Auckland Airport’s annual meeting

At Auckland Airport’s annual meeting today, chief executive officer Don Huse highlighted the company’s business strategy and corporate identity.

Mr Huse said “Much work has been undertaken since mid-2006 with respect to repositioning Auckland Airport’s vision and strategy. The airport’s six core strategies are to grow New Zealand tourism and business; provide a unique and compelling New Zealand airport experience; deliver outstanding customer service; operate in a safe, secure, sustainable and efficient manner; enhance our people capability and performance and create long-term value for our owners.”

“Auckland Airport – 2011 and beyond will involve far-reaching changes,” he said.

Mr Huse elaborated on two of the core strategies - providing a unique and compelling New Zealand airport experience and delivering outstanding customer service and how this is being delivered in the areas of aeronautical, terminal developments, retail, car parking and property developments.

The first stage of the $98.9 million international terminal expanded arrivals project is underway and will be completed by mid-2008. It will feature strong Kiwi images, décor, finishings and fittings for both arriving and departing passengers with spectacular elevated views across the runway to the Manukau Harbour. A new 1600m2 arrivals duty free store will also be developed. It will have a much wider range of international and New Zealand brands and products and will be competitive with duty free stores in Australia and Asia.

The primary line for immigration processing will have increased space, and additional counters. The secondary line for MAF Biosecurity New Zealand quarantine services will also be expanded to reduce processing time and provide much more amenity and a far better arrival experience.

The $54.5 million international terminal Pier B project will be completed by 30 September 2008. It will provide two more gates, each with two aerobridges, making four in all. This will increase the total aerobridges at the international terminal to 14. On each of these new gates two aerobridges can service two A380 or B747 aircraft at the same time; or four single aisle A320 or B737 aircraft. This extra capability and flexibility will considerably reduce apron busing of passengers and provide much enhanced quality of service.

Announced in October, the $180 million international terminal expanded arrivals project will be completed by 30 June 2011. It will bring the baggage hall, the Customs/MAF Biosecurity New Zealand screening area and the arrivals concourse for meeters and greeters up to a newly developed first floor. It will also provide much needed improvements to terminal forecourt roads, traffic management and car parking facilities A wider range of food and beverage offerings, foreign exchange outlets, specialty retail, visitor information services and rental car outlets will be included.

This project has been accelerated by 18 months to deal with the unacceptably high congestion that is already being experienced during the peak summer season. It will have the added benefit of being completed in time for the Rugby World Cup 2011 in New Zealand. A four to five star hotel is also planned for the international terminal precinct by mid-2011.

Other planned improvements to international traveller services include the increased Travelex foreign currency outlets. There are also plans to re-developed departures landside and airside, duty free, specialist retail and food and beverage together with an enlarged departure emigration and security screening area for joint border agencies.

From 1 July 2008 there will be no more airport development charge collected in cash at the airport. It will be replaced by a passenger service charge invoiced directly to airlines. This will be a first for New Zealand and, at last, put Auckland Airport on a par in this regard with most other international airports around the world.

Last July a fleet of new baggage trolleys was introduced across the international and domestic terminal precincts. Unlike other international airports these are still provided free of charge.

The $40 million domestic terminal “extreme makeover” project, a joint-venture with Air New Zealand, is due for completion in next month. It is now a light airy terminal; with a wide array of modern passenger processing and retail services, including food and beverage; books, newspapers and magazines; specialty retail and banking. There is a large, accommodating area for regional travellers. There is covered access now, to and from the new car parking building to the domestic terminal. Traffic engineering and kerbside traffic management, coupled with a greater variety of car parking services has significantly enhanced the domestic traveller’s experience.

Pacific Blue has just started operating from the western end of the domestic terminal. In the new year there will be further upgrades in décor, finishes, and toilet facilities.

A ground breaking event for the new northern runway was held in early October to mark the start of construction of Auckland Airport’s – and the Auckland region’s second commercial runway. Stage 1 will see a 1,200 metre runway operating by early 2011. It will decant small scheduled aircraft from the main runway thereby increasing capacity on that runway, especially at peak, with airspace and runway congestion and delays consequentially reduced. It will be a low cost runway thereby further improving the range of aeronautical services being supplied by Auckland Airport.

With 1,500 hectares of freehold estate the importance of property development and investment continues to grow. Last year property rentals increased 5.6 per cent to $33.3 million. This was largely due to positive rent reviews reflecting firm commercial market trends and revenue from a number of new projects. During financial year 2007 $18.0 million was invested in various projects. We are forecasting this will increase to $25 million in 2008 and $35 million in 2009.

The investment property portfolio had a market value of a not insubstantial $329.7 million at last year-end.

Along with the second runway development, there is significant scope for a large, high quality property development programme. The masterplan for this will be launched in the first half of 2008. It will cover 160 hectares in total. The intention is to position this development very much at the premium end of the market and it will be designed to the highest standards.

These major projects that are either underway or about to commence are all part of Auckland Airport’s vision and strategy.

ENDS

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