Annual Report 2015 /16

1 / PTY LTD 2015/16 ANNUAL REPORT Contents

03 Our Vision

07 Chairman’s Message

08 CEO’s Message

09 Our Stakeholders

10 QAL Board

15 QAL Management

19 Shareholder Value

24 Customer Experience

28 Social Responsibility

34 High Performing Workforce

36 Accomplished Operators

38 Investing in Tomorrow

39 Contact

QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Our Vision Engaging customers, connecting communities, exceptional experiences.

We will fulfill our vision by

• Growing our airports through collaboration with our partners

• Providing seamless, high quality experiences for our customers

• Connecting (and being connected to) the communities in which we operate

• Fostering growth within our communities

• Investing in our people and empowering them to help achieve our vision

• Elevating and setting the industry standard through innovation and creative thinking

3 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Our Strategic Pillars Our pillars help us translate our vision into everything we do

Shareholder Value Customer Experience Social Responsibility

High Performing Workforce Accomplished Operators

Our Values

INTEGRITY We act honestly, we do the right thing

TEAMWORK We have a collaborative environment that values diversity

PASSION We are enthusiastic, we love what we do

INNOVATION We challenge the status quo, we do things differently

ACCOUNTABILITY We take responsibility

EXCELLENCE We strive to be the best, we challenge ourselves

LEADERSHIP We have a clear vision, we are empowered

4 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Wholly Owned NAACEX

Townsville

Mount Isa

Longreach About Us Gold Coast

Queensland Airports Australian owned and managed, OUR SHAREHOLDERS QAL has operated airports since 1998. Australian-owned, our shareholders Limited (QAL) is are: We currently own and operate airports ’s leading in the following locations: • Gardior Pty Ltd as trustee for The Infrastructure Fund regional airport • Gold Coast • Perron Investments Pty Ltd • operator with significant • QAL Investments No.2 Pty Ltd as • trustee for QAL Investments Trust investment in airports • Longreach • STC Funds Nominee as trustee for the Project Cricket State Super Unit Trust servicing Queensland We also own the Northern Australian Aerospace Centre of Excellence • State Street Australia Ltd and northern New (NAACEX) in Townsville, which as custodian for Sunsuper South Wales. facilitates aviation support businesses. Superannuation Fund • Allan Moss Our focus is on operational excellence through a long-term commitment • Lipno Investments Pty Ltd. to regional investment, sustainable growth, regional partnerships and innovative strategy.

5 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Group at a Glance

ISA 9 TSV 24 LRA 4 Headcount QAL Total Group 74 GCA 80

FY16 Passenger Numbers

6,303,920 1,582,203 186,605 36,447 8,109,175

Our airports busiest routes for FY16 are:

OOL 2,699,550  SYD

TSV 978,654  BNE

ISA 124,189  BNE

LRE 20,773  BNE

6 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Chairman’s Message ANNABELLE CHAPLAIN

The 2015-16 financial year for the internship program providing students QAL Group has seen our Board and with real-world experience. QAL Executive team focus on ensuring the has also entered into Memoranda business is best placed to achieve of Understanding with several the deliverables set out in the QAL universities and TAFEs, paving the Strategic Plan, while we maintain the way for internships and research focus on our core business of effective collaboration in addition to the Through our learning airport management. opportunity for QAL employees to tap into innovative thinking and be Last financial year we worked closely and development involved in program content and with our management team to revise delivery. QAL has also developed the existing QAL vision and mission, program QAL and implemented both a Graduate and this year have focused on site Program and a Work Immersion specific brands, with the Gold Coast is committed to Program. These are fixed-term Airport team successfully delivering paid positions, enabling both a modern rebrand and brand the continued new graduates and students who foundations that reflect our business are enrolled in a relevant degree now and into the future. development of our program to gain work experience This financial year we welcomed within our business. Through our people and investment a number of new international and learning and development program domestic routes, including the QAL is committed to the continued in the future of our reinstatement of international services development of our people and in Townsville and the commencement investment in the future of our industry. industry. of direct services between Gold Coast I would like to take this opportunity to and China with Hong Kong Airlines. acknowledge the QAL Executive team The area of learning and development and our staff, our customers, and our was also a strong focus for QAL industry and financing partners for during this reporting period. Highlights their ongoing support. included the creation and delivery of a workshop for Indigenous business owners and implementation of an

7 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT CEO’s Message CHRIS MILLS

It has been a very successful year also had a Major for our business. Since moving into Development Plan approved for its the CEO role in October last year, terminal redevelopment plans. Work my focus has been on delivering commenced at to the strategic plan which will take upgrade the existing car park facility our airports forward. This has seen and provide solar panels on the car us exit from non-core activities, park covers. added and concentrate on growing and 396 solar panels to the terminal roof to I am fortunate to have diversifying the core business. now deliver 95% of its daytime power needs. a supportive board This financial year saw a record 8.1 million passengers travelling through Recently we launched our inaugural and shareholders, as the group airports. Gold Coast in community benefit fund, a program particular reported an impressive 6.3 designed to provide financial grants well as a dedicated million passengers, its busiest year to groups in our regions, and we were ever with strong growth in domestic delighted with the response from the and enthusiastic and international numbers. community - this initiative is here to stay. We continue to sponsor a range Apart from the passenger growth, it of other activities and events, and for executive team, to has been busy on many other fronts. the first time we provided grants to turn our vision into had two Major outstanding performers in the Gold Development Plans approved in 2016, Coast Eisteddfod to enable them to results. for an Instrument Landing System pursue their dreams. (ILS) and for Project LIFT, the multi- I am fortunate to have a supportive million dollar redevelopment of the board and shareholders, as well as a terminal. Site works are well underway dedicated and enthusiastic executive to facilitate apron expansion. team, to turn our vision into results. Expressions of interest have been sought for a hotel development near Thank you to our staff, our customers, the terminal, and land has been and our industry partners for your acquired near the airport to facilitate continued support. future growth plans.

