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Virgin Australia Holdings Limited (ASX:VAH) says Sydney Airport should build a rapid-transit system between its terminals.
The airline has concerns about a plan to base its operations and those of its alliance partners at T1, which is likely to derail the airport's aim to remove the split between the domestic and international terminals.
Removing the split has been central to the airport's long-term strategy to cope with an expected surge in demand over the next two decades, thereby reducing the need for urgent action on a second airport.
Virgin is urging the airport to investigate building a high-frequency, light-rail link between what are now the domestic terminals and the international terminal.
The airline believes the light rail would be a considerably cheaper option than pursuing a major redevelopment, which is expected to cost billions of dollars.
Virgin booked a net loss of $98.1 million in fiscal 2013.
