ADG ANNUAL REPORT 2010-11 2 | Airport Development Group Contents About Airport Development Group 4

Vision, Purpose, Values 5

Board of Directors 6

Chairman's Report 10

Chief Executive Officer's Report 12

Our People 14

Community Involvement 16

Sponsorship 18

Charity 21

Art & Culture 23

Social Media 24

Environment and Sustainability 26

Airline and Airport Support 30

Operations and Development 40

Property 44

Financial Performance Report 46

Fast Facts 50

ANNUAL REPORT 2010-11 | 3 About Airport Development Group

Airport Development ADG has been a member Group Pty Limited (ADG) of the is the ultimate parent community since 1998. As part of ’s airport company of the ADG privatisation program, Group. we acquired leases from ADG owns 100% shares in the Australian Federal Northern Territory Airports Government for Darwin Pty Limited (NTA) and Tennant International Airport, Alice Creek Airport Pty Limited Springs Airport and Tennant (TCA). NTA owns 100% shares Creek Airport. in Darwin International Each airport lease is for a term Airport Pty Limited (DIA) of 50 years, with an option of a and Airport Pty further 49-year lease. Limited (ASA). ADG is proudly 100% Australian owned.

4 | Airport Development Group • Safety First Vision Purpose Safety is our number one priority. “TO BE THE MOST SUCCESSFUL Our purpose is to provide safe, AIRPORT BUSINESS IN efficient and environmentally • Customer Focused AUSTRALASIA.” sound services that represent Our customers are value for money for our important and our focus on We will achieve this by: customers, and optimise their needs will ensure our • developing a commercial the financial returns to our relevance and success. non-aviation property shareholders. • Honesty & Integrity portfolio of more than We are honest, ethical and $200 million We will do this by: professional in all that we • operating a safe and secure • growing passengers at do. Darwin International airport • Accountability Airport to three million and • providing outstanding We will deliver on our 700 000 at Alice Springs customer service commitments and Airport • developing a sustainable take ownership of our • maintaining the respect of airport (aviation and non- responsibilities. all our airline customers aviation) business • Innovative & Creative • creating a positive work • excelling in environmental We encourage new environment and making and financial management thinking in our team. ADG an attractive place to • maximising long term • Respect for each other work value for our shareholders Our people are our most • being recognised as a • contributing to the NT’s important resource and significant contributor to economic growth and our we appreciate their the NT economy community. values, respect their rights, • ensuring development promote their talents and is done in accordance reward their commitment. with the airport Master Values • Community Engagement Plans and the Airport We recognise that We are an important part Environment Strategies stakeholders and the of our community and we • securing strong and diverse community judge us by the will seek to engage with community support for our way we act. Our reputation them at all levels. airport businesses is paramount and as a result, • Team Work • continuing to outperform we will act with honesty We will work together to other Australasian airports’ and integrity at all times. achieve common goals. growth of Total Shareholder The following is a list of our Return. corporate values that are embedded in our workplace:

ANNUAL REPORT 2010-11 | 5 Board of Directors

Mr Chris Barlow, Chairman

Chris Barlow has over 32 years experience in the aviation industry. From July 2000 until August 2007, Chris was Managing Director and Chief Executive Officer of Australia Pacific Airports Corporation, the operator of Melbourne and Launceston Airports. Prior to that, he had several roles with BAA plc (formerly British Airports Authority), the United Kingdom airports company, including Managing Director of Aberdeen Airport and Corporate Development Director. Chris has also worked in the United Kingdom and North America. He is currently a Director of Asciano, Chairman of their Remuneration Committee and Chairman of the Melbourne Visitor and Convention Bureau. Chris has a Bachelor of Science (Honours) in Civil Engineering.

6 | Airport Development Group Mr Julio Garcia, Ms Alexandra Jeff Pollock, Director Campbell, Director Director (resigned November 2011) Alexandra Campbell is an Jeff Pollock is part of Hastings Julio Garcia is an Executive Associate Director for Hastings Funds Management’s Director in the Infrastructure Funds Management, largely executive management team Group at Industry Funds working with the Australian and holds the dual role of Head Management (IFM). Since Infrastructure Fund and the of Listed Infrastructure and joining IFM in 2008, Julio has Hastings Diversified Utilities Chief Executive Officer of the been responsible for sourcing, Fund, which are listed on the Australian Infrastructure Fund. evaluating and executing new Australian Stock Exchange. Prior to joining Hastings, domestic and international Alexandra represents the Jeff was part of the senior investments and managing Australian Infrastructure management team at Prime existing investments Fund on the Boards of ADG, Infrastructure/Babcock and within IFM’s Australian Port of Geelong and Metro Brown Infrastructure (BBI) infrastructure portfolio. Transport Sydney. Prior to where he was Chief Operating Julio’s experience spans joining Hastings in April 2007, Officer for BBI Transport roles in asset management, Alexandra was a solicitor with Infrastructure. Jeff previously investment banking and Freehills. held senior positions with strategy consulting. Prior to Alexandra has a Bachelor Queensland Treasury and Price joining IFM, Julio held positions of Business and Bachelor of Waterhouse. with Viant Capital, Bank of Laws (Honours) from Monash America, Robertson Stephens Jeff holds a Bachelor of University, a Graduate and Gemini Consulting. Julio Accountancy from the Diploma in Applied Finance is also a director on the boards University of Glasgow, and has and Investments from the of the Port of Brisbane, Ecogen been a member of the Institute Financial Services Institute Energy and Wyuna Water. of Chartered Accountants of of Australia (FINSIA) and a Scotland since 1988. Julio holds a Master of Masters of Applied Finance and Business Administration Investments (FINSIA). degree from the Stanford University Graduate School of Business and a Bachelor of Arts (Public Policy) degree from Stanford University. He is also a Graduate Member of the Australian Institute of ANNUAL REPORT 2010-11 | 7 Company Directors. Roger Lloyd, Director Mr Adrian Croft, Roger Lloyd has 17 years He also played an important Director of funds management role in the government (appointed November 2011) and investment banking advisory business of the experience, with over bank and has an intimate Adrian Croft joined Industry three years with Perpetual knowledge of Government Funds Management (IFM) Investments, including as Head requirements in privately in July 2009 as Investment of Infrastructure, and 12 years financed projects. Director (Infrastructure). Prior with Macquarie Bank and to IFM, Adrian was employed Roger is a Chartered previously Bankers Trust, prior with Credit Suisse (formerly Accountant, a Graduate of to joining Palisade Investment Credit Suisse First Boston - the Australian Institute of Partners in 2008. CSFB) since 1998. For the Company Directors and holds 3 years prior to joining IFM, Roger was in the project a Bachelor of Business from Adrian held the position of finance division of Macquarie’s Kuring-gai College (now Vice President with Credit Investment Banking Group, University Technology Sydney). Suisse’s Tokyo office, where where he focused on Public he managed all aspects Private Partnerships working of arranging leveraged with both Government and and structured financings private sector clients. In this for corporate and private role, Roger was involved in equity clients. Prior to his origination of transactions, appointment to the Tokyo consortium formation, office, Adrian worked in the structuring and arranging New York and Melbourne debt and equity across a offices of CSFB, focusing on broad range of infrastructure debt financing and investment projects. banking. Adrian holds a Bachelor of Economics (Honours)/Bachelor of Laws (Honours) from the University of Sydney.

