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The $5 billion airport gamble: Why airlines are giving the cold shoulder to Australia's newest aviation hub

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The $5 billion airport gamble: Why airlines are giving the cold shoulder to Australia's newest aviation hub

Screenshot 2025-09-22 at 15.10.05.png The $5 billion airport gamble: Why airlines are giving the cold shoulder to Australia's newest aviation hub
Despite costing taxpayers over $5 billion, Western Sydney Airport is due to open in 2026 with only non-binding letters of intent from airlines - and the government has resorted to a $16 million incentive fund to attract carriers. Image source: Western Sydney Airport.

When a brand-new airport has to offer cash incentives just to get airlines through the door, you know something's not quite right.



Despite costing taxpayers over $5 billion, Western Sydney Airport is due to open in 2026 with airline tickets scheduled to go on sale from late 2025, but the NSW Government has had to launch a $16 million incentive fund to encourage more carriers to join the handful that have shown interest.





The airport's struggles highlight a classic aviation chicken-and-egg problem: airlines won't commit without passengers, but passengers won't come without convenient transport links.



For many Australian seniors planning their next holiday or family visit, this could mean navigating a confusing period where Sydney's airport options are far from straightforward.



In this article



What airlines are actually saying (and not saying)



So far, only letters of intent have been signed by three airlines—Qantas Group (covering Jetstar and QantasLink), Singapore Airlines and Air New Zealand. These are not binding agreements. Think of it like putting your name down for a dinner reservation—it shows interest, but you haven't actually committed to showing up.




'Virgin Australia, the country's second-largest airline, has held off due to concerns about high operational costs and limited customer access'

The Aussie Corporate



The plan is for Qantas to base five jets there, and for low cost subsidiary Jetstar to base 10 jets there, though Virgin Australia hasn't made a final decision yet. Singapore Airlines became the first international airline to announce plans to serve the airport in August 2024, with nonstop flights to Singapore's Changi Airport.



The distance dilemma



WSI sits nearly 50 kilometres from the Sydney CBD, and a direct rail link is not expected until at least 2027. At present, most travellers would rely on tolled motorways or circuitous rail routes involving long transfers.









For seniors, this presents particular challenges. Unlike younger travellers who might see the journey as part of the adventure, older passengers often prioritise convenience and accessibility. The prospect of a lengthy car journey or complicated public transport connections to reach a flight could make Western Sydney Airport less appealing than the established Kingsford Smith Airport.




Getting to Western Sydney Airport in 2026


M12 motorway (toll-free) connects to city motorways


New bus services planned


Rail connection delayed until 2027


Distance: 44km from CBD (compared to Kingsford Smith's 8km)




Government throws money at the problem



The Western Sydney International Take-Off Fund launched in March 2025 provides $16 million in incentives, with airline tickets for WSI flights scheduled to go on sale from late 2025 to encourage more carriers beyond Qantas, Jetstar and Singapore Airlines.



The fund comprises $8 million in government funding, matched by funding from WSI itself. 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.









This incentive approach isn't unusual for new airports globally, but it does suggest government concerns about organic airline interest. The funding package is forecast to deliver over 162,000 international visitors to NSW and generate an estimated $530 million of visitor expenditure.



The 24-hour advantage



One genuine selling point is Western Sydney Airport's round-the-clock operation. Western Sydney International will host flights around the clock, without the overnight curfew of Sydney's existing airport, and will supplement Kingsford Smith Airport which has reached capacity due to a legislated curfew and flight caps.



Airport boss Simon Hickey notes that WSI's late-night departure capacity will allow business travellers to finish a full day's work in Sydney, take an overnight flight and arrive in Singapore before their first morning meeting.









What this means for your next trip



For Australian travellers, especially seniors planning domestic or international trips, the Western Sydney Airport situation creates some uncertainty. Here's what to consider:



If you live in Western Sydney: The airport is located 44km from Sydney's CBD but with some three million people living within an hour's travel to the modern terminal. The population of Western Sydney grew by 10 per cent in the 2021 census compared to 0.5 per cent across the rest of Sydney, suggesting strong local demand.



If you're connecting through Sydney: The lack of rail connections initially means you'll need to factor in extra travel time and cost when deciding between airports.









For international travel: Singapore Airlines and Air New Zealand plan to fly to the airport from their respective hubs, presumably complementing their existing service to Sydney's current airport.




Planning your Sydney flights in 2026-2027



  • Western Sydney Airport opens late 2026 with limited airline services initially

  • No rail connection until 2027—budget extra time and transport costs

  • 24-hour operations could mean more flight options, especially to Asia

  • Kingsford Smith Airport will remain the main hub for most international flights

  • Check which airport your preferred airline is using before booking




The bigger picture



Sydney Airport has proposed a long-term overhaul to cope with an expected 75 per cent increase in passengers in the next 20 years, including wide-ranging infrastructure, airfield and freight upgrades. This expansion could further complicate Western Sydney Airport's efforts to attract airlines.



