Airport in ambitious spend-up
Auckland International Airport (AIA) has aspirations to be one of the world’s best airport companies once billions of dollars has been spent upgrading it.
But while the investment, running at about $1 million a day, will likely continue for another decade, the ‘‘hardest part’’ of its spend-up is now behind it.
AIA’s profit after tax for the year to June 30 was $332.9 million, up more than a quarter on the previous year.
This came in a year when the airport has been spending more than $1m a day on core infrastructure, with 44 projects now under way across the airport.
AIA chairman Sir Henry van der Heyden said it had been a strong year of growth.
The company was upgrading infrastructure, growing and supporting tourism and wanted to provide ‘‘the best possible customer experience during a time of significant change’’, he said.
Staff not already part of an incentive scheme were paid a $900 bonus, down from last year’s $1500.
AIA chief executive Adrian Littlewood said it had been a strong year where every part of the business performed well. The ‘‘hardest part’’ of the disruption caused by the company’s investment in the airport, particularly in the international terminal, was now behind it.
But there was still another year of projects to be brought on ahead, and the upgrades would likely be the story at the airport for the next five to 10 years.
‘‘These are the byproducts of growth,’’ Littlewood said.
‘‘It’s a fairly material upgrade which will be keeping us busy for some time to come.’’
The company was investing $40m in transport infrastructure over the next year, and without getting into politics, was ‘‘strongly supportive’’ of more public transport to the airport.
Seven new international airlines began flying to the airport this year, and the total number of passengers using the airport grew 10 per cent to 19 million.
International passengers were slightly ahead at 10.4 million.
Littlewood was confident travel growth would continue despite years of increased demand, even if the growth was at a slower rate.
‘‘The natural question is can it continue? We think the conditions remain positive for tourism growth.’’
In June, the airport announced increases in the fees it would charge airlines over the next five years to help for its infrastructure spend-up. Airlines criticised the proposed fees at the time, saying they were ‘‘unjustifiably high’’.
But van der Heyden said these modest price changes for the 2018 to 2022 financial years, and a $2 billion investment plan, would deliver ‘‘significant benefits’’ for passengers.
‘‘The new pricing and capital expenditure programme also balances the needs of passengers, the airport community, the tourism industry, our investors and the airlines – ensuring Auckland Airport has the infrastructure it needs to continue connecting Auckland with New Zealand and New Zealand with the world.’’
Littlewood said the airport had ongoing retail development occur- ring, with 57 new retail concepts launching in the next 18 months.
Digital technology and artificial intelligence were also being incorporated into the customer experience.
‘‘We set a high aspiration … We want to be the world’s best airport company and a proud New Zealand company,’’ he said. ‘‘That’s a very exciting future.’’