Hosting about 5.5 million passengers a year, 4.7 million on domestic services and 0.8 million on services with eastern Australia.
Wellington Airport is 8 kilometres from the centre of Wellington City on a 110 hectare freehold site.
Its main airline customers are Air New Zealand, Jetstar, Qantas, Virgin Australia and Fiji Airways. The Airport also hosts a RNZAF facility and a number of general aviation, aeroclub, air ambulance and maintenance operations.
Infratil acquired its 66% interest in Wellington Airport when the Crown sold its shareholding in 1998. Wellington City Council owns 34%.
Over the last fifteen years international passenger traffic has grown 4.1% per annum from 410,000 people in 1999 to 753,000 in 2013.
Over the last five years the growth rate has averaged 4.3% per annum
Over the fifteen years domestic passenger numbers have risen 2.8% per annum from 3,127,000 to 4,684,000. Over the last five years domestic growth was only 0.2% per annum.
Over the next five years the Airport is forecasting annual increases of 133,000 passengers which would give the Airport annual throughput of 6.1 million in 2017.
Further integration of the New Zealand and Australian aviation markets would be expected to increase this growth rate. Over recent years the Australian market has been especially dynamic and has grown via the advent of the cheaper fares offered by low cost carriers such as Jetstar, Tiger and AirAsiaX.
Wellington Airport's business has three areas of particular focus: aviation services provided to airlines, passenger services provided in and around the terminal precinct, and property activities.
The provision of airfield, terminal and other directly related services and facilities are heavily regulated by the Civil Aviation Authority as to safety and Ministry of Transport and Commerce Commission as to price. A key aspect of price regulation relates to the information which the airport must regularly disclose. At present the definition of this information is subject to a review being undertaken by the Commerce Commission.The Airport’s aeronautical charges are reset every five years, the next reset will occur 1 April 2017.
The Airport’s terminal, carparking, public transport and taxi services reflect the best of Wellington and its region. Wellington City is famous for its coffee shops and several are located at the airport. (One of these, Mojo, won the accolade of servicing the best airport coffee in Asia/Pacific and was ranked second best in the world.)
Wellington Airport owns about 15 hectares of land not currently required for aeronautical use. Development of this area has resulted in an increase in income not derived from the air travel activities from about $1miilion per annum a decade ago to $9 million in 2013.
1 Nov 2016
Wellington Airport is pleased to announce its unaudited results for the six months ended 30 September 2016 which reflect steady ongoing passenger growth. The results were a net loss after tax of $5.0 million with underlying earnings showing an EBITDAF before subvention payment 1 of $43.7 million, up 4.5% on...
20 May 2016
Wellington Airport is pleased to present its results for the year ended 31 March 2016 which reflect exceptional passenger growth, especially on international routes. The results were a net profit after tax of $12.5 million, with underlying earnings showing an EBITDAF before subvention payment1 of $86.1 million, up $4.0 million on the...
2 May 2016
Wellington International Airport Limited (“WIAL”) has announced an offer of up to $50 million of seven year, unsecured, unsubordinated, fixed rate bonds maturing on 12 May 2023 to New Zealand retail and institutional investors, with the ability to accept up to $25 million oversubscriptions at WIAL’s discretion.
Full details of the...
The airport is on a small site (110 hectares) close to Wellington City.
Air services are mainly domestic (85%) with international links mainly to Australia. There are a small number of services to Samoa and Fiji.
Growth in services and hence use is dependent on airline activity, in particular on the activities of airlines willing to compete with the dominant local carrier.
Aeronautical charges are reset every 5 years via a consultation process between the Airport and its major customers.
The Airport has relatively little land not committed to aeronautical activities, but the development of this property provides a meaningful contribution to the Airport's income.
Wellington's main risk is from reduced airline services and competition.
In recent years AirNZ (the Airport's main carrier) has twice endeavoured to combine its operations with Qantas (the second largest carrier). These were stopped by the NZ Commerce Commission (confirmed by the High Court) and the Australian Competition and Consumer Commission.
Four material airline users of Wellington have also withdrawn over the last decade.
A second material commercial risk is in respect of ill structured regulation. While Government expressly rejected airport regulation in 2002, it has now initiated the imposition of new economic regulations from 2012. Wellington Airport has managed to ensure it does not warrant economic regulation, however adverse outcomes in this regard can not be ruled out, especially given the political interest.
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