8 | Airport Development Group Tom Ganley, Tom holds Fellow memberships with CPA Australia, the Institute Company Secretary of Chartered Secretaries and Administrators, the Australian Tom Ganley is Chief Financial Institute of Company Directors Officer of ADG. and the Australian Institute of With over 23 years experience Management. in aviation finance, Tom Ganley Tom is currently a Director on the joined ADG in June 1998. Board of the Northern Territory Previously, Tom held various Chamber of Commerce and senior finance and commercial Industry and is the current Chair management roles at Adelaide of the Northern Territory Brolga and Alice Springs Airports. Tourism Awards. A Justice of the Peace, he has a Bachelor of Accountancy from the University of , a Graduate Diploma in Applied Corporate Governance and an Australian Institute of Company Director’s Diploma.

ANNUAL REPORT 2010-11 | 9 Chairman's Report CHRIS BARLOW

I am pleased to report that the Airport Chairman Development Group (ADG) performed strongly in what was an increasingly challenging year, as we progressed towards our vision of being the most successful airport business in Australasia. The group has come a long way since privatisation 13 years ago. We have overcome a number of hurdles to become a key Northern Territory business, now contributing 2% to the local economy each year. We have implemented a program of significant investment at each of our three airports, enhanced our aviation facilities and driven non-aeronautical development, and we are looking forward to the exciting years ahead. In 2010/11, ADG received Australian Federal Government planning approval for our biggest project yet, the $50 million expansion of the Darwin International Airport Terminal. This expansion will provide the space and facilities for even more aviation growth in the Territory and ensure we can meet the needs of the airlines and all other airport users. We continued to improve our customer experience, with capital expenditure up by 4%. This included a considerable injection of funds to upgrade the Airport, which provides a vital link to the Territory’s Barkly district and beyond. I was delighted to hold a Board meeting in Tennant Creek in March 2011, giving members a first-hand look at this vibrant regional town and the results of the terminal upgrade. In Alice Springs, we signed a lease agreement for the Airport to become the Southern Hemisphere’s first dedicated aircraft storage and recycling facility.

10 | Airport Development Group Passenger numbers were It was also a significant year Being 100% Australian owned, strong during the year, with for innovation, as Alice Springs ADG is committed to providing the ADG collectively handling a Airport switched on its unique solid long-term financial record 2.9 million travellers, up $2.3 million Solar Power returns to its shareholders, almost 4%, a solid achievement Project. In September 2010, through continuing to given the sluggish domestic ASA installed the largest scale operate a safe and responsible economy and the reduced solar energy plant feeding business, minimising costs and number of international back to its electricity grid, providing excellent customer visitors to Australia partly providing approximately 28% service. due to the high Australian of its daily energy needs. This On behalf of the Board, it is my dollar. This growth enabled award-winning innovation pleasure to deliver the 2010/11 the company to increase our will reduce our annual carbon ADG Annual Report. revenue by 10%. This together emissions by an estimated with disciplined cost control 470 tonnes, the equivalent of CHRIS BARLOW delivered an increase in 70 Alice Springs households. Chairman earnings before interest, tax This is an outstanding result depreciation and amortisation for a regional airport and we of 9%. are proud to be leading the way in clean energy. We will continue to look for ways to be more sustainable and energy- conscious.

ANNUAL REPORT 2010-11 | 11 Chief Executive Officer's 2010/11 was a positive year for ADG, featuring a number of solid achievements. Report With revenue reaching $84 million, we experienced significant financial growth, enabling us to deliver IAN KEW better returns to our shareholders and some 70 000 Territorians who have superannuation invested in us. Chief Executive I have no doubt ADG will continue to be a catalyst for Officer economic growth in the Northern Territory, particularly as construction work begins on the terminal expansion at Darwin International Airport in mid 2012. Significantly, we reached commercial terms of a long term pricing agreement with our airline customers. This agreement will pave the way for further investment at our airports, and allows us to progress to the design phase of the Darwin International Airport terminal expansion project. Demand fuelled new flights, including a direct Darwin to Melbourne service, and Air Asia flights to Manila and Bali respectively, while () launched a Darwin to Tennant Creek service. We made significant strides in our property portfolio, following the completion of the $9.6 million Australian Federal Police office building - our third largest non- aviation development to date. Illustrating the strength of property values, the Darwin Airport Inn and Darwin Airport Resort were sold for $68 million, and we are delighted to welcome Rydges as the new hotel operator. Meanwhile, has signed a lease for the development of the Asia-Pacific’s first aircraft storage and recycling facility. Importantly, we reached our goal of engaging more closely with the community. Following extensive consultation, we received overwhelming support for our Major Development Plans for the Darwin International Airport terminal expansion and our 20-year Airport Master Plan for Darwin which was approved by the Australian Federal Government in December 2010.

12 | Airport Development Group We also created the ADG is an active member of ADG continued to strive in Community Aviation the Darwin, Alice Springs and its commitment to preserve Consultative Group and the Tennant Creek communities, and promote the ecological Planning Coordination Forum and we continued to support values of our land, planting at both Darwin International key artistic, cultural and 3500 trees and seedlings and Alice Springs Airports to sporting events that make across Darwin International encourage direct interaction where we live unique. We were Airport and collecting more with key stakeholders. proud sponsors of the Darwin than 500 kilograms of rubbish Festival, the inaugural Darwin ADG led the way in social during Clean-up Australia International Film Festival, the media in 2010/11, with Darwin Day. In a bid to extend our Alice Springs Desert Festival International Airport and Alice conservation efforts beyond and the Arafura Games, and Springs Airport becoming our boundaries, we helped we look forward to continuing the first airports in Australia students from Darwin High these valuable partnerships. to launch their own Apps for School design their own native We also grew our support for iPhone, iPad and iPod Touch. garden. We also introduced not-for-profit associations, This digital communication a range of energy-efficient donating much-needed funds greatly enhances customer initiatives across our Airports, to the Handicapped Persons service by streaming live arrival complementing our award- Association, the Alan Walker and departure times, flight winning Solar Power Project at Cancer Centre and Wongabilla specials and airport news. Alice Springs Airport. Equestrian Centre. In total, our We look forward to another Corporate Giving Committee great year of growth, arranged donations to innovation and community 16 Northern Territory involvement in 2011/12. organisations.

IAN KEW Chief Executive Officer.

ANNUAL REPORT 2010-11 | 13 Our People

The ADG team has continued New Faces and The executive position of to grow and diversify over Operations Director was the past year, reflecting the Farewells filled by Alex MacDowell in company’s business growth December 2010. Alex has The ADG team has continued and project developments. a background in Aviation to grow and diversify over having worked for the We’re proud to boast a team the past year, reflecting the Corporation that combines experience, company’s business growth in engineering, projects and knowledge and a passion and project developments. maintenance capacity for over to break new ground and We’re proud to boast a team 8 years. contribute to the development that combines experience, of ADG and the aviation knowledge and a passion Two long serving employees industry. to break new ground and retired from permanent contribute to the development work with ADG over the past of ADG and the aviation financial year. Dennis Windsor industry. In the past financial retired from Tennant Creek year, many new members Airport in March 2011 after have been welcomed 24 years of service and Ray across the ADG group and Hayes retired from his role as this trend is expected to Operations Safety Officer at continue as the large capital Darwin International Airport in projects commence at both October 2010 after 38 years of Alice Springs and Darwin services. International Airports.