8 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Local

Domestic airlines International airlines Passengers QAL Group staff and contractors Ground handlers State Retail operators Ground transport operators Queensland Government General aviation tenants Tourism and Events Queensland Gold Coast Tourism Tourism NSW Outback Queensland Tourism Queensland Tourism Industry Council Townsville Enterprise Queensland Police Service Destination Tweed New South Wales Police Service Local universities City of Gold Coast Tweed Shire Council Townsville Council Mount Isa Council Longreach Shire Council Media QAL Group

Federal Community

Australian Federal Police Community groups Social media followers Civil Aviation Safety Authority Chambers of Commerce Border Force Business groups Australian Airports Association Local residents Tourism and Transport Forum

9 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Board

Annabelle Chaplain Andrew Agnew INDEPENDENT CHAIRMAN INDEPENDENT CHAIRMAN

BA, MBA, FAICD, B.A., B.Ec. (Honours in Finance), GAICD, Non-Executive Chairman appointed 1 January 2014. Non-Executive Director appointed 5 March 2013.

Annabelle Chaplain is an experienced company director Andrew is Chairman of the Remuneration Committee with in-depth experience in financial services, infrastructure and a former banker for more than 30 years. He is also a and mining-related companies. Her executive career was Director of infrastructure fund manager, Gardior Pty Ltd spent as an investment banker, working on a variety of and a Director of global tank terminal company, LBC Tank transactions for public sector and large corporate clients. Terminals. She is a Director of ASX-listed Downer-EDI Ltd. In the public sector, Annabelle is a Director of EFIC, Australia’s export credit agency and was previously a member of the Board of Taxation. In April 2015, Annabelle was appointed as Non-Executive Chairman for Canstar Pty Ltd and in November 2015 she was appointed a Non-Executive Director for Seven Group Holdings Limited.

10 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Board

Ashley Kilroy Robert Lette

FAICD, Non-Executive Director appointed 26 October 2012 Solicitor FASFA MAIST MAICD MUDIA Non-Executive Director appointed 24 January 2005. Chairman of the Risk and Audit Committee

Ashley is a former Airline Executive with over 40 years’ Robert is a consultant to and former partner of the Aviation Management experience with TAA/Australian Queensland law firm Mullins Lawyers. He was admitted to Airlines and Airways. the Supreme Court of Queensland in 1966 and is a Director of Envirogen Pty Ltd and Airports. His experience includes Senior Executive roles in Chairman of BUSS(Q) Building Super and Gardior Pty Ltd. Commercial, Airport Management and Regional Airlines. Ashley is Chairman of Aviation Australia Pty Limited and is a Non-Executive Director of Pty Limited. Ashley was formerly Non-Executive Director of Newcastle Airport Pty Limited.

11 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Board

Alan Mulgrew Jonathan van Rooyen

BA (Mgnt), Dip Corp Fin, GRAICD, JP BBus (Econ), Post Grad Dip (Fin), Nat Dip (Mgmt) Non-Executive Director appointed 25 March 2013.

Alan has 30 years’ experience as a senior executive Jonathan is the Portfolio Manager for The Infrastructure heading up large capital intensive organisations, both Fund (TIF), and is responsible for the delivery of the in Australia and overseas – including Perth and Sydney TIF strategy and performance. Previously, Jonathan’s Airports. On retiring from in 1997, he directorships have included; Interlink Roads (M5 toll road established a corporate advisory company providing in Sydney), Statewide Roads (M4 toll road in Sydney), and strategic advice to numerous major institutions; primarily Envirogen (a gas fired power generation business). in the development and implementation of major Jonathan also led the formulation and implementation infrastructure projects. of Hastings’ market entry strategy for Asia focused on He is Chairman and Director on a number of high profile China, Japan and Korea. In his role in Asia, Jonathan led Boards spanning Transportation, Energy, Infrastructure and the Hastings team in securing a ten-year mandate from Government. These roles include Non-Executive Director Korea’s Incheon International Airport Corporation and the positions in Ltd (SA), Tesla Corporation National Pension Service of Korea for Hastings to manage (WA) and CBH. a dedicated closed-end airport investment fund. Alan was previously a Non-Executive Director of Doric Prior to joining Hastings, Jonathan was a Partner of Holdings Pty Ltd (WA), BAC Holdco, Atlantic Ltd, Chairman KPMG Corporate Finance’s valuations practice—where of Western Carbon, Australian Renewable Fuels Pty Ltd he specialised in the preparation of Independent Expert and Tourism Western Australia. Reports, and the valuation of infrastructure assets.

