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time flies. perth airport annual reportW e s t R A l i A A i R P O R t s C O R P O R A t i O N A B N 2 4 0 7 7 1 5 3 1 3 0 . P O B O X 6 , C l O V e R D A l e , W e s t e R N A U s t R A l i A 6 9 8 5 A U s t R A l i A . W W W . P e R t H A i R P O R t . C O m
7 80 07 80 0
‘the desire to fly is an idea handed down to us by our ancestors who... looked enviously on the birds
soaring freely through space... on the infinite highway of the air.’
w i l b u r w r i g h t, i n v e n to r o f t h e f ly i n g M a c h i n e
c h a i r M a n ’ s r e v i e w 5
c h i e f e x e c u t i v e o f f i c e r ’ s r e v i e w 9
p a s s e n g e r s ta t i s t i c s 12
f i n a n c i a l s ta t i s t i c s 17
f i n a n c i a l r e s u l t s s u M M a r y 21
a e r o n a u t i c a l 25
a i r f i e l d a n d t e r M i n a l d e v e l o p M e n t s 29
r e ta i l a n d c a r p a r k s 32
p r o p e r t y 35
e n v i r o n M e n t 39
s a f e t y a n d s e c u r i t y 45
M a J o r a i r p o r t r e d e v e l o p M e n t p l a n s 47
c o M M u n i t y 51
a b o u t w e s t r a l i a a i r p o r t s c o r p o r a t i o n 57
c u r r e n t b o a r d o f d i r e c t o r s 61
M a n a g e M e n t t e a M 64
contents
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C O N t e N t s
This report is one of three published reports covering the company’s
activities during the 2007/08 financial year. It is structured to respond
to the company’s corporate objectives, to demonstrate progress
and to accurately reflect achievements during the 2007/08 financial
year. The Annual Financial Report is contained within this document
and the Environment Report is published separately. All reports can
be downloaded from the Perth Airport website perthairport.com
a b o u t t h i s a n n u a l r e p o r t
6 00 0
mACHiNe OPeRAtOR, fly-iN fly-OUt.
Not everyone can say they catch a plane to the
‘office’. It’s an early morning start for Larissa as
she boards her flight, destination Paraburdoo.
Larissa is one of the thousands of workers
associated with WA’s strong resources sector
who use the airport on a regular basis.
Larissa
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H A i R m A N ’ s R e V i e W
6
By all measures the financial year ended 30 June
2008 was a very successful one for Westralia Airports
Corporation. Our company made good progress in
its continuing efforts to meet the needs of our
many stakeholders.
The geography and demography of our state means
that aviation plays a vital role in the social, cultural
and economic lives of most Western Australians
whether they live and work in Perth or in regional
and remote communities. Westralia Airports
Corporation understands the responsibilities that
come with being custodian of one of the most
important public infrastructure assets in our State.
We have experienced unprecedented demand for
airport services over the past five years, reflecting
the strength of global, national and state economies.
In the past five years for example, the number of
domestic passenger movements at Perth Airport has
increased by 82 per cent and increased by 13.6 per
cent last financial year.
This is three times the long run average growth rate.
We continued to support the growth plans of all
airlines operating to Perth and, with the support of
Tourism Western Australia, we have been able to
attract new airlines to commence services.
Of particular relevance to our business has been the
burgeoning demand for aviation and property
services for the state’s resources sector. The level of
General Aviation/Charter activity at Perth Airport
(as measured by aircraft landed tonnage) has
increased by 120 per cent in the past three years and
now accounts for over 40 per cent of all aircraft
movements.
Perth Airport is truly an essential element of the
logistics/supply chain of the state’s resources sector
with many of the sector’s employees and services
being provided on a “fly-in/fly-out” basis from Perth
Airport. Also, many of the companies providing
services to the sector have chosen to locate their
major facilities at Perth Airport given their need for
aviation services and the location of Perth
Airport in relation to other transport infrastructure,
such as the Kewdale freight rail facility and
Fremantle Port.
The rapid rate of growth in aviation services has
meant that the level of customer service during peak
operating periods, particularly in the Domestic and
General Aviation precincts, has become unsatisfactory.
The company has been acting decisively to improve
customer service levels with significant investments
made during the year in airfield, terminals and car
parking facilities.
Our capital investment of $97m during the year was
the highest ever.
We welcomed the decision taken by Qantas Airways
during the year to invest around $50m to improve
the terminal the airline owns and operates at Perth
Airport. These investments, which are underway,
will substantially improve the customer experience
in the Qantas Terminal.
During the year the company capitalised on the
favourable conditions to achieve excellent financial
results. Profit before Income Tax of $84.5 million was
44 per cent higher than the prior year. The company’s
strong operating cash flows underpinned a further
significant increase in shareholder value.
At 30 June 2008 the company’s balance sheet was
sound, reflecting adherence to capital management
policies that seek to preserve the company’s
investment grade credit rating. With a leverage ratio
(debt to equity) of 38 per cent and strong operating
cash flows the company is well positioned to fund
future investments in our airport and property
development businesses to further capitalise on
opportunities and grow shareholder value.
The resilience of Perth Airport’s business continued
to be demonstrated during the year. Our aeronautical
business has good balance between international,
interstate and regional markets and a high
proportion of higher yielding business and “visiting
friends and relatives” travellers. Also, the diversity
afforded by the company’s industrial and commercial
property revenue streams was demonstrated with
strong property revenue performance from a growing
“blue chip” tenant base.
This resilience was demonstrated when, during the
period of historically high jet fuel costs in 2008,
airline seat capacity and passengers at Perth Airport
continued to grow.
During the year the company announced plans to
undertake a phased redevelopment of the airport,
based on consolidating all regular passenger
transport services into one precinct.
