Branson begins Sydney Airport legal move

Sir Richard Branson is going to court in a battle between his Australian low-cost airline and Sydney Airport over access to terminal buildings.

The tycoon's Virgin Blue carrier has started legal proceedings in the New South Wales supreme court, claiming the airport has broken an agreement to give it rights to use a terminal formerly occupied by the collapsed airline Ansett, which had been the biggest rival to the cash-strapped Qantas.

Virgin claims it would have bid to buy the terminal outright if an access agreement had not been reached but the airport says no such deal was sealed. Virgin also says it expanded its fleet of aircraft in anticipation of being able to use the terminal and claims Sydney Airport is charging "exorbitant" prices for use of the airport. Virgin said it is also considering pursuing legal action under Australia's competition rules.

Access to terminals and slots at airports are key issues for budget airlines, which struggle to increase their attractiveness to passengers while keeping costs down. Sir Richard has said he plans to expand his aviation interests, which include Virgin Atlantic and his 57 per cent-owned European budget airline, Virgin Express. That airline has long complained of a lack of landing slots at the heavily congested Heathrow airport.