SEPTEMBER 1999 www
Personnel .infratil.co.nz
The make up of aeronautical and contestable revenue are shown in the following table:
WIAL Revenue Components for Year ending 30 June 1999
Non-contestable Revenue This is the eleventh "Infratil Update" prepared by the Company to inform shareholders about recent Airport Charges 74% developments involving Infratil and the infrastructure industry in New Zealand. This issue provides an update International Departure Fee 16% of developments at Wellington International Airport Limited (“WIAL”), following the opening of the new terminal. Other Airport Revenue 10%
Total Airport Revenue 100% 76%
Contestable Revenue John Sheridan Concessions 31% Chief Executive Carparks 34% Wellington International Airport Limited Misc Vehicle Revenue 14% Property 14% The WIAL Board appointed Mr John Sheridan Other Contestable Revenue 7% as CEO of WIAL from 29 March 1999.
Total Contestable Revenue 100% 24% Mr Sheridan brings to WIAL many years of
Total All Revenue 100% experience in the air transport industry. Mr Sheridan’s most recent professional Wellington International Airport Limited The improvements in contestable revenue that experience includes: have occurred over the last two years are shown in the • 18 months as Group General Manager New main terminal building in operation chart below. Divestments for Ansett Australia. On 29 June 1999 operations commenced from the This demonstrates the improvements that have been Responsible for the sale of Ansett Wellington Airport new main terminal building. This made to the most significant components of contestable Australia’s non-core assets including represents the most significant phase of Wellington all airlines share facilities for domestic and international revenue - concession revenue 27% improvement and Hayman Island resort, Hamilton Island Airport’s Terminal Area Development (“TAD”) Project. flights in a single building. These efficiency gains are a car parking 17% improvement. Airport and Transport Industries Insurance. The TAD will significantly enhance the airport’s key part of WIAL’s future strategy to minimise staff, It should be noted that as these comparisons are • 18 months as General Manager of Ansett operations and profitability through greatly improved maintenance and operating costs. In addition, the 12 months moving averages, there is a time lag before New Zealand Air Freight. Responsible for passenger handling facilities terminal has been designed for large changes appear in the figures. the management of the company through and extended commercial and easy modular expansion, thus Contestable Revenue Components (12 month moving total) retail operations. minimising capital costs when 8 to the merger with First Express (the domestic freight arm of Air New Zealand). A great deal of planning future expansion is required. • General Manager Finance & Administration and research have gone into This is expected to occur in the 6 for Ansett New Zealand for 9 years. A creating the design, next eight to ten years. member of the executive team at start-up functionality and efficiency of The total TAD project, at a 4 of the airline in 1987. Responsibilities the new terminal. WIAL and cost of $116 million, covers the main terminal building itself, the Revenue x $1,000,000 included finance, Secretary to the Board, the airlines will gain 2 legal, planning including fleet operational and efficiency two level car park building, the Concessions Other Vehicle Rev benefits from merging all terminal southern pier to Carparking Property Misc Contest Rev development, executive member of the 0 Wellington International Airport terminal opening day M A M J AJ OS N D J F M A M J J A OS N D J F M A M JJ Board of Airline Representatives of NZ, terminal operations into one accommodate regional airline 1997 1998 1999 and lease and charging negotiations with building rather than the operators, the terminal south airport companies, Airways Corporation previous split operations, and from such specific western pier for use by Air New Zealand domestic and the Civil Aviation Authority. features as the common use check in facilities that operations (including the Koru Club), gate lounges for maximise flexibility and minimise space requirements. use of Ansett New Zealand, elevated roadway at the face The Wellington terminal is the first in Australasia where of the terminal building and road developments to the north and south of the terminal. The most significant component of the TAD project remaining to be completed, is the re-configuration and refurbishment of the international processing part of the terminal. This is
Whilst all reasonable care has been taken to ensure the facts stated are accurate, neither Infrastructure & Utilities NZ Limited, planned to be completed by mid 2000. Infrastructure & Utilities NZ Limited Morrison & Co Infrastructure Management Limited, nor any of their directors, officers or employees guarantee the accuracy
