Sydney Airport Limited (SYDDF) is a monopoly asset which derives its revenue by charging passengers a fee for using the airport and participating in the profits generated from commerce that takes place in the airport: Duty-Free, Retail, Car Park, Hotel, Leasing offices. SYDDF provides consistent growth and downside protection through its (i) long-term contracts with airlines and tenants, (ii) CPI or higher escalation on commercial revenues, and (iii) growth initiatives in terminal 2/3.
Airports, in general, have strong pricing power over airlines and retailers due to lack of competition