Sydney Airport has delivered a big fat ‘no’ to the request to develop and operate the new Western Sydney Airport.
And while CEO and Managing Director Kerrie Mather said it was an “exciting opportunity” for the region, it wasn’t something Sydney Airport could justify investing in.
As a result, the Federal Government will now be left to develop and manage the Badgerys Creek airport.
Upon receiving a Notice of Intention back in December 2016, Sydney Airport worked on analysing the investment required to build the second Sydney airport, and determined its terms don’t meet the criteria.
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.”
Mather explained Sydney Airport’s decision not to accept the Notice of Intention is in the best interest of its investors.
“Despite the opportunities that Western Sydney Airport will present, the risks associated with the development and operation of WSA are considerable and endure for many decades without commensurate returns for our investors.”
In a statement, Prime Minister Malcolm Turnbull said details of its plan to build the new airport would be announced in the federal budget next week.
“It is a vitally important project for Western Sydney, for Sydney, and the nation, which is why the Coalition Government ended decades of indecision by committing to the project in 2014,” he said.