Annual Report 2004-2005

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Annual Report 2004-2005 airport development group annual report2004-2005 Northern Territory Airports advancing opportunities achieving objectives delivering results airport registered office Airport Management Centre 1 Fenton Court, Marrara Northern Territory 0812 Phone +61 8 8920 1811 Fax +61 8 8920 1800 www.ntapl.com.au our goals our achievements our visions sprout creative our airports fast facts Financial Year Ending 2005 2004 2003 2002 2001 PASSENGERS: DIA 1,386,000 1,182,000 1,085,000 1,090,000 1,380,000 ASA 603,000 610,000 570,000 520,000 665,000 TOTAL 1,989,000 1,792,000 1,655,000 1,610,000 2,045,000 LANDED TONNES: DIA 621,000 539,000 525,000 590,000 810,000 ASA 233,000 239,000 223,000 206,000 287,000 TCA 4,900 4,200 6,400 7,400 8,900 TOTAL 858,900 782,200 754,400 803,400 1,105,90 AERONAUTICAL CHARGES (ex GST): Passenger Facilitation Charge ($/pax) DIA International: 4.50 3.50 2.50 2.50 - DIA Domestic: 4.50 3.50 2.50 2.50 - ASA: 4.50 3.50 2.50 2.50 - TCA: n/a n/a n/a n/a - Airport Services Charge ($/pax) DIA International: 5.50 5.50 4.98 5.47 - DIA Domestic: 5.50 5.50 4.98 4.48 - ASA: 5.50 5.50 4.98 4.98 - TCA: 18.00 18.00 18.00 18.00 - Landing Charge Regular Public Transport ($/MTOW) DIA International: 6.52 DIA Domestic: 5.51 ASA: 5.51 TCA: - Landing Charge General Aviation $/MTOW DIA International: 18.00 16.00 15.01 15.01 6.52 DIA Domestic: 18.00 16.00 14.00 14.00 5.51 ASA: 18.00 17.25 16.50 16.50 5.51 TCA: 23.00 23.00 23.00 23.00 23.00 REVENUE $000s DIA 23,238 18,843 15,651 12,422 11,679 ASA 9,062 8,174 6,581 4,815 4,310 TCA 153 183 196 212 222 Other (12) 6 96 35 145 TOTAL ADG 32,441 27,206 22,524 17,484 16,356 EBITDA $000s DIA 13,033 10,017 6,869 6,016 5,766 ASA 5,580 4,871 3,770 2,500 2,048 TCA (22) - 16 21 71 Other 29 51 96 83 121 TOTAL ADG 18,620 14,939 10,751 8,620 8,006 CAPITAL EXPENDITURE $000s DIA 17,771 4,197 1,797 4,070 853 ASA 1,035 970 277 113 195 TCA 5 3 14 - 28 TOTAL ADG 18,811 5,170 2,088 4,183 1,076 EMPLOYEES: DIA 42 41 36 30 31 A S A 11 12 13 12 13 TCA 1 2 2 2 2 TOTAL ADG 54 55 51 44 46 contents THE COMPANY . 2 2005 HIGHLIGHTS . 2 CHAIRMAN’S INTRODUCTION . 4 CEO’S REPORT . 5 COMPANY OVERVIEW . 6 BUSINESS OVERVIEW . 8 YEAR IN REVIEW . 16 Safety and Security . 16 Commercial Development . 17 Master Plan Approvals . 18 Alice Springs Airport . 19 Darwin International Airport . 21 Tennant Creek Airport . 21 ENVIRONMENT . 22 THE COMMUNITY . 26 CORPORATE . 28 FINANCIAL REPORT . 30 annual report 2004-2005 1 the company 2005 highlights VISION Operating revenue of $32.4M (2004: $27.2M) an increase of 19% on the previous year. ‘Airport Airport Development Group’s vision is to be a world class Airport business. That is, we aspire to achieve the Earnings before interest, tax, depreciation and Development following: amortisation (EBITDA) of $18.6M (2004: $14.9M) an increase of 25% on the prior year. Group’s standards of efficiency and safety that equal world’s Total of 1,989,000 passengers 2004 (2004: best practice; vision is to 1,792,000), an increase of 11% on the previous compliance with all operational, regulatory and financial year. be a world environmental standards; Following the success of last year, a further two class Airport customer satisfaction with facilities, commensurate direct international charter flights from Tokyo with the scale of our airports; and Osaka landed at Alice Springs Airport in business - May 2005. staff and management excellence; That is, we Approval and release of the 20 year Master Plan appropriate returns to shareholders on invested and associated Environment Strategy for Darwin capital that reflect the underlying risk; and aspire to International and Alice Springs Airports. all commercial opportunities are fully investigated, ’ Construction, completion and opening at Darwin achieve and where appropriate, developed and International Airport of the Darwin Airport Resort, implemented. in time for the Arafura Games in May 2005. VALU E S Continued construction of the Checked Bag Screening system at Darwin International Airport – We will demonstrate our values by action and we will: the airport’s largest single capital project since privatisation. Deliver on our commitments to customers, Commencement of civil works on the runways, shareholders and other stakeholders; taxiways and aprons at Alice Springs Airport. Act with honesty and integrity in all our dealings Opening of the Matboerrma native garden at with employees and customers; Darwin International Airport, showcasing the Demonstrate our professionalism and credibility diverse environments and plants of the Top End. in all areas of our operations; Respond in a timely and appropriate manner to stakeholder needs; Reward staff for