowed to resume, possibly by the end of the year, Mr Culbert said it was highly likely proof of vaccination would be needed to board an aircraft.

Qantas has already made it known a Covid vaccination would be a condition for overseas travel with the airline, with others expected to do the same.

“I think that’s probably the reality for the foreseeable future,” Mr Culbert said.

“It’ll be like the old yellow fever certificate but it’ll be digitised and it’ll be easily adopted, like QR codes.”

Sydney Airport shares closed up 15 cents on the back of the full year results, at $6.08 a share.

Moody’s Investor Service vice president Nicholas Chapman said although the result was “weak” substantial countermeasures had strengthened the airport’s ability to manage the prolonged downturn.

These included reduced operating costs, and $3.5bn worth of liquidity as a result of loans and equity raising.

Mr Chapman said the airport’s credit profile was also supported by “the fundamental necessity of air travel in a geographically large and highly urbanised country”.

Board member David Gonski was named as the replacement for chairman Trevor Gerber when he retires at the airport’s AGM in May.

Mr Gerber said his six years as chairman had been one of the highlights of his career, and he was satisfied the airport was well placed for recovery.