This redevelopment is expected to occur over the
next five to seven years.
Work has commenced on the first phase of the
redevelopment, centred on the construction of a new
terminal purpose-built for regional air services and
also some interstate domestic services.
Other elements of phase 1 include improvements to
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H A i R m A N ’ s R e V i e W
chairMan’s review
5 6
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H A i R m A N ’ s R e V i e W
the existing terminals and construction of an
on-airport public road linking the domestic and
international precincts. The phased nature of our
redevelopment plans substantially mitigates
associated risks and allows the company to time the
investments according to changing market demand.
During the 2009 financial year the company is
reviewing its capital structure and will be raising
funds to refinance a maturing $405m bank loan and
to support the first phase of the redevelopment.
Notwithstanding the uncertainty surrounding credit
markets that has emerged in 2008, the
fundamental strength of the business is expected
to underpin access to required funding.
During the year the company continued with its
efforts to comprehensively engage with our key
stakeholders. We appreciated the opportunity to
work with the local councils that have an association
with Perth Airport through the Perth Airports’
Municipalities Group, which is chaired by the Mayor
of the City of Belmont. We also appreciated the
involvement of senior representatives of
government, industry and airlines in the Perth
Airport Advisory Board, which exists to facilitate
stakeholder input into Perth Airport’s operations
and plans.
As our annual report is released considerable
uncertainty has emerged in relation to global
economic conditions. The strong financial standing
of our company, the diversity of our cash flows and
the ability to stage our capital expenditure means the
company is well positioned for continuing success.
f 1 R s t tA X A N D D U t y f R e e s tO R e s W e R e C O m P l e t e ly R e f U R B i s H e D At O U R i N t e R N At i O N A l t e R m i N A l .
7 8
c h a i r M a n . d av i d c r aw f o r d
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H i e f e X e C U t i V e O f f i C e R ’ s R e V i e W
During the year ended 30 June 2008 Perth Airport continued to deliver safe, reliable and affordable services for our many customers and to deliver strong returns to our shareholders.
Our first measure of performance is employee and
public safety and it is pleasing to report that there
were no major incidents during the year. This is
commendable given the substantial increase in
tempo of all aspects of Perth Airport’s operations.
Aviation security remained a foremost consideration
and in May 2008 our contingency plans were fully
tested during a 12 hour evacuation of the
international terminal precinct due to security
concerns about packages from an international
aircraft. The incident was an important demonstration
of our ability to deal with emergencies, however it
caused significant inconvenience to all involved.
We acted decisively during the year to improve
levels of customer service, delivering 25 new aircraft
parking positions, terminal enhancements, improved
roads and more car parking. These investments are
continuing and include a substantially enhanced
long term car parking product, which commences
operations in November 2008 and further terminal
improvements. By the end of the financial year
Qantas Airways had made good progress with its
major refurbishment of the Qantas Domestic
Terminal. Qantas expects to complete these works
in 2009 and they will deliver noticeable
improvements in all aspects of the customer
experience including, check-in, security screening,
expanded departure and business lounges,
additional aerobridges and new baggage
reclaim carousels.
Commencing in 2009 we also plan to redevelop the
road and pedestrian zone at the front of the
domestic terminals. This will include dedicated
pick-up and drop-off lanes, improved taxi services
and covered walkways. We expect this project to be
completed in 2009.
In May 2008 we released our vision for the new
Perth Airport, which involves bringing forward plans
to consolidate all large aircraft services into the
current international precinct. The consolidation is
expected to occur in phases over the next five to
seven years. We commenced the first phase this year,
including construction of the aircraft apron for our
new terminal, Terminal WA and the on-airport public
road linking the international and domestic precincts.
Good progress is being made with the planning of
the subsequent phases of the airport consolidation.
As this report is being released we were pleased to
note the decision by the Western Australian
Government to nominate major regional road
network upgrades around Perth Airport as a priority
infrastructure project for the State. This decision
demonstrates the Government’s recognition that
Perth Airport is a major driver of economic
prosperity and productivity in the State.
Investments in regional roads by the State and
Commonwealth Governments are necessary to
support the consolidation of Perth Airport and will
compliment the major investments our company is
making at Perth Airport.
During the year our airlines capitalised on the strong
demand for air services. Western Australian’s are
benefiting from more choice in terms of destination
and airlines, increased service frequency and lower
airfares from more competition.
Competition intensified during the year with the
increased presence of low cost airlines. Tiger Airways
and the Qantas subsidiary Jetstar have added
services and brought more price competition to the
market. We were also extremely pleased by the
decision by AirAsia X to commence regular services
between Perth and Kuala Lumpur.
These services will connect to AirAsia’s extensive
Asian network, providing more travel options for
Western Australian’s and greater access for
international visitors.
We have experienced remarkable growth in air
services to regional Western Australia, largely
driven by the needs of the resources sector.
Airlines including Qantas, Skywest, Alliance,
National Jet, Skippers and OzJet have all increased
services to regional centres and recently Virgin Blue
commenced services to Karratha and Newman with
their new Embraer aircraft.
Demand for Perth Airport’s property services was
also strong during the year and we continued to
attract high quality companies to our Estate.
One example being RIO Hammersley Iron’s decision
to locate its new Operations Centre at Perth Airport.
From this centre, which is under construction, the
company will operate its Pilbara rail network and
other critical infrastructure. Our growing property
rent roll represents increasing diversity in our
company’s revenue streams, which will assist should
events adversely impact our aviation business.
Investments were also made during the year to
further grow our retail and ground transport
revenue streams. Passenger spend rates and
propensity to use our services have both increased
as a result of these investments.
