Melbourne Airport annual stakeholder update 2013
Aug 27, 2013
Melbourne Airport provided an overview of the airport’s performance over the past year, current projects and future plans to an audience of almost 700 people from business, government and the wider community at the Melbourne Town Hall on Monday night.
“It has been another year of growth in passenger numbers, and we’ve also been preparing the foundations for the biggest transformation of Melbourne Airport,” Melbourne Airport CEO, Chris Woodruff told the audience.
Total passenger numbers grew by 6 per cent during 2012/13 to reach a total of 29.9 million passengers. International passengers increased by 5 per cent to 7.1 million, while domestic passengers grew by 6 per cent to 22.7 million.
Airlines introduced new services, such as the Emirates daily A380 between Melbourne and Dubai and Auckland, while Singapore Airlines increased to four daily services between Melbourne and Singapore. Jetstar reintroduced its service to Honolulu, while Sichuan Airlines commenced direct flights between Chengdu and Melbourne. Qantas, Garuda Airlines, Air New Zealand, Thai Airways, China Eastern, Virgin Australia, Air Asia X, Philippines Airlines and Fiji Airways all increased capacity to Melbourne.
On the domestic front, Jetstar continued its support for its home state with the largest domestic seat capacity increase out of Melbourne. Tigerair continued to rebuild its services. A major refurbishment of Virgin Australia’s domestic terminal was completed during the year, including the arrivals and check-in halls, both terminal concourses and 12 gates.
Mr Woodruff said growth in domestic aviation was driving the development of Melbourne Airport’s new T4 domestic terminal with early works on the project now underway.
Freight continued to play an important role in Melbourne Airport’s operations.
“Melbourne leads Australia’s air freight exports, overtaking Sydney, with a 16 per cent increase in freight exports during the year,” Mr Woodruff said.
Melbourne Airport boosted its capital expenditure by 21 per cent to $249 million during 2012/13, with investments in airside and landside projects, including new apron areas on the airfield; the upgrade of the terminal forecourt; road network upgrades; further expansion of the freight area and a new airside road.
There was more than $100 million of development undertaken in Melbourne Airport’s business park during the year, including new warehousing and logistics facilities for companies such as Borders Express, Fellowes, Panalpina and ABR.
Mr Woodruff noted that Melbourne Airport’s privately-funded investment in airport infrastructure every year for the next few years, on average, would be the equivalent of twice the level of profit before tax and change in the fair value of investment property for 2012/13 or more than four times the total revenue earned from car parking last year.
“This will include further upgrades and expansion works to our international terminal, with more space and better facilities for passenger processing, more check-in facilities, and more aircraft gates.”
Total revenue for Melbourne Airport’s owners, Australia Pacific Airports Corporation, increased by 9 per cent to $642 million. Profit before tax and change in the fair value of investment property also increased by 9 per cent to $245 million for 2012/13.
In addition to physical infrastructure, Melbourne Airport has been actively planning for its growth over the next two decades through the preparation of the 2013 draft master plan.
The draft master plan includes a proposed third runway for Melbourne Airport – to be operational around the end of this decade – and a long term solution for ground transport access on the airport precinct through the construction of an elevated loop road system.
Mr Woodruff said Melbourne Airport’s strong investment in new roads, terminals and airfield facilities needed support from all levels of government, particularly in respect of improving access to the airport.
“We are upgrading our road network, and subject to final approvals, will soon start work on a new access route to the airport from the M80 Western Ring Road through the Airport Drive extension project,” Mr Woodruff said.
“Federal and state governments also need to look at investments in upgrading the Tullamarine Freeway in the short term, including dedicated transit lanes for airport transport operators such as Skybus. We also need a commitment to get on with building an airport rail link so that people can take the train to the airport sooner rather than later.”
Mr Woodruff said safety and security were at the core of Melbourne Airport’s operations.
“For the year 2012/13, there were 664, 000 construction hours worked with one lost time injury.
“From a security perspective, we delivered a secure landside and airfield precinct, maintaining all requirements with no major security incidents that adversely impacted our operations.
“As our construction program accelerates in coming months, safety will continue to be our top priority,” Mr Woodruff said.
Further information on Melbourne Airport’s annual stakeholder update is available here.