Qantas (QF, Sydney Kingsford Smith) and other Australian operators have welcomed government's decision to go ahead with a new AUD2.5billion (USD2.4billion) airport to compliment Sydney's existing international gateway, Sydney Kingsford Smith. Prime Minister Tony Abbott announced the plan on Tuesday, saying he expects work at Badgerys Creek in Western Sydney, 60 kilometers from the city centre, to begin in 2016. The first flights are expected to launch in roughly ten years time.

“The role of second airports has been well-established in several of the world’s major capitals. Sydney is the key gateway for air traffic in-and-out of Australia and the benefits of having two major airports will be felt nationwide," said Qantas CEO Alan Joyce. “Airports are key pieces of infrastructure that facilitate a huge amount of economic activity, and they take a lot of time to plan and build. We look forward to being part of this process as Badgerys Creek moves closer to reality,” he added.

Proposed over 50 years ago, the new airport had been relegated to the drawing board until the new administration of Tony Abbott made its construction an electoral promise. A comprehensive Federal-New South Wales study released in 2012 confirmed that a second airport for the Australian commercial hub would be needed by 2030 – and effectively ruled out any location other than Badgerys Creek.

Among the first operators likely to use the facility are LCCs Tigerair Australia (Melbourne Tullamarine) and Jetstar Airways (JQ, Melbourne Tullamarine) with other carriers likely to follow.

According to Reuters, possible hindrances may come from Sydney Airport Holdings (SAH) Ltd, the current operators of Sydney Kingford Smith airport, located 10km from downtown Sydney. Under the terms of the airport's privatization pact of 2002, Sydney Airport has the right of first refusal to develop and operate a second airport in the city. SAH currently has its own longterm plans to expand and develop Kingford Smith.