12 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Board

Nigel Chamier

AM, FRICS, FAICD, FAPI, Non-Executive Director appointed 1 April 2014.

Nigel is the Executive Chairman of NAC Investments Pty Ltd. He is the immediate Past President of the Club and has been Honorary Consul for Sweden since 2000. Following a highly successful career with JLL, spanning more than two decades, he is a Fellow of the Royal Institution of Chartered Surveyors, the Australian Property Institute and the Australian Institute of Company Directors. Nigel provides high-level guidance to the private and public sectors on property and development matters. A former President of the Queensland Division of the Property Council Australia, Nigel was awarded a Medal of the Order of Australia in 1994 for services to the property industry and in June 2008 was awarded the Royal Order of the Polar Star for services to Sweden. Nigel oversaw the acclaimed $215 million restoration of Brisbane City Hall and played a major role in the development of landmark Brisbane buildings including Central Plaza and the Riverside Centre on Eagle Street. In 2016, Nigel joined the South Bank Corporation Board and also the Strategic Advisory Board of Griffith Business School. He currently chairs the Anzac Square Restoration Committee for The Lord Mayor of Brisbane.

13 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Board committees To assist in the execution of its responsibilities, our board operates four sub committees. The membership of each committee is summarised below:

Risk & Audit Committee

Mr Robert Lette Chairman

Mr Jonathan van Rooyen Non-Executive Director Remuneration Committee Mr Ashley Kilroy Non-Executive Director Mr Andrew Agnew Chair

Ms Annabelle Chaplain Non-Executive Director

Mr Alan Mulgrew Non-Executive Director Aeronautical & Related Infrastructure Committee

Mr Alan Mulgrew Chair Property Development Committee

Mr Nigel Chamier Chair

14 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Management

Chris Mills Marion Charlton CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICER, GOLD COAST AIRPORT

Chris Mills joined QAL in June 2014, and in October Marion Charlton has an impressive track record with 2015 was appointed to the role of Chief Executive Officer over 30 years’ experience in the aviation industry both (CEO). As the CEO Chris is responsible for setting and domestically and abroad. driving strategic initiatives to ensure the continued Since joining Gold Coast Airport in 2004, Marion has held success of the group into the future. Chris leads an a variety of management roles including her most recent experienced team with a focus on delivering exceptional role of General Manager Commercial and Terminals, airport experiences, and oversees a significant investment during which she oversaw the last significant Gold Coast program in QAL airports to deliver on this vision. Airport terminal redevelopment in 2010. Marion worked Chris has over 25 years’ experience in diverse industries in the Atlanta and Sydney airports during the 1996 and including tourism, leisure, retail, finance and property 2000 Olympics and was in Glasgow during the 2014 planning and development. He has worked in senior Commonwealth Games. She has also worked with the executive roles in Australia and England across the Irish Airport Authority. private and public sectors. He is also currently a board Marion has strong ties with many Gold Coast tourism member of Currumbin Wildlife Sanctuary. organisations through her past work on the Tourism Advisory Board for Bond University. She is currently on the advisory Board for Southern Cross University Business School and is on the Board of Trustees for the Currumbin Wildlife Hospital Foundation. In 2008 she was awarded the International Woman’s Day Leadership Award for the Gold Coast.

15 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Management

Kevin Gill Paul Donovan CHIEF OPERATING OFFICER, TOWNSVILLE, EXECUTIVE GENERAL MANAGER BUSINESS MOUNT ISA AND LONGREACH AIRPORTS DEVELOPMENT AND MARKETING

Kevin Gill has 24 years’ experience in aviation and has Paul Donovan has more than 40 years’ experience in held executive positions in airlines in Australia and New aviation and tourism. Paul’s past positions include the NSW Zealand including . Regional Director for Ansett Airlines; Global Director of Sales at Ansett Airlines, Chair of Ansett Airlines revenue related Since joining QAL in 2008, Kevin has been involved in a businesses and an alternate Director at Air Pacific. Paul range of programs and initiatives to develop Townsville, was also General Manager NZ/Pacific Islands at Qantas, Mount Isa and Longreach Airports. This has seen the Commercial Director NZ/Australia at Air New Zealand, and reestablishment of Townsville as an international airport as also General Manager Air New Zealand Australia. well as significant airport development at Mount Isa and a number of new airlines and routes operating through both Paul was Chief Operating Officer at Gold Coast Airport Townsville and Mount Isa Airports. from 2005 – 2014 and was responsible for the day-to-day operations and delivery of several key projects including a Kevin is currently Chair of Townsville Enterprise, and is a extension, a $100 million terminal redevelopment, a Councillor of the Queensland Futures Institute. long term car park development and the 2011 Gold Coast Airport Master Plan. Since 1 July 2014, Paul has headed up the Business Development and Marketing Team for Queensland Airports Limited as Executive General Manager, focusing on his significant experience, extensive knowledge of, and contacts within the tourism and aviation industries. Paul has been a member of the Gold Coast Tourism Board since 2005 and Chairman since 2007. Paul is a Board Director of Tourism and Events Queensland and an Adjunct Professor at Griffith Institute for Tourism.

