Hamilton International Airport releases 2012/13 annual result
18 October 2013 - Hamilton International Airport’s financial year began with Virgin Australia’s announcement that flights to Brisbane would cease in October 2012. Consequently the company’s financial results, released today, were down on last year. Operating revenue for the group was $6.521 million. This was $751,000 less than last year, with $530,000 of that decrease directly attributable to the loss of international flights.
Earnings before interest, tax and depreciation (EBITDA) were $2.313 million, a decreased of $741,000 from last year. The Airport exceeded last year’s Total Comprehensive Income by 50% at $570,000, due to property revaluation gains. It also had a positive net cash flow from operating activities of $681,000, albeit down from last year’s result of $1.615 million which benefited from the operation of international flights. The Airport reduced its core bank debt by $200,000 during the year.
Board Chair, John Birch, said despite the challenging year the Airport’s income diversification strategy lessened the expected negative impacts. “Obviously the loss of Virgin Australia flights had an adverse effect on this year’s result. Because there has always been the risk of aeronautical revenue fluctuation, the Airport has had a long-term strategy to expand its revenue stream with diversification into the Titanium Park development and long-term leases. The income from these streams certainly lessened the impact of the lost international flights,” he said.
During the financial year, Torpedo7 completed construction of its 12,000m² warehouse on the Titanium Park Raynes Precinct and brought more than 100 employees to the new facility. Just following the end of the financial year, the first site within Stage One of the Titanium Park Central Precinct was sold.
In January, the Airport acquired the large aircraft hangars and other buildings occupied by Hamilton Aero Maintenance Limited. “These buildings are strategically important to the Airport, as the main hangar can house a Boeing 737 or Airbus A320 aircraft. Hamilton Aero Maintenance will remain as the long-term lessee,” explained Mr Birch.
The number of domestic passenger movements during the year was 295,000, a decrease of 6.7%. This was primarily the result of less demand for flights on Wellington and Christchurch routes. The Airport’s overall aircraft movements increased by 12% - from 119,000 to 133,000 – predominantly due to increased airline pilot training at CTC Aviation Training (NZ) Limited.
Airport subsidiary, Hamilton & Waikato Tourism Limited completed its second year of operation. It worked closely with the region’s seven local authorities and local tourism operators. The subsidiary received $1.2 million of combined investment and used funds to promote the region domestically and internationally. Tourism agency staff played a vital role in the region achieving record growth in international visitor nights and expenditure.
During the financial year, Hamilton Airport presented an independent report to the Ministry of Transport. The report showed that, in the event of a catastrophic closure of Auckland International Airport, major economic benefits would ensue for New Zealand if Hamilton Airport took a primary role in a nation-wide plan to safeguard international passenger and freight movements. “The Airport continues to be interested in working with the Government to find the ideal failover solution for New Zealand,” said Mr Birch.
Looking forward to the 2013/2014 financial year, Mr Birch said the Hamilton Airport Board is focusing on implementing its new strategic plan. “The Board and Executive developed a new strategic plan for 2013/2014 that aims to ensure the Airport grows and remains a valuable economic contributor to the region. “The strategy includes the evaluation of all possible options to regain international services. The improvement of domestic passenger numbers and services is another key priority. Of course, we remain focused on the continued development and promotion of Titanium Park,” outlined Mr Birch.
To download the full Annual Report, click here.
General Manager – Commercial
Hamilton International Airport
+64 27 575 9720