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H i e f e X e C U t i V e O f f i C e R ’ s R e V i e W
chief executive officer’s review
9 10
03/04 04/05 05/06 06/07 07/08
2,000
4,000
6,000
8,000
10,000
i n t e r n a t i o n a l p a s s e n g e r s
F I V E Y E A R C O M P A R I S O N F O R I N T E R N A T I O N A L A N D D O M E S T I C P A S S E N G E R S .
d o m e s t i c p a s s e n g e r s t o t a l p a s s e n g e r s
000's
03/04 04/05 05/06 06/07 07/08
0
0
10
20
30
40
50
60
70
international movements
F I V E Y E A R C O M P A R I S O N F O R I N T E R N A T I O N A L A N D D O M E S T I C M O V E M E N T S .
domestic movements total movements
000's
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P A s s e N G e R s t A t i s t i C s
I N T E R N AT I O N A L PA S S E N G E R S C H A N G E
2003-04 1,766,538 154,030 9.6%
2004-05 1,977,262 210,724 11.9%
2005-06 2,027,223 49,961 2.5%
2006-07 2,221,298 194,075 9.6%
2007-08 2,512,656 291,358 13.1%
I N T E R N AT I O N A L M O V E M E N T S C H A N G E
2003-04 9,356 684 7.9%
2004-05 10,556 1,200 12.8%
2005-06 10,537 -19 -0.2%
2006-07 11,391 854 8.1%
2007-08 12,907 1,516 13.3%
D O M E S T I C M O V E M E N T S C H A N G E
2003-04 43,642 664 1.5%
2004-05 45,562 1,920 4.4%
2005-06 45,345 -217 -0.5%
2006-07 47,882 2,537 5.6%
2007-08 53,663 5,781 12.1%
D O M E S T I C PA S S E N G E R S C H A N G E
2003-04 4,271,810 551,655 14.8%
2004-05 4,677,704 405,894 9.5%
2005-06 5,107,657 429,953 9.2%
2006-07 5,868,219 760,562 14.9%
2007-08 6,666,498 798,279 13.6%
p a s s e n g e r s ta t i s t i c s
Source: WAC
Source: WAC
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C H i e f e X e C U t i V e O f f i C e R ’ s R e V i e W
During the year we also made good progress with
our management of the natural environment. We
developed and have commenced to implement our
Sustainability Strategy, which includes measures to
reduce our company’s carbon footprint and to assist
airlines and tenants to improve their environmental
performance.
In April 2008 we took the opportunity to make an
extensive submission to the Commonwealth
Government as part of the review of the
Government’s national aviation policy settings and
will be actively involved in the Government’s policy
review processes during 2009.
Despite the uncertain economic outlook that has
become apparent from mid 2008 Western Australia
and Perth Airport are well positioned to continue to
capitalise on the advantages of the state including
its natural resources and proximity to developing
Asian economies.
The Perth Airport community is extensive.
It includes the staff of our company, airlines, the
agencies that protect our safety, security and border
integrity and our Gold Coat volunteers. On behalf of
Perth Airport I express our sincerest appreciation to
all people in our airport community without whom
our company could not succeed.
We have entered this year with sound plans and
strong finances that will underpin our continued
successful operation and improvement of
Perth Airport.
chief executive officer’s review
c h i e f e x e c u t i v e o f f i c e r . b r a d g e at c h e s
11 12
Domestic total 73%
International total 27%
Total break up in domestic andinternational passengers for
Perth Airport FY 2007/08
Total break up in internationalpassengers arrivals by airline for
Perth Airport for 2007/08
Total break up in internationalpassengers arrivals by region of
nationality for Perth Airport for 2007/08
Qantas Airways 21%
Singapore Airlines 21%
Emirates 14%
Malaysia Airline System 8%
Garuda Indonesia 8%
Thai Airways International 6%
Cathay Pacific 5%
Air New Zealand 5%
South Afican Airways 4%
Tiger Airways 4%
Royal Brunei 2%
Air Mauritius 2%
OzJet | IndoJet
Australia
South East Asia
UK
Europe and former USSR
North East Asia
New Zealand
Africa
North America
Middle East
South/Central America
Other
03/04 04/05 05/06 06/07 07/08
3,500
4,000
3,000
2,500
2,000
1,500
1,000
500
inte rnat iona l tonnes l anded
F I V E Y E A R C O M P A R I S O N F O R I N T E R N A T I O N A L A N D D O M E S T I C T O N N E S L A N D E D
domest i c tonnes l anded tota l tonnes l anded
000's
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A i R C R A f t A C t i V i t y p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P A s s s e N G e R s t A t i s t i C s
a i r c r a f t a c t i v i t y
I N T E R N AT I O N A L T O N N E S L A N D E D C H A N G E