16 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT QAL Management

Hamish McKellar Amelia Evans GENERAL COUNSEL AND COMPANY SECRETARY CHIEF FINANCIAL OFFICER

Hamish McKellar has over 20 years’ experience as a Amelia Evans joined QAL in April 2016 and is a qualified corporate lawyer and company secretary. He started his Chartered Accountant with 20 years’ experience in various legal career in the Commonwealth Treasury advising on industries including aviation, telecoms, FMCG and property the regulation of financial markets and the drafting of the development. Her initial grounding at Ernst & Young has Managed Investments Act, and subsequently held a number led to senior executive roles in the public and private of in-house roles in the financial services sector, focusing on sectors in Australia, Solomon Islands, London, United funds management, life insurance and banking. States and the Caribbean. During his career in financial services, Hamish was At British Telecom in London, Amelia managed the group involved in a number of mergers and acquisitions including strategic plan, negotiated joint venture agreements and the Colonial Group’s acquisition of Legal and General delivered a significant change management program. In Australia and Prudential Life, and the sale of the Colonial the Caribbean, Amelia oversaw the establishment of IGA Group to the Commonwealth Bank and PrefSure Life to the supermarkets and construction of retail and commercial Tower Group. properties. At Qantas, Amelia worked in Head of Finance roles within the areas of operations, commercial, sales, In addition to various roles in financial services, he has also customer experience and engineering, and was also held the roles of General Counsel and Company Secretary responsible for the delivery of major aircraft capital of Sumitomo Australia and Senior Corporate Lawyer at The reconfiguration programs. Royal Automobile Club of Queensland Ltd. In her roles, Amelia has managed financial, operational, Hamish is responsible for managing the QAL group’s legal, people, technology and project teams. Amelia has been governance, compliance and risk management functions. on various advisory Boards for disaster management, economic development and sporting associations. Amelia is actively involved in a number of national leadership and mentoring programs. Amelia oversees the finance, technology and people teams 17 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT for QAL. QAL Management

Carl Bruhn EXECUTIVE GENERAL MANAGER PROPERTY AND INFRASTRUCTURE

Carl Bruhn joined QAL in August 2016 and brings to QAL a wealth of experience including mixed use precincts, non-residential land development, project/construction management, design management and community development. Carl is responsible for delivering a large program of works across the QAL Group over the coming years, bringing a broad background of experience to the role. Carl’s most recent role was with Villa World as the General Manager, Communities and Business Growth. Carl spent a number of years with Lendlease as General Manger Town Centres and Senior Project Director on the Varsity Lakes project. During this time he was responsible for both the residential and commercial aspects of the Varsity Lakes development and similar Lendlease projects nationally. Carl is a Fellow of the Urban Development Industry of Australia (FDIA) and is a fully licensed real estate agent.

18 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Shareholder Value

• Growing market share • Developing our non-aero business • Focus on cost and yield

19 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Financial

Performance OPERATING REVENUE OPERATING EXPENDITURE $,000 EBITDA 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000

20,000 106,654 47,022 59,633 115,236 46,344 68,892 120,749 44,122 76,627 126,316 48,366 77,950 125,278 45,588 79,690 129,830 45,646 84,184 127,018 38,911 88,107

2010 2011 2012 2013 2014 2015 2016

2010 2011 2012 2013 2014 2015 2016 $,000 $,000 $,000 $,000 $,000 $,000 $,000

Interest Revenue (External) 1,440 1,564 1,602 805 854 376 420

Interest Costs (External) 22,646 33,048 35,388 33,257 32,496 32,326 32,958

Depreciation & Amortisation 21,898 21,718 22,267 29,449 31,535 28,595 29,364

Other Adjustments -2,853 -5,877 1,740 17,821 858 8,331 13,838

Loan Note Interest 3,751 3,951 4,569 5,051 5,079 5,079 5,093

Income Tax Expense 3,679 1,183 1,161 5,314 4,317 6,429 9,805

Net Profit After Taxation 6,245 4,679 16,584 23,505 7,975 20,462 25,145

Dividends Declared 22,999 24,500 31,501 33,008 35,509 34,642 16,531 (1)

(1) Dividends were retained in 2016 to fund property acquisitions adjacent to Gold Coast Airport.

