[Joseph D]

SACL have replied to the article

5 March 2009
Letter to the Sydney Morning Herald

Letter to the Sydney Morning Herald

Dear Editor

The Sydney Morning Herald story titled "Interest bill on $8 billion debt pushes Sydney Airport into the red" misrepresents the financial health of the Sydney Airport business. Sydney Airport is in a strong financial position, generating EBITDA of $653 million in the year to December 2008 of which $250 million remained as excess operating cash after all external debt service.

The airport reported its results for the 2008 financial year on 23 January 2009. EBITDA increased 7.4% on the previous year, demonstrating the resilience of the airport. This strong financial position has been further supported by the decision of the airport's shareholders to strengthen the balance sheet and replace the tranches of debt maturing this year with equity. This will enable the airport's management to focus on delivering the key growth and service initiatives planned at the airport.

Sydney Airport's interest payment, as reported in its statutory results, and described in a number of paragraphs in the directors' report, includes shareholder dividends on redeemable preference shares which are paid after all costs (including debt servicing) are met. Importantly, the airport's net senior debt level after the agreed shareholder contribution will be approximately $4.5 billion. The total debt figure contained in the financial statements includes the redeemable preference shares, which are held by all shareholders and are treated as debt for the purposes of the financial reports.

Sydney Airport remains well positioned for 2009, with new airline services, the international terminal expansion underway and a strong balance sheet with no debt maturities until September 2011.

Yours sincerely

Russell Balding
Chief Executive Officer
Sydney Airport

http://www.sydneyairport.com.au/SACL...ing+Herald.htm