The Federal Government claimed the airport development is expected to create 35,000 jobs by 2035, increasing to 60,000 jobs over time, but these projections depend heavily on airline uptake and passenger numbers.









Looking ahead



Western Sydney International Airport is projected for an initial capacity of 10 million passengers per year, eventually matching London's Heathrow with 80 million annually. But reaching that potential depends on solving the current airline reluctance.



The government's willingness to offer financial incentives suggests confidence in the airport's long-term prospects, even if the initial years may be challenging. The NSW government aims to encourage additional international operators to commit ahead of ticket sales, which are set to open in late 2025.



For frequent travellers, particularly those in Sydney's west, the airport could eventually offer genuine benefits—more flight options, no curfew restrictions, and potentially lower costs as the facility tries to attract passengers.



What This Means For You


The irony isn't lost that Australia's aviation industry, desperate for more capacity and competition, now has a state-of-the-art facility that airlines seem hesitant to embrace. Whether Western Sydney Airport becomes a genuine alternative to Kingsford Smith or an expensive white elephant may depend on how quickly the transport connections improve and whether the government's financial incentives prove attractive enough to overcome airline concerns.



What are your thoughts on Sydney's two-airport strategy? If you live in Western Sydney, would you be willing to use the new airport despite the initial transport limitations? Share your views in the comments below.





  • Original Article


    https://www.dailymail.co.uk/news/article-15119123/Western-Sydney-Airport.html





  • Western Sydney Airport Faces Challenges Securing Airlines—The Aussie Corporate

    Cited text: Western Sydney Airport is due to open in 2026, but with no airline contracts finalised, concerns are growing about its connectivity, costs and long-te...


    Excerpt: Despite costing taxpayers over $5 billion, Western Sydney Airport is due to open in 2026 with airline tickets scheduled to go on sale from late 2025, but the NSW Government has had to launch a $16 million incentive fund to encourage more…



    https://theaussiecorporate.com/blog...ey-airport-faces-challenges-securing-airlines





  • New fund to turbocharge take-off for Western Sydney Airport | NSW Government

    Cited text: The Western Sydney International Take-Off Fund comes at a critical stage for the state’s newest international gateway with airline tickets for WSI fli...


    Excerpt: Despite costing taxpayers over $5 billion, Western Sydney Airport is due to open in 2026 with airline tickets scheduled to go on sale from late 2025, but the NSW Government has had to launch a $16 million incentive fund to encourage more…



    https://www.nsw.gov.au/departments-...rbocharge-take-off-for-western-sydney-airport





  • Western Sydney Airport Faces Challenges Securing Airlines—The Aussie Corporate

    Cited text: So far, only letters of intent have been signed by three airlines—Qantas Group (covering Jetstar and QantasLink), Singapore Airlines and Air New Zea...


    Excerpt: So far, only letters of intent have been signed by three airlines—Qantas Group (covering Jetstar and QantasLink), Singapore Airlines and Air New Zealand.



    https://theaussiecorporate.com/blog...ey-airport-faces-challenges-securing-airlines





  • Western Sydney Airport (WSI) Opens Late 2026, With 24/7 Operations—One Mile at a Time

    Cited text: The plan is for Qantas to base five jets there, and for low cost subsidiary Jetstar to base 10 jets there. I imagine Virgin Australia will fly to the ...


    Excerpt: The plan is for Qantas to base five jets there, and for low cost subsidiary Jetstar to base 10 jets there, though Virgin Australia hasn't made a final decision yet



    https://onemileatatime.com/news/western-sydney-airport/





  • Western Sydney International Airport—Wikipedia

    Cited text: On 26 August 2024, Singapore Airlines became the first international airline to announce plans to serve the airport, with nonstop flights to/from Chan...


    Excerpt: Singapore Airlines became the first international airline to announce plans to serve the airport in August 2024, with nonstop flights to Singapore's Changi Airport



    https://en.wikipedia.org/wiki/Western_Sydney_International_Airport





  • Western Sydney Airport Faces Challenges Securing Airlines—The Aussie Corporate

    Cited text: WSI sits nearly 50 km from the Sydney CBD, and a direct rail link is not expected until at least 2027. At present, most travellers would rely on tolle...


    Excerpt: WSI sits nearly 50 kilometres from the Sydney CBD, and a direct rail link is not expected until at least 2027.



    https://theaussiecorporate.com/blog...ey-airport-faces-challenges-securing-airlines





  • $16m fund launched to lure carriers to Western Sydney Airport—Australian Aviation

    Cited text: Comprising $8 million in government funding, matched by funding from WSI, the Western Sydney International Take-Off Fund comes as tickets are slated t...