2003-04 1,005,217 39,829 4.1%
2004-05 1,080,716 75,499 7.5%
2005-06 1,131,831 51,115 4.7%
2006-07 1,183,237 51,406 4.5%
2007-08 1,274,653 91,415 7.7%
D O M E S T I C T O N N E S L A N D E D C H A N G E
2003-04 1,487,576 69,274 4.9%
2004-05 1,597,355 109,779 7.4%
2005-06 1,738,600 141,245 8.8%
2006-07 2,085,900 347,300 20.0%
2007-08 2,300,875 214,975 10.3%
Source: WAC
Source: WAC Source: DIAC Source: DIAC
*DIAC Department of Immigration and Citizenship
13 14
F I V E Y E A R C O M P A R I S O N F O R A U S T R A L I A N N A T I O N A L I T Y P A S S E N G E R D E P A R T U R E S F O R P E R T H A I R P O R T
100,000
200,000
300,000
400,000
500,000
600,000
700,000
F Y 0 3 / 0 4 F Y 0 4 / 0 5 F Y 0 5 / 0 6 F Y 0 6 / 0 7 F Y 0 7 / 0 8
50,000
100,000
150,000
200,000 FY 03/04FY 04/05FY 05/06FY 06/07FY 07/08
U K S i n g a p o r e M a l a y s i a N e w Z e a l a n d J a p a n I n d o n e s i a S o u t h A f r i c a G e r m a n y C h i n a I n d i a
FIVE YEAR COMPARISON FOR TOP TEN INTERNATIONAL PASSENGER ARRIVALS BY NATIONALITY FOR PERTH AIRPORT
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P A s s e N G e R s t A t i s t i C s p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P A s s e N G e R s t A t i s t i C s
p a s s e n g e r s ta t i s t i c s
A i r L i n e C A p A C i t y r e p o r t i n t o p e r t h f r o m L A s t p o r t - t w o y e A r C o m p A r i s o n
port Airline total 2007/2008 flightstotal 2007/2008 Available seats
total 2006/2007 flightstotal 2006/2007 Available seats
Auckland Air New Zealand 303 71,108 315 73,710
Bangkok / Phuket Thai Airways 261 82,675 244 74,420
Brunei Royal Brunei 245 48,164 257 49,676
Cocos / Christmas Island National Jet 124 9,446 137 10,388
Denpasar Garuda 620 96,459 448 74,256
Ozjet 81 8,394
Qantas 166 27,888 97 19,059
Dubai Emirates 732 239,241 702 227,561
Hong Kong Cathay Pacific 246 76,554 209 65,061
Qantas 157 42,041 156 39,492
Jakarta Garuda 206 20,657 156 26,347
Qantas 147 24,696 154 25,872
Johannesburg Qantas 6 2,700
South African Airways 268 68,602 266 65,557
Kuala Lumpur Malaysian Airlines 481 139,357 469 142,200
Mauritius Air Mauritius 104 31,386 87 20,832
Singapore Qantas 729 224,570 730 217,234
Singapore Airlines 1,036 334,442 1,033 333,367
Tiger Airways 384 69,120 84 15,120
Tokyo - Narita Qantas 157 37,149 156 38,826
totAL 6,453 1,654,649 5,700 1,518,978
Source: WAC
Source: DIAC
Source: WAC
15 16
Operating revenues for FY 2007/08 Operating expenses for FY 2007/08
Aeronautical charges 35%
Commercial trading 16%
Ground transport services 16%
Property 13%
Recharge property services costs 7%
Fair value adjustment to investment 12%
Finance revenue 1%
Employee expenses 16%
Services and utilities 27%
Leasing and maintenance 3%
Depreciation and amortisation 11%
Primary debt interest 32%
Secondary debt interest 10%
Other debt interest 1%
F I V E Y E A R C O M P A R I S O N F O R E X P E N S E S
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0 $m
F I V E Y E A R C O M P A R I S O N F O R O P E R A T I N G R E V E N U E
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
$m
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . f i N A N C i A l s t A t i s t i C s p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . f i N A N C i A l s t A t i s t i C s
L A B O u R & O V E R H E A D S S E R V I C E S & u T I L I T I E S GENERAL ADMIN ISTRAT ION L E A S I N G & M A I N T E N A N C E
Actual 03/04 ($m) 11.1 16.7 8.3 2.6
Actual 04/05 ($m) 11.8 20.8 15.0 2.9
Actual 05/06 ($m) 13.7 24.5 18.4 2.9
Actual 06/07 ($m) 14.2 25.6 28.3 3.7
Actual 07/08 ($m) 19.3 33.3 -0.7 4.2
f i n a n c i a l s ta t i s t i c s f i n a n c i a l s ta t i s t i c s
Source: WAC
Source: WAC Source: WAC
A E R O N A u T I C A L T R A D I N G G R O u N D T R A N S P O R T P R O P E R T y R E C H A R G E O T H E R
Actual 03/04 ($m) 43.6 21.6 15.9 16.4 7.3 1.3
Actual 04/05 ($m) 49.6 24.6 19.2 18.3 9.1 1.0
Actual 05/06 ($m) 56.4 25.8 23.6 19.4 10.4 0.8
Actual 06/07 ($m) 64.7 28.2 27.4 23.8 11.3 0.9
Actual 07/08 ($m) 73.3 32.6 34.2 26.0 14.3 0.9
Source: WAC
17 18
7 50 1
AiR tRAffiC CONtROlleR,
AiRseRViCes AUstRAliA
Phil has one of the best views of the sunrise
and the team in the control tower oversaw
the safe handling of more than 107,000
departures and arrivals in 2007/08.
phil
A
s t A t e m e N t O f f i N A N C i A l P e R f O R m A N C e f O R t H e f i N A N C i A l y e A R e N D e D 3 0 J U N e 2 0 0 8 .
