A decision has been announced by Sydney Airport on the future of Western Sydney Airport’s building & operations. After the government gave an NOI (notice of intention) for the construction & ongoing operation of Sydney’s second airport, Sydney Airport has chosen against building & running the airport on the grounds of financial implications in the short term which will hurt investors.
Building an entirely new airport is expensive, especially when you consider that it is unlikely that there will be big enough demand for an airport 50km out in Western Sydney without any decent public transport (high-speed rail would have been the preference through Parramatta & the CBD).
Here is a direct quote from Sydney airport themselves on what they said about the airport deal:
Here is what Sydney Airport’s CEO Kerrie Mather had to say on the announcement:
It is quite clear from the above statement by Sydney Airport that the reason they do not want to build & operate the Western Sydney Airport is because they feel like their investors would lose out in the short to medium term which is fair enough, they are an ASX listed business & have an obligation to their investors to maximise underlying profits.
The current plans are for planes to start taking off from the runway in 2026. The government has already had a conversation with 9 of the leading construction companies so it can be said it will mostly likely be built by one of them (these companies have not been disclosed publicly).
If Badgerys Creek airport is to meet its expectation becoming Sydney’s 2nd airport & a hub for Western Sydney, it needs to be given the best chance at success & for that to occur then the government should consider building & operating the airport itself. This would be a good decision, especially if they can build vital public transport to allow people to easily get in and out of the airport.
The announcement as to who will ultimately build & operate the Western Sydney Airport (WSA) will be announced by the government in the upcoming months.
