Senator Nick Minchin John Anderson MP
Minister for Finance and Administration, Australia Deputy Prime Minister, Australia
Minister for Transport and Regional Services
25 June 2002
Sydney Airport will be sold for $5.588 billion to Southern Cross Airports Corporation, the Minister for Finance and
Administration, Senator Nick Minchin, and the Deputy Prime Minister and Minister for Transport and Regional Services,
John Anderson, announced today.
"This is the biggest government trade sale in Australian history. It is also the world’s largest trade sale of an
airport," Senator Minchin said.
"This price reflects fair value for Sydney Airport, Australia’s pre-eminent international gateway and transport
infrastructure asset.
"Following a very competitive bidding process, the Southern Cross bid was assessed, on balance, as best meeting the
Government’s sale objectives which included optimising sale proceeds and ensuring the buyer had the necessary management
capabilities and a commitment to the development of airport services."
The Southern Cross bid, sponsored by Macquarie Bank Ltd, the German airport operator HOCHTIEF AirPort GmbH and the
Commonwealth Bank of Australia, was one of three highly professional bids received by the Commonwealth.
Mr Anderson said the offer from Southern Cross was a good result for aviation policy.
"Southern Cross has indicated it will ensure the effective development of airport services, consistent with its status
as Australia’s busiest passenger and cargo facility," Mr Anderson said.
"Residents of Sydney can be confident that the sale of the airport will not change the Government’s noise management
policies in any way - the Government retains full regulatory control. Sydney Airport will continue to be subject to the
80 aircraft movements per hour planning cap, the curfew from 11pm to 6am and the noise sharing policy implemented
through LTOP.
"Regional commuters can also rest assured that access for regional airlines will continue to be guaranteed by the Slot
Management Scheme and the ACCC will continue to ensure that prices for regional carriers do not increase in excess of
the Consumer Price Index.
"In short, no regional airline will be forced to move from Sydney Airport."
Senator Minchin said the proceeds of the sale will go to repaying debt.
After repaying SACL debt, Commonwealth debt will be reduced by $4.233bn.
"This will reduce public debt interest payments by around $250m every year", Senator Minchin said.
Under the terms of the sale, Southern Cross will shortly acquire all of the outstanding shares in SACL, the airport
lessee company which operates and manages Sydney Airport under a 99-year lease from the Commonwealth.
The Ministers congratulated their respective departments and the advisers to the sale, Salomon Smith Barney, Freehills,
Gavin Anderson & Co, and Sparke Helmore, for their successful management of a complex sale process.