20 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT The Year in Review

July September October

• Public consultation period for • JETGO commenced a service • commenced daily direct the proposed Project LIFT between Gold Coast and Townsville services between Gold Coast and redevelopment commenced. (via Rockhampton). Operated by Avalon on an A320 aircraft, resulting a 36 seat Embraer jet, the service in an additional 131,000 seats per • Department of Infrastructure and operates thrice-weekly return year into and out of the airport. Regional Development approved services. Major Development Plan for the • Qantas commenced direct services Southern Cross University (SCU) • Jetstar commenced direct services between Gold Coast – , Building C and at Grade Car Park. between Gold Coast and Wuhan. adding more than 61,000 seats per The service was the result of a annum. • Work commenced on the Gold landmark agreement between Coast Airport Preliminary Draft Jetstar and Hubei Wanda New • Fulton Hogan appointed to Master Plan 2017, with the Airline International Travel Services complete Gold Coast Airport runway document due out for public Co. Ltd. The service was operated overlay 14/32. consultation in October 2016. by a B787 aircraft. Services were • Gold Coast Airport acquired a 1.6 ceased in September 2016. hectare site at 57 Boyd Street, • Gold Coast Airport received Bilinga for future development. August regulatory approval for the overlay • The NRL Grand Final weekend of runway 14/32. saw Townsville Airport handle • SmarteCarte opened up a Baggage • Rejuvenation of the international an additional 20 charter flights to Services kiosk at Gold Coast terminal in Townsville was Sydney, such was the demand Airport in August 2015. This outlet completed ahead of resumption of to see the NQ Cowboys win the is located adjacent to the check in international services. Premiership. area and includes services such as baggage wrapping, baggage • Jetstar commenced direct weighing, and the purchase of travel international services between accessories. Townsville- Bali. The service operates three times weekly and December signalled a return to international services for Townsville Airport. • Gold Coast Airport reached a historical milestone, welcoming 6 million passengers during the 2015 calendar year.

21 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT The Year in Review

January February May

• Hong Kong Airlines commenced a • Project LIFT Major Development • Gold Coast Airport appointed Fulton direct charter service between Gold Plan was approved by the federal Hogan as civil works contractor for Coast and Hong Kong during the government. Project LIFT. Chinese New Year period, operating thrice weekly. Due to strong • MAC Cosmetics opened a kiosk • Buildcorp appointed as building demand this service was then store in the common departure works contractor for QAL and GCA extended to a year round service. lounge at Gold Coast Airport, with management office refurbishment. projections to turnover in excess of This refurbishment was completed • Gold Coast Airport received Federal $1m in the first year of operation. It in August 2016. Government approval of the was just the second stand-alone Instrument Landing System (ILS) MAC outlet in Australia when it • Gold Coast Airport’s large annual Major Development Plan. At the opened at Gold Coast Airport. retail promotion, funded by the time of going to print this approval Retail Promotions Fund, successfully had been challenged through the • Premium car park expansion ran for the third consecutive year. Administrative Appeals Tribunal and CCTV upgrade projects in This year, the consumer promotion process. Gold Coast Airport Townsville were completed. was sponsored by Flight Centre anticipates a decision on this appeal with two passengers both winning a in early 2017. $5,000 Flight Centre Travel Voucher. A 3% increase in passenger spend • The Major Development Plan for rate was achieved during the Project Alive, Townsville Airport’s promotion period (Jan-May16). redevelopment, was approved by March the Federal Government. • Ivy Pearce building was officially opened at Gold Coast Airport. The June three-level commercial building is home to flagship tenant Australian • Gold Coast Airport acquired a 5.1 Federal Police and is named in hectare commercial zoned site at honour of deceased local aviatrix, 1 Wollemi Place, Tweed Heads for Ivy Pearce. future development opportunities. • AirAsia X commenced services between Gold Coast and Auckland five times weekly in addition to the existing Gold Coast – Kuala Lumpur service.

• Gold Coast Airport runway 14/32 overlay works completed. This project was delivered on time, under budget and with no operational delays.

• Townsville Airport Preliminary Draft Master Plan was released for public consultation.

22 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Looking Ahead Priorities for FY17 include:

• Construction commencement of the Gold Coast Project LIFT development • Construction commencement of the Townsville Project Alive development • Delivery of 1st stage of the new on-airport property strategy at Gold Coast • Finalisation of proposed Gold Coast on-airport hotel • Expansion of Gold Coast premium car park • Delivery of enhanced car park and solar project in Mount Isa • Construction of wildlife proof fence in Longreach

23 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Customer Experience • Enhancing customer service quality • Upgrade facilities • Range of products and services

24 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT

Connectivity

WUHAN

TOKOKYO OSAKKA

KUALA LUMPUR SINGAPORE

DARWIN

CCAIRNS

NADI MOUNT ISA

Gold Coast Airport

PERTH NEWCASTLE SYDNEY ADELLAIDE CAANBERRA AUCKLAND MELLBOURU NE

WELLINGTON

HOBART CHRISTCHURCH

QUEENSTOWN

25 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT 35 QAL Annual Report Connectivity 2014/2015

DARWIN

CAIRNS

TOWNO SVILLE TOWNSVILLE

WINTON BARCALDINE Mount Isa Airport Longreach Airport BLACKALL BRISBANE BRISBANE GOLD COAST

DARWIN

CAIRNS Townsville Airport

MOUNT ISA MACKAAY

LONGREACH ROCKHAMPTON

BRISBANE

SYDNEY

MELBOOURNE

26 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT In July 2016 Mount Isa Airport Ground transport facilities will also commenced upgrade works to the be improved with the construction of Mount Isa existing airport car park, aimed at two new bus bays with a connecting substantially improving passenger pathway for pedestrians. The pathway experience, safety, access and at the front of the terminal will also be Car Park sustainability at the airport. extended to the taxi pick-up/drop- off area, which will allow for ease of Upon completion the project will access for passengers and visitors. Upgrade increase the total number of car spaces to over 220. This project represents an investment of over $3.5 million by Queensland Solar shade structures will be installed Airports Limited. as part of this project, providing covered long term parking spaces and pedestrian walkways. These shade structures will provide passengers relief from the sun and will offset almost half of the airport’s electricity usage during daylight hours.

