Tigerair Australia (Melbourne Tullamarine) has taken Sydney Airport Corporation Limited (SACL), the operators of Sydney Kingsford Smith Airport, to the Australian National Competition Council (NCC) following concerns it is being competitively disadvantaged by constraints at the airport's domestic terminal (Terminal 2).
The Virgin Australia (VA, Brisbane International) subsidiary argues in its application to have services at the terminal declared under the Australian Competition and Consumer Act that existing constraints have impeded its plans to expand its base from the current 4 aircraft to 6.
"Tigerair has been restricted in establishing a competitive and efficient schedule of services to and from Sydney Airport through a lack of efficient and competitive access at T2, including in respect to check-in counters, departure gates, bussing arrangements, baggage reclaim facilities and way finding signage," it argued.
Tigerair says that in order to viably grow and remain competitive with rival Jetstar Airways (JQ, Melbourne Tullamarine), it requires better access for its four A320s based at the airport in the form of two hard stand gates during the morning peak period (0630 to 0730) and during the course of the day, as well as the allocation of additional check-in facilities.
The LCC said the move to pursue legal action came when repeated calls to the SACL to provide the above mentioned services and facilities fell on deaf ears.
"The current situation leaves Tigerair with: no clarity as to its position; no timeframe for a final decision on gate access; no confidence that its current access issues will be resolved; and a concern that it will be forced to accept access terms at T2 which are not efficient or competitive. Tigerair is uncertain whether, through negotiations, it will be able to gain the level of efficient and competitive access to T2 that it needs to grow its Sydney Airport base."
As a result, the carrier is seeking a 10-year long declaration on the terminal's services which would, in effect, force the SACL to open up the facility to competition.
The period for submissions will close on Wednesday, August 13, 2014 following which a decision will be made within the ensuing 180-day period.
