Ann: FLLYR: WIA: Wellington Airport Results for t

• Release Date: 16/05/13 10:59
• Summary: FLLYR: WIA: Wellington Airport Results for the Year Ended 31 March 2013
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WIA
16/05/2013 08:59
FLLYR

REL: 0859 HRS Wellington International Airport Limited

FLLYR: WIA: Wellington Airport Results for the Year Ended 31 March 2013

Wellington Airport is pleased to present its audited Annual Report for the
year ended 31 March 2013.

Chairman and Chief Executive's Report
Since 1998, when Infratil acquired an interest in Wellington Airport, over
$300 million has been invested in terminals, runway upgrades, passenger
facilities and property development. This investment in travel and tourism
infrastructure for Wellington has enabled the airport to cater for passenger
growth from 9,600 a day in 1998 to 15,000 a day in 2013 and become one of the
highest rated for service quality in Australasia.

Growth and returns for investors, ratepayers and the region

With underlying earnings (EBITDAF) of $82.9m, Wellington Airport produced
another strong year. The result reflects good growth in revenue and a
continued focus on efficiency that maintains the airport's position as the
most cost efficient Australasia. The result is a $7.4m or 9.8% increase over
the previous year. The 2013 dividend for Wellington City Council equates to
around $120 per ratepayer and the airport's total economic contribution to
the region was $1.5b, sustaining 10,000 jobs.

We value Air New Zealan''s continued investment as our largest customer,
providing 75% of domestic and international capacity. Strong demand in the
domestic market saw Wellington's capacity on main trunk routes increase by
5.7%, driven by a 34% increase in Jetstar capacity for the year and a
competitive response from Air New Zealand. With an additional 500,000 seats
from the introduction of their ninth aircraft, Jetstar flew 20% of
Wellington's domestic capacity. International passengers were up 1.2% with
the market consolidating following two years of significant growth that
included the RWC 2011.

Five year plan of $200m for travel & tourism infrastructure

Travel and tourism infrastructure investment for the next five years is
forecast to be $200m, which includes the 6,000sqm expansion of the Main
Terminal to the south, improving transport and access to the drop-off area,
two new fire engines and enhancements to the baggage handling system.
Wellington Airport invested $12m in infrastructure over the last 12 months to
ensure the highest level of service and promote growth for the Wellington
region, which has seen passenger numbers increase to 5.4m.

Wellington Airport's service quality ranked third in Australasia

The airport's service quality rankings place Wellington as the third best in
Australasia. We aim to deliver a vibrant retail offering and present a
comprehensive range to meet all visitors' tastes and budgets. Travellers have
more choice than ever with the introduction of Subway, Witchery, Antipodes
and a Burger King outlet attached to a new Z Energy site. By the end of this
year the original 1930's terminal building will be transformed into a
beachfront cafe with stunning views over Lyall Bay and the touchdown zone.
Catering to the different passengers' needs delivered an increase in
passenger services income of 3.8%.

Current returns well below Commerce Commission's benchmark

The Commerce Commission's report on the effectiveness of the information
disclosure regime was issued in February 2013. The report recognised the
airport's transparent and consultative approach to price setting, innovation
and operational efficiency, and high quality passenger experience with
prudent capital investment. The report also concluded that information
disclosure, as a regulatory regime was not able to impact the airport's
profits in the future.

Wellington Airport's current and historic returns are well below the
Commission's benchmark. Also, the airport's per passenger charges are in the
lower range of airports in Australasia and worldwide. These are both key
indicators of actual and future performance, but were not reviewed by the
Commission as it mainly focused on future returns that might not eventuate.
New Zealand's airport prices are low when compared with airports worldwide.
This, coupled with good investment, innovation and strong incentives to drive
travel and tourism growth, demonstrates the current regulatory regime and
market is functioning well.

Supporting the region and the Middle of Middle-earth

Few cities in the world benefit from an airport as conveniently located as
Wellington. This accessibility also means that the effects of airport noise
on the local community are carefully managed and monitored. While the number
of travellers has increased over the last 20 years, the overall noise
generated has significantly declined. In early 2014 the airport and Air Noise
Management Committee are due to implement the plans announced last year to
further protect the community against airport noise with a noise mitigation
package for all dwellings, schools and early childhood centres within the air
noise boundary.

The Hobbit: An Unexpected Journey placed Wellington on the world stage and it
was a privilege to able to support the premiere and welcome visitors with a
13 metre long sculpture of Gollum in the main terminal. The sculpture,
developed by Weta Workshop, was broadcast around the world and was viewed
1.85b times online. The airport was also renamed, The Middle of Middle-earth
for the duration of the trilogy.

This year marks the 10th anniversary of the Wellington Airport Regional
Community Awards and we are looking forward to supporting and recognising the
volunteer organisations that contribute so much to the Wellington Region.

The team at the airport has delivered an outstanding result and the Board has
every confidence in their ability to retain Wellington Airport's position as
one of the top Australasian airports with strong earnings growth.

A copy of the Annual Report for the year ended 31 March 2013 is attached to
this announcement.

Steve Sanderson Chief Executive
David Newman Chairman
End CA:00236289 For:WIA    Type:FLLYR      Time:2013-05-16 08:59:08