14 | Airport Development Group Training and The skills and outcomes Caring for our Staff learnt were invaluable and Developement encouraged more efficient Following staff survey results, initiatives in the way project Ongoing access to training and the Gateway to Health leaders and their teams personal development for staff program continues to be worked. continues to be a top priority. popular and well utilised by In early March, the Lean Six Individual staff members staff. The program aims to Sigma program was introduced also took the opportunity to educate and support staff and ten project leaders complete study programs on a healthy lifestyle. The under took the training. The specific to their knowledge comprehensive program program is widely recognised area with tailored support involves preventative as the world best practice from the ADG group. This healthcare presentations, methodology for business has been a popular personal health screen assessments improvement by improving development approach with and activities such as personal quality, reducing costs and many staff choosing to balance training sessions, yoga and the creating new opportunities. work and study knowing Urban Challenge competition. Following an intensive five day they have the support of the ADG also continues to offer training course, the principles business throughout the study its Employee Assistance were applied to; finance, period. Program (EAP) which offers information technology, 24 hours-a-day assistance to operations and maintenance, staff and their family members engineering and legal projects. with confidential access to counselling and support services.

ANNUAL REPORT 2010-11 | 15 Community Involvement

Above Right: Ian Kew, CEO, ADG & Edwina Lunn, 2012-2013 Darwin Festival Artistic Director at the 2011 Darwin Festival Launch at the Aviation Institute

16 | Airport Development Group ADG values and respects “We have always been a supporter of the arts at the the communities in which it airport. We like the dynamics and the creativity of the operates, and continued to be arts and I think that reflects our values of innovation, an avid supporter of a range creativity and thinking outside the square.” of artistic, sporting and charity events in 2010/11. – Ian Kew, Chief Executive Officer, ADG. This is in line with our vision of having strong and diverse community support.

ANNUAL REPORT 2010-11 | 17 Sponsorship

Darwin Festival

We were proud sponsors of the 2010 Darwin Festival, Australia’s most northern and only tropical arts festival. The 18 day event at Darwin Civic Park showcased an exciting array of local and interstate performances, which featured something for everyone. ADG signed a two-year agreement with the Darwin Festival, which included a commitment to major sponsorship in 2011. We also provided space inside the Darwin International Airport terminal for promotional signage, advertised the event on our website and were pleased to host the 2011 Darwin Festival launch at the Aviation Institute. Darwin International Film Festival

ADG was a key supporter of the inaugural 2010 Darwin International Film Festival. The five-day feast of films was held at the iconic Deck Chair Cinema and attended by 1370 people. Sponsoring the film festival is a demonstration of our commitment to growing tourism experiences during the Top End’s shoulder season, between the peak tourist periods.

18 | Airport Development Group Alice Springs Airport Initiatives

Arafura Games

The 2011 Arafura Games was another great event on the sporting calendar, with more than 4000 athletes and officials taking part in the international competition. A bronze sponsor, ADG was excited to support the biennial event for a second year, gaining significant exposure while encouraging high level sporting competition in the Northern Territory. ‘Rocky’ the rock wallaby visited Darwin International Airport, where we also provided space for an information booth and signage to help promote the event. Thousands of participants flew into Darwin from across the Asia-Pacific and beyond for the games.

Alice Springs Desert Festival

ADG was a proud sponsor of the 2010 Alice Desert Festival and its Wearable Art award (Sustainability category). The 10 day event is Central Australia’s premier arts and cultural festival.

ANNUAL REPORT 2010-11 | 19 Sponsorship

Masters Games, Tourism Central Tourism Awards

Alice Springs Australia Industry Further supporting the We continued to support Awards Northern Territory Tourism sector, for the first time ADG the Masters Games with a As passionate supporters of sponsorship agreement in supported the Brolga Northern the local tourism industry, we Territory Tourism Award, as 2010/11. We also provided free sponsored the 2010 Tourism advertising at Alice Springs sponsor of the Major Tour and/ Central Australia Industry or Transport Operator Category. Airport, complimentary parking Awards Night. This is a great passes for Masters Games Chief Financial Officer, Tom way to encourage excellence in Ganley also volunteered his vehicles and hosted a reception the industry. to welcome participants as time to be both state and they touched down. national Judge.

20 | Airport Development Group Charity

At ADG, we are committed to supporting those less fortunate than ourselves through numerous initiatives. This year the Corporate Giving Committee met twelve times and approved donations to 16 Northern Territory organisations to ensure these groups could further improve or support their local communities. Air conditioning for Ausdesigns

We provided funds for an air conditioner to be installed in the new building at the Yarrawonga headquarters of Ausdesigns, a non-government organisation owned by HPA Disability Services. Ausdesigns aims to help people with a disability to reach their full potential by providing them with training and employment in the fabric design and manufacturing industry. The

68 employees produce a Above: ADG Corporate Giving Committee members and Daniel O’Conner in a newly range of quality gifts and air-conditioned room at HPA Disability Services. promotional merchandise featuring Indigenous artwork, “Without the new air conditioner, this building was too ranging from conference bags hot to work in. As a result of its installation, we have to tablecloths. been able to expand our business and we expect further significant growth in the upcoming year.” - Peter Joyce, Chief Executive Officer, HPA Disability Services.

ANNUAL REPORT 2010-11 | 21 Henbury School

Our donation to Henbury School contributed to the construction of a multi-sensory room. The room is filled with materials and objects to stimulate the senses, helping students with disabilities learn better and improve language and other skills. Other Corporate Giving Committee beneficiaries included Variety NT, Guide Dogs SA/NT, Aphasia Committee and the Darwin Toy Library. “It’s actually quite rewarding and makes you really proud to work for a company like this, as they really stick to their values and support a great range of community groups and charities.” – Lisa Cryer, Office Manager/Executive Assistant to the Chief Executive Officer and Chief Financial Officer, ADG

Golf Day, August 2010 We used Golf Day funds to With the assistance of purchase a new horse float Northern Territory Automotive We held our eighth annual for the Wongabilla Equestrian Group (Darwin Mitsubishi), Darwin International Airport Centre, a not-for-profit we also contributed funds for Golf Day in August 2010, our organisation which offers a new vehicle for Northern most prominent fundraising around 100 young Territorians Territory Radiation Oncology, event for the year. The Golf Day – including disadvantaged which provides Territorians was a great success, raising youth – the chance to learn with access to professional, $17 000 for charity. With 36 how to ride a horse and enjoy high quality cancer treatment teams taking part, the event the physical, emotional and at the Alan Walker Care Centre. was also an opportunity for psychological benefits that airport staff, tenants, suppliers come with it. and contractors to get together and have some fun for a worthwhile cause.

22 | Airport Development Group Art & Culture

Public Art Precinct

In March 2011, we launched the Alice Springs Airport Public Art Precinct, a collection of colourful, innovative art and street furniture installations incorporating work from the Aboriginal community centres at Santa Teresa and Titjikala, and sculpture by Alice Springs based artists Pamela Lofts and Pip McManus. The desert- inspired designs frame the entrance of the Alice Springs Above: Katie Cooper (General Manager, NT Airports), Ros Moriarty (Managing Director, Jumbana Group), Chris Barlow (Chairman, NT Airports), Rosina Ryder and Airport, reflecting Central Patricia Ellis (Santa Teresa Artists). Australia’s diverse artistic landscape. We worked closely “We felt the artist group succeeded so well in presenting with the Jumbana Group, the unique spirit and sense of place of Alice Springs. It an Indigenous Strategy and was a hands on project in the communities where we Design Company, to produce this project. collaborated with artists in painting and sketching workshops to imagine and articulate the collection of Art directed and project elements for installation.” managed by Balarinji: www.jumbana.com.au - Ros Moriarty, Managing Director, Balarinji Studio, Jumbana Group.

