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Sydney Airport Holdings declines to develop city's second major airport
[SYDNEY] Sydney Airport Holdings on Tuesday said it would not take up its rights to develop a A$5 billion (S$5.26 billion) second major airport in the city's west, meaning it could lose its monopoly status within a decade.
The decision clears the way for the Australian government to build the airport expected to open in late 2026 itself, as is widely expected, or to offer the development to other groups, such as pension funds and infrastructure funds.
Sydney Airport chief executive Kerrie Mather said in a statement that it was in the best interest of investors for her company to decline the option to develop the airport based on the proposed terms, which did not include any government aid.
The Australian government hopes the new airport will boost inbound air passenger numbers to Sydney by about a quarter, or 10 million people per year, from current levels within five to 10 years of opening.
A spokesman for Federal Minister for Urban Infrastructure Paul Fletcher, who is overseeing the airport development, was not immediately available for comment.