Sydney Airport in Australia has secured bank debt facilities valued at A$850m ($539.9m) to safeguard the business amid the reduced passenger traffic caused by the Covid-19 pandemic.
From 1 to 16 April, Sydney Airport reported a decrease of 96.1% in international passenger traffic and 97.4% in domestic passenger traffic.
Sydney Airport Group, which comprises of Sydney Airport Ltd and Sydney Airport Trust 1, will not declare interim distributions for the half-year that ends this June.
To help it cope with the Covid-19-related reduced passenger numbers, Sydney Airport will lower its operating costs by 35% for 12 months from 1 April.
In addition, the directors of Sydney Airport Limited and The Trust Company (Sydney Airport) Limited will take a reduction of 20% in their fees from 1 April for three months. The CEO will also receive a pay cut of 20% for three months.
With these measures in place, the airport announced that it has a total liquidity of A$2.8bn and aims for a capital investment worth A$150m to A$200m for one year from 1 April.
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Sydney Airport CEO Geoff Culbert said: “The entire industry is hurting but we are all in this together and we are working closely with our airline and commercial partners to make sure everyone has the best shot of making it through to the other side, while continuing to operate the airport as an essential service.
“We remain confident in the strength of our balance sheet and liquidity position, but we will continue to tightly manage liquidity and operating and capital expenditure to reflect the significant reduction in passenger traffic at the airport.”