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Annual Report Annual Report 2020 For the year ended 30 June 2020 westernsydney.com.au Contents Year in review 4 06 Corporate governance statement 46 Chair and CEO message 6 07 Risk management 58 Our purpose, vision and values 8 08 Financial report 62 Financial statements 63 01 Operating overview 10 Notes to the financial statements 68 Operating overview 11 Directors’ declaration 80 Our people 14 Auditor’s independence declaration 81 Independent auditor’s report 82 02 Sustainability 18 09 Regulatory report 84 03 Financial overview 22 10 Glossary and abbreviations 92 04 Directors’ report 28 05 Remuneration report 34 An artist impression of Western Sydney International when it can service 82 million passengers a year. 03 Year in review Key achievements 4,000 14 Over 4,000 man hours spent MoUs signed by ecologists carrying out inspections and surveys to Earthworks care for our wildlife Moved 3.17 million m3 of earth to date. Construction Awarded the bulk earthworks contract to CPB Contractors and Lendlease. 6 + 704 1,000+ 6,400 schools students Deputy Prime Minister, the Hon. Michael McCormack MP phone calls from the visitors to the Experience visited as part of the officially launched the construction phase in March 2020. community answered Centre since opening schools’ safety program Design Awarded the design contract to London-based Zaha Hadid Architects and Australian firm Cox Architecture. Engagement 51% 51 71% Prime Minister, the Hon. Scott Morrison MP opened the of our workforce are airport shuttle tours employee Western Sydney International Experience Centre local residents on site engagement score in September 2019. Industry Launched Western Sydney International at World Routes 2019 event, Adelaide, engaging with international airline and tourism industries. 32% 4.5 $400+ of our workforce are Total Recordable Injury million Partners learning workers Frequency Rate expenditure Signed 14 Memorandums of Understanding (MoUs) with a range of airlines, cargo, catering and ground handling companies. 04 Western Sydney Airport Annual Report 2020 05 the winning submission and major airport from the ground up. In its first six months, we welcomed Chair and CEO message showcased the winning terminal Our MoUs mean our future airline more than 6,000 people. This designs. and cargo customers will have surpassed our expectations and played a role in shaping an airport highlights the significance of the The release of these initial concept that will be optimised to support project to the diverse range of designs marked another significant our mutual success. visitors, from curious locals to milestone for the project. They international business leaders. anchor our vision and make it During the year, we also worked tangible to our local community collaboratively with the NSW Another highlight of our and future customers. Government, which has committed community engagement was the We are building one of the to develop Sydney’s newest city, Western Sydney Airport Minecraft world’s first digitally enabled At last, our promise to build the the Western Parkland City, with an Competition, which saw year 5 and international airports to people of Western Sydney an Aerotropolis precinct surrounding 6 students from more than airport they will be proud of is Western Sydney International. 40 schools across the region bring service the rapid growth of coming to life. In addition, the their own vision of the airport to Sydney, NSW and Australia. release of the concept designs We are strong supporters of this life using the popular digital showed the aviation industry initiative and we are working building game. Paul O’Sullivan Simon Hickey globally that Western Sydney closely with the NSW Premier’s Chair CEO Airport means business. Our design office, the Western City and Our own airport planning team leverages 21st century technology Aerotropolis Authority, Sydney was amazed by the ingenuity and and building design to improve Metro, Transport for NSW and imagination that went into the final passenger experience and lower the NSW Department of Planning, 10 designs, particularly the winning airline operating costs. Industry and Environment, as well design from McCallums Hill Public Just two years from start-up, 2019-20 marked a step change in pace and achievement as a number of other federal and School. for Western Sydney Airport. Commercial development state entities to help make the Project context In September, our commercial Western Sydney Aerotropolis vision a reality. s we reflect on our Safety achievement, but for a project development team attended In times like these, as we are performance over the the size of ours, it was only the the World Routes conference in reminded of the urgency of the At Western Sydney Airport, safety Community past financial year, beginning. Adelaide, engaging the world’s COVID-19 crisis every day, the is everyone’s responsibility and we what strikes us most airlines with our simple message – The momentum we have gained importance of nationally significant have worked proactively to ensure is the