Tailwinds Building For Sydney Airport

Sydney Airport Holdings (SYD) is expected to improve passenger experiences, with a brand new agreement on aeronautical pricing. The new agreement provides greater certainty as it is underpinned by a fixed pricing path and incorporates capital expenditure over the five-year period, enabling the airport to invest in its terminals and technology and improve services. This contrasts with previous agreements in which capital expenditure was agreed separately with airlines and charges re-set every couple of years.

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Tax Issues Fog Sydney Airport

Sydney Airport ((SYD)) is unlikely to find clear air until its tax issues are resolved. According to CIMB this will overhang the stock in FY13 even though the outlook for traffic growth is solid. CIMB estimates the worst case scenario could cost the company up to 7c per share in annual cash flow. Other than that, forecasts are holding up and CIMB has kept a Hold rating with a price target of $3.47.

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