iOS app Android app View apps View mobile website

NPR Funding: BAC Response to recent media claims

10 April 2013


The Facts:


  • BAC remains committed to building the New Parallel Runway (NPR) at Brisbane Airport and has more than $50 million worth of site works underway right now.
  • The construction program for the NPR is ongoing and remains on track for delivery in 2020.
  • While referring the matter to the ACCC is an option, BAC remains committed to reaching agreement with the airlines in commercial negotiations which are still ongoing.
  • BAC wants to build this runway and fund it the same way that all major aviation infrastructure at Australia’s airports has been funded for over a decade.
  • That means a combination of a major investment from the airport and a smaller proportion of contribution via landing fees during construction. This is the normal model for funding major airport infrastructure and in many other industries.
  • BAC will invest 75 per cent of the cost of the new runway at BNE through contributions from our shareholders and loans. Only 25 per cent is to come through landing fees. The contribution is only an extra 35 cents per domestic passenger which is included in the price of an airline ticket. It will increase gradually over the next five years to, at the most by 2017, an extra $3.15 per international passenger.
  • The suggestion of an additional $2.50 passenger ‘levy’ as an alternative to increasing the landing fees as above, was one option that was previously considered and rejected as stated by BAC’s Chairman, Bill Grant, in the Courier Mail.
  • BAC is not proposing a ‘new’ or ‘alternative’ passenger ‘levy’ above and beyond the incremental ‘landing fee’ as detailed above.
Brisbane Airport background