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Airport Business Plan

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Airport Business Plan Airport Services Strategic Business Plan 2019 to 2022 Draft V1.1 26 September 2019 Central Highlands Regional Council 1 2019 to 2022 Airport Business Plan Table of Contents 1 The Airport’s “Plan on a Page” ................................................................................................. 5 2 Glossary of Terms.................................................................................................................... 8 3 Purpose and Background....................................................................................................... 10 3.1 Purpose of this Plan ........................................................................................................ 10 3.2 Process for Developing the Plan ..................................................................................... 11 3.3 Assessment Framework (the Value Model) ..................................................................... 11 4 Overview of the Airport .......................................................................................................... 13 4.1 CHRC Region ................................................................................................................. 13 4.2 Airport operations background ........................................................................................ 14 4.3 Site and planning ............................................................................................................ 16 4.4 Commercial .................................................................................................................... 16 4.5 Stakeholder engagement ................................................................................................ 17 4.6 Airport Operational Trends .............................................................................................. 17 4.7 SWOT Analysis ............................................................................................................... 19 5 Purpose of the Airport ............................................................................................................ 21 5.1 Overview ......................................................................................................................... 21 5.2 Council’s Strategic Framework ....................................................................................... 22 5.3 Linkages with Council’s Strategic Priorities ..................................................................... 23 5.4 Airport’s Vision and Objectives ....................................................................................... 26 6 The Business Model .............................................................................................................. 28 6.1 Overview ......................................................................................................................... 28 6.2 Product ........................................................................................................................... 30 6.3 Price ............................................................................................................................... 32 6.4 Place and Accessibility ................................................................................................... 33 6.5 Promotion & Channels to Market .................................................................................... 36 7 The Operating Model ............................................................................................................. 37 Central Highlands Regional Council 2 2019 to 2022 Airport Business Plan 7.1 Overview ......................................................................................................................... 37 7.2 Airport Risk Assessment ................................................................................................. 38 7.3 Service Planning ............................................................................................................. 38 7.4 Asset Management ......................................................................................................... 40 7.5 Financial Management .................................................................................................... 41 7.6 Year End Reporting ........................................................................................................ 46 7.7 Capability & People Management ................................................................................... 47 7.8 Management Systems and Compliance .......................................................................... 50 7.9 Stakeholder Engagement ............................................................................................... 50 8 Performance Measurement .................................................................................................... 52 9 3-Year Program of Initiatives .................................................................................................. 54 10 Governance and Oversight ................................................................................................. 57 11 Appendix A – Documents Reviewed................................................................................... 58 12 Appendix B - Price List 2019/20 ......................................................................................... 59 13 Appendix C - Legislative Obligations .................................................................................. 60 14 Appendix D – Long Term Financial Plan Outputs ............................................................... 61 Central Highlands Regional Council 3 2019 to 2022 Airport Business Plan Schedule of Changes & Amendments Version Date Changes/Amendments Author Accepted By Inxure Strategy V0.1 June 2019 Draft Strategic Business Plan Group CHRC - V0.2 July 2019 Initial review by Manager Airport Salomon Kloppers Review by Commercial Analyst – CHRC – V0.3 July 2019 minor updates to financial Andrew Gissel information CHRC – Review by General Manager V0.4 July 2019 Michelle Customer and Commercial Services Webster CHRC – Kerry August Inclusion of QTC long-term financial V0.5 Dobinson 2019 modelling /Andrew Gissel Review by General Manager CHRC – September V0.6 Customer and Commercial Services Michelle 2019 – minor updates to formatting Webster September Prepared for endorsement – CHRC – Kelly V1.0 2019 template, schedule of changes Gray September CDHR – V1.1 Update to column layout of risk table 2019 Andrew Gissel Endorsement Table Name Title Endorsed & Signature Date General Manager Customer and Michelle Webster Commercial Services Salomon Kloppers Manager Airport Central Highlands Regional Council 4 2019 to 2022 Airport Business Plan 1 The Airport’s “Plan on a Page” This business plan is for Central Highlands Regional Council’s Airport operations. This Business Plan has a 3-year duration and has been developed to enable the Business Unit to: • Deliver upon the relevant elements of Council’s Corporate and Operational Plans; • Gain agreement on the long-term aspirations and desired outcomes for the Airport; • Ensure a line of sight from the overall Airport objectives to its day to day operations; and • Provide a basis for decision making to continuously improve the Airport’s operations and as such, inform long term capital and operational expenditure plans. Figure 1 is the Airport’s “Plan on a Page”, which is a diagrammatic representation of the overall Business Plan. This Figure also shows the key initiatives that are to be pursued over the life of this plan. An explanation of this vision and the associated objectives and outcomes is provided below: • The vision and objectives reflect the fact that the Airport is more than a profit-making business activity – it is important contributor to economic development in the Central Highlands region; • The Airport also needs to balance providing competitively priced and valued services, with ensuring it remains financially sustainable into the long-term; • Furthermore, the airport must operate profitably. These are the principles upon which the airport’s operations has been set up. It is intended that the airport operates financially independently of all levels of government; • A key aspect of the Airport is both its compliance with the various legislative requirements involved in running an Airport. This requirement features in the vision and objectives; and • It is also important that the Airport is financially sustainable into the longer term. To this end, there is an objective focusing on maintaining investment in the facility to ensure the desired levels of service are maintained. Safety is paramount in the operation of an airport. As such it is a highly regulated business. These high levels of regulation, in turn lead to high costs of operation. For example, asset renewal requirements at the airport are likely to be more demanding than for similar asset categories in other Council settings. Table 2 outlines the performance measures for each of the objectives within this plan. This suite of measures forms a “balanced scorecard” for the business’s performance. Central Highlands Regional Council 5 2019 to 2022 Airport Business Plan Vision Objectives 3 Year Outcomes Key Initiatives Provide valued Airport Ensure valued products and services & services across the • Review Advisory Committee arrangements to ensure evolve service offerings that meets Central Highlands they remain valid customer’s needs Region
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