Commonwealth Consolidated Acts

AIRPORTS ACT 1996 - SECT 18

Grant of lease under this Act or under section 22 of the Airports (Transitional) Act

             (1)  The Commonwealth must not grant an airport lease under section 13 of this Act, or under section 22 of the Airports (Transitional) Act 1996 , for Sydney (Kingsford‑Smith) Airport or Sydney West Airport unless each of the airport‑lessee companies is a subsidiary of the same company.

Grant of lease under section 21 of the Airports (Transitional) Act

             (2)  If:

                     (a)  an airport lease for Sydney (Kingsford‑Smith) Airport is granted to a company under section 21 of the Airports (Transitional) Act 1996 ; or

                     (b)  an airport lease for Sydney West Airport is granted to a company under section 21 of the Airports (Transitional) Act 1996 ;

the Commonwealth must take such steps as are necessary to ensure that, in the event of the disposal by the Commonwealth of its shares in either of those companies, each of those companies becomes a subsidiary of the same company.

Transfer of lease for Sydney (Kingsford‑Smith) Airport

             (3)  The Minister must not approve the transfer of an airport lease for Sydney (Kingsford‑Smith) Airport unless the transferee and the airport‑lessee company for Sydney West Airport will be subsidiaries of the same company.

Transfer of lease for Sydney West Airport

             (4)  The Minister must not approve the transfer of an airport lease for Sydney West Airport unless the transferee and the airport‑lessee company for Sydney (Kingsford‑Smith) Airport will be subsidiaries of the same company.

Contravention

             (5)  If a purported grant or approval contravenes this section, it is of no effect.

Termination of leases

             (6)  If, at a particular time when the Commonwealth does not beneficially own all the shares in:

                     (a)  the airport‑lessee company for Sydney (Kingsford‑Smith) Airport; and

                     (b)  the airport‑lessee company for Sydney West Airport;

an unacceptable leasing situation comes into existence for Sydney (Kingsford‑Smith) Airport and Sydney West Airport:

                     (c)  the airport lease for Sydney (Kingsford‑Smith) Airport terminates at that time; and

                     (d)  the airport lease for Sydney West Airport terminates at that time.

For this purpose, an unacceptable leasing situation exists for Sydney (Kingsford‑Smith) Airport and Sydney West Airport if the airport‑lessee companies for those airports are not subsidiaries of the same company.

Subsidiaries

             (7)  For the purposes of this section, a company (the subsidiary company ) is taken to be a subsidiary of another company (the holding company ) if, and only if, all the shares in the subsidiary company are beneficially owned by the holding company.