Airports

Australia is the world's 14th largest aviation market based on passengers transported.19 Total passenger movements have almost doubled in the past 15 years, growing by 4.3 per cent a year. In 2015, annual passenger movements totalled over 149 million.20

All of Australia's capital city airports are operated by private companies holding long-term leases from the Australian Government. These airports prepare a Master Plan every five years, setting out their major development plans for the upcoming 20-year term.

In April 2014, the Australian Government announced that Commonwealth-owned land at Badgerys Creek will be the site of an airport for Western Sydney. In the 2015-16 Budget, the federal government committed A$115 million to fund planning and preparation work for the Western Sydney Airport project. The commitment includes A$26 million to develop a concept design for rail access through the airport site and A$89 million to undertake critical site-preparation activities. This funding will allow for a range of preparatory activities to support an airport commencing operations in the mid-2020s. The owners of Sydney (Kingsford Smith) Airport have the right of first refusal over the opportunity to develop and operate a Western Sydney airport. A formal offer for the airport development opportunity could be made in late 2016. The project is expected to create significant direct and indirect economic benefits, along with potential opportunities for the private sector, during construction and the ongoing operation of the proposed airport.

Sydney Airport, New South Wales.

Opportunities exist for private financiers to invest in Australian airports, including existing federal government-leased airports and existing private airports. As state and local governments examine the possibility of privatising regional airports, or seek private investment to upgrade regional airports, further opportunities may become available.