Nelson Airport Annual Report 2016 Company Directory
Total Page:16
File Type:pdf, Size:1020Kb
NELSON AIRPORT ANNUAL REPORT 2016 COMPANY DIRECTORY DIRECTORS Paul Steere (Chair) Paul McGuinness (Deputy Chair) Matthew Clarke Catherine Taylor Judene Edgar REGISTERED OFFICE Nelson Airport Airport Terminal Trent Drive Nelson Telephone 03-547-3199 Facsimile 03-547-3194 Email [email protected] CHIEF EXECUTIVE Robert Evans MANAGERS Corporate Services: Simon Orr Operations: James Middlewick Sales and Marketing: Sally Russ AUDITOR Audit New Zealand on behalf of the Auditor-General ACCOUNTANT Johnston Associates Chartered Accountants Limited BANKERS Westpac Banking Corporation CONTENTS OUR BOARD .................................................................................. 02 DIRECTORS’/CEO’S REPORT ........................................................ 03 KEY RELATIONSHIPS .................................................................... 09 INDEPENDENT AUDITOR’S REPORT ..............................................10 SERVICE PERFORMANCE REPORT ................................................. 12 ANNUAL REPORT ........................................................................... 15 STATEMENT OF COMPREHENSIVE INCOME .................................. 17 STATEMENT OF CHANGES IN EQUITY .......................................... 18 STATEMENT OF FINANCIAL POSITION .......................................... 19 STATEMENT OF CASH FLOWS ...................................................... 20 NOTES TO THE FINANCIAL STATEMENTS ..................................... 21 NELSON AIRPORT ANNUAL REPORT 2016 01 OUR VISION OUR MISSION To be the best To provide safe, efficent and innovative services that Regional Airport in facilitate aviation growth and New Zealand the economic prosperity of the Nelson Tasman region. OUR BOARD DIRECTORS Paul Steere Paul McGuinness Matthew Clarke Catherine Taylor Judene Edgar (Chair) (Deputy Chair) OUR STAFF “It has been a year of extraordinary change in Aviation Services” Robert Evans Chief Executive 02 NELSON AIRPORT ANNUAL REPORT 2016 DIRECTORS’/CEO’S REPORT FOR THE YEAR ENDED 30 JUNE 2016 OVERVIEW Air New Zealand expanded its Nelson engineering and maintenance services to overseas airlines, with Air It has been a year of Calédonie being the first extraordinary change in to send an ATR for aviation services with the servicing. startup of Jetstar, Kiwi Regional Airlines and Originair flying additional services and new routes The out of Nelson from mid-year, bringing much needed capacity company growth and increased recorded its best competition. performing year with record passenger With numbers and a support from strong financial Council shareholders and major airlines, the performance. airport redevelopment gained significant momentum A with completion of developed number of design for the terminal and minor infrastructure upgrades were car park precincts by successfully completed The the end of June. to support the growth in five yearly passengers and provide aeronautical pricing added safety and consultation process security. Associated was successfully property and completed with the new ground transport charges commencing Jetstar services improved on 1 July 2016. performance resulting performed from new commercial very well with agreements and the services to additional uplift in Auckland and passengers. Wellington. NELSON AIRPORT ANNUAL REPORT 2016 03 DIRECTORS’/CEO’S REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2016 FINANCIAL • Revenue streams were up on the • Administration costs were up 3% and prior year in all sectors with major included additional consultants engaged Nelson Airport Limited is pleased to report contributions coming from aeronautical to grow commercial activities and earnings before interest, tax, depreciation income, car parking and rental cars. improve returns along with recruitment and amortisation (EBITDA) of $3.4m, a new costs for a Commercial Manager to fill • Property related interests reflected record for the company and up 17% on the the consultant’s role going forward. increased revenues through active previous year’s $2.9m. management of lease renewals, rent • The five yearly aeronautical pricing 2015/16 saw the successful introduction reviews and new agreements. consultation process recorded higher of accounting and reporting based on than expected costs, however the • Passenger numbers were up 16% for a revaluation model incorporating the outcome has resulted in a significant the year at 865,000 and capacity (seats) valuation of significant assets at their increase in the aeronautical charges was up by 19% to reach 1.2m – both fair value. Impairment of $0.24m was that reflects a more appropriate return records for the airport. recorded against the current terminal on assets. to acknowledge its