ANNUAL REPORT 2010-11 | 23 Social Media

Airport App How digital – An Australian First communications

In February 2011, DIA became saved the day during the first Australian airport Cyclone Carlos to release its own App for iPhone, iPad and iPod Touch. DIA’s App couldn’t have come The App has proven a huge at a better time. Three days hit and was downloaded after its launch, Cyclone 3004 times in the financial Carlos struck, causing the year. The App is a software Darwin International Airport program that streams live to close for nearly 33 hours arrival and departure times, due to flooding of roads a car parking fee calculator connecting to the airport and and the latest airport updates. the cancellation of airlines Created in conjunction scheduled services. The with Darwin digital media App was downloaded 600 agency Captovate, the App is times over that period with innovative as it connects users passengers eager to find out to the airport’s Twitter stream when flights would resume. for live news and updates. Twitter was also a powerful Hot on the heels of Darwin, communication tool in the Alice Springs Airport became wake of Cyclone Carlos, the second Australian airport with ADG tweeting 48 to develop its own App, which messages to followers to offers the additional feature of update them on the status of a live data connection to the operations. Messages included airport’s solar power station, information about flight which provides information cancellations, flooded roads on power generated and around the airport, links to the emissions reduced. It also Bureau of Meteorology cyclone provides contact details for tracking map and information airlines. about intermittent mobile reception across Darwin. We also created Facebook and Twitter accounts for DIA and This was in addition to our ASA, attracting around 550 use of more traditional media, Facebook fans and 800 Twitter such as our website, which followers in 2010/11. received more than 145 000 hits over the three days.

24 | Airport Development Group ANNUAL REPORT 2010-11 | 25 Environment and Sustainability

Caring for our Preserving This follows our decade- long volunteer effort, with Environment Rapid Creek hundreds of Darwin residents joining conservation groups ADG is the custodian of We have made significant to take part in community large and environmentally progress in our effort to planting days. Over time, we significant parcels of land preserve and rehabilitate Rapid have seen people take more in Darwin, Alice Springs Creek and its surrounding pride in the Rapid Creek area and Tennant Creek, having vegetation. In 2010/11, we and less vandalism. In 2010/11, acquired the lease from the commissioned Greening we encouraged greater Australian Government in Australia, Conservation community use of Rapid Creek 1998. We recognise the need Volunteers and Denhamia to by improving the Gurambai to preserve and promote the plant 3500 seedlings and trees walking trail and installing ecological value of the sites as in the Rapid Creek Buffer Zone information signs along the they are increasingly affected and the Conservation Reserve two and a half kilometre path by growing urban populations. – two conservation sites to educate users about the We also strive to minimise established by ADG in 1999. flora and fauna, Indigenous our environmental footprint cultural traditions and through energy-efficient European history of the area. technologies. Our enthusiastic approach to conservation has seen a significant reduction in weed density and fire fuel load, while maintaining aesthetic values and biological diversity.

26 | Airport Development Group Leading the way with Solar

In September 2010, Alice Springs Airport installed the largest scale solar energy By the end of the financial year, “I commend Alice plant feeding back to its our Solar Power Station had Springs Airport for its electricity grid. Providing produced 500 000 kilowatt- progressive and innovative around 28% of the airport’s hours of energy, reduced sustainability practices. Not daily energy needs, this carbon production by 350 unique project is the first tonnes and saved more than only are they are leading Flat Plate Concentrated $70 000 in electricity costs. the way in clean energy, Photovoltaic facility (Sol We were thrilled to win a they are committed to Focus technology) to be 2011 PowerWater Melaleuca minimising their impact on constructed in the Southern Award and an Engineering their surrounding natural Hemisphere. SolFocus is a Excellence Award (Environment environment, ensuring California based solar energy & Sustainability) for the it can be enjoyed for provider specialising in reliable, project, the culmination of generations to come.” clean and low cost renewable four years of hard work. We energy technology. SolFocus’s were also finalists in the 2010 – Dr Bill Low, Airport Australian development Aviation Summit Award for Environment Officer, partner, Ingenero, constructed Green Initiative of the Year, in Department of Infrastructure the facility and provides Doha and the 2011 UN World and Transport. ongoing maintenance with Environment Day Awards. the assistance of various local Other notable achievements in We educate the community Alice Springs contractors. The the area of environment and about the benefits of solar station consists of 28 arrays sustainability in 2010/11: through our newly constructed – or groups of solar panels – Solar Pod, which can be found High school planting day each consisting of mirrored inside the Alice Springs Airport dishes, which magnify the • We helped students in terminal, and our innovative sun’s energy 650 times. The the Eco Group at Darwin App for iPhone, iPad and iPod $2.3 million facility attracted High School to design and Touch. 50% funding from the construct their own native Australian Federal Government garden, inspired by the under the Solar City Project, Matboerrma Gardens at a national initiative designed Darwin International Airport. to encourage residents and • We continued to implement businesses to become energy energy-saving initiatives champions. from the Level 2 energy audit at Alice Springs Airport.

ANNUAL REPORT 2010-11 | 27 Responsible Airport Environment Business Practices Environment Strategy Management System

Development and expansion We are always looking at ADG has remained committed is necessary for ADG to be able new ways to improve our to the ongoing development to respond to the increasing environmental management, of its Environment demands of travellers, the and this process is guided Management System (EMS) aviation industry and the by our Airport Environment in accordance with ISO 14001 community. We also recognise Strategy (AES) for DIA and standards. The EMS enables the importance of ensuring ASA. An AES is a five-year us to formulate policies and that growth is environmentally strategic plan which sets objectives taking into account responsible and sustainable. out our key objectives and legislative requirements and That is why we have embedded the actions required to information about significant strict guidelines into all our achieve them. Our AES for environmental impacts. operations to ensure minimal each Airport was approved The EMS applies to those impact on the environment. by the Australian Federal environmental issues that Government in 2009/10 and we can control and influence. will be due for renewal in 2014. Within the EMS, we take into In line with the strategic plan, account pertinent regulations, ADG adhered to all relevant Codes of Practice and environmental standards and Standards that relate to airport regulations in 2010/11, and activities. tracked the performance of our airports through extensive monitoring of air, water, soil, flora and fauna.

28 | Airport Development Group Health, Safety and Energy Efficiency

Environment Policy We have also worked with In April 2011, we introduced Monash University to develop a comprehensive Health, Draft Water and Energy Safety and Environment Efficiency Plans, which are policy. The policy illustrates scheduled to be delivered in our commitment to growing 2012. At Darwin International a sustainable business that Airport, we installed energy- values the health and safety efficient hand dryers in of our employees and airport terminal bathrooms, which users. Designed to educate and require 80% less energy to inspire, it also reaffirms our run than normal warm hand dedication to maintaining and dryers. At Alice Springs Airport, enhancing the quality of the we installed shade shelters, environment for generations to whirly birds and skylights to come, and our respect for the reduce energy consumption in values and cultural heritage of general operations. At Tennant the local people. Creek Airport, we installed motion sensor-controlled air Ecologically conditioning and lighting to Sustainable reduce power usage when the terminal is not being used. Development Native Vegetation Construction of the Australian Federal Police office building We continued our commitment at Darwin International to plant native vegetation on Airport is targeting a Five Star airport land, reflecting local Green Star Rating design from landscapes while minimising the Green Building Council water usage and encouraging of Australia. The five stars ecosystems to flourish. signify Australian excellence in ecologically sustainable development. As members of the Council, we are committed to incorporating sustainable development practices into future developments.