extraordinary The next phase of site preparation ‘A New Approach to Sydney’. building the airport and the projects, such as ours only this highest of priorities resonates Amomentum the project has gained. is earthworks across the remaining business is encouraging, but our becomes more acute. through everything we think, say footprint of the stage one Equipped with this clear and team has never lost sight of the Our people are enabled by our and do. airport. This is one of the largest compelling value proposition, we fact we are also building trust. We are indebted to the many culture charter – ‘Empowered to earthmoving projects in Australian met with people from more than Creating jobs and benefits for dedicated members of the From our leadership team’s on site Deliver’. history. 60 airlines. Each was enthusiastic Western Sydney in a sustainable Australian Public Service and the safety walks to our construction to learn how Western Sydney and socially responsible manner NSW State Public Service who are safety visits to local schools and Despite the context of uncertainty On 11 March, we welcomed Deputy International (Nancy-Bird Walton) underpins every decision we make. working with us to make the benefits created by a global health our extensive frameworks to Prime Minister Michael McCormack Airport will disrupt the market of Western Sydney International and economic crisis caused monitor safety compliance and to our site. We were also joined by with new levels of efficiency, Working closely with the eight a reality. They often work behind by COVID-19, our people performances, we do everything representatives from all three levels connectivity and of course, local councils that are partners the scenes, and their commitment demonstrated their commitment possible to prioritise the health of government and the region’s the transformative business in the Western Sydney City Deal, and support to the project is a key to that culture in earnest. and wellbeing of our team, our business and community leaders. opportunities that our 24/7 we are constantly identifying ingredient in its success to date. contractors and the community. The Deputy Prime Minister climbed operation will deliver. We have also new opportunities that will be The financial year saw us continue aboard a giant earthmoving signed MoUs with two airlines. created by the airport for our local We are pleased to report that Airport design and construction to make strong progress against machine to signal the beginning communities. work to build Western Sydney an ambitious program. Our We are building one of the of major earthworks. Unrestricted operations also drove International (Nancy-Bird Walton) priorities this year focused on: world’s first digitally enabled our equally compelling air cargo We understand that because this Airport is progressing well and international airports to service That moment also signalled the proposition. In 2019-20, we signed is a large infrastructure project, it is we are on track to deliver on our • safety: ensuring the highest the rapid growth of Sydney, NSW start of the project’s escalation MoUs with the biggest air cargo natural for community members to promise to be a catalyst for jobs standard of workplace safety and Australia. toward peak construction. To hit our industry leaders. have questions about how we are and opportunities across Western • airport design and construction: targets, we must now move about delivering the airport and what it Sydney. building momentum and The airport site is vast, 1 million m3 of earth every month. Under these MoUs, our team is will mean for them. progressing our build approximately twice the area gaining the air cargo industry’s During the year, we also began insights into the design of the The physical expression of our • commercial development: occupied by Kingsford Smith planning for a world-class airline airport’s cargo precinct. Coupled commitment to the community is developing opportunities for Airport in Sydney’s east, with a master plan that caters for growth and passenger experience. A global with MoUs with major airlines and the Western Sydney International new revenues Paul O’Sullivan well into the next century. competition for the terminal design aviation service providers, we are Experience Centre, which Prime • community: partnering with our attracted over 50 architectural getting robust input into the design Minister Scott Morrison opened Chair local communities to maximise Throughout the year, our early firms. A key requirement for any of the passenger terminal and the in September. The Centre gives the positive effects of our project earthworks project was underway. successful submission was the complete airport operation. the community opportunities to • COVID-19: taking into account the This phase involved moving involvement of an Australian ask questions about the airport, impact of the pandemic in our 1.8 million m3 of earth on about 6% architectural firm and university These opportunities for industry- to provide feedback and to learn activities and planning.
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