    Excerpt: The fund comprises $8 million in government funding, matched by funding from WSI itself



    https://australianaviation.com.au/2...d-to-lure-carriers-to-western-sydney-airport/





  • New fund to turbocharge take-off for Western Sydney Airport | NSW Government

    Cited text: 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...


    Excerpt: 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



    https://www.nsw.gov.au/departments-...rbocharge-take-off-for-western-sydney-airport





  • New fund to turbocharge take-off for Western Sydney Airport | NSW Government

    Cited text: The new airport will play an important role in achieving the NSW Government’s goal of $91 billion of visitor expenditure by 2035, with the total $16 m...


    Excerpt: The funding package is forecast to deliver over 162,000 international visitors to NSW and generate an estimated $530 million of visitor expenditure



    https://www.nsw.gov.au/departments-...rbocharge-take-off-for-western-sydney-airport





  • Which airlines will fly to the new Western Sydney airport? - Executive Traveller

    Cited text: Western Sydney International will also host flights around the clock, without the overnight curfew of its big city sibling.


    Excerpt: Western Sydney International will host flights around the clock, without the overnight curfew of Sydney's existing airport, and will supplement Kingsford Smith Airport which has reached capacity due to a legislated curfew and flight caps



    https://www.executivetraveller.com/news/western-sydney-airport-news





  • Western Sydney International Airport—Wikipedia

    Cited text: The airport is planned to have 24-hour and curfew-free operations and will supplement Kingsford Smith Airport, which has reached capacity due to a leg...


    Excerpt: Western Sydney International will host flights around the clock, without the overnight curfew of Sydney's existing airport, and will supplement Kingsford Smith Airport which has reached capacity due to a legislated curfew and flight caps



    https://en.wikipedia.org/wiki/Western_Sydney_International_Airport





  • Which airlines will fly to the new Western Sydney airport? - Executive Traveller

    Cited text: “WSI’s late-night departure capacity will allow business travellers for instance to finish a full day’s work in Sydney, take an overnight flight and a...


    Excerpt: Airport boss Simon Hickey notes that WSI's late-night departure capacity will allow business travellers to finish a full day's work in Sydney, take an overnight flight and arrive in Singapore before their first morning meeting



    https://www.executivetraveller.com/news/western-sydney-airport-news





  • Which airlines will fly to the new Western Sydney airport? - Executive Traveller

    Cited text: Sydney is now less than 18 months away from the opening of the new $5.3 billion Western Sydney International (WSI) airport, located 44km from the city...


    Excerpt: The airport is located 44km from Sydney's CBD but with some three million people living within an hour's travel to the modern terminal



    https://www.executivetraveller.com/news/western-sydney-airport-news





  • Airlines | Western Sydney International Airport

    Cited text: Rapidly growing population: The population of Western Sydney grew by 10 per cent in 2021 census compared to 0.5 per cent across the rest of Sydney, that's 20 x faster...


    Excerpt: The population of Western Sydney grew by 10 per cent in the 2021 census compared to 0.5 per cent across the rest of Sydney



    https://wsiairport.com.au/opportunities/aviation/airlines





  • Western Sydney Airport (WSI) Opens Late 2026, With 24/7 Operations—One Mile at a Time

    Cited text: So far, we know that Singapore Airlines and Air New Zealand both plan to fly to the airport, from their respective hubs. Presumably these flights will...


    Excerpt: Singapore Airlines and Air New Zealand plan to fly to the airport from their respective hubs, presumably complementing their existing service to Sydney's current airport



    https://onemileatatime.com/news/western-sydney-airport/





  • Sydney Airport Unveils Terminal Expansion to Meet Passenger Jump—Bloomberg

    Cited text: Sydney Airport, Australia biggest aviation hub, proposed a long-term overhaul of domestic and international terminal operations to cope with an expect...


    Excerpt: Sydney Airport has proposed a long-term overhaul to cope with an expected 75 per cent increase in passengers in the next 20 years, including wide-ranging infrastructure, airfield and freight upgrades



    https://www.bloomberg.com/news/arti...ils-terminal-expansion-to-meet-passenger-jump





  • Western Sydney International Airport—Wikipedia

    Cited text: The Federal Government claimed the initial construction phase is expected to generate around 4,000 jobs, and the airport development is expected to cr...


    Excerpt: The Federal Government claimed the airport development is expected to create 35,000 jobs by 2035, increasing to 60,000 jobs over time



    https://en.wikipedia.org/wiki/Western_Sydney_International_Airport





  • The New Western Sydney International Airport Is Almost Ready For Take-Off

    Cited text: Western Sydney International Airport is projected for an initial capacity of 10 million passengers per year; eventually matching London’s Heathrow wit...