ANNUAL REPORT 2010-11 | 29 Airline and Airport Support

ADG airports provide key links in our community, transporting passengers and enabling critical business, trade and tourism activity. We continue to research and identify new opportunities to grow our airline services to the Northern Territory market.

Passenger Traffic “We are seeing excellent growth in the number of Australians heading overseas, and many of them are Despite the global downturn, going via the Darwin hub. This presents a wealth of ADG continued to have strong opportunity, not just for the airport but for the whole passenger numbers in 2010/11, up by 4% from last financial tourism industry.” year to 2.9 million. – Jim Parashos, Director, Airline & Airport Services.

30 | Airport Development Group Darwin International Airport

Located closer to Asia than DIA is served by a range of Flights any other Australian capital airlines, including Qantas, city, Darwin is a vibrant and , Jetstar, • Tiger Airways resumed modern tropical city with Indonesia Air Asia, Skywest flights to Melbourne in late a stunning harbour seven and as well as June 2010, but ceased at the times the size of Sydney’s. several charter airlines that end of January. Darwin International Airport’s travel regularly to nearby • Indonesia Air Asia strategic location makes it remote communities. Our 24 commenced daily services an ideal narrow body aircraft hour curfew free operations to Bali on 24 December hub for services between mean that airlines can 2010. most major capitals in Asia schedule flights to meet their • Jetstar commenced a new and all Australian cities, with needs, improve connection route to Manila in February an average flight time of 4.5 flexibility and maximise the 2011. This is the first time hours. Just 13 kilometres from use of aircraft. An integrated Darwin has had direct Darwin’s Central Business domestic and international services to the Philippines. District, Darwin International terminal enables transferring • Qantas introduced four Airport is on the doorstep of a passengers to connect non-stop flights a week to range of Northern Australia’s seamlessly to their onward Melbourne in May 2011. natural wonders, such as journey under one roof. Darwin the World Heritage Listed International Airport features • Airnorth increased flights to Kakadu National Park and two runways and is capable Mt Isa and the Gold Coast Litchfield National Park, major of handling the A380, the to two per week. attractions to both domestic largest commercial passenger • Airnorth increased flights and international markets. aircraft in operation. It is a to Broome, continuing onto joint user facility shared with Karratha and Port Hedland the Australian Department of in Western Australia. Defence. A record 2.3 million passengers travelled through Darwin International Airport in 2010/11, with a 13% increase in international passengers and 4% increase in domestic passengers. Approximately 80% of passenger traffic was domestic with the remainder international.

ANNUAL REPORT 2010-11 | 31 Graphs

Source: Department of ImmigrationTop 15and source Citizenship markets (DIAC). for Mix of International tra c cleared Reasons for travel International visitors reason for Australian Residents reason for International Visitors into Darwin 2010/2011 (% total) cleared at Darwin Interntional Airport 2010/2011 2010/2011 travel into Darwin 2010/2011 travel out of Darwin 2010/2011 (% total) (% total) (% total) (% total)

Top 15 source markets for International Visitors into Darwin 2010/2011 (% total) 3% 1% 2% 2% 3% 5% 9% 11% 6% Australian 5% 24% 9% 4% 10% Resident passport holder 16% 71% 9% International 15% 14% passport holder 2% 66% 56% 72% 29% 7% 4% 12% 4% 7% 4% 5% 5%

Singapore France Netherlands Other Countries Holiday Employment Holiday Employment Holiday Employment United Kingdom East Timor Malaysia Singapore France Netherlands Visiting Friends & Relatives Education Business Education Visiting Friends & Relatives Education Germany Vietnam Italy Business Other Visiting Friends & Relatives Other Business Other United KingdomPhillipines NewEast Zealand Timor Swizerland Malaysia

Indonesia USA Ireland Germany Vietnam Italy

Phillipines New Zealand Swizerland

Indonesia USA Ireland

Other

32 | Airport Development Group ANNUAL REPORT 2010-11 | 33 Top 15 source markets for Mix of International tra c cleared Reasons for travel International visitors reason for Australian Residents reason for International Visitors into Darwin 2010/2011 (% total) cleared at Darwin Interntional Airport 2010/2011 2010/2011 travel into Darwin 2010/2011 travel out of Darwin 2010/2011 (% total) (% total) (% total) (% total) Mix of International traffic cleared at Darwin International Airport 2010/2011 (% total) 3% 1% 2% 2% 3% 5% 9% 11% 6% Australian 5% 24% 9% 4% 10% Resident passport holder 16% 71% 9% International 15% 14% passport holder 2% 66% 56% 72% 29% 7% 4% 12% 4% 7% Top 15 source markets for Mix of International4% 5% tra c5% cleared Reasons for travel International visitors reason for Australian Residents reason for International Visitors into Darwin 2010/2011 (% total) cleared at Darwin Interntional Airport 2010/2011 2010/2011 travel into Darwin 2010/2011 travel out of Darwin 2010/2011 (% total) (% total) (% total) (% total)

Singapore France Netherlands Other Countries Reasons for travel 2010/2011 (% total) Holiday Employment Holiday Employment Holiday Employment United Kingdom East Timor Malaysia Visiting Friends & Relatives Education Business 3% 1% Education Visiting Friends & Relatives Education Germany Vietnam Italy 2% 2% Business Other Visiting Friends & Relatives Other Business Other Phillipines New Zealand Swizerland 3%

Indonesia USA Ireland 5% 9% 6% 11% Holiday Australian 5% 24% 9% 4% 10% Resident Visiting Friends & Relatives passport holder 16% 71% Business 9% International 15% Employment 14% passport holder 66% 56% 72% 2% Education 29% 7% Other 4% 12% 4% 7% 4% 5% 5%

Singapore France Netherlands Other Countries 34 | AirportHoliday Development Group Employment Holiday Employment Holiday Employment United Kingdom East Timor Malaysia Visiting Friends & Relatives Education Business Education Visiting Friends & Relatives Education Germany Vietnam Italy Business Other Visiting Friends & Relatives Other Business Other Phillipines New Zealand Swizerland

Indonesia USA Ireland Top 15 source markets for Mix of International tra c cleared Reasons for travel International visitors reason for Australian Residents reason for International Visitors into Darwin 2010/2011 (% total) cleared at Darwin Interntional Airport 2010/2011 2010/2011 travel into Darwin 2010/2011 travel out of Darwin 2010/2011 (% total) (% total) (% total) (% total)

International Visitors Reason for travel into Darwin 2010/2011 (% total) 3% 1% 2% 2% 3% 5% 9% 11% Holiday 6% Australian 5% 24% 9% 4% Business 10% Resident passport holder Visiting Friends & Relatives 16% 71% Employment 9% International 15% 14% passport holder Education 2% 66% 56% 72% 29% 7% Other 4% 12% 4% 7% 4% 5% 5% Top 15 source markets for Mix of International tra c cleared Reasons for travel International visitors reason for Australian Residents reason for International Visitors into Darwin 2010/2011 (% total) cleared at Darwin Interntional Airport 2010/2011 2010/2011 travel into Darwin 2010/2011 travel out of Darwin 2010/2011

