Indian airline agreement with Western Sydney Airport still up in the air

New South Wales Premier Chris Minns remains optimistic about enticing Indian airlines to the Western Sydney Airport, despite no formal agreement being reached during a recent meeting with Air India representatives in New Delhi. The premier, who is on a four-day visit to India to attract investment, emphasized the state's commitment to securing direct flights.

Prior to their negotiations, Minns and Treasurer Daniel Mookhey attended a Sikh house of worship and met volunteers distributing thousands of free meals to those in need. Mookhey highlighted the growing Indian middle class as an opportunity for New South Wales, noting that the airline is in the process of renewing its fleet and rebuilding its image after a fatal crash last year.

Air India has requested $1.5 billion in fresh equity to address its financial losses. Mookhey believes Western Sydney can serve as a steady source of passengers for the airline during a period of uncertainty. He stated that Sydney is a significant destination with a substantial diaspora that will anchor traffic, regardless of tourism fluctuations.

The state government's approach to securing an Indian airline for Western Sydney comes at a challenging time for the aviation industry due to soaring jet fuel prices. The airline has already suspended some international routes and reduced the frequency of others, including its flights to Sydney and Melbourne.

While the premier did not specify how he would define success in his talks with the airline, he emphasized that his trade mission aimed to send a clear message. Jetstar, Air New Zealand, Singapore Airlines, VietJet, and Qantas will operate from Western Sydney Airport upon its opening in October, November, January, and March, respectively.

The premier indicated that the government would consider targeted financial incentives to attract an Indian airline to Western Sydney, as the existing air attraction fund remains in place.