Turnbull blocked $4 billion subsidy to Sydney Airport to prevent monopoly
In 2016, Malcolm Turnbull rejected a proposal to subsidise Sydney Airport to build a second terminal, choosing instead to build it publicly.
When Sydney Airport Corporation proposed building a second airport in 2016, the federal government was asked to sweeten the deal with a $4 billion long-term loan and cost overrun protection. Former prime minister Malcolm Turnbull said he was appalled.
Malcolm Turnbull realised Sydney Airport had a contractual right to build any new airport within 100 kilometres of the CBD, meaning a subsidised project would likely end up with one company running both hubs.
Malcolm Turnbull and urban infrastructure minister Paul Fletcher made Sydney Airport an offer with zero subsidy, one they knew would be rejected. When it was, the government announced it would build the airport itself.
Fletcher said the airport would have been smaller and taken years longer if Sydney Airport had built it. With more than 2 million people living closer to Western Sydney International than Kingsford Smith, Fletcher predicts it will be Sydney's biggest airport by mid-century.
- $4 billion
- Subsidy rejected
- 100 kilometres of CBD
- Right of first refusal radius
- 2002
- Airport sale year
- More than 2 million
- Closer population to new airport
Why it mattersA monopoly would have slowed the second airport and left a single company controlling Sydney's aviation. Competition between airports benefits passengers through better services and lower costs.
AustraliaSydney residents and businesses now have a competitive second airport serving the city's western suburbs, with capacity and lower fares competing against Kingsford Smith.
Corroborated bytheage.com.au·watoday.com.au
✓ Claims checked against the source and corrected before publish. checked 3 h ago