Singapore France(% total) Netherlands Other Countries (% total) (% total) (% total) Holiday Employment AustralianHoliday Residents Reason forEmployment travel out of Darwin 2010/2011 (% total) Holiday Employment United Kingdom East Timor Malaysia Visiting Friends & Relatives Education Business Education Visiting Friends & Relatives Education Germany Vietnam Italy Business Other Visiting Friends & Relatives3% 1% Other Business Other Phillipines New Zealand Swizerland 2% 2% Indonesia USA Ireland 3% 5% 9% 11% 6% Australian 5% Holiday 24% 9% 4% 10% Resident Business passport holder 16% 71% Visiting Friends & Relatives 9% International 15% 14% Employment passport holder 66% 56% 72% 2% Education 29% 7% Other 4% 12% 4% 7% 4% 5% 5%

Singapore France Netherlands Other Countries ANNUAL REPORT 2010-11 | 35 Holiday Employment Holiday Employment Holiday Employment United Kingdom East Timor Malaysia Visiting Friends & Relatives Education Business Education Visiting Friends & Relatives Education Germany Vietnam Italy Business Other Visiting Friends & Relatives Other Business Other Phillipines New Zealand Swizerland

Indonesia USA Ireland Alice Springs Airport Flights

In the heart of Central • Qantas continued to be In the heart of the Barkly Australia, Alice Springs Airport our main airline customer district, Tennant Creek is the is the gateway to a range of operating nearly 60 flights major service centre for remote iconic, natural and culturally a week to Perth, Adelaide, communities and the rich significant tourist destinations. Melbourne, Sydney, pastoral and mining industries Located 14 kilometres South- Brisbane, Cairns and Darwin. in the region. Approximately East of Alice Springs, ASA is • Tiger Airways increased 500 kilometres north of Alice predominantly a domestic its flights to Melbourne Springs, Tennant Creek also has airport serviced by two from three to four a week a strong Indigenous heritage. main commercial passenger in April 2011. This service Hardy Aviation (Fly Tiwi) aircraft, Qantas and Tiger was suspended due to a operates services two times Airways. It provides extensive directive from CASA. per week to Darwin. commuter and general • Vincent Aviation operated The passenger experience aviation services to remote flights to Tennant Creek at Tennant Creek Airport has communities, which are between December 2010 been significantly enhanced largely used by government, and June 2011. following the biggest upgrade corporate and mine workers. of the terminal in 20 years. The ASA offers daily services 637 000 passengers travelled $200 000 revamp included from all major Australian through Alice Springs Airport new floors, motion sensor capital cities, making access in 2010/11, a 6% decrease on controlled air conditioning and from international markets the previous year. lights, a new check-in counter, convenient. Featuring a large extensive repainting, plumbing runway and other quality and roof repairs. Customer infrastructure, the airport also feedback about the terminal has the capability to receive upgrade has been positive, and international carriers. it is now a comfortable place for passengers to wait for flights. Flights

• Vincent Aviation began flights to Alice Springs in December 2010, but ceased after six months of operation as the route became economically unviable.

36 | Airport Development Group Pricing Agreement Darwin International The terminal expansion is the largest airport development Following three years of Airport Terminal in the Northern Territory in negotiations, DIA reached Expansion 20 years and will underpin commercial terms on a long investment at Darwin term pricing agreement Ongoing concept design International Airport for the with its airline customers in for the terminal expansion next decade. Importantly, October 2010. This has given us continued throughout it will enable us to meet certainty to grow our business 2010/2011. A Minor Variation the growing needs of the and proceed with significant to the original Major community into the future, aeronautical developments Development Plan was doubling our capacity to such as the long-awaited approved by the Australian handle aircraft during peak Darwin International Airport Federal Government and periods and increasing terminal expansion. Alice received positive community passenger numbers by 40%. Springs Airport also reached support. The $50 million “Delivering a fit-for- a five year pricing agreement project will expand each in March 2011 with its major end of the terminal building purpose, impressive and airline customers, which will providing increased passenger functional expanded help fund an $8 million apron facilities such as check in, terminal that can handle a upgrade within the next two additional domestic and major increase in capacity years. international departure gates and which opens up lots and larger border agency and lots of options for processing areas. Darwin is our number one priority moving forward.” - Ian Kew, Chief Executive Officer, ADG.

ANNUAL REPORT 2010-11 | 37 Master Plans Community Airport Services

The 2010 Master Plans for Engagement Our Airport Services division DIA and ASA were approved In 2010/11, we increased is focused on enhancing by the Australian Federal our focus on community the passenger experience, Government in December engagement, introducing providing a range of retail 2010, following extensive the Community Aviation services including duty free, car consultation with the Consultative Group (CACG) rentals and parking. At Darwin community. The Master Plans and Planning Coordination International Airport, retail are blueprints for sustainable Forum (PCF) to create two and ground revenue grew by growth at both airports over clear communication channels 6% and 4% respectively. Alice the next two decades and between the airport and Springs Airport recorded a were strongly supported by stakeholders. We have met 2% decline in revenue on the the local community. The DIA three times with the CACG prior year, although ground Master Plan focused on the and held two forums, and transport performed strongly developing aviation industry will continue to update with a 10% increase. The structure with low cost carriers, stakeholders on the latest decline in retail revenue is the Darwin hubbing strategy issues and developments at largely due to the reduction in and plans for the terminal our airports. We have made a passenger numbers through expansion. The ASA Master commitment to meet with the Alice Springs Airport however, Plan mapped out a strategy Darwin CACG four times a year efforts by the concessionaries for further investment in new and three times a year with were effective. aeronautical infrastructure the Alice Springs CACG. to meet expected growth in demand, while proposing to secure residential zoning approval on existing airport land.

Right: : Lisa Cryer and Sharon Hoops at the Darwin International Airport, International Women’s Day terminal display.

38 | Airport Development Group Car Parks – long term improved the lighting, signage “This expansion is a symbol parking & GA parking and layout. In particular, we of growth at Alice Springs created a dedicated walkway Airport. We continue to photo shoot ensuring a positive and invest in our facilities to safe customer experience. A We expanded the car parks new coach transfer facility meet the needs of the local and improved signage at both featuring a covered walkway community and everyone Darwin International and Alice to the terminal is also due for who uses the airport.” Springs Airports to support completion by the end of 2011. – Katie Cooper, General and assist growing demand. Darwin International Airport Manager, Alice Springs and At DIA, we built a new Long also offers new premium Tennant Creek Airports, ADG. Term Car Park providing permit bays for over 100 parking for 266 vehicles. By vehicles. ASA also provided a providing a dedicated car complimentary dedicated The $1.8 million Alice Springs park for long term users, we parking bay for The Drovers, Airport car park expansion has have increased capacity in our a volunteer service that created an extra 120 spaces Short Term Car Park for the transports patients between for airport users and has increasing number of pick up Alice Springs hospital and the simplified the payment system. and drop off visitors. We also airport. We have installed boom gates built a 299 vehicle General and an auto payment system Aviation Car Park to cater in the Short Term Car Park to the growing number of to bring it into line with the commercial tenants, including Long Term Car Park. We also the Australian Federal Police, expanded the Long Term Car and other airport customers. Park so that separate overflow The General Aviation Car Park areas no longer have to be is fully automated with two used during peak periods. We pay stations on site and a installed new signage in the pedestrian bridge provides existing General Aviation direct access to the general Car Park, but expansion was aviation area. not required. We have also Altogether, the $4.5 million expanded the hire car section car park project has created and separated it from public 565 extra car parking spaces car parking, thereby reducing for airport users. This is in congestion and keeping the car addition to the Short Term parking process consistent for Car Park, which features 624 all airport visitors. spaces. We also moved the Darwin car rental facility closer to the terminal and

ANNUAL REPORT 2010-11 | 39 Operations and Development

Effective asset management Recently, we awarded a is important in achieving and number of maintenance maintaining a sustainable contracts on a long term basis, airport business. In 2010/11, emphasising our partnership ADG has been focused on approach while reducing better understanding the long term expenditure. By performance of our assets, reinvigorating our asset using our asset management management system, we will system to its fullest be able to better manage our potential and reviewing growing asset base through the effectiveness of our developments such as the maintenance contractors and Darwin International Airport suppliers. We have placed terminal expansion and our significant effort on our critical increasing property portfolio. assets such as airfield lighting, electrical infrastructure and terminal air conditioning and as a result, recorded great improvements in the reliability of the system.

