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Wellington Airport July 2007 Traffic Statistics

16 Aug 2007

International passengers grew at 3.8% pcp in July in the face of a 3% fall in capacity. Airline load factor was up 5 points on last year to 75.6%. At the end of the first quarter, year to date growth in international passengers now stands at 7%, with seats down 3%. Growth continues to remain robust however demand is constrained with passengers
growing strongly despite withdrawal of seats. Some Australian sectors in particular offer little further room for further growth without additional capacity.

Despite strong demand, domestic passenger volumes remain far more subdued with growth of 2.4% in July on a 2.7% fall
in seats. Domestic load factor in July was 4 points above the previous year at 75%. Year to date, domestic passengers
are now level with the previous year despite a 4.2% fall in
seat capacity. Stronger growth is unlikely to be seen unless there is a significant change to the make-up of the domestic airline market.

Terminal developments are continuing with construction progressing on the new landside duty free store, and new foreign exchange outlets also scheduled for construction in coming months. The airside works construction programme to add an additional aircraft aerobridge gate is also underway and is progressing in line with expectations.

The Airport Retail Park growth continues with three further
tenants opening in recent weeks. Rebel Sports, Mint Cafe and Lighting Direct are now trading in the precinct.

Air NZ has filed proceedings against the new charges announced by WIAL in June 2007. The new charges provide for a 2.85% increase in WIAL's charges annually for 5 years
with the first increase applying on 1 July 2007. The increase in annual charges amounts to 30c per passengers on
jet aircraft and 15c per passenger on domestic regional aircraft. WIAL undertook a comprehensive consultation process with the airlines over the 12 months preceding announcement of the new charges. The process was consistent
with approaches undertaken by WIAL in past consultations and produced a robust and constructive outcome.

The increase is required to support a major capital expenditure programme that WIAL has underway that will:

  • produce enhanced runway safety benefits;
  • relieve congestion in the international terminal for arriving and departing passengers; and
  • provide further aircraft gate capacity with the current facilities now fully utilised on occasions.

Completion of the development programme over the next two years will provide significant improvements for passengers and airlines alike.

WIAL will strongly defend the proceedings from Air NZ and is confident that its new pricing will be confirmed to be appropriate.

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