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Annual Report 2014-15 AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT - 1974 2014 AIRPORTS AUTHORITY OF JAMAICA 2014-15 ANNUAL REPORT AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT 2 Table of Contents AAJ’S CORPORATE CORE VALUES ��������������������������������������������������������������������������������������������������������������7 CHAIRMAN’S MESSAGE ��������������������������������������������������������������������������������������������������������������������������������8 PRESIDENT’S MESSAGE ������������������������������������������������������������������������������������������������������������������������������10 OVERALL TRAFFIC PERFORMANCE SANGSTER INTERNATIONAL AIRPORT (SIA) �����������������������������������������������������������������������������������������18 NORMAN MANLEY INTERNATIONAL AIRPORT (NMIA) ���������������������������������������������������������������������19 OPERATIONAL PERFORMANCE FINANCIAL HIGHLIGHTS ���������������������������������������������������������������������������������������������������������������������������32 TRAFFIC PERFORMANCE ����������������������������������������������������������������������������������������������������������������������������33 PASSENGER TRAFFIC �����������������������������������������������������������������������������������������������������������������������������������33 SUMMARY FINANCIAL INDICATORS FOR NMIA LIMITED �����������������������������������������������������������������34 DIRECTORS’ COMPENSATION: APRIL 2014 - MARCH 2015 ���������������������������������������������������������������35 SENIOR EXECUTIVE COMPENSATION: APRIL 2014 - MARCH 2015 �������������������������������������������������36 BOARD MEMBERS ATTENDANCE APRIL 2014 – MARCH� 2015 ���������������������������������������������������������36 SENIOR EXECUTIVE COMPENSATION: APRIL 2014 - MARCH 2015 �������������������������������������������������37 EVENT HIGHLIGHTS AAJ’s 40TH ANNIVERSARY HIGHLIGHTS �����������������������������������������������������������������������������������������������39 STAKEHOLDERS’ APPRECIATION �������������������������������������������������������������������������������������������������������������41 FINANCIAL STATEMENTS AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT 4 AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT 5 AAJ’s HISTORY – CELEBRATING 40 YEARS OF SERVICE TO THE NATION The Airports Authority of Jamaica was established in 1974 through the airports increased steadily at the islands’ to separate the operation, management and commercial airports with the majority being visitors coming though the aspects of airports and aviation from the regulatory functions; Sangster International Airport. and to facilitate the expansion and upgrading of terminal As the Government pursued a policy of privatization, the buildings and facilities at both international airports. The Sangster International Airport (SIA) was divested in April entity was created as an independent statutory body to take 2003 in a 30 year lease to MBJ Airports Ltd., a consortium over responsibility for the two international airports from of companies. The divestment was in keeping with the then Civil Aviation Department (CAD), now the Jamaica international trends and the need to attract private capital Civil Aviation Authority (JCAA). to undertake the necessary expansion and development of Jamaica’s Airports Authority Act was modelled off the British the airport. The divestment meant that the AAJ no longer Airports Authority Act and was intended to be consistent had responsibility for the management of the airport but with trends in Europe and North America. Under this rather maintains ownership of the buildings and assets. In regime, the airports would operate as viable commercial October 2003, NMIA Airport Ltd, a wholly owned subsidiary entities using sound commercial principles based on tested of the AAJ, was established as the airport operator for the international patterns; the CAD retained the technwical Norman Manley International Airport under a 30 year aspects of civil aviation. The aerodromes were also retained concession agreement with the AAJ. In 2011 the AAJ, by CAD until 1990 when the AAJ was given the operational in partnership with stakeholders, forged ahead with the responsibility for the four domestic aerodromes namely; process of launching Jamaica’s newest international port Tinson Pen in Kingston, Ken Jones in Portland, Boscobel in of entry, the Ian Fleming International Airport (IFIA). The St Mary and Negril in Westmoreland. airport is named after the author of the famous James Bond spy novels who lived nearby. This airport is an upgrade of The AAJ began operations as a statutory body on September the former Boscobel