AUSTRALIA. Sydney Airport today confirmed that it has turned down the opportunity to develop and operate the planned Western Sydney Airport, saying the project did not meet “its investment criteria”.
The owners of Australia’s largest airport had until 8 May to take up its right of first refusal on the project. The airport, which is set to be located at Badgerys Creek in western Sydney, will now be funded by government and is tentatively scheduled to open by 2026. [The project and its implications were the subject of an online feature last week by our columnist Ivo Favotto.]
Sydney Airport Managing Director and CEO Kerrie Mather said: “The development of a new airport is an exciting opportunity for western Sydney. We have no doubt that the new airport, which is expected to be operational late 2026, will create jobs and encourage significant investment in the region.
“Importantly, additional aviation capacity in the Sydney basin will ensure that NSW continues to compete both nationally and internationally for the highly valuable business, visitor and tourism economy.
“Sydney Airport’s decision not to accept the Notice of Intention on the terms provided is in the best interests of our investors who represent millions of Australians through their superannuation funds. Despite the opportunities that Western Sydney Airport will present, the risks associated with its development and operation are considerable and endure for many decades without commensurate returns for our investors.”
Australian Federal Minister for Urban Infrastructure Paul Fletcher said: “The consultation meetings with Sydney Airport were conducted in an atmosphere of good faith and I acknowledge their professional and constructive contribution during this process, as well as their strong and positive engagement with western Sydney. I wish the company well in its future endeavours, noting that Sydney Kingsford Smith Airport is Australia’s principal international gateway and plays a vital role in the Australian economy.”
The government plans to reveal details of its plans to construct Western Sydney Airport in the federal budget next week.
Background
The 2002 Sydney (Kingsford Smith) Airport Sale Agreement provided Sydney Airport with a right of first refusal to develop and operate a second major airport within 100km of Sydney’s Central Business District. Sydney Airport has been engaged in formal consultation with the government regarding the proposed Western Sydney Airport since September 2014.