Longreach Airport has installed Longreach Airport currently has a 396 solar panels on the roof of the peak-hour load of 68 kilowatts. The Longreach terminal building to significantly new panels can produce up to 99 reduce the airport’s reliance on kilowatts, offsetting approximately mains power and to offset carbon 95% of the airport’s daylight load. It Airport emissions. is estimated this will equate to a total annual saving of $32,000 per annum. The solar panels will offset the Solar Panels airport’s electricity usage during daylight hours.

Priorities for FY17 include: Looking • Commencement of GCA Ambassador Program. This volunteer program is aimed at improving customer service Ahead for passengers traveling through the airport • Installation of Common Use Passenger Processing Systems (CUPPS) at GCA. This will enable passengers to self-check-in and bag drop

27 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Social Responsibility • Sustainable activities • Collaborating with the community • Economic drivers in our regions

28 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Our Communities

QAL understands QAL is a dedicated supporter of local • Gold Coast Business Excellence charity, community, tourism, arts and Awards sporting organisations, distributing the importance of • Tweed Business Excellence Awards more than $500k in sponsorship the communities we throughout Queensland and Northern QAL has also introduced a New South Wales each year. Community Benefit Fund, aimed serve. As the largest at providing financial assistance We provide sponsorship support to a number of community-based across a range of areas within each of regional airport initiatives in each of the communities our communities including: operator in Australia, we operate. The response to this initiative was • Queensland Tourism Awards we are committed to overwhelming and a total of 34 • North Queensland Tourism Awards community groups have benefited from these funds. fostering relationships • Gold Coast Airport Marathon within our local • Bleach* Festival communities. • SWELL Sculpture Festival • Mount Isa Mines Rotary Rodeo • Magnetic Island Race Week • Townsville Enterprise

29 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Aviation Enthusiasts Community

Gold Coast Airport The competition granted a group of Facilitated through an application competition winners a morning of on the Gold Coast Airport Facebook has a significant exclusive airside access to photograph page, the competition encouraged aircraft flying in and out of the airport. users to enter their best three images local plane spotter This year the Gold Coast Airport of aircraft flying in or out of the airport photography competition received a for their chance to win. community and record number of entries, with the top The judging panel comprised of Gold 20 being selected to proceed to the Coast Airport Senior Management, during this financial next stage of the competition. a highly regarded South-East year GCA held our The purpose of the competition was to Queensland-based aviation engage aircraft enthusiasts and keen enthusiast, and also special guest 2nd annual plane photographers and provide them judge Sean Scott - Tourism Australia with a unique airside experience. ambassador and Burleigh Heads spotters photography Our airport supporters are very based professional photographer. important to us, and the photography The grand prize winner was awarded competition. competition is an exciting and a one hour aerial photo shoot, to engaging way for us to give back to capture the airport from above via the community by allowing them to get helicopter. up close and personal with inbound and outbound carriers.

30 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Community Engagement Engagement with our communities is an ongoing focus at QAL and we have developed the following engagement groups to interact directly with our community.

The purpose of the Gold Coast Airport • Public information and education Gold Coast ANACC is: programs about noise related aspects of Aircraft operations. Airport Air Noise • Examination of aircraft noise complaints and handling. The Committee is also consulted on matters including the production of Abatement • Revision, implementation and Australian Noise Exposure Forecasts adherence to Aircraft Noise Consultative Group (ANEFs) for the airport, and on matters Abatement Procedures. relating to any future aircraft noise • Revision, implementation and amelioration program for residences Gold Coast Airport is part of an adherence to flight paths. and public buildings around the airport. Airport Noise Abatement Consultative • Timely provision of aircraft noise Committee (ANACC) established The Committee is comprised of and flight path monitoring system to communicate with the local representatives endorsed by local information. community, with a particular focus on community groups, aviation and noise abatement strategies. • Airport master planning; and government representatives.

fair and equitable representation • New airport activity (such as new Community Aviation encompassing the interests of the services) or changes to aviation broader community. CACG members services. Consultation Group span a diverse cross-section of the • Planning, regulatory and policy communities including aviation and changes affecting the airport. Gold Coast Airport and Townsville government officials, tourism and • Changes to airport facilities. Airport have both established a local business leaders and local community Community Aviation Consultation representatives. • Access issues including for people Group (CACG) to help facilitate greater The CACG is used to exchange with special needs. community consultation, particularly on information on issues relating to airport • Economic contribution of the airport planning and development activities on operations and their impacts. (including the Airport Economic the airport. These Community Aviation The CACG provides updates to the Impact Study). Consultation Groups are part of the community members and industry Federal Government’s Aviation White Relevant updates will also be provided to representatives on: Paper recommendations and subsequent the CACG from government departments Airports Act Amendment Bill. • Airport development activities including Department of Infrastructure (including the Airport Master Plan). and Regional Development, Airservices The purpose of the CACG is to ensure Australia and CASA. the effective exchange of aviation • Airport environment initiatives information between all responsible (including the Airport Environment and affected parties. The CACG Strategy). membership is by invitation only with

