Bankstown Airport FOR SALE
Ben Morgan, Opinion.
Released this week was news that a 33.3% equity stake in the 76 hectares of lease hold land surrounding Bankstown Airport would be put on the market, represented by commercial property group, Colliers International.
News of the equity sale comes as no surprise to those following the Bankstown Airport saga and raises serious concerns as to the financial stability of the managing company. Rumors have been aloft for some time regarding the anticipated exit of one of the three companies which manage Bankstown Airport, as a result of the impact of the global financial crisis and degraded aviation related cash flow. More alarmingly, the private airport management appear to have government sanctioning in the carving up of aviation related infrastructure to satisfy their short term cash flow problems.
The move to sell off 33.3% clearly indicates that the core management strategy to date has not worked, and is a clear indicator that there has been little to no prosperity for aviation on Bankstown Airport.
Since privatisation in 2003, almost two thirds of the aircraft that once called Bankstown home, have moved out, opting for aerodromes with more realistic rents. Property leasing rates and aircraft usage charges on Bankstown Airport have been reported to have increased as high as 300% since privatisation, with many businesses electing to re-locate, escaping the apparent gouging.
However, fleeing from the ever increasing charges has its own challenges.
With the sale of Bankstown, Hoxton Park and Camden Airports into the hands of an aviation monopoly, Sydney based aviation businesses and aircraft owners have been forced to seek financial shelter in places as far away as Bathurst, in order to avoid similar increases. Taking with them vital aviation skills, employment and business from the Sydney metropolitan.
Minister for Transport, Regional Development and Local Government, Mr Albanese, appears either too busy to be concerned with such issues or is simply ill-informed by his team of advisers, as to the severity of the situation in general aviation.
Similarly across Australia at almost every aerodrome that has been privatised, the private airport owners are hatching plans to develop Australia’s national aviation infrastructure into industrial commercial parks, or better still Bunnings Hardware Stores.
Ask Minister Albanese what his department is doing to safeguard Australia’s airports and tax paying aviation businesses, and you will receive a template response regarding the anticipated National Aviation Policy Statement.
A white paper document that is set to woo and wow the general aviation industry back into growth and prosperity, through an impressive array of words, rhetoric and jargon, does not represent a clear path into the future for general aviation unless it rectifies the problems we have defined over the last several months.
Maybe the Minister could take time out of his busy day to take a face-to-face look at the situation at Bankstown Airport. After speaking with those affected, maybe the White Paper may seem a little off the mark, in solving these problems.
Our readers comments are always appreciated.
If the airport tenants have any sense they should buy the share so they have some sort of say in the running of the airport. The current management have no idea.
Well if you can’t ripoff the customers you can always sell the farm !
As a CAMDEN Airport based tenant of over 18 years I am now facing a bi-annual rent review with CAL/BAL demanding a rent increase of 25% ??? I guess they don’t realise that the country is in recession and that commercial rents have been FALLING in the last year.
I know my business has been falling with my turnover down 20% in the last 12 months. What about a rent reduction ? How can they justify a 25% increase in rent when they can’t even provide an access road without bumps and holes!
Come on Mr Ellis get real and start to HELP some of your customers before they all pack up their tents and leave you with empty airports, or is that what you want I wonder!
Some businesses do not REALLY need to be located on BK or CN airports?
Those of you that could operate from locations close to, however outside the perimeter should imitate the rats: get out before the ship sinks.
My heart goes to the flying schools and the maintenance organizations they are caught and they need unite to fight with all their strength.
Would there be possibilities that private companies develop a NEW airpark within the Sydney basin?