A C t U A l 0 7 / 0 8 * A C t U A l 0 6 / 0 7 * A C t U A l 0 5 / 0 6 * A C t U A l 0 4 / 0 5 * A C t U A l 0 3 / 0 4
$ m $ m $ m $ m $ m
R e V e N U e s f R O m C O N t i N U i N G O P e R At i O N s e X C l U D i N G f i N A N C e R e V e N U e
Aeronautical charges 73.3 64.7 56.4 49.6 43.6
Commercial trading 32.6 28.2 25.8 24.6 21.6
Ground Transport Services 34.1 27.4 23.6 19.2 15.9
Property 26.0 23.8 19.4 18.3 16.4
Recharge property service costs 14.3 11.3 10.4 9.1 7.3
Other 0.9 0.9 0.8 1.0 1.3
tOtA l R e V e N U e s f R O m C O N t i N U i N G O P e R At i O N s e X C l U D i N G f i N A N C e R e V e N U e 181.2 156.2 136.4 121.8 106.0
Ot H e R i N C O m e e X C l U D i N G f i N A N C e R e V e N U e
Fair value adjustment to investment land and buildings 24.8 83.7 36.4 12.9 6.8
Other 0.0 0.1 0 0.0 0.0
tOtA l Ot H e R i N C O m e e X C l U D i N G f i N A N C e R e V e N U e 24.8 83.8 36.4 12.9 6.8
O P e R At i N G e X P e N s e s
Employee expenses 19.3 14.2 13.7 11.8 11.1
Services and utilities 33.3 25.6 24.5 20.8 16.7
General administration and other -0.7 28.3 18.4 15.1 8.3
Leasing and maintenance 4.1 3.7 2.9 2.9 2.6
tOtA l O P e R At i N G e X P e N s e s 56.0 71.9 59.5 50.7 38.8
EBITDA** 150.0 168.0 113.3 84.0 74.0
financial results suMMary
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . f i N A N C i A l R e s U l t s s U m m A R y
s t A t e m e N t O f f i N A N C i A l P e R f O R m A N C e f O R t H e f i N A N C i A l y e A R e N D e D 3 0 J U N e 2 0 0 8 . ( C O N t i N U e D )
A C t U A l 0 7 / 0 8 * A C t U A l 0 6 / 0 7 * A C t U A l 0 5 / 0 6 * A C t U A l 0 4 / 0 5 * A C t U A l 0 3 / 0 4
$ m $ m $ m $ m $ m
f i N A N C e R e V e N U e
Interest revenue 2.0 1.7 1.6 1.0 0.7
tOtA l f i N A N C e R e V e N U e 2.0 1.7 1.6 1.0 0.7
N O N O P e R At i N G e X P e N s e s
Depreciation and amortisation 13.1 14.4 11.4 12.4 15.4
Interest expense
- Primary debt holders 40.3 36.0 44.7 38.7 38.0
- Secondary debt holders 12.9 16.4 18.6 20.6 18.2
- Other 1.2 2.3 1.7 0.2 0.2
- Other borrowing expenses 0.0 42.1 14.2 0.6 0.6
tOtA l N O N O P e R At i N G e X P e N s e s 67.5 111.2 90.6 72.5 72.4
O P e R At i N G P R O f i t / ( l O s s ) B e f O R e i N C O m e tA X 84.5 58.6 24.3 12.6 2.3
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . f i N A N C i A l R e s U l t s s U m m A R y
* Revenues and expenses accounted for per International Financial Reporting Standards from 2004/05 onwards
** EBITDA represents Earnings before interest, tax, depreciation and amortisation.
21 22
9 00 0
fiRe fiGHteR, AiRseRViCes AUstRAliA
Ever vigilant....Paul prepares for an emergency
response training exercise and he is one of the
many fire-fighters working at Perth Airport.
paul
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A e R O N A U t i C A l .
In November we celebrated the 50 year
anniversary of services by South African Airways to
Perth. South African Airways was the first foreign
airline to operate scheduled international
passenger services to and from Perth and the
airline now operates five return flights per week.
In the domestic sector, growth in domestic
passenger movements increased by 13.6 per cent to
6.67 million and general aviation tonnage (general
aviation plus charter and freight flights) grew at
12.6 per cent. General Aviation now accounts for
approximately 40 per cent of all aircraft
movements at Perth Airport which is largely driven
by the strength of the State’s resources sector and
its increased demand for fly-in fly-out workers.
Significant growth was experienced in regional
domestic passengers, up to 23.9 per cent while
interstate domestic passengers were up 9.8 per cent.
Jetstar commenced daily services to Melbourne in
November, in addition to their services to Avalon.
Tiger Airways commenced its first daily Melbourne
service in November 2007 and a second Melbourne
service in October 2008.
A number of intra-state destinations had significant
increases in capacity either through higher
frequencies or larger aircraft, including Karratha,
Port Hedland, Newman, Albany, Exmouth and
Geraldton. The growth in domestic services,
particularly for airlines operating in Terminal 3
(operated by Westralia Airports Corporation), is
expected to continue with Virgin Blue announcing
further additional daily Sydney and Brisbane
services by the end of August 2008 and the award
of a major resources sector contract to Skywest.
Frequent visitors to the domestic terminals will be
aware that during peak periods of operation airport
facilities can be congested. The sustained high levels
of growth at Perth Airport and unique air traffic
patterns are the main reason why the investment in
a new Perth Airport, including the construction of a
terminal dedicated to intrastate flights has been
brought forward. Through this investment the
airport will continue to grow to meet the forecast
demand.
Passenger figures surpass nine million
AirAsia X announces plans to commence Kuala Lumpur to Perth services
Sustained high levels of growth in domestic services
Strong demand for air services in Western Australia
saw a significant growth in passenger figures,
resulting in a 13.24 per cent increase in aviation
revenue to $73.27m for 2007/08. Perth Airport’s
growth continued to break new ground with 9.18
million passengers recorded in the 2007/08
financial year, representing an increase of 13.5
per cent on the 2006/07 figure of 8.1 million
passengers.
This result maintains Perth Airport as Australia’s
fourth largest airport in terms of passenger traffic
and the fastest growing capital city airport in the
country. In the international sector, passenger
movements were up 13.1 per cent to 2.51 million,
with major growth seen in Australian nationals
travelling, up 20 per cent on the previous year,
signalling a strong local economy and consumer
confidence.
