Apr 24, 2012

Supporting investment in our airports

The Federal Labor Government has today announced that all federally leased airports will be offered the protection of a Tripartite Deed, giving them greater certainty in securing financing for infrastructure developments.

Last year, we agreed to extend existing tripartite deeds for 12 major airports by another 30 years, removing an obstacle to airports’ planned investment of up to $9 billion to expand and modernise their facilities.

Following representations from industry, we will now offer the protection of Tripartite Deed to the remaining nine federally leased airports on the same terms as the other major airports.

The nine airports to be offered these deeds are Parafield, Archerfield, Tennant Creek, Camden, Essendon, Mount Isa, Jandakot, Moorabbin, and Hobart.

Over the past decade Tripartite Deeds have clarified the rights of financers in the event an operator of a federally leased airport, to which they have lent money, goes out of business or loses its operating licence.

These deeds has given financiers the confidence to invest, and operators the certainty to plan for the long term.

Today’s announcement puts all federally-leased airports on a level-playing field when it comes to securing financing for major infrastructure developments and upgrades on airport land.

Our airports are engines of economic growth, directly supporting more than 50,000 jobs and contributing $5 billion to national income every year.

Over coming months, my Department will work with all airport operators and their financiers to finalise these arrangements.