The Australian government said it will fund construction of a new $3.76 billion international airport for Sydney.
The decision came after Sydney Airport Holdings declined to exercise its right to build the airport itself, deeming it a risky project.
"It’s a burden that the government has the capacity to bear – the burden being not simply the costs, but the risks," analyst Saul Eslake told Reuters.
The site at Badgery’s Creek s about 25 miles from the city, much further away than the existing airport which is operated by Sydney Airport Holdings.
"The risks associated with the development and operation of the airport are considerable, and that will continue for many decades without commensurate returns for our investors," Sydney Airport chief executive Kerrie Mather said.
Shadow transport spokesman Anthony Albanese said it was ‘essential’ for a rail line to be built and operational before the new airport opens due to the distance.
Qantas CEO Alan Joyce hopes the new airport will serve as a low cost hub alternative such as London’s Stansted Airport.