or completeness of the information stated herein. Retail Traffic/Passengers Most importantly, the terminal development provides the The table below updates WIAL passenger statistics: opportunity for WIAL to expand and enhance revenue WIAL Passenger Traffic for Year ending 30 June from non-aeronautical sources. Business planning has 000’s 1999 1998 Increase focused on the non-regulated side of the business as the Other commercial activities The trend of aircraft landings growth over the last International 440 388 +13.4% area where there are the greatest opportunities for Among other commercial trading facilities in the terminal two years is shown in the chart below: Domestic 3,145 3,166 -0.7% revenue development. A key feature of the new terminal is an expanded and enhanced 140 seat conference WIAL Aircraft Landings (12 month moving total) Total 3,585 3,554 +0.9% 60,000 is the central retail area, over 65% larger than that of the facility which, although in its early days and prior to the old terminal. The retail space exceeds 2,700 square implementation of a comprehensive marketing program, Domestic passenger growth has been flat reflecting the 58,000 metres and houses a wide range of food and beverage is experiencing strong demand. A renegotiated rental overall state of the New Zealand economy. The strong 56,000 and retailing outlets. WIAL has leased 95% of the car concession agreement with new and more efficient international passenger growth is largely the result of available retail space and it is WIAL’s objective to ensure facilities provided for the operators, and expansion to improved trans-Tasman services since early 1998 and 54,000 that the outlets take advantage of the terminal’s provide for a fourth operator is expected to increase generally strong travel patterns across the Tasman. 52,000 estimated 5.5 million passenger and public visitor flows. revenue by up to 50%. A new advertising concession International passenger growth is important to WIAL, Domestic International
Establishment of an optimal mix of retailing will be an covering the internal terminal areas has been tendered as on an average revenue per passenger basis, each 50,000 ongoing process. In addition to internal resources WIAL and let. Jul 98 Jul
international passenger is worth up to four times that of 97 Jul Jan 98 Jan Jun 99 Jun Jan 99 Jan Mar 98 Nov 98 Nov Sep 98 Mar 99 Nov 97 Nov Sep 97 May 98 May May 99 May each domestic passenger. The trend of passenger growth over the last seven Financial performance years is shown in the chart below: The year ending 30 June 1999 provided a modest WIAL Passenger Traffic (12 month moving total) 4,000 increase to the airport’s cash flow and profitability compared with the previous year, largely reflecting completion of the terminal and associated activities. 3,500 Going forward from here WIAL is projecting significant increases in the contestable revenues and reductions in expenses. 3,000 The key components of financial performance are
Passengers (thousands) Domestic International as follows:
2,500 The new streamlined check-in counters at Wellington International Airport WIAL Financial Performance for Year ending 30 June Jun 94 Jun 97 Jun 93 Jun 96 Jun 95 Jun 98 Jun 99 Dec 92 Dec 95 Dec 98 Dec 94 Dec 96 Dec 97 Dec 93 $M 1999 1998 Increase
Non-contestable Revenue 22.0 20.8 +5.8% Aircraft landings have also shown continued growth receives advice on its retailing operations from Since commencing operations, the new terminal Contestable Revenue 7.0 6.9 +1.4% as can be seen from the following table: Vancouver International Airport Authority (“YVRAS”). facilities have been particularly well received by the Total Revenue 29.0 27.7 +4.7%
YVRAS is widely recognised as one of the leading airport airlines, other operational users, the travelling public WIAL Aircraft Landings for Year ending 30 June Expenses 12.6 12.1 +4.1% operators in North America. and visitors. A measure of the interest shown in the 1999 1998 Increase EBITDA 16.4 15.6 +5.1% Initial trading suggests the retailing outlets have terminal is the 23,000 Wellingtonians that came to International 2,469 1,682 +46.8% Because aeronautical revenue is regulated and currently generally performed well, and revenues are in line with inspect the new facilities on the open day prior to Domestic 56,195 54,908 +2.3% makes up 74% of total revenue, opportunities for projections. A particularly encouraging segment is the operations commencing. Total 58,664 56,590 +3.7% revenue enhancement are greater in the contestable duty free operations. Although the inbound duty free Operations International aircraft landings have grown at a much component of the business. It is this area that will shop areas will not be completed until December 1999 Operationally, the terminal has performed very well. higher rate than passenger numbers due to airline receive greater focus as business planning proceeds. and the expanded outbound duty free area until June Given the technical complexity of the facility, there aircraft fleet mix changes. This has included, Contestable revenue will also receive a substantial boost 2000, revenue on a per passenger basis is already ahead have been very few problems, and each has been particularly, the replacement of Boeing 767 aircraft with as the retail and commercial improvements incorporated of trading projections for the completed facility. immediately corrected with negligible impact on Boeing 737 aircraft flying on a more frequent basis. into the new terminal building flow through into the airline operations. Domestic aircraft landings have continued at a modest financial results. growth rate. Revenue from aircraft landing charges, which is based on aircraft weights, has remained fairly constant due to the aircraft fleet mix changes. Retail Traffic/Passengers Most importantly, the terminal development provides the The table below updates WIAL passenger statistics: opportunity for WIAL to expand and enhance revenue WIAL Passenger Traffic for Year ending 30 June from non-aeronautical sources. Business planning has 000’s 1999 1998 Increase focused on the non-regulated side of the business as the Other commercial activities The trend of aircraft landings growth over the last International 440 388 +13.4% area where there are the greatest opportunities for Among other commercial trading facilities in the terminal two years is shown in the chart below: Domestic 3,145 3,166 -0.7% revenue development. A key feature of the new terminal is an expanded and enhanced 140 seat conference WIAL Aircraft Landings (12 month moving total) Total 3,585 3,554 +0.9% 60,000 is the central