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Old January 2nd, 2017, 04:51 AM   #2301
EK413
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When I stumbled upon this short video clip I was left tears of laughter

https://youtu.be/Sp2-WP5I5IA
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Old January 2nd, 2017, 06:07 AM   #2302
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Old January 2nd, 2017, 06:35 PM   #2303
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It's just a bit delayed.
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Old January 17th, 2017, 11:43 PM   #2304
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smh

http://www.smh.com.au/business/aviat...17-gtt3ov.html

JANUARY 17 2017 - 5:03PM

Sydney Airport 'unlikely' to take on Badgerys Creek, says S&P Global Ratings

Jacob Saulwick


Sydney Airport Corporation, the owner of the city's airport at Mascot, is unlikely to participate in the construction or running of the new airport at Badgerys Creek, a global ratings agency says.

If the ratings agency is proved right, that would mean the federal government would have to build the airport itself or contract with a rival to Sydney's existing airport operator.

video

The likelihood of Sydney Airport also operating the Badgerys Creek airport took a hit late last year when the Turnbull government said it would not make extra funds available for doing so.

The government had intimated to Sydney Airport, which owns a contractual right to be given the first chance to build and run a Badgerys airport, that it would provide billions in concessional loans.

~~~ cont. link above


jjjj
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Last edited by Brizer; January 18th, 2017 at 08:34 AM. Reason: who stole J?
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Old January 17th, 2017, 11:48 PM   #2305
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I personally think that would be great news!
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Old January 17th, 2017, 11:57 PM   #2306
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I'm glad that Turnbull has said there'll be no money for Sydney Airports Corp. Let a competitor in.
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Old January 18th, 2017, 12:13 AM   #2307
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It will be interesting if the Schiphol Group will be keen to invest like they have with BAC?
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Old January 18th, 2017, 12:32 PM   #2308
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Quote:
Originally Posted by AtD View Post
I'm glad that Turnbull has said there'll be no money for Sydney Airports Corp. Let a competitor in.
What sort of scale and staging would we expect from a fully private bid? And could they bid or a LARGER or faster built airport than the government might have had in mind, or will they be artificially constrained by the Member for Qantas/Member for Sydney Airport Corporation/Member for Cook/Treasurer?
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Old January 20th, 2017, 05:54 AM   #2309
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Quote:
Originally Posted by KJBrissy View Post
It will be interesting if the Schiphol Group will be keen to invest like they have with BAC?
It's funny that the Schipol Group is actually owned by the Dutch government and two municpial governments. Why cant the Fed/NSW government own Badgerys Creek? If they are profitable government companies then surely that helps the budget out?
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Old January 20th, 2017, 06:03 AM   #2310
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Yep, agree.
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Old January 20th, 2017, 06:47 AM   #2311
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It's funny that the Schipol Group is actually owned by the Dutch government and two municpial governments. Why cant the Fed/NSW government own Badgerys Creek? If they are profitable government companies then surely that helps the budget out?
Yep they could, but just like in NSW, the government could own the "poles and wires" or they could own the NW rail line, the CSELR and west Connexx.

Governments and companies make these decisions all the time, what is the best fit.
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Old January 20th, 2017, 01:45 PM   #2312
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Yep they could, but just like in NSW, the government could own the "poles and wires" or they could own the NW rail line, the CSELR and west Connexx.

Governments and companies make these decisions all the time, what is the best fit.
Its really about rearranging deck chairs. Governments can borrow cheaply and should do so for long term infrastructure. Selling poles and wires ultimately transfers the cost to electricity consumers. I've no problem with the government borrowing and investing in an airport. The US government owns most of its airports.
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Old January 21st, 2017, 02:02 AM   #2313
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It'd be interesting to see if it's worthwhile the government setting up a GOC to run airports and then use it to buy airports internationally just like Schiphol.
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Old January 21st, 2017, 04:32 AM   #2314
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Quote:
Originally Posted by zoomwhoosh View Post
The US government owns most of its airports.
And they're mostly awful glorified bus terminals!
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Old January 21st, 2017, 06:11 AM   #2315
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Agree, the USA is the worst example for this.


I think though, if governments used their airports and designed their airports to display a good first and last impression as a country, state and city, then there would be great investment than what the private sector provides.
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Old January 21st, 2017, 08:24 AM   #2316
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I see no merit in the government operating an airport in a market like Sydney where there is already a private competitor in what is a tightly government regulated industry.

Schiphol is rightly government owned, it has a monopoly on air traffic in the Netherlands with over 90% of total passengers boarding or disembarking from AMS.

Australia Airports essentially have monopolies over domestic markets, however with the construction of Badgeries Creek the 3 largest Australian cities will all at least have 2 domestic airports in their region.

Whether the government can borrow funds cheaply isn't the point, just because something could generate a return doesn't mean the government should invest in it. If it's likely to generate a return then that's a fair indication that private enterprise will be willing to fund the project and the government could better invest that money elsewhere.

Furthermore Australian politics would complicate the efficiency of operating the airport, already their are calls from certain parts of politics to impose curfews, at least a privately owned airport would provide a voice of opposition to such concepts, having this airport fed government owned would make curfews and flight restrictions pork barrelling subjects through federal elections.
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Old January 21st, 2017, 08:52 AM   #2317
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I think it depends on the objective. If people want to see fancy airports with better amenities to serve as showcases to arriving and departing tourists then perhaps the government should own and manage them directly and accept the cost for doing so.

However, if the argument is that there is money to be made from infrastructure and airports could serve as revenue generators for the government then it would probably be better to simply passively invest in specialist asset managers like IFM.

The rate that the government can borrow at is somewhat a moot point anyway. Just because you can borrow $1b at a low rate doesn't mean you can $100b at a low rate.
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