With the Federal government giving the go-ahead for Sydney's second airport to be built at Badgerys Creek, 50kms from the Sydney CBD, we take a look at some of the potential winners.
Firstly, Sydney Airport Holdings Limited (ASX: SYD), which currently owns the Kingsford Smith airport, has first crack at deciding whether it wants to develop, own and operate the second airport. With estimates that the airport will generate between $11 and $15 billion of additional economic activity by 2050, Sydney Airport Holdings is very much likely to take a majority stake in the airport. Additionally, second airports have had little impact on major airports in other cities around the world, so the company is unlikely to see many of its revenues flow away from Kingsford Smith.
But holding a monopoly over Sydney's two major airports is something that Sydney Airport Holdings would surely relish.
Construction firms such as Leighton Holdings Ltd (ASX: LEI) could also be big winners, with the announcement of a $3.5 billion infrastructure package to support the new airport. Most of the funds will be spent on upgrading major roads around the site. An outer ring road, called the M9 orbital, is also being looked at over the long term, according to ABC News.
And airlines will of course be major beneficiaries, with reports that the Badgerys Creek airport will not have the same curfew restrictions as Sydney Airport. That means airlines such as Qantas Airways Limited (ASX: QAN), Virgin Australia Holdings (ASX: VAH) and Air New Zealand (ASX: AIZ) will have more flexibility in organising flights into and out of Sydney. Although I don't know about you, but I wouldn't fancy the prospect of getting on or off an international flight at 3am in the morning in Sydney.
Foolish takeaway
Another big winner will be the people of western Sydney, with an economic impact report suggesting between 35,000 to 46,000 full time equivalent jobs would be created, directly or indirectly. For those commuters travelling hours into Sydney's CBD for work, there also the prospect of getting work closer to home.
While there is some opposition to the new airport, overall, Badgerys Creek should prove an economic boost to the region as well as Australia.
