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2018/2019 Annual Report

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2018/2019 Annual Report annual report 18/19 Message from the Chair As we finish another year, my last as Chair of Building on the success of last year, we were also Newcastle Airport, I’m pleased to reflect on the pleased to partner with Virgin Australia to again progress the business has made, perhaps the most offer direct flights from Newcastle to Auckland, profound in the 20+ years I’ve been contributing cementing our position as New South Wales’ to our Airport. The Newcastle Region is Australia’s second international airport and offering even largest regional economy, with ambitions to become greater connectivity to the world. a future global city and realise our full potential. As New South Wales’ second international airport, we see our role as critical in helping deliver great In addition to growing passenger support, we outcomes for our community. were also thrilled to be awarded the 2018 Major Airport of the Year by the Australian Airports It was a year where we set the business up for future Association – recognition that we are doing success, as well as delivering several key initiatives. exceptional work in a very competitive industry. The most significant of the future-focused activities was the purchase of a 76ha parcel of land adjacent Our impact on the region beyond the aviation to our leased site. This milestone is an important part and travel sector was demonstrated in August of our journey to be the airport the region deserves. this year when we were awarded the President’s It brings us closer to realising Newcastle Airport Award at the 2019 Hunter Business Chamber as a regional hub for aviation activities, including awards for the unique value we bring to the new defence and aerospace-related manufacturing, maintenance and research, while connecting the Hunter Region. We were also proud to see our region globally for trade, tourism and jobs. This vision CEO, Dr Peter Cock recognised as joint winner to secure long-term prosperity for the region is only of the 2019 Business Leader of the Year award possible because of the resounding support we have for his significant influence in the Hunter and from our shareholders – the City of Newcastle and his role in enhancing the reputation, leadership Port Stephens Council. credentials and culture of the Airport. During the year we also undertook a significant There is much to be proud of this year, and I feel review of our Board practices to ensure alignment a unique and very deep sense of accomplishment with industry best practice and readiness for future looking back at how Newcastle Airport has growth. A notable change was the implementation of grown over the years and the outstanding a director rotation policy, to ensure both continuity of skills and diversity of experience across our Board. Agile accomplishments we have enjoyed. Without and future-focused, our Board will lead Newcastle the strength of the Board and support of both Airport to continue evolving and driving results. management and staff, our Airport would not be the resounding success it is today. Thank you We welcome new Directors Nuatali Nelmes, Ryan for the opportunity to lead, it has truly been Palmer, Morgan Parker and Samantha Martin-Williams, a privilege. whilst we will also see incoming Chair, Kirby Clark transition into his new role. These changes mean farewelling long-standing Director Ted Campbell and myself as outgoing Chair. I’m very confident the new Peter Gesling Board will provide the strategic vision and strength of Chair purpose that our region has come to expect. 2 NEWCASTLE AIRPORT ANNUAL REPORT 18/19 Message from the Chief Executive Officer After another year of outstanding results and With solid support and investment from the NSW several ‘firsts’ for our region and airport, it’s State Government, we also commenced stage important to reflect on the foundations that set one of the Astra Aerolab development. With BAE us up for success. Systems publicly stating their interest in land at Astra, we’re paving the way for the Williamtown One key focus is our unwavering dedication to precinct to establish itself as a world-leading space the safety and wellbeing of all those who visit for the innovative Defence and aerospace industry. our airport. I’m proud to announce that we’ve lost zero staff time due to injuries this year and Complementing our plans for Astra is our continued introduced a new electronic data management advocacy for an upgraded runway and terminal. system to better record safety-related information. We feel that access to more international destinations We also led a health and safety stakeholder forum is something the people of the Hunter and Northern for businesses across the Airport precinct. NSW regions deserve. To achieve this, we require an Airport that enables long range aircraft to use Our commitment to providing the best possible the RAAF Base Williamtown runway we access. experience for passengers through Newcastle We also need an enhanced international terminal Airport is