their endeavours on a fair and equitable basis; Accept the responsibility and accountability that goes with the challenge of delivering objectives and plans; Respect all people who we work and have contact with; and Excel in providing the highest quality service and support to our stakeholders. Airport Development Group 2 MISSION STATEMENT “In the interest of all stakeholders, operate an airport business that is world class in financial and environmental performance, customer service and safety and security, and is recognised as a key contributor and participant in the economic growth of the Northern Territory” chairman’s introduction I am pleased to present the Airport Development The increase in property revenues by 11% on Group (ADG) Annual Report communicating the many the previous year was attributed to the successful varied and diverse financial and operational aspects commercial property developments at DIA. Within the of our world class airport business in the Northern Business Precinct of DIA, developments such as the Territory. The objective of the Annual Report is to ABC Childcare facility and the Darwin Airport Resort provide a review of how ADG has performed for the have now been completed and are operational. past year. Work is also underway on the construction of new premises for Civil Aviation Safety Authority (CASA) ADG’s performance for the financial year ending and Australian Quarantine and Inspection Service 30 June 2005 has exceeded budget in all sectors (AQIS). Both buildings should be completed and of airport operations. Earnings before interest, taxation, operational late 2005. depreciation and amortisation (EBITDA) for the year was $18.6 million, a 25% increase on last year with Our Airports’ development strategies reflect the growth in revenue of 19% to $32.4 million. demands of today’s traveller to include retail shops, restaurants, parking and modern airport services. Last year we celebrated a significant improvement Whilst car parking charges remain unchanged at our and turn-around for Darwin International (DIA) and airports, car parking revenue increased by 8% on the Alice Springs Airports (ASA). This year we celebrate previous year. an even greater improvement in passenger numbers resulting in 25% or a $4.5 million increase in During a year of strong performance and progressive aeronautical revenues to $22 million. International growth, ADG management have continued to develop passengers at DIA were 43% higher than the previous and maintain their high performance teams to achieve financial year and domestic passenger numbers the outcomes required in today’s airport industry. increased by 12%. On behalf of the Board, it is my pleasure to ADG Airports continue to respond to the increasing acknowledge and thank the staff of Airport level of development in the Northern Territory. The Development Group for their hard work and underlying strengths which enable our Airports to contribution to the success of 2004/05. We would achieve their goals are the stability of our relationships like to acknowledge the support of our customers with the Northern Territory Government, the airports’ and various stakeholders again during the year. forward planning strategies and the partnership ADG are once again positioned for an exciting future. philosophy shared with major customers. The release of the Airports’ Master Plans will continue to see our Mitchell King airports well placed to respond to continued Chairman development. Commercially, Darwin International Airport has identified the commercial development opportunities in a growing market. The full potential of these developments is now gaining momentum with the release of the Master Plan. Airport Development Group 4 chief executive officer’s report Airport Development Group Pty Ltd is committed to increasing oil prices will continue to govern aviation looking after the diverse requirements of passengers, cost structure with major concerns of how to transfer airlines, retailers and regulatory authorities at our that added cost to the customer. airports. The collective as well as individual responsibility of airport staff in achieving their Darwin International Airport derives approximately 70% objectives has played a vital role in delivering the of its revenue from aeronautical activities which is far excellent results experienced this year. behind the 50/50 split between aeronautical and non aeronautical revenue derived by other airports. The solid performance of the airports has seen a 19% increase in revenue to $32.4M while expenditure ADG are keen to develop the undeveloped airport increases were managed within budget to 13% or property and increase our percentage of non- $1.6M.
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