retail area, over 65% larger than that of the facility which, although in its early days and prior to the old terminal. The retail space exceeds 2,700 square implementation of a comprehensive marketing program, Domestic passenger growth has been flat reflecting the 58,000 metres and houses a wide range of food and beverage is experiencing strong demand. A renegotiated rental overall state of the New Zealand economy. The strong 56,000 and retailing outlets. WIAL has leased 95% of the car concession agreement with new and more efficient international passenger growth is largely the result of available retail space and it is WIAL’s objective to ensure facilities provided for the operators, and expansion to improved trans-Tasman services since early 1998 and 54,000 that the outlets take advantage of the terminal’s provide for a fourth operator is expected to increase generally strong travel patterns across the Tasman. 52,000 estimated 5.5 million passenger and public visitor flows. revenue by up to 50%. A new advertising concession International passenger growth is important to WIAL, Domestic International
Establishment of an optimal mix of retailing will be an covering the internal terminal areas has been tendered as on an average revenue per passenger basis, each 50,000 ongoing process. In addition to internal resources WIAL and let. Jul 98 Jul
international passenger is worth up to four times that of 97 Jul Jan 98 Jan Jun 99 Jun Jan 99 Jan Mar 98 Nov 98 Nov Sep 98 Mar 99 Nov 97 Nov Sep 97 May 98 May May 99 May each domestic passenger. The trend of passenger growth over the last seven Financial performance years is shown in the chart below: The year ending 30 June 1999 provided a modest WIAL Passenger Traffic (12 month moving total) 4,000 increase to the airport’s cash flow and profitability compared with the previous year, largely reflecting completion of the terminal and associated activities. 3,500 Going forward from here WIAL is projecting significant increases in the contestable revenues and reductions in expenses. 3,000 The key components of financial performance are
Passengers (thousands) Domestic International as follows:
2,500 The new streamlined check-in counters at Wellington International Airport WIAL Financial Performance for Year ending 30 June Jun 94 Jun 97 Jun 93 Jun 96 Jun 95 Jun 98 Jun 99 Dec 92 Dec 95 Dec 98 Dec 94 Dec 96 Dec 97 Dec 93 $M 1999 1998 Increase
Non-contestable Revenue 22.0 20.8 +5.8% Aircraft landings have also shown continued growth receives advice on its retailing operations from Since commencing operations, the new terminal Contestable Revenue 7.0 6.9 +1.4% as can be seen from the following table: Vancouver International Airport Authority (“YVRAS”). facilities have been particularly well received by the Total Revenue 29.0 27.7 +4.7%
YVRAS is widely recognised as one of the leading airport airlines, other operational users, the travelling public WIAL Aircraft Landings for Year ending 30 June Expenses 12.6 12.1 +4.1% operators in North America. and visitors. A measure of the interest shown in the 1999 1998 Increase EBITDA 16.4 15.6 +5.1% Initial trading suggests the retailing outlets have terminal is the 23,000 Wellingtonians that came to International 2,469 1,682 +46.8% Because aeronautical revenue is regulated and currently generally performed well, and revenues are in line with inspect the new facilities on the open day prior to Domestic 56,195 54,908 +2.3% makes up 74% of total revenue, opportunities for projections. A particularly encouraging segment is the operations commencing. Total 58,664 56,590 +3.7% revenue enhancement are greater in the contestable duty free operations. Although the inbound duty free Operations International aircraft landings have grown at a much component of the business. It is this area that will shop areas will not be completed until December 1999 Operationally, the terminal has performed very well. higher rate than passenger numbers due to airline receive greater focus as business planning proceeds. and the expanded outbound duty free area until June Given the technical complexity of the facility, there aircraft fleet mix changes. This has included, Contestable revenue will also receive a substantial boost 2000, revenue on a per passenger basis is already ahead have been very few problems, and each has been particularly, the replacement of Boeing 767 aircraft with as the retail and commercial improvements incorporated of trading projections for the completed facility. immediately corrected with negligible impact on Boeing 737 aircraft flying on a more frequent basis. into the new terminal building flow through into the airline operations. Domestic aircraft landings have continued at a modest financial results. growth rate. Revenue from aircraft landing charges, which is based on aircraft weights, has remained fairly constant due to the aircraft fleet mix changes. SEPTEMBER 1999 www.infratil.co.nz
Personnel
The make up of aeronautical and contestable revenue are shown in the following table:
WIAL Revenue Components for Year ending 30 June 1999
Non-contestable Revenue This is the eleventh "Infratil Update" prepared by the Company to inform shareholders about recent Airport Charges 74% developments involving Infratil and the infrastructure industry in New Zealand. This issue provides an update International Departure Fee 16% of developments at Wellington International Airport Limited (“WIAL”), following the opening of the new terminal. Other Airport Revenue 10%
Total Airport Revenue 100% 76%
Contestable Revenue John Sheridan Concessions 31% Chief Executive Carparks 34% Wellington International Airport Limited Misc Vehicle Revenue 14% Property 14% The WIAL Board appointed Mr John Sheridan Other Contestable Revenue 7% as CEO of WIAL from 29 March 1999.