40 | Airport Development Group Improving the Passenger Experience

2010/11 was a year of innovation in Operations. We worked closely with a range of airlines and border agencies to implement a range of new technologies to improve the passenger experience at our airports: SmartGate Q Card Check In Kiosks and Qantas and Jetstar Check- Q Bag Tags in Kiosks As part of a national rollout, Customs introduced The installation of Q Card Also in June, Qantas installed SmartGate to Darwin readers and the issuing of Q two new check-in kiosks inside International Airport in May. Bag Tags to frequent flyers in the Darwin International SmartGate is a computerised June has enabled passengers Airport terminal, which kiosk that allows international to check in their bags without allows passengers to process arrivals to process themselves the need for baggage stickers. themselves with or without through passport control. The tags contain world-class bags, enabling faster check- By using face recognition technology that synchronises in when there are lengthy technology and processing details from a boarding pass or queues. Jetstar also installed information from ePassports, Qantas card with a passengers’ two additional check-in kiosks this new system provides a baggage. The use of this next at Darwin International Airport secure, efficient way to clear Gen technology will help to this financial year. customs and immigration. make check-in procedures During the first month of more efficient. operation, 4408 passengers chose to self-process using SmartGate.

ANNUAL REPORT 2010-11 | 41 Safety Emergency Exercises Bird and Animal

Safety continues to be at ASA conducted a full scale, Hazard Management the heart of all business multi agency, emergency System operations. A key initiative exercise on 24 November 2010. this year has been to The exercise was designed to Bird and Hazard Management develop a more proactive practice emergency response continues to be a key focus and preventative approach and co-ordination procedures of ADG. ADG implements to occupational health and in the event of an aircraft a comprehensive Bird and safety management. This security/safety threat at ASA, Animal Hazard Management has been achieved through thereby raising the level of Plan and remains committed engaging staff in the SAFE awareness of operational to reducing strikes at all (Safe Airports For Everyone) requirements for such an airports. A key initiative program, continuing to deliver event. The exercise was also this year was to improve the popular safety newsletter, aimed at ensuring that local communication between ‘Plane and Simple’ and by agencies were familiar with stakeholders including facilitating Safe Work Australia their roles and that current undertaking an off-airport Week for all staff and airport procedures are functional and ornithological survey. Avisure, stakeholders. appropriate. bird strike management experts, audited Darwin There were zero Lost Time International and Alice Springs Injuries for staff and our Airport on the current practices airports. and risks in relation to bird and animal strikes and found that both airports show a high level of commitment to managing their bird and animal risks and hazards.

42 | Airport Development Group Security Airside Works

Both DIA and ASA worked At Alice Springs Airport, a collaboratively with the project to maximise the use Australian Federal Government, of the commuter apron was airlines and other stakeholders undertaken, consisting of to ensure that aviation security an infill between existing remained a top priority during parking positions and the all operational activities at taxiway system. We extended the airports. Regular Airport the drain and installed a new Security Committee meetings fuel /oil interceptor to reduce were held throughout the environmental risk. We also year to ensure open lines commenced initial planning for of communication were a major apron overlay and this maintained in the event of is expected to be undertaken an aviation security-related in 2012. incident. The two audits We continue to have a conducted by the Australian strong relationship with the Federal Government’s Office Department of Defence at of Transport Security delivered Darwin International Airport, pleasing results, with no major with significant maintenance areas of weakness identified works undertaken on in our security systems and the taxiway and runway programs. pavements and lighting system to ensure the safety of aircraft. The annual audit by the Civil Aviation Safety Authority (CASA) was extremely positive and DIA was commended on its improvements to its maintenance systems and focus on airfield safety related activities.

ANNUAL REPORT 2010-11 | 43 Property

Australian Federal “The construction AFP Canine Kennel Police (AFP) building of purpose built and Training Facility accommodation at the After two years of planning, Darwin International A Heads of Agreement was construction of the Australian Airport will ensure the also signed with the AFP in Federal Police (AFP) building Australian Federal Police March 2011 to build a $2.7 at Darwin International million facility to train sniffer are well placed to ensure Airport began in October dogs in firearm, explosive and 2010. This state-of-the art the ongoing safety and drug detection. The facility is building is the second to be security of airport users. expected to be complete by built under the Australian The project is testament February 2012. Federal Government’s rollout to the hard work, good of AFP buildings at airports will and solid relationship under Project Jupiter, enabling between NT Airports and officers to be on hand to the AFP.” respond to emergencies. It is also likely to trigger further – Mark Setter, AFP development in the area as Superintendent, Australian companies see the benefits of Police Commander - Darwin being based in a precinct that is central to Darwin and on the airport’s doorstep. The building is expected to be completed late 2011.

44 | Airport Development Group Aircraft Boneyard AXIS 12° 130° Darwin Hotels Sold

Alice Springs Airport will We are continuing to market In a demonstration of the become home to the Southern the innovative AXIS 12° 130°, a strength of property prices, Hemisphere’s first dedicated unique retail, commercial and the Darwin Airport Resort and aircraft storage and recycling lifestyle precinct at Darwin Airport Inn sold for $68 million facility, after signing a lease International Airport. We are in in June 2011. Now under the agreement in May. The discussions with a number of management of Rydges, the project is being developed by parties interested in investing hotels have proven a solid Australian-based company Asia in an industrial warehouse and investment for the original Pacific Aircraft Storage Pty Ltd distribution subdivision as part developer and new operators, (APAS) and will cater for both of the precinct. We are looking with occupancy rates at more short and long term storage of forward to further progress in than 80% all year round. aircraft and recycling. Located this exciting development in Together these quality hotels adjacent to the runway and the upcoming year, as the Top provide 317 rooms for guests. opposite the main terminal End’s burgeoning resources building, the development will sector continues to drive our Kilgariff ultimately cover around 100 economy ahead. Progress on the Alice hectares with construction due Springs Kilgariff Community to commence in the second Airport Lodge Development has continued half of 2012. Construction of the $7.5 million in 2010/2011 with ADG “This facility is an exciting Stage Three of the Airport signing a Memorandum step for aviation in Lodge at Darwin International of Understanding with the Australia and represents Airport was complete in June, Northern Territory Government the first Asia-Pacific based creating an extra 150 rooms. in mid June. Built by a consortium led by alternative for customers “Given the economic well-known Darwin developer with aircraft based or John ‘Foxy’ Robinson, the 370 conditions, it’s been a operating throughout the room Airport Lodge is being challenging market but region.” leased by the Australian despite this we’ve moved – Tom Vincent, Federal Government to house forward with exciting new APAS Managing Director low-risk immigration detainees developments and new to enable the closure of other opportunities.” Alternative Places of Detention. – Ross Baynes, Property Director, ADG.