31 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Our Environment

• ISO14001:2004 certification of GCA’s Environment • Ongoing management of weeds and pest species takes Management System has been maintained. place at GCA including rabbits, hares and foxes along with dedicated vegetation management staff maintaining • Gold Coast Airport rainwater harvesting system supplied natural bushland areas. approximately 37% of the terminal’s water needs, reducing the draw on the town water supply by almost • Regular liaison continues with local environmental, 16mL. Telemetry devices fitted last year to allow real- cultural heritage and community groups. time monitoring of the airport’s mains water meters also assisted with the management of potable water. • Monitoring and management programs for surface and groundwater, flora, fauna, contaminated sites and natural • GCA’s Carbon footprint mapping is near completion resource consumption continued to be implemented and in preparation for level 1 accreditation under Airports updated as required. Council International’s Airport Carbon Accreditation Program next financial year.

• Preparation of GCA Cultural Heritage Management Plan, including consultation with Indigenous stakeholders, has progressed with expected completion early FY17.

32 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Social Media Highlights

  1008 1,339 followers followers

An increase of 53% 590 new Facebook likes, on the year prior an increase of 79%

   20,409 4,860 1,950 850 followers followers followers followers

6081 new Facebook likes, 449 new Twitter followers, An increase of 56% An increase of 43% an increase of 42% an increase of 10%

   16,613 753 760 402 followers followers followers followers

4715 new Facebook likes, 482 new Twitter followers, An increase of 200% An increase of 32% an increase of 40% an increase of 190%

Priorities for FY17 include: Looking • Ongoing success of the Community Benefit Fund across the QAL Group

Ahead • Achieve Level One Carbon Accreditation

• Rollout of the new GCA brand with work to commence of refresh of QAL and TAPL brands

33 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT High Performing Workforce • A common mission • Supporting success and being accountable • A diverse, skilled and capable team

34 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Learning and Development

• In partnership with CBA, Supply • QAL has also developed and • The Honey project includes the Nation, Griffith University and implemented a Graduate Program implementation of eight modules Australian Computer Society, QAL and Work Immersion Program. including Human Resource co-hosted a highly successful These are fixed-term paid positions, Master Record, Job Descriptions, Indigenous Jump Start program enabling both new graduates and Performance Management, – offering an innovative and students to gain work experience E-Recruitment, Induction and supportive platform for indigenous while injecting fresh, innovative On-boarding, Training, Surveys business to develop and grow ideas into the organisation. and Employee and Manager Self business ideas and opportunities. Service. • The annual staff engagement and • An internship program was enablement survey was conducted • The time and attendance system implemented to enable students in June and results remain overall integrated with the Payroll to gain valuable “real world” very positive when benchmarked system has been implemented experience. Part of the program with both internal and external at Gold Coast Airport with further requires the intern to complete a indicators. implementation planned for QAL workplace project which enables and regional airports. • Aligned with QAL’s strategic them to include this on their CV as direction, the People team • Employee engagement: workplace experience. initiated a number of process • QAL is currently finalising improvement programs to enhance Memoranda of Understanding productivity and accuracy, Response Rate 74% (MOU) with several universities improve communication across all and TAFEs. These MOU’s will business units, streamline business facilitate synergistic partnerships, processes and workflows, increase not only enabling the undertaking of management efficiency and remove Engagement 71% internships, collaborative research the administrative burden of manual and projects, but also creating the processes to our business. opportunity for QAL employees • The two major process improvement Enablement 67% to become actively involved in programs involved the procurement, university program development development and commencement and delivery within their individual of implementation of a human areas of expertise. resource information system (HRIS) called “Honey” and the “Time Target” time and attendance system.

Priorities for FY17 include: Looking • Ongoing development of staff through implementation of ‘A day in the life of …’ program

Ahead • Implementation of QAL succession plan

• Implement staff recognition program

35 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Accomplished Operators • Capacity management • Safe and secure places • Efficient and effective operations

36 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT • GCA rolled out training for site safety leadership to provide an WH&S and supervisors and managers to inform understanding on their safety them of their obligations in regards obligations. to WHS processes, responsibilities • First aid / CPR and Low voltage and procedures. Security resuscitation training provided to staff. • Gold Coast Airport Safety Month • Upgrade of CCTV camera was rolled out in October to promote capabilities at the security screening The following highlights workplace health and safety and points, front of house, car park and to highlight the importance of safe have been delivered critical points both landside and work practices and behaviours. throughout the year to airside at Townsville Airport. • Audit conducted on the WHS Safety promote and guide good Management system in November health and safety practices: which identified recommendations to improve our Safety systems and processes. • GCA rolled out Management and Senior management training on WHS harmonisation and

These mock scenarios provide staff Every two years, management of Emergency with opportunity to test and improve Townsville Airport is required by the emergency management plans. Civilian Safety Authority (CASA) to conduct a field exercise at the airport to test the Airport Emergency Plan. Planning GOLD COAST In December 2015 Gold Coast Airport Full field emergency named Exercise held the annual emergency field Pandora was held to test the Across the QAL Group, exercise. Named Operation Connect, airport’s preparedness in handling a the objective of this exercise was to table top and field declared emergency for a diverted test all on-airport stakeholders in the international flight. exercises are carried out set-up, operations and functionality annually to ensure the of all reception centres at GCA in response to an aircraft incident. MOUNT ISA organisation is prepared A tabletop exercise was held in September 2015, focused on in the event of a real-life TOWNSVILLE testing on-airport stakeholders and emergency. Staff at Townsville Airport in emergency services response to an partnership with the Townsville RAAF active shooter in the terminal. base, airline partners and state and federal emergency services undertook bi-annual emergency scenario training in September 2015.

