Wellington Airport's audited Annual Report for the year ended 31 March 2012.
30 May 2012
NZX Announcement – FLLYR WIAL Results for the Year Ended 31 March 2012
Wellington Airport is pleased to present its audited Annual Report for the year ended 31 March 2012.
Chairman and Chief Executive’s Report
As the Capital City’s gateway, Wellington Airport is a vitally important piece of national infrastructure providing a significant ongoing contribution to the region’s economy and delivering a return to its shareholders and the city.
Wellington Airport produced another strong year with an EBITDAF of $75.5m. Whilst this result reflects a good growth in revenue it also reflects the Airport’s ongoing focus on efficiency and the Airport remains one of the most efficient airports in Australasia. The result is a $5.2m or 7.3% increase over the previous year excluding subvention payments. The dividend for Wellington City Council in 2012 equates to around $120 per ratepayer. The Airport’s advertising subsidiary iSite Limited was sold during the period and following the sale a special dividend of $40m was paid to shareholders. These results have been achieved despite forces of nature including ash cloud from Chile’s Puyehue-Cordon Caulle volcano range, snow closing the runway and the Christchurch earthquake.
Aeronautical revenue increased overall by 7.3% for the year. Strong growth on the international market saw passenger numbers increase by 9.7% with increased capacity and attractive fares provided by the Air New Zealand / Virgin trans-Tasman alliance and Qantas. Melbourne services grew by 12.8% and Sydney by 10.2%. Australian visitors to Wellington in general were up over 15% over the last 12 months which is significantly higher than the New Zealand average. Domestic passenger numbers were flat with the withdrawal of Pacific Blue being offset by the increase in Jetstar’s capacity on main trunk routes coupled with the introduction of its new route to Queenstown. This daily direct jet service to Queenstown provides a new opportunity for the people in the greater Wellington region and its visitors to travel to Queenstown with low cost fares.
$22.5m was invested in capital developments over the year. Infrastructure investment for the next five years is forecast to be in excess of $100m, including $65m in aeronautical capital expenditure. The new aircraft hangar on the western apron is a world class aircraft handling facility in New Zealand’s capital city operated by Execujet. The car park extension doubled the number of undercover parks and provided 230 new parks on the top deck, improving drop-off facilities and access to parking. An objective of the Airport’s retail offering is to reflect the best of Wellington and ensure a comprehensive range to meet all visitors’ tastes and budgets. This focus contributed towards passenger services income increasing by 9.3% for the year under review.
The Airport successfully managed its busiest day ever with over 20,000 passengers, including three times the usual number of international passengers, after the quarter finals weekend of the Rugby World Cup 2011. Collaborative planning with our airport community went into ensuring all busy days ran as smoothly as possible. Thanks to the support from volunteers and airport ambassadors, all passengers and visitors for RWC 2011 were well looked after.
After a year of extensive consultation with its major airline partners and the Board of Airline Representatives of New Zealand, Wellington Airport finalised the charges airlines will pay for using the Airport’s facilities and infrastructure for the next five years from 1 April 2012. The consultation resulted in the removal of the International Departure Fee, which has been in place for over 20 years. Wellington Airport’s prices will remain in the middle of the range across Australasia and in-between Auckland and Christchurch Airports. The new prices ensure that travel to and from Wellington is competitive with international charges set to reduce by 39% which, combined with incentives for growth, is expected to help promote new routes and additional services to the Capital. New Zealand’s three main airports are now required to complete new information disclosures to the Commerce Commission. The Commerce Commission is required to review the effectiveness of the information disclosure regime, and it is expected that this will be undertaken in late 2012 and 2013.
The Airport welcomed Steve Sanderson as Chief Executive for Wellington Airport in February 2012 and farewelled Steven Fitzgerald, who moved to another role with major shareholder Infratil and remains on the Airport’s Board.
Behind the Airport’s safe, efficient and welcoming gateway are its staff and partners: airlines, agencies, neighbours, over 100 businesses, 1500 people who work at the Airport, over 6000 people in directly related employment, capital providers and regional businesses. The Board has every confidence in the Airport team’s ability to continually improve passengers’ experience and profitability. The planned developments for future passenger growth and investment in infrastructure will ensure Wellington Airport continues to remain one of the top Australasian Airports with strong earnings growth.
Steve Sanderson David Newman
Chief Executive Chairman