limited useful life in • Operating costs increased due to • The new aeronautical pricing includes a light of the new terminal development. the impairment recognised for the return on the costs of the new terminal The recognition of fair values and existing terminal facilities and additional and other associated infrastructure associated impairment delivered a resources required in response to upgrades when commissioned. one-off gain on asset revaluation of new airline business. $38.0m net of taxation, underpinning Total Comprehensive Income of $39.2m. EBITDA, Ordinary Dividends & Total Passengers Ten year history 1000 4 800 3 600 2 400 1 ($m) EBITDA 200 & Total Passengers (k) Passengers & Total Ordinary Dividends ($k) 0 0 07 08 09 10 11 12 13 14 15 16 EBITDA Ordinary Dividends Paid Total Passengers 04 NELSON AIRPORT ANNUAL REPORT 2016 DIRECTORS’/CEO’S REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2016 AVIATION ACTIVITY Air New Zealand Regional Maintenance NON expanded its customer base to complete AERONAUTICAL The year saw extraordinary growth in its first overseas contract for Air Calédonie passenger numbers with the introduction and plans were announced for continued REVENUE of Jetstar, Kiwi Regional Airlines and expansion of this expertise which provides Originair around December. Whilst Kiwi strong economic value for the region The non-aeronautical revenue streams Regional Airlines exited the market soon and growth in specialised high value provided by property rentals, ground after commencement and Originair had employment. transport operations, retail and advertising some teething problems on startup, Jetstar provide an important proportion of the The business has implemented a targeted made a significant impact on Auckland airport’s total income. marketing plan and established close and Wellington route capacity and working relationships with local tourism During the year the advertising portfolio passenger throughput. Air New Zealand and economic development bodies, was brought back in-house contributing responded well to the additional capacity partner airports, airlines and other tourist significant net growth in revenue while and also closed the year out with record bureaus to work collaboratively for future also connecting the business directly numbers. Along with the contribution growth in our region. Targeted total to the community and its customers. from Sounds Air and air2there, passenger passenger throughput for the 2016/17 This has been a resounding success numbers reached 865,000 which is a year is 1,000,000. with improved revenue from advertising record for Nelson Airport. For a period of over 500%. This function also supports Nelson operated six airlines to eight For general aviation, helicopters and marketing and business development destinations within New Zealand. itinerant flying Nelson continues as a initiatives with the airlines. popular airport with business and high value tourism driving additional charter The rental car business was successfully and private jet operations. market tested through a tender for the first time in many years. We also introduced a new entrant in Europcar during this process, increasing our in-terminal providers to six. The car parking charges were reviewed along with the implementation of some minor adjustments and product changes delivering improved revenue. These initiatives contributed to an overall increase in ground transport revenues of 47%. The additional passenger throughput had a positive effect on food and beverage sales and along with the addition of a Total revenue has increased as has the proportion of non-aeronautical revenue as a kiosk has resulted in a 27% increase percentage of the total. This is notwithstanding a 9% increase in aeronautical revenue. in retail revenues. NELSON AIRPORT ANNUAL REPORT 2016 05 DIRECTORS’/CEO’S REPORT CONTINUED FOR THE YEAR ENDED 30 JUNE 2016 Despite the lease expiry and subsequent exit from Hangar 3 by Helicopters New Zealand, property recorded a 5% increase in revenue through proactive management of lease renewals and rent reviews. HEALTH & SAFETY Our goal remains zero harm in the workplace. An independent review of the health & safety systems has been conducted to ensure the airport company aligns with the changes to the health and safety legislation enacted in April 2016. This has resulted in a greater understanding of the requirements for both employees and Board members and the appropriate processes continue to be developed. Airport growth has resulted in a much Temporary airline check-in counters and Staff utilisation of the online Health busier apron than in past years. A monthly baggage belts were installed for the new and Safety reporting and monitoring Apron Safety Forum has been established airlines and while achieving their purpose system has