The pandemic has taken a huge toll on the aviation sector, but “awesome opportunities” are ahead as Australia reopens to the world, says Stantec’s Hock Chua.
Hock, Stantec’s airports and ports sector lead, has worked in the transport infrastructure space for more than three decades, the last 25 with airports across the Asia Pacific.
He agrees that the statistics make grim reading. Operating profits at Australia’s largest airports dropped to a decade-long low last year as passenger numbers went into pandemic-induced freefall.
The Australian Competition and Consumer Commission’s Airport Monitoring Report – which tracks Australia’s four largest airports – found passenger numbers at Sydney, Melbourne, Brisbane and Perth airports fell by 26.5 per cent year on year. Operating profits plummeted by as much as 61.8 per cent, even with the pandemic only hitting the latter part of the reporting period.
As Australian Airports Association’s chief executive James Goodwin notes, the aviation sector “was one of the first hit and will be one of the last to recover”.
But not all aerodromes are the same, Hock says. “While the impact on the four major airports is drastic, the same cannot be said for Tier 2 airports,” he says pointing to Bankstown Airport.
“Bankstown Airport has consistently outperformed its bigger counterparts over the last year. Runway usage and movements are down by 15 per cent, but that is marginal when compared with Sydney Airport’s 60 per cent fall.”
This is because, as Bankstown Airport’s general manager David Binskin explains, “we don’t purely depend on passenger transport”.
“We have continued operations throughout the pandemic, staying open to assist all aviation users, including emergency and flying doctor services, flying school, chartered flights and those moving freight and essential workers to where they’re needed most.”
Stantec has been collaborating closely with Sydney Metro Airports, which owns Bankstown Airport.
“Bankstown Airport continued with short and medium-term investments, while supporting those operators that were hardest hit,” Hock says.
“Airfield infrastructure, including selected aviation pavements, taxiways and ground lighting has been upgraded and proposed developments in line with the airport master plan have progressed. While there has been some deferral of discretionary capital expenditure, the impact of the pandemic has not curtailed planning and investment for the long term.”
Bankstown Airport is not alone. Perth Airport’s 2020 Master Plan outlines $2.5 billion of investments for the airport over the coming decade, Hock says. Stantec has been heavily involved on the design and construction of the $42 million International Gateway Upgrade Project. Stantec delivered civil, specialist lighting, sustainability, vertical transport, mechanical, electrical, hydraulics, structural and fire engineering design services.
The Australian Government recently revealed its four-phase pathway out of the pandemic, which the AAA’s Godwin has welcomed as “exactly what airports have been asking for” and what “Australia needs to get back to normal”. The four-phase plan will give airports time to prepare before international borders reopen, Godwin says.
Hock believes “the worst is behind us” and says Stantec is now on a recruitment drive to soak up skills in the aviation sector. “While the sector has taken a hit, we are of the opinion that things are getting better. We are recruiting the right people from across the industry and getting top-notch thinkers, so we are ready to fire when the sector’s engines start up again.
“As we move forward, and as governments open up borders, there are awesome opportunities ahead.”
With projects completed at more than 200 airports, Stantec has the in-house expertise to deliver a successful airport project. Find out more about how Stantec can help with your next project.