A new Sydney Airport? Shelved!

Sydney Airport is the premier Australian domestic and international airport.

[See Heinemann Atlas Third Edition, page 37 - "International traffic - Australian airports, year ended October 1998", "Sydney Airport passengers - 1990- 1998" and "Sydney International Airport - 1929 and 1999" (photos)]

In July 1999 an Environmental Impact Statement (EIS) on Sydney's second airport was completed after a delay of more than six months. The EIS which cost $12 million strongly recommended that the years of political indecision should end and that a decision be made quickly. After more than 50 years of debate and decades of EIS's, reports and analysis the fate of Sydney's second airport at Badgerys Creek, 47 kilometres west of the city, was made on the 12^th December 2000. The Howard Government, like the Whitlam, Fraser, Hawke and Keating Governments before, avoided the building of a new airport at Goulburn, Holsworthy, Kurnell or a floating offshore platform and delayed a new Badgerys Creek airport by shelving the decision for a further 10 to 15 years. (See Environmental Issues pages 6-11). It ensured that any future government that does make a decision on a second airport will have no choice but to select the site at Badgerys Creek. A special buffer zone around the proposed site has been declared and any construction incompatible with an airport will be banned. This decision was driven by very 'political' considerations.

By shelving the construction of a new airport at a cost of approximately $5 billion the Federal Government also maximised the sale value of Sydney Airport - approximately $4 billion. This aspect met with the strong approval of the Federal Treasurer as political decisions made in early 2001 had led to a drastic reduction in the Federal Government's budget surplus. On 29^th March 2001 the Federal Government announced that it would proceed with the privatisation of the airport - actually the sale of a 99-year lease for Australia's busiest airport. At the same time it was announced that Sydney Airports Corporations Ltd, which runs facilities at the airport and Bankstown, Hoxton Park and Camden airports, would be sold as a separated 'trade-sale package' in the second half of 2002. In 1999-2000 Sydney Airports Corporations Ltd made a profit, after tax, of $42.9 million and had a revenue of $320.5 million - the profit was made from such things as car parking and retail sales from the Sydney Airport shopping precincts.
The Prime Minister gained comfort from the decision because he didn't want to jeopardise western Sydney seats held by the Liberal Party (noise problems in the Badgerys Creek area).
The National Party leader, as part of a Federal Coalition Government, was protected from the anger of rural and regional voters, because the smaller airlines that service regional NSW retained their landing rights at the Sydney Airport. These airlines were not forced to use Bankstown. This airport is further from the centre of the city and is thus seen to be inconvenient for regional people travelling to Sydney. The NSW Farmers Federation welcomed this decision.

The Sydney Airport noise problems, particularly for the residents of inner-Sydney, did not carry enough 'political' weight. Anti-aircraft noise campaigners attacked the Government's December 2000 decision.

The success of Sydney Airport during the very busy period of the Olympic Games figured prominently in the Government's decision-making process.

"Sydney has operated more efficiently and effectively, and has not reached the point of crisis that so many people predicted a few years ago" (Prime Minister John Howard, The Australian, 14/12/00 page 5)

The Government also took the view that passenger numbers through Sydney Airport could be increased without changing the curfew, by rescheduling the flights and encouraging the arrival of larger aircraft. In 2001 the total aircraft movements in a year were shown to be 290,019 and the passenger traffic 23.2 million. Sydney Airport services more than 40% and 50% of Australia's international passenger traffic and freight traffic respectively. In the announcement made in March 2001 (see above) the Federal Government was also careful to head-off the anger of some voters with the promises that:

regional airlines' access to Sydney Airport would be guaranteed
the airport's curfew would be retained
the 80-movements-an-hour cap would be kept

The consideration of an additional runway on the Kurnell Peninsula and linked to the main airport by a rail tunnel under Botany Bay, was dismissed on the grounds of an unacceptable environmental impact.

[See Heinemann Atlas Third Edition, page 76 - Sydney Greater Metropolitan Region (location, map reference C2)]

Sydney's airport needs will be further reviewed in 2005, particularly after the impact of 'encouraging' regional airlines to move to Bankstown Airport has had time to have an impact on Sydney Airport. Regional airlines will not be forced to relocate - they will keep all their existing landing 'slots' and at the usual prices.

Our Future : Our World