    Excerpt: Western Sydney International Airport is projected for an initial capacity of 10 million passengers per year, eventually matching London's Heathrow with 80 million annually



    https://www.bosshunting.com.au/travel/fly/western-sydney-international-nancy-bird-walton-airport/





  • Funding Boost For Western Sydney To Attract International Routes | Aviation Week Network

    Cited text: The NSW government aims to encourage additional international operators to commit ahead of ticket sales, which are set to open in late 2025.


    Excerpt: The NSW government aims to encourage additional international operators to commit ahead of ticket sales, which are set to open in late 2025



    https://aviationweek.com/air-transp...t-western-sydney-attract-international-routes



Last edited:
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"Brisbane West" Airport is about 140 km from the metro area.
Try that out in your Uber ...
 
Well thats a bit different. Never heard of Wellcamp Airport, Toowoomba as Brisbane West. Does that mean, Sunshine Coast Airport is now Brisbane North and Gold Coast, Brisbane South?
 
Even if the so called major passenger airlines don't use the new Sydney (though I doubt it, as most of Sydney's population is west, as they can't build further east, unless it floats). Freight is going to be the biggest user. To give you an idea about freight movements. When Jumbo jets were at their peak, only 30% flew passengers, the rest were/are freight. Now with Temu, Amazon and online shopping, freight is busier than ever.
 
Well thats a bit different. Never heard of Wellcamp Airport, Toowoomba as Brisbane West. Does that mean, Sunshine Coast Airport is now Brisbane North and Gold Coast, Brisbane South?
Well, if you arks Perfessor Google where "Brisbane West airport" is, he'll be happy to show you.
And it you follow the money trail (approx. 223 million buckeroonies) you'll track it down even easier.
 
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Sendcall the freight to WSI that will make extra room for passengers at SYD.
Have fun changing airports for a domestic connrction or vive-versa!!!
 
Even if the so called major passenger airlines don't use the new Sydney (though I doubt it, as most of Sydney's population is west, as they can't build further east, unless it floats). Freight is going to be the biggest user. To give you an idea about freight movements. When Jumbo jets were at their peak, only 30% flew passengers, the rest were/are freight. Now with Temu, Amazon and online shopping, freight is busier than ever.
If the planned metro lines had not been cancelled when the new premier decided they were too expensive it would all have been ready to go more or less at the same time.
 
Sounds like total lack of planning and forethought to me. Transport links should have been ready to roll as soon as the airport was ready to open and anything less is just asking for trouble. You do have to wonder about the morons making these decisions after the millions or billions being spent.
 
The lack of dedicated high speed rail between these two airports is a killer for WSI.
 
The airport has not opened yet. Have you ever tried to navigate Sydney airport?, it is a nightmare, traffic congested, no parking, waiting in dense crowding, nowhere to wait, utter confusion.
You are exhausted before you leave the airport. And when you return you experience the same problems.
We have an airport at Newcastle which has recently commenced international flights.Although I have not travelled recently, have collected family leaving and returning from trips overseas and it is a breeze.
I think the new airport will make travelling easier, the population in the West of Sydney is huge, train and travel connections are underway, Sydney airport will benefit from less crowding, why would anyone complain about that.
 
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The airport has not opened yet. Have you ever tried to navigate Sydney airport?, it is a nightmare, traffic congested, no parking, waiting in dense crowding, nowhere to wait, utter confusion.
You are exhausted before you leave the airport. And when you return you experience the same problems.
We have an airport at Newcastle which has recently commenced international flights.Although I have not travelled recently, have collected family leaving and returning from trips overseas and it is a breeze.
I think the new airport will make travelling easier, the population in the West of Sydney is huge, train and travel connections are underway, Sydney airport will benefit from less crowding, why would anyone complain about that.
Apparently, you never been to the shitheap called Melbourne Airport.

The worst signage I have ever seen. You would expect T3 to be between T2 and T4, but no! T3 is tucked behind some miniscule entrance serviced by an unsignposted escalator.
 
Apparently, you never been to the shitheap called Melbourne Airport.

The worst signage I have ever seen. You would expect T3 to be between T2 and T4, but no! T3 is tucked behind some miniscule entrance serviced by an unsignposted escalator.
No never been to Melbourne Airport, Sydney only and that was enough.
 
Well, if you arks Perfessor Google where "Brisbane West airport" is, he'll be happy to show you.
And it you follow the money trail (approx. 223 million buckeroonies) you'll track it down even easier.
But the relevance? Wellcamp is privately owned. As for Google, it's only as good as the information thats fed into it.
 
But the relevance? Wellcamp is privately owned. As for Google, it's only as good as the information thats fed into it.
The relevance is that distance was mentioned -- 50 km compared to 140. Who owns it is not important.
 

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