We saw significant increases in airlines’ capacity,
including Tiger Airways celebrating their first full
year of flying daily between Perth and Singapore in
May 2008. Qantas Airways, Garuda and Ozjet
collectively increased their capacity to Bali by 41 per
cent for the year. Cathay Pacific increased services
from four to five services per week to Hong Kong in
December 2007. Air Mauritius also increased from
two services per week to three throughout the
2007/08 year.
In May 2008, AirAsia X, part of the AirAsia Group,
announced plans to commence services with six
return flights per week between Perth and Kuala
Lumpur, increasing to daily return services in March
2009. The service will operate using a wide bodied
Airbus A330 aircraft, giving passengers a level of
service not normally expected from low cost airlines.
The increase in demand for services to south-east
Asia has prompted Garuda to increase their capacity
to triple daily flights to Bali in October 2008 and
Jetstar will take over Bali services from Qantas
Airways also late 2008.
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A e R O N A U t i C A l .
the year in review. aeronautical
25 26
0 51 1
stUDeNt tRAVelleR
There is no better way to celebrate the end
of university life than a little bit of duty free
shopping before Sabrina jets off on a
backpacking holiday to sunny Spain.
sabrina
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A i R f i e l D A N D t e R m i N A l D e V e l O P m e N t s . p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A i R f i e l D A N D t e R m i N A l D e V e l O P m e N t s .
the installation of water use reduction devices,
enabling significant amounts of water to be saved
and improvements to parenting rooms and
facilities for special needs passengers.
In addition to these Terminal works, Qantas
(operating Terminal 2) initiated a major $50m
upgrade program to take place over the next two
years and includes more security screening points, an
increase in the overall departures floor area, a
larger and improved Qantas Club and Chairman’s
Lounge and additional aerobridges to enable direct
terminal access to their aircraft.
Improvements within the International Terminal
included the installation of a quality tiled floor
space and the upgrading of the lighting throughout
the building. Renovations at the entrance to the
airside departures lounge to create a new walk
through duty free outlet for F1RST Duty Free were
completed and work commenced for the new food
and beverage outlets planned for delivery in the
2008/09 financial year.
During the year major airfield upgrades across all
aspects of the airport were completed at a cost of
more than $10m. Terminal 3 contact bays were
reconfigured to allow more flexible and simplified
aircraft parking arrangements. This has allowed
for additional aircraft parking, necessary with the
increased demand for domestic travel. An
additional eight Code C (B737/A320) aircraft
parking bays were also constructed enabling our
airline business partners to grow their aircraft
fleets and services from Terminal 3.
A new, larger apron area for freighter aircraft was
constructed at Terminal 3 and this has eased
parking congestion in this area.
Works also included a new apron taxi lane providing
direct access to the runway 06 threshold which has
facilitated the improved flow of domestic aircraft
during southerly operations.
Perth Airport undertook the additional construction
of a new remote parking apron investing $4m in the
construction of four new parking bays for Qantas.
These new bays have provided remote aircraft
parking for the airline and have assisted in relieving
pressure on common user parking bays.
The resurfacing of the taxiway C has increased
reliability and a partial reconstruction and widening
of taxiway H has provided additional flexibility by
enabling that taxiway to accommodate wide bodied
aircraft. A new runway lighting system is being
installed on the main runway and includes the
replacement of the approach lighting system to the
cross runway. The Southern approach to the main
runway is also having a new Category 1 approach
lighting system installed. These new lights are now
compliant with the current standard and therefore
suit current operations and provide better light
output which is ultimately safer in poor visibility
conditions. New inset runway lights were also
installed as they are designed to accommodate
Nearly $100 million in capital works programs invested
Delivery of twenty five new aircraft parking bays
Expanded gold coat volunteer program for arriving and departing passengers
In 2007/08 a significant capital works program,
approaching $100m was undertaken; the largest
investment ever made at Perth Airport. With
unprecedented growth in domestic passenger
numbers, the majority of works were undertaken in
the domestic precinct.
Road works to improve traffic flow in and around
the Domestic Terminals commenced. These upgrades
to the road network around the airport will
substantially improve the flow of traffic,
particularly during peak periods. While there have
been immediate improvements, including a new
roundabout, additional changes to the road network,
including the front of terminal traffic flow, will
continue well into the next financial year.
In November 2007 a $6.2m baggage screening
system to x-ray all checked baggage for domestic
flights departing from Terminal 3, (servicing Virgin
Blue, Skywest, OzJet, Alliance and Tiger domestic
services) was completed.
The project was primarily required to meet Federal
Government security regulations but also delivered
baggage handling capacity improvements.
The additional capacity was complimented by the
opening of two additional check-in counters later in
the month which were required to service the
growing number of early morning flights from the
terminal.
The completion of a third baggage reclaim belt for
Qantas in April 2008 also enabled passengers to
walk internally between Terminals 2 and 3 for the
first time, providing all weather protection for
passengers and visitors and relieving congestion on
the external forecourt pavement.
The renovation of the restrooms at Terminal 1 and
Terminal 3 continued throughout the year with a
complete rebuilding of the blocks on the ground
floor of Terminal 3 and the first floor in Terminal 1
providing a substantial improvement in the quality
and reliability of the facilities. The works included
airfield and terMinal developMents
29 30
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A i R f i e l D A N D t e R m i N A l D e V e l O P m e N t s . p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . R e t A i l A N D C A R P A R K s .
larger bodied aircraft such as the A380. These
lights have the advantage of reducing the number
of fittings on the runway by half and will therefore
reduce maintenance costs in the longer term.
This new lighting project enables better access to
the domestic apron which reduces costly taxi time
for aircraft.
