Badgerys Creek airport: Who are the winners?

With a $3.5 billion infrastructure package on its way as well, these companies are set to benefit

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With the Federal government giving the go-ahead for Sydney's second airport to be built at Badgerys Creek, 50kms from the Sydney CBD, we take a look at some of the potential winners.

Firstly, Sydney Airport Holdings Limited (ASX: SYD), which currently owns the Kingsford Smith airport, has first crack at deciding whether it wants to develop, own and operate the second airport. With estimates that the airport will generate between $11 and $15 billion of additional economic activity by 2050, Sydney Airport Holdings is very much likely to take a majority stake in the airport. Additionally, second airports have had little impact on major airports in other cities around the world, so the company is unlikely to see many of its revenues flow away from Kingsford Smith.

But holding a monopoly over Sydney's two major airports is something that Sydney Airport Holdings would surely relish.

Construction firms such as Leighton Holdings Ltd (ASX: LEI) could also be big winners, with the announcement of a $3.5 billion infrastructure package to support the new airport. Most of the funds will be spent on upgrading major roads around the site. An outer ring road, called the M9 orbital, is also being looked at over the long term, according to ABC News.

And airlines will of course be major beneficiaries, with reports that the Badgerys Creek airport will not have the same curfew restrictions as Sydney Airport. That means airlines such as Qantas Airways Limited (ASX: QAN), Virgin Australia Holdings (ASX: VAH) and Air New Zealand (ASX: AIZ) will have more flexibility in organising flights into and out of Sydney. Although I don't know about you, but I wouldn't fancy the prospect of getting on or off an international flight at 3am in the morning in Sydney.

Foolish takeaway

Another big winner will be the people of western Sydney, with an economic impact report suggesting between 35,000 to 46,000 full time equivalent jobs would be created, directly or indirectly. For those commuters travelling hours into Sydney's CBD for work, there also the prospect of getting work closer to home.

While there is some opposition to the new airport, overall, Badgerys Creek should prove an economic boost to the region as well as Australia.

Motley Fool writer/analyst Mike King owns shares in Sydney Airport Holdings. You can follow Mike on Twitter @TMFKinga

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »