Simplified outline
11 Simplified outline
The following is a simplified outline of this Part:
• Airport leases are subject to the following key rules:
the lessee must be a company;
the term of the lease must not be longer than 50 years (with or without an option to renew for up to 49 years);
the lease must provide for access by interstate and/or international air transport;
a company can only lease one airport.
• The airport‑lessee companies for Sydney (Kingsford‑Smith) Airport and Sydney West Airport may be wholly‑owned subsidiaries of the same company.
• Airport leases can only be transferred with the Minister’s approval.
• The beneficial and legal interests in an airport lease cannot be separated except in the case of the enforcement of a loan security.
• If a lender acquires a lease, or enters into possession of an airport site, by way of the enforcement of a loan security, the lender must:
notify the Minister; and
transfer the lease to another company.
• An airport‑lessee company has a statutory obligation to use the airport site as an airport.
• An airport‑lessee company’s sole business will be to run the airport.
• An airport‑lessee company can contract out the management of the airport to another company. The other company is called an airport‑management company. An airport‑management company must be approved by the Minister.
• The regulations may prohibit certain subleases and licences relating to airport sites.
• The regulations may deal with the terms of subleases and licences relating to airport sites.
• The regulations may provide that the beneficial and legal interests in subleases and licences relating to airport sites cannot be separated except in the case of the enforcement of a loan security.
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