Transport and
     Regional Development
                      AVIATION POLICY

 SUBJECT: AIRPORT SALES MEDIA RELEASE

 Date: 6 November1997

      Minister for Finance and Administration
               The Hon John Fahey, MP
      Minister for Transport and Regional Development
               The Hon Mark Vatle, MP

                JOINT MEDIA RELEASE                 66/97

 Phase 2 Airport sale at bidding stage

 26 separate bidders have been shortlisted and will proceed to the bidding
 stage for the 15 airports, being sold by the Federal Government. It is
 expected there will be strong competition for the 15 airports amongst the
 shortlisted bidders.

 The shortlisted parties will be asked to submit full bids by 19 February
 next year. The airports are expected to be sold no later than 30 June 1998.

 The shortlisting decision follows a review undertaken by the Government's
 Office of Asset Sales and its advisers, BZW of over eighty Expressions of
 Interest lodged by more than 30 consortia on 27 October.

 Parties who have not been selected will be given the opportunity to be
 included on a list that will be provided to successful parties for
 consideration as additional participants.

 Ten regular passenger transport airports at Adelaide, Alice Springs,
 Canberra, Coolangatta, Darwin, Hobart, Launceston, Mount Isa, Tennant
 Creek and Townsville are on offer.

 A further five general aviation airports Archerfield (QLD), Parafield (SA),
 Jandakot (WA) Essendon and Moorrabbin (Vic) - are also being sold.

 The Commonwealth will be offering all 15 Phase 2 airports on a leasehold
 basis under the Airports Act 1996, but is reserving the right to offer
 some of the smaller airports on a freehold basis should the States put in
 place the necessary regulations to enable the airports to continue to
 operate unaffected and the new lessees agree that regulatory
 responsibility be transferred to the relevant State.

 All the airports are currently owned and operated by the Federal Airports
 Corporation. They are being sold on the basis that they will continue to
 function as airports.

 Shortlisted parties will be invited to undertake due diligence and to
 prepare legally binding bids for assessment against the full range of
 the Government's sales and ongoing objectives

 This will ensure the Government achieves a fair and reasonable price,
 as well as bids which take into account factors such as diversity of
 ownership, extent of local participation, financial strength, management
 capability, environmental issues and consideration of all stakeholders.

 The airports have attracted significant interest from local and
 international investors, indicating that the airports are considered
 quality investments by the private sector.

 The airport sale is in line with the Federal Government initiatives to
 create a more competitive business environment: generating greater
 efficiency, better service, lower prices and improved customer focus.
 Airport users are expected to benefit from an average reduction in
 airport charges - in some cases more than 20 per cent over the next
 five years.

 This, the second phase of the privatisation of Australia's major airports,
 follows the successful sale of Melbourne, Brisbane and Perth airports to
 three different owner-operators earlier this year, netting a return of
 $3.3 billion.

 The sale process is being managed on behalf of the Office of Asset Sales
 by BZW.

  Canberra 6 November 1997

 For further information    John Fahey's Office David McLachlan 02 6277 7400