COMMONWEALTH DEPARTMENT of
TRANSPORT AND
REGIONAL DEVELOPMENT

             COMMONWEALTH REGULATION OF PHASE 2 AIRPORTS

          JANDAKOT/PARAFIELD/ARCHERFIELD/MOORABBIN/ESSENDON


       Following the leasing by the Commonwealth of Jandakot, 
Parafield, Archerfield, Moorabbin and Essendon Airports ("the GA 
airports"), State laws will apply at each airport, except in relation 
to a number of specific matters which will be regulated by the 
Commonwealth under the Airports Act 1996.

       Most Parts of the Airports Act apply to "core regulated 
airports", as defined at Clause 7, and any other airports prescribed 
for the purpose of the Part. While the GA airports are not core 
regulated airports, they will be prescribed for purposes of Parts 2, 
5, 6, 11 and 12 of the Act.

       Other Parts of the Act apply to any airport leased under the 
Act, and so will also apply to the GA airports. Parts 3, 9, 10 and 14 
are such Parts.

       Those Parts of the Act which will apply to the GA airports are 
outlined below.

       A copy of the paper addressing post-sale aeronautical pricing 
options for GA airports is also attached for information.

       PART 2- LEASING AND MANAGEMENT OF AIRPORTS

       Part 2 of the Act contains rules about the leasing and 
management of Commonwealth-owned airports. An airport lease must not 
be granted, varied or transferred unless the lease complies with 
requirements set out in the Act. The main purpose of these rules is to 
ensure that, at all times, the Commonwealth is able to maintain public 
interest regulatory control over the leasing and management of the 
airports.

       Under the Act, an airport lease may extend up to 50 years with 
an option to renew for up to 49 years.

       Among other things, Part 2

* requires that each leased airport be leased by a separate company;

* prohibits a company which leases or manages an airport from 
  undertaking substantial trading or financial activities other than 
  activities relating to the development and operation of the airport, 
  or activities incidental to these purposes;

* prohibits the disposal of an airport lease by way of declaration of 
  trust;

* prohibits certain types of subleases and licences; and

* requires the approval of the Minister for airport management 
  companies and agreements.

PART 3 - RESTRICTIONS ON OWNERSHIP OF AIRPORT-OPERATOR
     COMPANIES

Part 3 effectively requires that a company which leases an airport or 
manages a leased airport must be at least 51% Australian-owned and 
must be no more than 5% owned by any single airline or associated 
interests.

The Airports Regulations set out record-keeping and reporting 
requirements which apply to companies which lease or manage airports, 
to establish that the ownership restrictions of the Act are met.

The Airports (Ownership - Interests in Shares) Regulations provide for 
certain interests in shares to be disregarded for purposes of the 
ownership rules of the Act. In particular, the Interests held by a 
foreign trustee or manager of an investment fund may be disregarded 
for the purposes of the foreign ownership rules if foreign persons 
hold beneficial interests in less than 40 per cent of the fund.

PART 5 - LAND USE, PLANNING AND BUILDING CONTROLS

Part 5 sets out a scheme of regulation of land use, planning and on-
airport building intended to promote the orderly planning and 
development of the airports. It requires that master plans be approved 
by the Minister, and that major developments and building activities 
at these airports also be approved by the Minister and be consistent 
with master plans.

Approval of major development plans may be conditional on the 
completion of full environment impact assessment processes if the 
proposed development is considered to have significant environmental 
impacts.

The Act requires an airport leasing company to advertise and provide 
the opportunity for public comment on a preliminary version of a draft 
master plan and on a draft major development plan, before providing 
the draft plans to the Minister.

Building and construction activity at the airport must be approved by 
the Airport Building Controller (ABC). The ABC is appointed by the 
Department of Transport and Regional Development. The specific 
processes for approval of building and construction activies are set 
down in the Airports (Building Control) Regulations.


