Qantas, Lend Lease eye Badgerys Creek with billion dollar investments
QANTAS and construction giant Lend Lease are already eyeing opportunities in the Western Sydney Airport development which is poised to unlock billions of dollars of investments across Sydney’s west.
NSW
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QANTAS and construction giant Lend Lease are already eyeing opportunities in the Western Sydney Airport development which is poised to unlock billions of dollars of investments across Sydney’s west, as the Turnbull government presses ahead with developing the massive project itself.
Prime Minister Malcolm Turnbull moved to take control of the airport development, which is due to receive its first flight in 2026, after Sydney Airport Corporation announced its decision not to build and operate the Badgerys Creek site.
“The airport will be a major catalyst for jobs and economic growth in Western Sydney, injecting more than $1.9 billion into the economy during the construction phase alone,” Mr Turnbull said.
Sydney Airport chief executive Kerrie Mather said the risks associated with the development of the new airport were “considerable and endure for many decades without commensurate returns for our investors”.
Nearly 60,000 jobs will be created over the next three decades in the area as growth is supercharged by the new $5 billion airport, and 212,000 jobs in the long term.
The Daily Telegraph can reveal the government hopes to start the official tender process by the end of the year, with construction to begin next year.
Qantas boss Alan Joyce yesterday flagged moving Jetstar’s operating base from Kingsford Smith to Badgerys Creek to free up slots for more lucrative Qantas flights.
Likening the two Sydney airports to London’s Heathrow and Stansted, Mr Joyce said Kingsford Smith could act as a “premium airport” and Badgerys Creek as “low-cost”.
“Is there any reason why that eventually the structure in Sydney at Kingsford Smith where slots that are being used by Jetstar now would be used by Qantas — in the long term, absolutely that could happen,” Mr Joyce said.
Urban Infrastructure Minister Paul Fletcher has already entered discussions with major construction firms, and said the decision to proceed with the airport was “a very important milestone”.
“WSA (Western Sydney Airport) is enormously important for Sydney, for Western Sydney, and for the nation,” Mr Fletcher (left) said.
“It’s important to provide extra aviation capacity, this airport will provide improved access to air services for some two million people who will be closer to WSA than to Kingsford Smith.
“But most importantly WSA is about jobs, economic growth and economic opportunity for Western Sydney.”
Lend Lease chief executive Steve McCann said he looked forward to “supporting” the government’s efforts.
“Sydney is a growing city and the strong focus of both the federal and state governments to drive critical infrastructure investment to cater for this growth is essential for Sydney to maintain its standard of living and importance as a global city,” Mr McCann said.
Separately, the federal and state governments have committed $3.6 billion to road infrastructure to the area over a decade.
Treasurer Scott Morrison will announce further details in next week’s federal budget, likely to establish an NBN Co-style corporation to undertake the development.
Labor immediately supported the government’s decision, which was widely expected by financial analysts, and said it was a “massive opportunity” for growth in the region.
“The fact is that taxpayers have built every airport around the country … WSA is no different, it will be leased down the track, and will produce a return when that happens to taxpayers,” Labor’s infrastructure spokesman Anthony Albanese said.
Once the airport is built “there is no doubt that private finance will be very interested — will be falling over each other — to gain the lease” to operate Badgerys Creek, he said.
“When the airport is leased I think you might find there are a whole range of bidders. We have approaching $2 trillion in superannuation funds in this country looking for projects to invest in.”
Mr Albanese last week committed $400 million to extend the South West Rail Link from Leppington to the new airport, and yesterday called on the government to match that promise.
Sydney Airport had first right of refusal on building and operating Badgerys Creek as part of the privatisation of Kingsford Smith in 2002.
But the government withdrew a suggested concessional loan, leading the company to repeatedly call into question whether it would proceed with the project. NSW Premier Gladys Berejiklian believes the community doesn’t care who builds and operates the airport, so long as it is open as soon as possible.
“What matters to the community is the airport is built,” she said. “It leaves the federal government with some really exciting options. We will support, in whichever way we can, the federal government to make it happen as quickly as possible.”
And despite Sydney Airport’s decision, the Australian Airports Association also backed the Coalition’s pledge to build Sydney’s second airport. “One option would be obviously to build and operate and the other option is to build and then look to a third party (to operate the airport) on the same terms as what was offered to Sydney Airport,” chief executive Caroline Wilkie said.
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