37 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT Investing in Tomorrow

GOLD COAST AIRPORT INSTRUMENT Driven by long-term passenger growth, Project LIFT has a LANDING SYSTEM number of features, including the expansion of the terminal building, four additional aircraft parking stands and a Gold Coast Airport’s Major Development Plan (MDP) consolidated ground transport facility. proposing the installation of an instrument landing system (ILS) at the airport was approved by then Minister for Gold Coast Airport is committed to Project LIFT as it is Infrastructure and Regional Development in January 2016. crucial the city’s development momentum continues beyond 2018. Project LIFT will deliver better services and An ILS is a highly-accurate radio signal navigation aid create jobs and economic opportunities for the Gold Coast which assists pilots to land in low visibility conditions by and Northern New South Wales regions. providing aircraft with vertical and horizontal guidance to the runway. The Minister’s decision was challenged and an TOWNSVILLE AIRPORT REDEVELOPMENT MDP Administrative Appeals Tribunal (AAT) process Townsville Airport released its Major Development Plan commenced. Both Airservices Australia and Gold Coast (MDP) for a $40 million upgrade to existing terminal and Airport joined the Department as a party to the process. apron facilities in May 2015, receiving approval in January As a result of this appeal construction on the installation of the 2016.The redevelopment will breathe new life into the ILS has been delayed pending a final decision from the AAT. airport and improve the user experience, with construction expected to commence in 2017, and the apron expansion the first component to commence. PROJECT LIFT Gold Coast Airport’s MDP for Project LIFT (Let’s Invest for TOWNSVILLE AIRPORT MASTER PLAN Tomorrow) was approved by the Federal Government in February 2016. Townsville Airport’s Preliminary Draft Master Plan 2016 was released for public consultation in March 2016. A range of work to improve the customer experience leading up to and during the 2018 Commonwealth Games Townsville Airport currently has more than 1.6 million will be carried out at the airport, including expanding the passenger movements per year. By 2038, Townsville Airport apron capacity and a transformation of the check-in area, is forecast to have 2.7 million passenger movements. introducing self-check-in and bag drop services in mid-2017. The 2016 Master Plan presents detailed concepts for Gold Coast Airport is well equipped to deal with the period covering the next twenty years to the year the passenger numbers expected during the 2018 2036 including the forecast growth and facilities required Commonwealth Games. The Airport already deals with to accommodate this growth. The 2016 Master Plan similar projected passenger numbers during peak times, specifically focuses on the development requirements over such as Christmas. It is estimated that as many as 12,000 the next five years. people, including 1,300 Games family, could be departing The 2016 Master Plan also proposes land use controls and the day after the closing ceremony. On January 3 2016, protection in areas adjacent to the airport to ensure safe almost 24,000 passengers were welcomed and farewelled and efficient aircraft operations now and into the future, and at the airport. includes an assessment of aircraft noise and other potential The redevelopment of Gold Coast Airport’s terminal impacts of the proposed developments on the community. facilities will increase the terminal’s capacity to meet future The Preliminary Draft Master Plan was approved by the demand to 2023. Federal Government in August 2016.

38 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT More Information

QUEENSLAND AIRPORTS LIMITED Level 1 Airport Central, 1 Eastern Avenue, Bilinga PO Box 112, Coolangatta, QLD 4225 Ph: 07 5589 1100 F: 07 5536 2838 E: [email protected] www.qldairports.com.au

GOLD COAST AIRPORT PTY LTD MOUNT ISA AIRPORT PTY LTD ACN 077 200 821 ACN 081 257 552 Level 1, Airport Central, 1 Eastern Ave, Bilinga Qld Barkly Highway, Mount Isa Qld PO Box 112 Coolangatta Qld 4225 Australia PO Box 2305, Mount Isa Qld 4825 Australia P: +617 5589 1100 F: +617 5536 2838 P: +617 4743 4598 F: +617 4743 0101 E: [email protected] E: [email protected] www.goldcoastairport.com.au www.mountisaairport.com.au

TOWNSVILLE AIRPORT PTY LTD LONGREACH AIRPORT PTY LTD ACN 081 257 490 ACN 138 820 854 Cnr Halifax St & Stinson Ave, Garbutt Qld Landsborough Hwy, Longreach Qld 4730 PO Box 7636 Garbutt Qld 4814 Australia PO Box 503, Longreach Qld 4730 P: +617 4727 3211 F: +617 4779 1843 P: +617 4658 3766 F: +617 4658 3210 E: [email protected] E: [email protected] www.townsvilleairport.com.au www.longreachairport.com.au

39 / QUEENSLAND AIRPORTS PTY LTD 2015/16 ANNUAL REPORT