Sydney Airport CEO flags departure setting off global search

Departing CEO Kerrie Mather will still be around for the decision on developing a second airport at Badgerys Creek.

Outgoing Sydney Airport chief executive Kerrie Mather. Pic: Chris Pavlich

Outgoing Sydney Airport chief executive Kerrie Mather says she will be in place to make the decision on whether to take up the option to develop Sydney’s second airport at Badgerys Creek Creek.

Ms Mather today announced her intention to step down, with an international search for her replacement kicking off in earnest.

Ms Mather said she wanted to be on deck to hand over to a new CEO. This meant she could be in the job until the end of the year, or early 2018.

“I’m going to be around for quite some time. It could be until the end of the year or early next year. We are working towards the government’s timetable of early May,” she told The Australian.

“Our position has been very, very consistent. It is a very large greenfield project with a long lead time. It is big. There is a lot of risk attached to it and it represents a very challenging investment proposition for our millions of Australian super fund investors.

“We are still working through the process and we are working towards that timetable that we have agreed with the Commonwealth.

Before joining Sydney Airport (SYD), Ms Mather led the team that bought Sydney Airport for $5.6 billion in 2001. She had previously worked for Macquarie Bank.

Ms Mather said the financial “metrics” of business were “the strongest they have ever been”, with interest cover having doubled to 2.7 times over the past decade. Even though it is saddled with $8 billion in debt, S & P has put the company on a positive outlook.

Ms Mather steered the business through the GFC at a time when it was laden with much higher debt levels. The strategy involved selling off airports in the US, Europe and Japan that it had acquired during its formative years.

Ms Mather said that “moving to an entity that was singularly focused on Sydney Airport has added enormous value for shareholders”.

Announcing her departure, Ms Mather, who has led the ASX-listed airport operator since June, 2011, said the company was in a strong enough position to cope with a change of leadership.

“I’m very proud of the work we’ve done in partnership with industry, governments and the community, to grow aviation connectivity and choice, domestically and internationally. Sydney Airport is very well positioned for the future,” she said.

“It’s the right time to transition to new leadership.”

With Daniel Palmer