One of the worst kept political secrets is likely to be let out of the bag today, with the federal government set to announce Badgerys Creek as Sydney's second airport.
According to the Australian Financial Review (AFR) the government is expected to announce its decision to approve the go-ahead for a second Sydney airport, to be built at Badgerys Creek in Sydney's West.
The suburb, which is 51 kilometres west of the CBD, was first named as the site of Sydney's second airport almost thirty years ago, in 1986. Construction never started, with multiple options proposed including the NSW government's idea of using Canberra as a second international airport.
A multi-million dollar infrastructure package is also in the works to support the airport, such as roads around the airport. Airlines including Qantas Airways Limited (ASX: QAN) and Virgin Australia Holdings Ltd (ASX: VAH) have both reported that they would willingly use Badgerys Creek.
Qantas boss Alan Joyce said that it would make sense for his airline to operate from more than one airport, but would depend on the infrastructure cost and having the right air operation for that airport. Badgerys Creek is likely to operate without a curfew, unlike Sydney's Kingsford Smith airport, making it more attractive to international airlines such as Qatar Airways.
While the owners of Kingsford-Smith, Sydney Airport Holdings Ltd (ASX: SYD) have said that the airport is operating at 65% capacity, Infrastructure Minister Warren Truss says the company's 20 year master plan is overly optimistic, and a second airport needs to be operational before 2033.
Sydney Airport Holdings holds first right of refusal to build, own and operate a second Sydney airport and today's expected announcement is likely to trigger that option. It's not yet clear whether the company will take up its right, but having a competing airport is probably not on its list of 'must haves'.
Foolish takeaway
Initial plans are for a single runway, which suggests the second airport may well be used more for domestic flights at first with Tigerair and Qantas' subsidiary Jetstar the most likely first users. For the population Greater Western Sydney, the new airport should be a boon, delivering thousands of jobs, both during and after construction, as well as access to a closer airport.
