Australia Makes Windfall From Airports Privatisation

Australia completed the first phase of its airport privatisation plan on Wednesday with the sale of three city airports for A$3.34 billion (US$2.60 billion) more than twice the amount the government had budgeted for.

Analysts said the government had assumed it would get only about A$1.5 billion for 50-year leases on Brisbane, Melbourne and Perth airports, among the largest of 20 airports to be sold.

The sale also cleared the way for the second phase of airport privatisation the sale of all remaining airports except those in Sydney in the 1997-98 year starting on July 1. Melbourne airport was sold for A$1.307 billion to Australian Pacific Airports Corp (APAC), a consortium led by funds manager Australian Mutual Provident Society (AMP) and British airports operator BAA Plc.

 

Brisbane airport was awarded to a group headed by Dutch government-owned Amsterdam Airport Schiphol and the Commonwealth Bank of Australia Ltd for A$1.387 billion.

Perth airport was sold for A$643 million to Airstralia Development Group Pty Ltd, a consortium including Lockheed Martin Corp subsidiary Airport Group Holdings International, Hastings Funds Management and an infrastructure subsidiary of HRL Morrison & Co. Australian Finance Minister John Fahey confirmed the am ounts were more than expected.