Aerodrome in St. Mary and is adjacent 1, 1974 and developed a programme to monitor airport to the North Coast highway; therefore strategically situated development to meet expansion needs. The Authority used to serve tourism clientele from St. Ann to Portland. various loans from entities such as the World Bank, the European Union, the Canadian International Development Over the 40 years the AAJ has faced many challenges, Agency (CIDA), the Inter-American Development Bank (IDB), including ensuring the speedy return of airport services the Japan Ex-Im Bank and the Nordic Development Fund after the occurrence of natural disasters, notwithstanding to develop the airports. This included the reconstruction the organisation has remained resilient and has consistently of eight taxiways, resurfacing of the runway at Norman provided commendable service to users of the facilities. Manley International Airport (NMIA), rehabilitation of the The highly committed Boards, Management and staff have lighting system at NMIA; and the resurfacing of the runways worked diligently over time to fulfil the AAJ’s mandate. at the Tinson Pen, Ken Jones and Boscobel Aerodromes. The AAJ has also maintained its status as a good corporate citizen which offers assistance to the communities near its In the book ‘Jamaica, The Aviation Story’ published in bases of operation. 2003, on the occasion of the 100th anniversary of aviation, Professor Patrick E. Bryan noted that the AAJ began to see (Based on excerpts taken from ‘Jamaica, The Aviation Story’ a turnaround of its financial, fortunes in the mid 1980’s by Professor Patrick E. Bryan, commissioned by the AAJ in with increasing revenues from aircraft landing and terminal 2003). fees, space rental, concession/retail operators, car hire and car park fees. This was enhanced by a boom in worldwide travel that brought more visitors to Jamaica and sent many Jamaicans on sojourns abroad. Passenger movement VISION STATEMENT “ To build and sustain a world-class airport system, which facilitates private investment and partnership and positions Jamaica’s airports as the gateway to the Caribbean and the Americas. “ MISSION STATEMENT “ To develop a modern, safe and profitable airport system that is environmentally responsible, provides world-class service, and contributes substantially to the national economy while promoting the expansion of air transportation and its related industries. “ AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT 7 AAJ’S CORPORATE CORE VALUES In an atmosphere of honesty, fairness, and integrity, we commit to our core organizational values – People, Customer Focus, Integrity, Financial Management, Regulatory and Statutory Requirements, Safety and Security and Environment. These values are detailed below: PEOPLE CUSTOMER FOCUS INTEGRITY We will treat each person We are customer-driven, will We will keep our promises, deliver fairly with respect and dignity, demonstrate a sense of urgency, on our commitments, be open, while encouraging employee and provide quality service to both honest and engage in continuous competence, motivation and internal and external customers. communication and direct dialogue productivity. with our stakeholders. FINANCIAL MANAGEMENT We are committed to prudent financial management, which ensures value for expenditure and a reasonable return for our shareholders. REGULATORY & STATUTORY SAFETY AND SECURITY ENVIRONMENT REQUIREMENTS We will ensure that the airports We will ensure that the airports We will ensure that the airports establish and maintainthe highest are committed to sustainable conform to the agreed standards level of safety and security for all environmental practicesthat established by regulatory and users. facilitate compliance with statutory bodies and lending established standards, laws and agencies. regulations. AIRPORTS AUTHORITY OF JAMAICA 2014 - 2015 ANNUAL REPORT 8 CHAIRMAN’S MESSAGE “The financial performance of the AAJ Group showed operating surplus of $1,480m, an increase of 67% when compared to $887m in the prior year.” OVERVIEW The year 2014 marks the 40th anniversary of the Airports Authority of Jamaica (AAJ), which was established in 1974 as his dedication, service and sterling contribution during his an independent statutory body to manage and operate the tenure. We also acknowledge and welcome the acting island’s international airports. It is therefore with pleasure President and CEO, Mr. Audley Deidrick, who served that I take this opportunity, on behalf of the Board of previously as the Vice President of Finance, ICT and HRMA. Directors, to congratulate the organisation on reaching this We are confident that Mr. Deidrick will steer the organisation important milestone of successful operational excellence. effectively during
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