DAVID KNIBB SEATTLE
The decision on whether to build an additional Sydney airport edged another step closer early in September when Australia's environment minister gave the Badgerys Creek proposal a qualified go-ahead.A dispute is escalating, however, over how to fund the A$5 billion ($3.2 billion) project, and whether to pay for it by selling Sydney's present airport. After two days of inconclusive talks in August the federal cabinet agreed to defer a decision and seek more information. Some viewed this as a decision to stall indefinitely. Transport Minister John Anderson had said there would be a final decision in August.
Environment Minister Robert Hill gave Badgerys Creek a green light while recommending a night curfew and other operational changes to cut noise and pollution. But even under worst-case conditions, Hill saw no insurmountable obstacles to the new airport.
Senior ministers opposed to the new airport have now shifted the focus to funding. In response, Anderson has offered two options. One is understood to be a proposed new noise levy on aircraft that continue to use Sydney's Kingsford Smith airport. This would raise revenue and also encourage airlines to move to Badgerys Creek, which would raise more revenue from landing fees.
The second option would be to sell Kingsford Smith and use its estimated A$4 billion proceeds to cover 80% of the cost of a single runway, terminal, and ground links to Badgerys Creek. Privatisation of Sydney's airport has been planned ever since Australia sold its other airports.
Proceeds from these were not earmarked for specific projects, however. Moreover, Finance Minister John Fahey claims the go-ahead for Badgerys Creek would wipe $1 billion off the sale price of Kingsford Smith.
Source: Airline Business
