Hamilton Airport reports $490,000 pre tax surplus

Waikato Regional Airport Limited

October 18, 2006.

Hamilton Airport reports $490,000 pre tax surplus

Hamilton International Airport today reported a pre tax operating surplus of $490,000 for the year ended June 30, 2005.

This was up $123,000 on budget but down on last year¹s $526,000.

After tax surplus was $238,000 compared to $350,000.

Chairman of Waikato Regional Airport Limited, John Storey, said the performance was satisfactory given increased cost pressures and the significant development phase that the airport was going through.

The surplus had been achieved on revenues of $4.65 million against $4.56 million in the previous year.

Expenses were $4.16 million against $4.03 million for 2004.

Equity at year-end was reported at $20.7million.

Capital expenditure totalled just under $3.5 million of which $1 million was funded from cash flow.

Most of this expenditure was on progress work for the terminal upgrade, apron and runway extensions and planning work associated with airport property development.

Mr Storey said total passenger numbers were up 4 percent for the year while international traveller numbers declined 2.8 percent.

Domestic passengers increased by 6.6 percent with the airport now handling 34 percent more than it did three years ago.

International numbers had been impacted by severe competition from a number of airlines operating out of Auckland.

However, in the coming year Mr Storey was confident that the airport¹s international market would continue previous growth.

Freedom Airlines¹ introduction of five flights a week to Sydney in December and development of its Fiji service would drive this.

The decision by Freedom to introduce its new A320 aircraft was also likely to increase passenger volumes, despite the withdrawal of Melbourne services.

Mr Storey said that one of the highlights of the year was the launch of its commercial land development, Titanium Park.

The company was currently in negotiations with a preferred developer.

A subsidiary company was set up last year to specifically become involved in marketing of the park.

Mr Storey said there had been a significant increase in the number of aircraft movements at the airport, due mainly to British pilot training company, CTC.

At the same time Alpha Aviation had opened its new aircraft manufacturing facility at the airport.

Rejection of Alpha¹s planning approval for the original factory site had been a disappointment.

The company continued to work with Alpha on options to meet its long-term requirements.

ENDS

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