Sydney Airport Holdings Limited’s
(ASX:SYD) CEO Kerrie Mather has vowed to defend the company’s first right of refusal to construct and operate a second airport in Sydney.
First right of refusal is a contractual right that enables its holder to make the first offer to enter a business transaction before it is made available to others.
Ms Mather has told the Australian Financial Review the company’s first right of refusal is a commercial clause that it paid a handsome price for to the federal government.
Ms Mather says the company hasn’t yet received a firm proposal from the government but is effectively being asked to buy an airport.
According to the report the company plans to consider investing in a second airport in Sydney in the same way in which it reviews airport investments worldwide.
Sydney Airport recorded a net loss of $279 million in the 2011 financial year.