ANNUAL REPORT 2010-11 | 45 Financial Performance Report

Key Financial Highlights

ADG generated total revenue of $84 million in 2010/11, representing an increase of 10% on the previous financial year. Earnings before interest, taxes, depreciation and amortization (EBITDA) also grew by nearly 9% to $48.8 million on the previous financial year. The significant increase in revenue is largely attributable to the continued growth in passenger numbers with a record total (including transit and transfer passengers) of 2.9 million passengers - up 4% for the year. In light of strong passenger numbers at Darwin International Airport, trading revenue increased by 13%. This stemmed from growth in duty free retail, car rental and car parking. There was excellent growth in non-aeronautical sources of revenue, increasing by 15%. This included property income growth of 10%.

46 | Airport Development Group Financial Report

2007 2008 2009 2010 2011 $’000 $’000 $’000 $’000 $’000 INCOME STATEMENT Revenue

Aeronautical 34,466 44,871 47,816 50,544 54,546

Trading 6,844 8,050 10,656 11,968 13,583

Property 6,673 7,787 8,930 9,477 10,455

Other income 8,308 4,040 4,217 4,307 5,494

Total Revenue 56,291 64,748 71,619 76,296 84,078

Operating Expenses 25,051 28,534 30,648 31,398 35,183

EBITDA* 31,240 36,214 40,971 44,898 48,895

Margin 55.5% 55.9% 57.2% 58.8% 58.2%

Increments/(decrements) in fair value of 59,002 16,933 23,648 8,010 (7,790) investment properties

Net gain on interest rate swap contracts 2,462 1,004 347 (2,487) 45

Depreciation and amortisation (8,635) (10,079) (11,213) (11,939) (12,430)

Impairment expense - infras tructure assets 0 (283) (2,321) 14 (86)

Finance costs (9,406) (11,842) (14,644) (17,085) (16,916)

Net Profit/(Loss) Before Tax 74,663 32,307 36,788 21,411 11,718

Income Tax (Expense) Benefit (22,609) (9,705) (10,898) (5,725) (3,554)

Net Profit/(Loss) After Tax 52,054 22,602 25,890 15,686 8,164

* EBITDA represents Earnings before Interest expense, Tax, Fair value adjustment on Investment Property, Unrealised gains, Depreciation and Amortisation.

ANNUAL REPORT 2010-11 | 47 Financial Report (continued)

SOME NOTEWORTHY CASH FLOW ASPECTS Net cash flows from operating • Revenue - $84.0 million activities - $26.3 million (last (last year $76.3 million) year $25.8 million) • Earnings before interest, After funding capital tax, depreciation and expenditure cash balances amortisation - $48.8 million decreased by $0.4 million (last year $44.8 million) an to $21.6 million (last year increase of 8.9% increased by $9.1 million). Of • Net profit before tax $11.7 this balance $4.3 million (last million (last year $21.4 year $4.1 million) is held as an million) a decrease of 45.3% interest reserve account. • Decrease in the fair value of investment properties - $7.7 million (last year increase $8.0 million)

48 | Airport Development Group BALANCE SHEET year end 30 June 2011 2009 2010 2011 $’000 $’000 $’000 Cash 13,045 22,123 21,668

Total Assets 382,475 399,858 394,086

Interest Bearing Liabilities 203,205 211,207 227,167

Total Liabilities 264,465 280,463 294,825

Total Equity 118,010 119,395 99,261

There has been a net decrease INTEREST RATE ANNUAL REPORT FOR THE in Total Assets resulting from: MANAGEMENT 12 MONTHS TO 30 JUNE 11 • An decrease in cash as noted above. The consolidated entity’s The Annual Report for the 12 three year senior debt facility Months to the 30 June 2011 • An decrease in the fair value is due for expiry on 6 January comprises: of Investment Properties of 2012 and is used to fund $7.7 million • directors report the aeronuatical capital • auditors independence • A decrease in infrastructure, expenditure requirements of declaration plant and equipment being the consolidated entity. the net impact of asset • financial report The Group manages its additions/disposals and exposure to interest rate • directors declaration depreciation fluctuations using interest rate • independent auditors swaps. report to members Average interest charged for • is available on the the year was 6.99% (last year company’s website 5.88%), being the bank bill rate www.ntapl.com.au plus a margin dependent on Alternatively a copy may be the interest cover ratio. obtained from the Darwin International Airport Pty Ltd

ANNUAL REPORT 2010-11 | 49 Fast Facts

FINANCIAL YEAR 2007 2008 2009 2010 2011 ENDING

PASSENGERS:

DIA 1,654,000 1,813,000 1,998,000 2,140,000 2,287,000

ASA 628,000 630,000 676,000 681,000 637,000

TOTAL 2,282,000 2,443,000 2,674,000 2,821,000 2,924,000

LANDED TONNES:

DIA 801,000 822,000 845,000 905,000 955,000

ASA 247,000 243,000 243,000 245,000 240,000

TCA 4,200 4,000 4,300 5,000 6,000

TOTAL 1,052,200 1,069,000 1,092,300 1,155,000 1,201,000

AERONAUTICAL CHARGES (ex GST):

Passenger Facilitation Charge ($/pax) **

DIA 6.73 6.90 7.07 7.42 7.49

ASA 5.44 5.57 5.71 5.99 6.17

TCA n/a n/a n/a n/a n/a

Airport Services Charge ($/pax) **

DIA 6.37 6.52 6.69 7.02 7.23

ASA 6.61 6.78 6.94 7.28 7.50

TCA 18.00 18.00 18.00 18.00 18.00

Landing Charge General Aviation $/MTOW **

DIA 19.00 19.50 20.00 20.50 21.00

ASA 19.00 19.50 20.00 20.50 21.00

TCA 23.00 23.00 23.00 23.00 23.00

50 | Airport Development Group FINANCIAL YEAR 2007 2008 2009 2010 2011 ENDING

REVENUE $000s ***

DIA 39,129 43,767 48,741 52,444 60,224

ASA 11,408 13,180 14,348 16,086 15,152

TCA 151 313 394 161 210

Other (38) (37) (23) 70 134

TOTAL ADG 50,650 57,223 63,460 68,761 75,720

EBITDA $000s

DIA 23,876 27,267 30,967 33,577 38,054

ASA 7,401 8,855 9,808 11,315 10,904

TCA (38) 92 158 (126) (260)

Other 0 0 38 132 198

TOTAL ADG 31,239 36,214 40,971 44,898 48,896

CAPITAL EXPENDITURE $000s

DIA 23,276 11,156 18,742 10,639 9,083

ASA 7,568 5,752 10,782 1,508 3,420

TCA 112 199 10 14 102

TOTAL ADG 30,956 17,107 29,534 12,161 12,605

EMPLOYEES

DIA 55 58 61 66 74

ASA 11 13 13 13 12

TCA 1 1 1 1 1

TOTAL ADG 67 72 75 80 88

** as at 30 June *** excludes safety & security charge revenue / expenses

ANNUAL REPORT 2010-11 | 51 52 | Airport Development Group ANNUAL REPORT 2010-11 | 53 Darwin International Airport Management Centre Telephone: 08 8920 1811 Email: [email protected]

Alice Springs Airport Management Centre Telephone: 08 8951 1211 Email: [email protected]

Tennant Creek Airport Management Centre Telephone: 08 8962 2894 Email: [email protected]

@Darwin Airport @ASpringsAirport

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