Canberra expects to complete the second round of its airport privatisation programme by June. It has accepted bids for ten airports, and is set to wind up bidding on five more in time to sign all 15 by 30 June.
The privatisation moves leaves Sydney as Australia's only major airport which will still be operated directly by the federal government.
The second group of privatised airports include airports in Adelaide, Canberra, Hobart, and seven other small cities. Bidding was inconclusive on Alice Springs, Darwin, and three others, thus forcing another round of bids that the government hopes to finish by the end of June.
Canberra expects to receive US$460 million from the entire second phase. As in the sale of Brisbane, Melbourne, and Perth airports last July, the government will award 50-year leases with options for another 49 years. Winning bids in the second round are mostly from groups that include local governments and overseas airport operators. Manchester airport is among the successful bidders for three projects. BAA is part of another consortium.
The jewel in the crown, Sydney airport, has been kept off the block until the government can resolve two issues - the continuing controversy over noise at the present airport, and when, where, and how to build a second airport.
The Australian Competition and Consumer Commission has issued special rules to ensure that recently privatised airports do not charge monopoly prices. But for the moment competition seems robust. Melbourne has reduced landing fees by up to half to lure airlines away from Sydney. Brisbane is promoting its charges as lower than both Sydney's and Melbourne's.
Source: Airline Business