Total Contestable Revenue 100% 24% Mr Sheridan brings to WIAL many years of
Total All Revenue 100% experience in the air transport industry. Mr Sheridan’s most recent professional Wellington International Airport Limited The improvements in contestable revenue that experience includes: have occurred over the last two years are shown in the • 18 months as Group General Manager New main terminal building in operation chart below. Divestments for Ansett Australia. On 29 June 1999 operations commenced from the This demonstrates the improvements that have been Responsible for the sale of Ansett Wellington Airport new main terminal building. This made to the most significant components of contestable Australia’s non-core assets including represents the most significant phase of Wellington all airlines share facilities for domestic and international revenue - concession revenue 27% improvement and Hayman Island resort, Hamilton Island Airport’s Terminal Area Development (“TAD”) Project. flights in a single building. These efficiency gains are a car parking 17% improvement. Airport and Transport Industries Insurance. The TAD will significantly enhance the airport’s key part of WIAL’s future strategy to minimise staff, It should be noted that as these comparisons are • 18 months as General Manager of Ansett operations and profitability through greatly improved maintenance and operating costs. In addition, the 12 months moving averages, there is a time lag before New Zealand Air Freight. Responsible for passenger handling facilities terminal has been designed for large changes appear in the figures. the management of the company through and extended commercial and easy modular expansion, thus Contestable Revenue Components (12 month moving total) retail operations. minimising capital costs when 8 to the merger with First Express (the domestic freight arm of Air New Zealand). A great deal of planning future expansion is required. • General Manager Finance & Administration and research have gone into This is expected to occur in the 6 for Ansett New Zealand for 9 years. A creating the design, next eight to ten years. member of the executive team at start-up functionality and efficiency of The total TAD project, at a 4 of the airline in 1987. Responsibilities the new terminal. WIAL and cost of $116 million, covers the main terminal building itself, the Revenue x $1,000,000 included finance, Secretary to the Board, the airlines will gain 2 legal, planning including fleet operational and efficiency two level car park building, the Concessions Other Vehicle Rev benefits from merging all terminal southern pier to Carparking Property Misc Contest Rev development, executive member of the 0 Wellington International Airport terminal opening day M A M JJASONDJFMAMJJASONDJFMAMJJ Board of Airline Representatives of NZ, terminal operations into one accommodate regional airline 1997 1998 1999 and lease and charging negotiations with building rather than the operators, the terminal south airport companies, Airways Corporation previous split operations; and from such specific western pier for use by Air New Zealand domestic and the Civil Aviation Authority. features as the common use check in facilities that operations (including the Koru Club), gate lounges for maximise flexibility and minimise space requirements. use of Ansett New Zealand, elevated roadway at the face The Wellington terminal is the first in Australasia where of the terminal building and road developments to the north and south of the terminal. The most significant component of the TAD project remaining to be completed, is the re-configuration and refurbishment of the international processing part of the terminal. This is
Whilst all reasonable care has been taken to ensure the facts stated are accurate, neither Infrastructure & Utilities NZ Limited, planned to be completed by mid 2000. Infrastructure & Utilities NZ Limited Morrison & Co Infrastructure Management Limited, nor any of their directors, officers or employees guarantee the accuracy
or completeness of the information stated herein.