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Annual Review 2019

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ANNUAL REVIEW & KAITIAKITANGA 2019 A WORLD FIRST NEW ZEALAND’S FIRST FIRST CLASS ASSISTANCE AUTO-DOCKING SYSTEM TERMINAL CONNECTED HOTEL FOR THE VISUALLY IMPAIRED A FIRST CLASS Upgrade 1 2019 WELLINGTON AIRPORT ANNUAL REVIEW A FIRST CLASS Upgrade CONTENTS A first class upgrade 5 Airline and passenger growth 8 Better services 10 Bringing long haul air services to central New Zealand 15 Our commitment to community 16 KAITIAKITANGA Sustainability 21 Our people 24 A safe workplace 26 Contributing to our region’s economy 27 Efficient management of our resources 28 Discharges to land and water 29 Noise management 33 Our FY19 results 34 A VIRTUAL ASSISTANT INTRODUCING THE TURNING COFFEE SUPPORTING THE BLACK-BACKED PERFORMANCE FOR VISUALLY IMPAIRED WORLD’S FIRST GRINDS INTO PREMIUM ECOLOGICAL RESTORATION GULL STUDY BASED NAVIGATION PASSENGERS AUTOMATED AIRBRIDGE COMPOST OF MIRAMAR PENINSULA 12 13 28 30 31 32 2 3 A FIRST CLASS Upgrade Our role is delivering a great experience and excellent global connectivity for central New Zealand and it has been a year of firsts. The Rydges Wellington Airport Hotel opened in February 2019, the multi-level car park and transport hub opened in October 2018, the first part of the terminal upgrade was completed and a number of world-first innovations were introduced. Wellington Airport reported a net profit of $23.5 million with underlying earnings showing an EBITDAF before subvention payment of $101.4 million, up 6.3% on last year. Audited Audited year ended year ended 31 March 19 31 March 18 Variance Passengers Domestic 5,488,013 5,249,081 238,932 Passengers International 929,457 895,369 34,088 Aeronautical income $81.5m $76.1m $5.4m Passenger services income $43.5m $40.3m $3.2m Property/other income $12.9m $12.2m $0.7m Operating expenses ($36.5m) ($33.2m) ($3.3m) EBITDAF before subvention payment1 $101.4m $95.4m $6.0m Net Profit After Tax $23.5m $24.7m ($1.2m) Capital investment $72.5m $85.6m ($13.1m) 1. EBITDAF before subvention payment is a useful non-NZ GAAP measure of earnings which presents management’s view of the underlying business operating performance. A reconciliation between WIAL’s NPAT and EBITDAF before subvention payment is set out in the NZX announcement and Note A1 of the Annual Report for the year ended 31 March 2019. Steve Sanderson Tim Brown Chief Executive Chairman 4 5 KEY HIGHLIGHTS 5.5m 929,000 DOMESTIC PASSENGERS INTERNATIONAL PASSENGERS $101.4m $72.5m EBITDAF - BEFORE SUBVENTION PAYMENT CAPITAL INVESTMENT 92% 0 25% CUSTOMER EFFORT SERIOUS INCREASE IN NUMBER SCORE INJURIES OF WOMEN EMPLOYED ONE OF THE TOP RATED AIRPORTS IN AUSTRALASIA FOR SERVICE QUALITY NEW ZEALAND INSTITUTE OF BUILDING SAFETY EXCELLENCE AWARD $2.5m2 $2.2b COMMUNITY INVESTMENT TOTAL ECONOMIC OUTPUT 1,689t $100m SCOPE 1 & 2 CO2 E EMISSIONS 11 YEAR RETAIL BOND ISSUED 2. Investment includes sponsorships, community awards and noise insulation programme for residents. 6 7 AIRLINE AND PASSENGER Growth There are now 3,183 more passengers service from three to six flights per Singapore Airlines’ service between travelling per day than a decade ago. week from October 2019, the route Wellington and Singapore was routed Domestic passenger numbers grew New services such as Singapore Airlines’ stimulate demand will be served by more than 350,000 through Melbourne in May 2018. The by 239,000 to reach 5.5m for the year seats a year, making it Wellington’s Singapore service has made it easier and enable regional dispersal of tourists throughout the country. which is the highest annual growth fourth largest. Ten years ago, less than for travellers from Europe and Asia in the last decade. International Without the Singapore service these itineraries would not exist. 40,000 seats were operated on the to make Wellington their gateway to passengers grew 3.8% to 929,000 over route. Spreading tourism throughout the New Zealand and continues to be very the year. country provides different experiences successful. Increased capacity from A great number of factors and people for visitors and helps overcome Air New Zealand and Virgin Australia, contribute to this growth especially accommodation shortages during peak and improved international connectivity WellingtonNZ, Tourism New Zealand times of the year. to and from our Qantas services has also and travel agencies. We also want to strongly contributed. thank all our airline partners who are A focus by the region to host The alliance between Air New Zealand enabling the growth through great major sporting and cultural and Virgin Australia ended in 2018, with service and increased capacity. events in Wellington is proving both airlines introducing new services Airlines have focused their efforts on to be successful in attracting between Wellington and Australia. improving loads with passenger visitors. International visitor Travellers are benefiting from lower fares numbers growing almost twice as fast spend in Wellington region was in a more competitive airline environment. as