Modest beginnings

On the face of it, the federal government’s not unexpected announcement that Sydney’s second airport will be at Badgerys Creek should finally bring a half century of political dithering to an end. In reality, the deal is a long way from done and Canberra’s outline of how the new airport will take shape was short on answers, leaving some key questions hanging in the air

If there was one thing that was apparent in the aviation industry’s reaction to Prime Minister Tony Abbott’s green light for a second Sydney airport at Badgerys Creek it was that behind the cautious words of welcome from airlines – and Sydney Airport itself for that matter – there was a definite hint of reservation. Qantas and Virgin Australia certainly voiced support… but made it clear Kingsford Smith Airport (KSA) on the shores of Botany Bay remains the main game.

Apart from not knowing whether the new facility will have a curfew, whether it will be served by a fast train and who will actually use it, the biggest question has yet to be answered: will Sydney Airport opt to fork out all or most of the $2. 5 billion in investment it is going to cost? Sydney Airport’s parent company Southern Cross Airports Corporation Holdings Limited (SCACH) has first right of refusal over owning and operating any new facility within 100km of Sydney’s city centre. Badgerys is half that distance away in Sydney’s west. So far, SCACH isn’t hinting at any decision and it has 12 months to make up its mind. It says the process of making that decision “will be worked through as and when appropriate” and in the meantime it will “continue to engage in constructive discussions with the federal government. In the interests of the travelling public, airlines and our shareholders, Sydney Airport will apply appropriate commercial and financial discipline throughout any process. ” It also made a firm point of underscoring that its own master plan, approved earlier this year, shows that KSA can meet forecast demand of 74 million passengers in 2033, nearly double last year’s 38 million. “Together with government, stakeholders, airline partners and the community, we are focused on improving the customer experience, increasing efficiency and enhancing capacity at Sydney Airport,” it said.