Funding Incentives for Airlines to Fly to Western Sydney Airport

The New South Wales Government and Western Sydney Airport have announced an AUD16 million fund to “incentivise” international airlines to start scheduled services to the airport after it opens in 2026.

Western Sydney International Airport and Destination NSW will decide whether to allocate funding to airlines and will do so on a case-by-case basis. The incentives include passenger subsidies and marketing support.

The funding provided to each airline is subject to the number of services and subsequent number of passengers they carry over the first three years of operation. 

Several airlines, including Qantas, Virgin Australia, Jetstar, Emirates, Qatar Airways, and Singapore Airlines, have confirmed their interest in flying to Western Sydney Airport. However, to date, none have committed to doing so on opening day. Freight carriers are also interested in using the airport.

However, a government decision to designate Western Sydney Airport a primary rather than secondary airport may disincentivise certain carriers from operating there, particularly operators like Qatar Airways, which are subject to a low number of maximum weekly flights they can operate in and out of so-called primary airports.

Incentivising airlines to operate flights to certain airports is relatively common practice among Australian state governments, particularly the Queensland and Victorian state governments. The influx of US carriers to Brisbane Airport is largely due to Queensland Government largesse. Virgin Australia recently discontinued its Cairns – Haneda service after funding from the Queensland Government ran out.

The curfew-free Western Sydney International (WSI) is located 44 kilometres west of downtown Sydney. When open, it will feature a single 3,700-metre runway and a terminal capable of handling ten million passengers annually. However, a masterplan has the airport growing significantly between now and the middle of the century. Sydney’s existing airport, Kingsford Smith (SYD), is capacity and curfew-constrained. It currently handles around 45 million passengers annually.

You can read the New South Wales Government media release here.

Photo: BulbazaurREX via Wikimedia Commons