capacity. Jetstar has optimised its $825m YE Feb 19. The airport arranged for one of the regional routes and relaunched services world’s latest wide-body aircraft, to Queenstown this year, while Air An increase in international air capacity the A350-900 XB, to fly to Wellington New Zealand increased capacity to has resulted in more visitors using from its base in France for testing in Queenstown, Tauranga, Rotorua and Wellington as the start and end of their June. Airbus assessed the performance Napier. This, alongside Wellington’s New Zealand holiday. The last year of the aircraft on Wellington Airport’s emphasis on hosting major sporting has seen double digit increases from grooved runway with a series of landings SELF-DRIVE many Asian countries; Singapore 30%, and cultural events, has contributed to the HOLIDAY Philippines 15%, India 15%, while from and take-offs in a variety of weather growth. 9 Days 7 Nights North Island Discovery conditions. The results of this testing Bay of Islands Glowworm Caves. Continue to the thermal city HIGHLIGHTS of Rotorua. You may wish to rejuvenate yourself AUCKLAND Europe Italian visitor numbers rose 9%, with a massage therapy at Polynesia Spa. Full-day Bay of Islands with Hole in Accommodation: Copthorne Hotel Rotorua the Rock Dolphin Cruise tour or similar Waitomo Glowworm Caves The expansion of services between Te Po Indigenous Evening Experience Rotorua Waitomo Day 5 Rotorua Art deco walking tour will add to the understanding of the This morning, consider a visit to Wai-O-Tapu Half-day Lord of the Ring location tour Taupo Thermal Wonderland, New Zealand’s most France 8% and Germany 6%. colourful geothermal attraction. Alternatively, INCLUDES Napier see Agrodome’s world famous sheep show and also experience the working organic farm tour. This evening, enter through the 12 carved • Return economy airfare Wellington and popular tourist posts, each representing a divine realm in Te • 2 nights accommodation in Auckland operational capability of this aircraft Arawa culture at Te Heketanga a Rangi or • 2 nights accommodation in Rotorua Heavenly Origins. Enjoy Te Puia’s nightly Te Po • 1 night accommodation in Napier Indigenous Evening Experience and feast on • 2 nights accommodation in Wellington WELLINGTON food and culture, while enjoying the friendship • 6 days Hertz car rental (1.6-litre) with of the indigenous people. NeverLost GPS Accommodation: Copthorne Hotel Rotorua destinations such as Queenstown Day 1 Singapore – Auckland or similar Depart Singapore Changi Airport for your fl ight on our runway, as Airbus increases Day 8 Wellington to Auckland, known as the ‘City of Sails’. Day 6 Rotorua – Taupo – Napier This morning, enjoy a half-day Lord of the Today, drive south to Taupo that has the Rings location tour starting from the mini largest freshwater lake in Australasia. Visit museum at Weta Cave. If time permits, you Day 2 Auckland may board the historic Wellington Cable Car Upon arrival, transfer to your hotel. Spend Huka Falls, New Zealand’s highest volume to ascend to Wellington Botanic Garden or the afternoon at leisure or explore Auckland, waterfall by taking the Hukafalls Jet or river learn more about the beautiful skies at Carter New Zealand’s largest and most vibrant city cruise. Later, travel to Napier located at the and Rotorua have encouraged more Observatory. Thereafter, visit Museum of New that offers an exciting array of cosmopolitan south of the Hawke's Bay, home to over 70 its presence in the Asia Pacific region. Zealand Te Papa Tongarewa, New Zealand’s experiences. Besides family attractions, the wineries to experience a wide range of wines innovative and interactive national museum city has plenty of adrenaline pumping activities and epicurean adventures. where you can learn more about New Zealand’s for adventure lovers. You may also indulge in Accommodation: Scenic Hotel Te Pania or unique geological, biological, cultural and Auckland’s shopping, nightlife and unrivalled similar social history. fi ne cuisines. Accommodation: Quality Hotel Wellington Accommodation: SKYCITY Hotel or similar international travellers to include central or similar We look forward to receiving the results Day 3 Auckland – Bay Of Islands – Auckland Today, join a popular full-day tour from Auckland to Paihia that includes a spectacular Hole in the Rock Dolphin Cruise tour in the sheltered New Zealand on their travel itineraries. waters of the Bay of Islands. Keep an eye out for common and bottlenose dolphins, whales of this trial later in 2019. and other marine life during your cruise, and have your camera ready as you get up close to them. Cruise past the Cape Brett Lighthouse before arriving at the majestic Hole in the Rock Day 7 Napier – Wellington centre on Motukokako Island. If conditions (Drive Time: 4.5 hrs) Day 9 Wellington – Singapore permit, your skipper will expertly guide the ship This morning, enjoy a guided art deco walking If time permits, you can do some last-minute When Jetstar increases its Queenstown through the narrow space.
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