Coming soon to Sydney: Competition?
 

Macquarie/Sydney Airport have said that they won't be going ahead with the option to construct Sydney's second airport. I don't know how that clause was ever allowed in the contract in the first place but good news for consumers one would think.

http://www.smh.com.au/business/aviation/sydney-airport-finally-turns-down-chance-to-build-new-airport-at-badgerys-creek-20170501-gvwunr.html

I think MacBank is smart enough to leave the Australian taxpayer to pay for the cost of the development of a second international airport for Sydney.

You have an odd definition of "soon".

The legal battles on 'The Castle' grounds as well as environmental impact challenges and protests alone will take years and millions to sort out. Changes of government will result in 'go slows', depending on whose access to the trough depends on winning seats in electorates around the existing airport and the proposed new airport. The actual work to build the airport, if it goes ahead, will be the subject of a procurement and contract management process that will be stuffed up by an inept bureaucracy.

Meanwhile MacBank will continue to milk the international joke - whoops, I mean monopoly - whoops I mean privileged asset - that is KSA dry (while paying no corporate tax, of course).

Once all the development work has been paid for by the taxpayer, some bright government will come up with the idea of privatising the airport, thus enabling more millionaires to vacuum money out of the taxpayer. Maybe MacBank will bid for it and win, then shut down KSA ...

Attention Mr Morrison,

Is this "GOOD" debt .... or...."BAD" debt...????

Sydney Airport will be built by Federal Government as Sydney Airport declines offer

And, yes "LB", I agree with you in that 'privatisation' will follow....eventually....
'Recent' history refers.....

No Cheers, Nope, None 't all...... :yuk:

That was fast. The govt didn't even try to seek out a third party proposal Like they said they would because they already know no sane people/corporate would take on a loss making project like this.

Let's see... hmm... negative NPV @ 8% cost of capital, discounted payback period of maybe 150 years?

My immediate thoughts were along the same line as you guys...

While the media and the experts are spruikung the victory in the name of competition I would be almost willing to bet the house on the fact that the government will pay for the construction/start up costs in the name of 'jobs, jobs, jobs' then realise they can recoup some of the cost by flogging it off to the highest bidder.

Any bidder would have to take into consideration that if they were successful they would have to take on SACL in the long term operation.. naturally leaving SACL in the best position as they know any extra costs in the privitisation process can be recouped in the gouging stage ahead..

The Wagners would get it done before the end of this decade. And make a profit.

The silver doughnut is not the slightest bit interested in building infrastructure, they privatise government assets, where Australian taxpayer funds have been sunk into it and monopoly rent can be extracted...

Max Moore-Wilton went from little johnny Howard's office to Sydney Airport, ever wonder why?

Was the "Blue Emu" bus company given the opportunity to tender?

Or a cake maker from Auckland?

Westland District Council manager awarded cake decorator's firm $7 million contract to build sewage plant | Stuff.co.nz

Wagners could have it built this year, just get out of their way. Sydney has so much expensive bureaucracy.

QF/VA say they don't want to move to new airport, as they don't want to split their ops, but they will have to.

Parramatta area is 5th biggest metropolis in OZ.

A big chunk of Sydneys population don't want to go to Mascot & big chunk of people flying to Sydney don't want to go anywhere near CBD or eastern suburbs or north shore.

yep, pretty much my own synopsis too.

QF should jump at the opportunity to move into a nice new, green, energy efficient, HQ in Western Sydney, and move everything to Badgerys. They have everything to gain and nothing to lose. Calling Sydney airport a "premium" airport isn't going to cut it Alan. You've been listening to Macquarie Bank too much.

The competition is going to do just that, and to be honest, I'd rather have a nice short quick trip to and from the new airport at Badgerys. Not getting stung to park and stuck in traffic getting to and from Mascot, or paying never ending tolls to get there and back.

Friday's Australian has a story on Page 4 about the booming land values in the suburbs surrounding Badgerys Creek. Most have doubled in the last 5 years. Seems all the people who will be complaining about the noise in the future are rushing to make sure they're in the right position to be affected by it.

Budget 2017
 

China will build 135 Airports before this one opens.

Sounds about right, $5.8b in kickbacks and to politicians and corrupt officials, and "banking advisors" and OH&S inspectors, and $200m to the construction firm to build it.

surely a better way to go, is to build something like NTL with planning for expansion down the track. Who really wants to spend one more minute at a bloody airport, than you have to. Almost everything is extremely overpriced, even much of duty free stuff.