Darwin Alice Springs Tennant Creek A Airport Development Group International Airport Airport Airport Annual Report 19 . Highlights 2018–19 We reached a milestone The National Critical Care In October 2018, Alice Springs of 21 years since the three and Trauma Response Centre received the first of four airports were privatised was completed at Darwin charter flights from Tokyo, under the NT Airports International Airport in Nagoya and Osaka, Japan, in banner, celebrating with April 2019, creating a world- more than 10 years. a special airside premiere class, on-airport Emergency screening of the aviation Medical Retrieval Precinct. history film ‘The Sweet Little Note of the Engine.’ Virgin Australia launched a new three-times-weekly We refurbished an seasonal service to Denpasar, underused part of the Bali, in April 2019. Sustainability reporting Darwin terminal into the introduced. Emissions target ‘Green Room’, a pop-up developed and on track to community arts space, have zero net emissions by launching it in August 2018. SilkAir announced an 2030 (scope 1 and 2). increase in weekly services between Darwin and Singapore from July 2019, Ian Kew, CEO, continued marking its seventh year of Runway overlay works as Chairman of the Darwin operations to Darwin with a commenced in Alice Springs Major Business Group and seventh weekly service. at a value of circa Chairman of the Darwin $20 million. Festival. ADG staff and the company contributed $18,000 to two ‘Happy or Not’ instant community causes from our $1.4 million infrastructure customer feedback Workplace Giving initiative. boost at Tennant Creek platforms installed in Alice for improved fencing and Springs and Darwin. airfield lighting. Our 12th annual charity golf day in Darwin raised 2018–19 was our first full a record-breaking total Major security infrastructure year using the new online of $65,000 for the Cancer upgrades commenced parking booking system in Council NT ‘Patient to in both Darwin and Alice Darwin, with about 20% of Treatment’ program, Springs, which will be among parking customers booking smashing the previous the first airports in Australia online at year end. year’s tally of $40,000. to be fully equipped with advanced CT technology. Airport Development Group 1 Vision, purpose and values Our vision Our purpose Our values Our vision is to be the most successful Our purpose is to provide safe, efficient We recognise that stakeholders and the airport business in Australasia. and environmentally sound services community judge us by the way we act. that represent value for money for our Our reputation is paramount, and as customers and optimise the financial a result, we will act with honesty and returns to our shareholders. integrity at all times. Our workplace reflects our corporate values. We will achieve this by: We will do this by: Safety first Safety is our number one priority. › developing a commercial non-aviation › operating safe and secure airports property portfolio of more than Customer focussed › providing outstanding customer service $400 million Our customers are important, and our › developing a sustainable aviation and focus on their needs will ensure our › growing passengers to 3 million at non-aviation airport business relevance and success. Darwin International Airport and 700,000 at Alice Springs Airport › excelling in environmental and Honesty and integrity financial management › maintaining the respect of all our We are honest, ethical and professional airline customers › maximising long-term value for in all we do. our shareholders › creating a positive work environment Accountability and making NT Airports an attractive › contributing to the NT’s economic We will deliver on our commitments and place to work growth and our community. take ownership of our responsibilities. › being recognised as a significant contributor to the NT economy Innovative and creative We encourage new thinking in our team. › ensuring development is done in accordance with the airports’ master Respect for each other plans and environment strategies Our people are our most important › securing strong and diverse community resource, and we appreciate their values, support for our airport businesses respect their rights, promote their talents and reward their commitment. › continuing to outperform other Australasian airports’ growth of total Environmentally responsible shareholder return We take stewardship of our › embedding sustainability across our environment seriously. business to create long-term value for our stakeholders. Community engagement We are an important part of our communities, and we will seek to engage with them at all levels. Teamwork We will work together to achieve the collective goals. 