Perth Airport has, as part of its taxiway pavement
works, commenced installation of Light Emitting
Diode (LED) taxiway lights instead of the conventional
filament lights. This measure will reduce the power
consumption on the airport lighting system with
significantly increased service life and affording better
environmental and cost saving outcomes. In addition
to the financial investments made in capital works
programs, we expanded our Gold Coat Volunteer
Program, improving upon our level of customer
service experienced by visitors to Perth Airport.
up until 2007/08 this remarkable group of
ambassadors, recognisable by their bright gold coats,
have provided assistance to departing passengers
through guidance, direction and support.
This year we expanded the program, with the
assistance of our business partners, to include
assistance to inbound passengers within the
baggage reclaim area.
More than 3,300 new car bays constructed at Domestic and International Terminals
Major improvements to International Terminal retail offerings and departures hall
Introduction of courtesy long term car park shuttle bus service
The growth in passenger numbers across the
domestic and international sectors reflected high
levels of consumer confidence. Revenue from retail
was $32.6m for 2007/08 and car parking $34.15m,
increases of 15.58 per cent and 24.85 per cent
respectively.
In Terminal 1, F1RST Duty Free stores were completely
transformed with the launch of re-branded and
refurbished landside and walk-through airside stores.
The design and fit-out has created a vibrant retail
environment, providing a standard of duty free retail
equal to that of other large international airports in
the region. Significant upgrades to the International
Terminal departures hall commenced to create an
enhanced passenger and retail experience.
Improvements include a wider choice of food and
beverages within a new food court, new branded
fashion stores, and a major upgrade of the concourse
and improved passenger seating.
In recent years the demand for car parking has
sometimes exceeded the capacity of existing
infrastructure and therefore a significant investment
has been made in capacity and customer service
enhancements. An additional 157 short term bays
and 1,785 long term bays were constructed in the
domestic precinct and a courtesy car park shuttle bus
service from remote car parks was introduced.
More pick up bays were allocated to key car rental
operators and the staff car park was relocated and
expanded.
At the International Terminal, the major
improvement to car parking facilities included the
separation of the short and long term car bays, an
additional 200 short term car bays and 1,164 long
term car bays were constructed. Perth Airport is
continuing to work to deliver an improved level of
service by upgrading existing car parks and other
ground transport services and to provide greater
car park capacity .
retail and car parksairfield and terMinal developMents
31 32
1 51 4
GOlD COAt VOlUNteeR,
iNteRNAtiONAl teRmiNAl
Need assistance? Ian and the team of
dedicated Gold Coat Volunteers are always
looking out for a golden opportunity to assist
passengers with any directions or questions
they may have.
ian
B
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P R O P e R t y . p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . P R O P e R t y .
their natural and built environments with the estate
complemented by initiatives including protected
bushland, high quality streetscapes and public art
commissions undertaken by internationally acclaimed
Western Australian artists.
Key property developments in the reporting period
included the launch of Hkew Office Park, offering
mid to large sized businesses state-of-the-art offices
within a true 24/7 commercial working environment,
with good access to the airport and CBD. Stage one
of this development will see the construction of five
office buildings with the first, the 8,000m2 Alpha
building completed. Alpha is now home to Westralia
Airports Corporation’s corporate office, with 100 staff
operating in a modern, dynamic office space.
Other tenants joining the Hkew Office Park included
Sinclair Knight Mertz and the Water Corporation with
ABC Learning Centre opening a 95 place childcare
centre for on-airport employees centrally located in
the Hkew Office Park.
A highlight for the Hkew Office Park was the
commitment to a 4,050m2 Operations Centre for
Hamersely Iron. Construction is now underway on
the $13m facility which will employ more than 100
people and incorporate world-class communication
and remote operations technology. This facility will
provide Hamersely Iron with an essential metropolitan
base for its state-wide operations.
With the growth in new tenants and a growing
workforce located in Hkew Office Park, we are
committed to establishing improved transport options
and further amenities to serve the new airport
community, with plans well underway for key transport
initiatives in 2008/09.
Major globally focussed tenants commenced
operations in the Kewlink intermodal business park,
located in the international precinct. Aker Solutions,
SGS Australia and Schlumberger Oilfields Australia
commenced their operations in new workshop,
warehouse, administration and laboratory facilities
designed and constructed by our team. Being located
on the airport provides these tenants with excellent
access to the fly-in, fly-out terminal facilities as well
as to transport links to the North West of the State
from adjacent rail, road and air links. In welcoming
our tenants and in supporting local artistic talent, we
commissioned Jill yelland, a respected Western
Australian artist to design unique art glass pieces for
their new offices.
Another project included the construction of a new
7,600m2 logistics warehouse and office for StarTrack
Express in the domestic precinct, highlighting the
strength of Perth Airport as a location for logistics
and transport facilities.
We aim to deliver buildings that are aligned with the
Corporation’s and tenants’ sustainability goals
through a range of initiatives including the reduction
of energy and water use, emissions and
environmental impact, while at the same time,
improving the working environment. A program to
develop 5 Star Green Star buildings is underway with
keen interest from future tenants to explore these
opportunities.
Hkew Office Park opens
State-of-the-art facilities underway for Hamersely Iron
Toshiba International, SGS Australia, Aker Solutions and Schlumberger Oilfields Australia commence operations
Our property portfolio has contributed strongly to the
company’s overall performance and in 2007/08
accounted for19.35 per cent of the total operating
revenue. Strong growth in the transport and logistics
sector in particular has contributed to making Perth
Airport one of the leading metropolitan land
developers in Western Australia. Perth Airport is
home to the largest development zone in the
metropolitan area and the airport estate,
approximately the same size of Rottnest Island,
includes 700 hectares for non-aviation developments,
while more than 310 hectares of land has been put
aside for permanent conservation. Land uses range
from high quality office space, to warehouses and
laboratories, with more than 60 non-aviation
related companies realising the significant value of
the location and calling Perth Airport home.