PART 6 - ENVIRONMENTAL MANAGEMENT

Part 6 requires the airport leasing companies to develop, submit for 
approval and comply with environmental strategies to promotes improved 
environmental outcomes at the airports.

Draft environment strategies must be approved by the Minister. The Act
requires an airport leasing company to advertise and provide the 
opportunity for public comment on a preliminary version of a draft 
strategy, before providing the draft strategy to the Minister. The
airport leasing company must make its approved environment strategy and
variations available for public inspection and must notify the public
that it is doing so.

Regulations made under the Act set standards and impose requirements 
in relation to the prevention or minimisation of environmental 
pollution (air, water and soil quality) or noise (other than from 
aircraft in flight) generated at airport sites.

Administration of environmental controls at the airport is the 
responsibility of the Airport Environment Officer (AEO). The AEO is 
appointed by Department of Transport and Regional Development.

PART 9-VARIATION AND CLOSURE OF AIRPORT SITES

Part 9 specifies that the consent of the airport leasing company is 
required for the variation or closure of an airport site If an airport 
site is to be varied, the lease 'can be surrendered to the Commonwealth
and a new lease granted consistent with the requirement that there be
only one lease for an airport.

PART 10 - IMPLEMENTATION OF INTERNATIONAL AGREEMENTS
     RELATING TO AIRPORTS

Part 1:0 provides that the regulations may require an airport operator 
to act in a manner consistent with Australia's obligations under a
designated international agreement or an amendment of such an agreement,
so long as such regulations do not come into operation before the
related agreement or amendment comes into effect for Australia. No
regulations have been made to date under Part 10.

PART 11 - CONTROL OF CERTAIN ON-AIRPORT ACTIVITIES

Part 11 provides that the regulations may provide for the control of 
certain on-airport commercial activities Those activities are:
(a) the sale, supply, disposal or possession of liquor at an airport:
(b) the supply of goods or services to a consumer;
(c) the parking or use of vehicles, both landside and airside;
(d) gambling: and
(e) smoking.

In the absence of regulations, State laws apply.

It is intended that States will assume regulatory responsibility over 
aft of the above areas. Transitional arrangements will preserve 
existing authorisations to sell liquor. While existing authority 
holders will not need to apply for a new State liquor licence, they 
will be required to comply with applicable State liquor laws in 
respect of all other matters.

PART 12- PROTECTION OF AIRSPACE AROUND AIRPORTS

Under Part 12, the Commonwealth may regulate to prevent certain 
incursions into airspace where it is the interests of the safety, 
efficiency and regularity of air transport operations into or out of 
an airport to do so. The Airpons (Protection of Airspace) Regulations 
set out arrangements for establishing the airspace which is protected 
and for seeking approval to conduct activities which would result in 
intrusions into that airspace.

PART 14-AIR TRAFFIC SERVICES AND RESCUE AND FIRE FIGHTING
     SERVICES

Under Part 14, at leased airports, air traffic services and rescue and 
fire fighting services will be provided by, or in accordance with an 
arrangement with, Airservices Australia, or in accordance with an 
arrangement approved by the Minister for Transport and Regional 
Development.

MISCELLANEOUS

The Act allows for review of decisions of the Minister under the Act 
by the Administrative Appeals Tribunal (AAT), which undertakes reviews 
of administrative decisions on their merits. All decisions are 
reviewable by the AAT other than certain specified decisions, All 
decisions made under the Act are also be subject to judicial review by 
the Federal Court.

Part 4 of the Act gives the Minister power in certain circumstances to 
counteract schemes intended primarily to circumvent the provisions of 
the Act on the leasing and management of airports or on the ownership 
and control of airport-operator companies.

The Schedule to the Act defines terms relevant to the regulation of 
the ownership of airport-lessee and airport-management companies under 
Part 3 of the Act.

INQUIRIES

Airports Branch
Department of Transport and Regional Development
Phone: (02) 62747390 Fax: (02) 6274 6717