“Quicklook” Assessment of Greater Adelaide's Assets & Challenges ...

UK when compared to Asia. Additionally, it is the fastest growing airport nationally with
domestic passengers.
The opportunities of this those that attended this meeting saw airport in a positive light.
It was indicated that a huge market potential exists in New Zealand. The problem with
penetrating this market is seen in the fact that New Zealand views the east coast of
Australia as the only place to do business. Opportunities are further forecasted in the
freight area where volumes are expected to triple in next twenty years and even outstrip
passenger growth forecasts with links to business growth. Unlike the seaport industry
the air industry views the rail to Darwin as a major benefit. This is because mining towns
will open, thereby increasing air travel as well as freight.
The weaknesses were identified to aid in order to improve the future economies of the
air industry. Indications by attendees noted that from the FAC perspective too many of
the operations have been outsourced. This hurdle has made day-to-day coordination
and facilitation more difficult, and has impacted streamlining of operations. It was also
noted that the overall population of South Australia is low with only 1.2 million in the
Adelaide area compared to about 4 million in Sydney. This makes it difficult to persuade
airlines to come directly into the area because of the competition from the more
populated areas. The airline hubs are established in Sydney and Melbourne. This
creates issues in attempting to secure international flights as well. The complex capital
structure can be explored at Moodys Report Presales Report (indicated in the endnote
section).
The threats were identified as well. The relocation issues in the new terminal building
because of friction between Quantas and Virgin Blue is an indicator of the larger issue of
problems between established carriers and penetration by new carriers. Quantas and
Ansett have dominated the market in the Adelaide area. New carriers typically are
driven out of business through price wars and other tactics. The results are fewer routes
and less overall competition. Another issues involves the fact that passenger growth is
projected to slow down next year. While increasing this growth is a major problem the
air industry must address, the issue is further complicated. It was stated that time could
not be dedicated to growing the market because half time of the available time is spent
fighting to keep the market
The group addressed primary issues for consideration. The issues of handling the
competition of airline carriers as well as the rates of passenger and freight growth will
continue to be addressed. The issues of city curfews, particularly for airlines that deal
with freight only are a large problem because they limit the hours that airlines can fly.
This also makes it difficult to attract large freight companies to the area. Noise is an
environmental issue that is a problem for this industry. Noise protection has been
installed in some houses located in flight path. The environmental issues of water runoff
and endangered plants appear to be in the process of being remedied at this time.
Summary and Recommendations
Overall the factors indicate a stable environment with an economic upward growth curve.
With a strong economic base, local monopoly, and good growth potential it appears that
increasing growth can be best served through paying attention to details. In addition,
addressing many of the individual problems can be categorized and utilized for case
studies of much larger and longer lasting problems facing this airport.
COMMERCIAL IN CONFIDENCE
121