Sydney airport sale deferred

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The Australian Minister for Finance and Administration, John Fahey, announced this week that the Government has decided to defer the sale of Sydney airport until early 2002.

The decision follows advice from its advisers that the Government's sale objectives could not be satisfactorily met in the current timeframe in light of the tragic events in the US and the subsequent level of disruption in the global financial markets and airline and aviation sectors. Up until last week tenders were being lined up by the three preferred bidders: The Gateway consortium (with Deutsche Bank), ABN-Amro's Connect consortium and the Southern Cross consortium with Macquarie Airports Group.

The Government extended its initial deadline for the lodgement of binding bids from 17 September 2001 to 26 September 2001 to monitor the financial markets in the wake of the terrorist attacks on the US.

Sydney Airport Corp said it had become clear that the responsible decision in the interests of all parties - including Australian taxpayers seeking a financial return on the major national asset - would be to defer the sale of Sydney Airport until early 2002, when the position is likely to be clearer.

The Nuance Group's A$220m ($115m) retail business at Sydney airport hinges on the direction taken by the new owners. Nuance accounts for some 70% of all Sydney airport retail revenues and has a further two years to run of its five-year contract.