2 ADG Annual Report About ADG The Airport Development Group (ADG) The company is proudly 100 per cent has been part of the Northern Territory Australian owned by IFM Investors (77.4%) community for two decades. and Palisade Investment Partners Limited (22.6%). As part of Australia’s airport privatisation program, ADG acquired leases from the The three airports have 89 employees Australian Government for the three and many other contractors providing key Northern Territory airports—Darwin airport services, generating total direct and International Airport, Alice Springs Airport indirect jobs for some 1800 Territorians. and Tennant Creek Airport—in June 1998. More than 2.67 million passengers travelled Each lease is for 50 years, with an option of through the three airports in 2018–19. a further 49-year lease. ADG, through its business NT Airports, now owns and operates the three airports and a rapidly growing business precinct in Darwin—Darwin Airport Central. Airport2018–19 Development AirportADG Annual Development Group Report Group About ADG / Contents 3 Contents Chairman’s report 4 CEO’s report 6 Directors 8 Year in brief 10 1 Operations and terminals 12 2 Commercial development 14 3 Aviation development 16 4 Property 18 5 Environment 20 6 Our people 22 7 Our community 24 Sustainability data 26 Financial performance 38 4 Chairman’s report Airport Development Group ADG is almost entirely owned by (ADG) owns and operates the superannuation funds through two Australian companies: IFM Investors Northern Territory’s three (77.4%) and Palisade Investment Partners main airports: in Darwin, Limited (22.6%). Alice Springs and Tennant As one of the NT’s largest employers, we Creek. More than 2.67 million also supported 89 Territorian employees passengers travelled through in 2018–19 and many other airport services contractors, generating total the three airports in 2018–19. direct and indirect jobs for some 1800 Territory workers. Our contribution to the NT economy of more than $300 million during the year means we continue to play a vital role in the Territory. In 2019, we reached a milestone of 21 years since the three airports were privatised under the NT Airports banner. The business has grown and diversified significantly in 21 years, with some $461 million invested in Darwin International Airport alone during that time. 2018–19 continued to be a challenging economic climate in the Northern Territory. Despite this and flat passenger 2018–19 Airport Development Group Chairman's report 5 M 2.67PASSENGERS THROUGH ALL THREE AIRPORTS IN 2018–19 In 2019, we reached a milestone of 21 years since the three airports were privatised under the Northern Territory Airports banner. numbers, I’m proud to report we were Major security infrastructure upgrades of future stakeholders. It is not only good successful in reaching our financial targets have also commenced in both Darwin and for the environment and the communities through revenue diversification and Alice Springs, which will be among the first we work across, but it also represents focussing on expenditure. airports in Australia to be fully equipped good business. with the advanced CT technology. ADG supported the draft Thank you to Ian Kew and his terrific team recommendations announced in the In mid-2019, the Department of Defence for their hard work and dedication to our Productivity Commission’s draft report commenced construction on the new business in 2018–19. on the economic regulation of airports in Air Traffic Control Upgrade project. The February 2019. We await the findings that project includes a new control tower and a We look forward to 2019–20 being a will be announced into 2019–20. significant upgrade of the existing airfield productive, successful year working systems complex. with our communities, partners and In June 2019, ADG announced we had stakeholders to provide safe, efficient and successfully fully refinanced our In 2018–19, I’m proud to announce our world-class airports for all Territorians. syndicated bank debt facilities to a total new reporting process on sustainability, of AUD 550 million. This refinancing is a top priority for ADG. This year sees our Chris Barlow funding our airports of the future and will sustainability data combined with our provide certainty of funding for our capital annual report for the first time, reflecting Chairman expenditure plans and future growth of all the importance of sustainability as a core three airports. part of the organisation’s business strategy over the last five years. This year, ADG A number of major capital expenditure developed an emissions target in alignment projects are also underway or planned with the Paris Agreement. We are on track for 2019–20, signalling exciting times for to have zero net emissions (scope 1 and our group. In Alice Springs, runway overlay scope 2) by 2030 with continued growth of works commenced at a value of $20 our solar energy investment. million, and a $1.4 million infrastructure boost at Tennant Creek Airport will see Sustainability creates value for present improved fencing and airfield lighting. stakeholders while protecting the rights 6 2017–18 CEO’s report We were very proud to During 2018–19, we continued our focus on the important Chinese visitor market. celebrate our 21-year One year on from Donghai Airlines’ first- privatisation milestone in ever direct air service between Darwin 2019 with a special airside and mainland China, we saw a 35 per cent increase in Chinese visitors to the NT.