another focus area for our business. that can cater for the significantly larger aircraft With the support of the people of our region, and the passenger growth that it will bring. This will we recorded 1.28 million passengers travelling provide our region with the catalyst for sustained though the terminal in the 2018/19 financial year. growth, improve connectivity, turbo-charge the This is a significant achievement in a softening visitor economy and provide a myriad of new freight economy and confirmed the ongoing support opportunities for Northern NSW. from our catchment and visitors to the region. Our ongoing success is only possible because of the The year once again saw the Airport produce a commitment of our people. I thank all who work at strong profit, returning $4 million in dividends Newcastle Airport, our Board, shareholders, strategic to our two shareholders – City of Newcastle and and operational partners for enabling us to succeed Port Stephens Council. this past year. I also pay a special acknowledgment to outgoing Chair Peter Gesling, who has driven the We’ve invested heavily this year to meet community long-term vision for our business. In doing so, I also expectations of the Airport, commencing a brand welcome incoming Chair Kirby Clark who I know positioning project in June and implementing will continue the Board’s agile approach to the programs to enhance our internal culture, including Aiport’s future growth. targeted leadership training. I look forward to a bright future as we continue to We also became an official ambassador for strive towards being the Airport the region deserves. SafeWork NSW’s Mentally Healthy Workplaces. We believe that by investing in our people we will continue to achieve outstanding results for both the organisation and the region as a whole. Peter Cock Chief Executive officer NEWCASTLE AIRPORT ANNUAL REPORT 18/19 3 Highlights JULY 2018 SEP 2018 DIRECT FLIGHTS ANNOUNCED TO million AUCKLAND, NZ announced$11.7 in funding to kick start Operated by Virgin Australia, the 13-week NTL – AKL seasonal service initially operated ASTRA AEROLAB from 22 Nov 2018 – 17 Feb 2019. A world-leading aerospace commercial AKL precinct adjacent to Newcastle Airport. NOV 2018 22 NOV 2018 NAMED OFFICIALLY BECAME Major Airport NSW’s second of the Year 2018 international airport by Australia’s peak airport body, the welcoming the first Trans-Tasman flight from Australian Airports Association (AAA). Auckland in 16 years into new international processing facilities. 23 NOV 2018 MAR 2019 A RECORD-BREAKING travelled through the Airport on the first day of Newcastle First major 500, breaking the daily works ASTRA 5,272 passenger record for the contract PASSENGERS 2nd consecutive year. awarded for AEROLAB JUN 2019 FY2019 debt facility agreement signed YEARLY PASSENGER RECORD BROKEN AS CLOSE TO with ANZ Bank to fund major infrastructure projects and million $50 provide an enduring long travellers million term economic boost. 1.28 passed through the airport RANKED and in the top 3 Airports AVERAGE SCORE OF 4.3/5 millionth across 22 categories passenger surveyed in the industry 18 benchmark Australia and welcomed through the New Zealand Airport in the annual Airport Service Quality terminal since 1995. IN 10 CATEGORIES Service Quality Survey. Survey for passenger satisfaction Activities Partnered with Asia Pacific’s Unveiled a new dining Led a trade delegation to Auckland, Confirmed as one of the largest ground transport outlet, Valley & Vine in New Zealand to connect with first Airports in Australia to comparison site, to deliver the departures terminal – key tourism industry partners and install and be fully compliant a new online car rental offering more choice for encourage Aucklanders to travel to with new mandatory aviation booking engine. passengers. the Hunter. security screening requirement in late 2019. 4 NEWCASTLE AIRPORT ANNUAL REPORT 18/19 Financial performance 16% $34,000,000 84% Total revenue Property and commercial activities Passenger facilitation $9.4 M total profit in FY2019 in dividends provided to shareholders $4 M from FY2019 profit in dividends provided to shareholders $19.7 M since ownership of the Councils invested in capital expenditure $35 M in the last 5 years FY2014 – FY2019 contributed by Newcastle Airport in economic activity to the NSW $1.16 BN economy each year number of FTE’s currently employed across 5,600 the tourism and airport cluster NEWCASTLE AIRPORT ANNUAL REPORT 18/19 5 Aviation Passenger movements travellers passing through the terminal 1,277,473 (breaking the previous year’s record) additional passengers were welcomed, 4,839 reflecting 0.4% year on year growth of total passengers flew to Brisbane, % our busiest route To Asia/ 46 Singapore To UK/Europe % of total passengers flew to Melbourne, 30 our second businest route 252 flights per week To USA 5 airlines To Fiji/ South Direct destinations Pacific 8 Annual load factors 73% Brisbane 82% Melbourne DIRECT % Gold Coast HUB DOMESTIC 81 HUB INTERNATIONAL Auckland seasonal route available 22 November 2018 - 17 February 2019.
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