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$8.72 sydney airport

At the end of the day Australian governments are pro-monopoly,...

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Blommer

2,935 Posts.

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21/12/16

10:48

Post #: 21481682
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Originally posted by No_one ↑

Aflatoon, SYD had to be given first preference, that was part of the original sale deal back when the airport was sold.

The government don't have to give much away in the negotiation, as if SYD decline to take up the offer they go out to tender and will have no problem securing a keen operator.

On Bloomers point about having liberal party support, QAN will want to have different operators at the 2 airports, the threat of moving even 20% of their sydney flights to a different operator at western sydney will help to constrain the charges that SYD can levy. QAN have the government's ear at least as well as anyone else and so expect the pressure to be coming from both sides.

The other question for Syd is that developing the new airport will involve a whole range of activities that they don't currently do. Entering into contracts for earthmoving and building construction worth $1B is a pretty risky venture. Do they really have the capacity to do that sort of work?

In my mind SYD is pretty risky despite its past good performance.

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At the end of the day Australian governments are pro-monopoly, despite the lip service paid to the myth of a 'free market'. If SYD doesn't end up owning the new airport, the arrangement between the two will be very cosy.

SYD Price at posting: $6.25 Sentiment: Hold Disclosure: Held
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