With strong growth in air freight and a shortage of
industrial land in the Perth metropolitan area, Perth
Airport’s industrial estate has provided an essential
link in the supply chains, facilitating import, export
and distribution of crucial goods for the State.
Subdivision activities approved by the Board in
2007/08 included a $19.3m 62 hectare parcel of land
in Precinct 4 including the interim use of part of the
future parallel runway land for industrial
development. In addition we serviced 2.5 hectares
of land in the north of the estate for General
Aviation tenants at a cost of $2.03m.
A number of significant site leases were executed
during the year, covering more than 10.56 hectares
of land at a pre paid rental of $20.4m.
The property portfolio includes management of more
than $94m of new buildings, funded by Perth
Airport, including industrial, offices and general
aviation facilities. Key infrastructure projects include
a new facility for Telstra in the international
precinct. This new exchange will provide significant
improvements to the critical communications network
on the airport estate.
Strict design guidelines are in place to ensure our
airport precincts achieve high standards in terms of
property
35 36
3 01 3
PilOt, sKyWest AiRliNes
Captain Simon is one of the many experienced
Skywest Pilots. He takes a moment while
preparing for his next scheduled destination...
tropical Broome.
simon
Working in collaboration with the Aboriginal community
Sustainability Strategy for carbon response, energy and water efficiency and waste management
Comprehensive surveying of flora and fauna
Perth Airport has set aside approximately 350
hectares for conservation purposes including 310
hectares prescribed as conservation precincts within
the Airport Master Plan and a further 39 hectares in
the recently established Infrastructure Only
Conservation Zone. The conservation areas are
comprised of communities of pristine vegetation,
species of federally listed rare flora, habitat for a
diverse range of fauna including the Southern Brown
Bandicoot and wetlands of significant ecological and
aboriginal value.
We are progressively developing and enhancing the
airport’s sustainability credentials, particularly with
respect to climate change, water, waste and
community consultation.
During 2007/08 we developed and initiated the
implementation of a Sustainability Strategy outlining
our approach to incorporating the principles of
sustainability into our organisation and activities.
Accordingly the Sustainability Strategy encompasses
an action plan that outlines tangible targets as we
strive to better understand how we can apply the
principals of sustainability within our business.
A key initiative during the year was the development
of a Water Efficiency Management Plan. This was
developed in collaboration with the Water
Corporation and includes the establishment of
reduction targets for the airport. As part of this plan
a Senior Water Resources Advisor was employed to
develop an Integrated Water Cycle Management
Plan (IWCMP) aimed at investigating alternatives to
the use of potable water, reviewing the feasibility of
managed aquifer recharge and capitalising on water
efficiency opportunities. The IWCMP leverages the
extensive data gathered from the comprehensive
water monitoring program undertaken across the
airport estate that includes groundwater and surface
water quality, groundwater level gauging and
surface water flows.
For the first time, Perth Airport initiated activities to
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . e N V i R O N m e N t p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . e N V i R O N m e N t
coincide with Environment Week 2008 with the
spotlight on water conservation. Water wise awareness
activities included a water wise gardening workshop
for staff and distribution of water wise tips
throughout the organisation that were very well
received by staff.
Perth Airport was successful in being awarded a grant
from the West Australian Department of Environment
and Conservation, Waste Management and Recycling
Account to undertake waste audits across the estate
including terminals and tenants. This program is aimed
at understanding waste generation on the airport
estate, investigating opportunities for inter and intra
estate synergies and waste utilisation and to ultimately
assist tenants in reducing waste to landfill.
Each year since 2003/04 Perth Airport has voluntarily
reported to the standard set by the Global Reporting
Initiative (a sustainability reporting tool) and this
includes reporting on energy consumption and CO2
generation contained in the Annual Environment
Report. As a company wide initiative, an investment
was made in 2007/08 to purchase hybrid vehicles in
preference to standard unleaded vehicles to further
reduce our reliance on fossil fuels.
An incident management system has been
implemented to ensure environmental and other
incidents are identified, recorded and appropriate
actions are taken to remedy and prevent future
occurrences. During the reporting period no
significant environmental incidents were recorded
for activities undertaken by Perth Airport.
Perth Airport engages with the community on
environment issues through a number of forums
including quarterly meeting of the Environmental
Consultative Group and Major Tenant Environment
Forum. Tenant activities are assessed and where
appropriate they are required to provide Environmental
Management Plans and Annual Environment Reports,
audited by Perth Airport representatives.
Twenty Four tenant audits were undertaken
throughout the reporting period.
The annual school planting days took place over two
weeks involving 13 local schools, the largest number
of schools to participate since the commencement
of this program. More than 6,000 seedlings were
planted within the conservation precincts with the
children gaining valuable skills and a better
understanding of the airport environment and
initiatives.
Perth Airport has introduced key initiatives to
recognise the role of the Aboriginal people as
traditional owners of the land and to identify and
develop opportunities for celebrating and enhancing
Aboriginal values of the estate and community
awareness. These initiatives follow on from an
incident which culminated in a guilty plea to
disturbing an Aboriginal site.
Our Environment team is working collaboratively
with the Aboriginal community and the State and
Commonwealth governments on Aboriginal issues.
environMent
39 40
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . e N V i R O N m e N t
This includes policies and processes for engagement
with the Aboriginal community on land development,
planning and general information regarding
airport activities. Consultations were undertaken
with elders from the Aboriginal community for use
of lands protected under the Aboriginal Heritage
Act 1972. Two approvals under section 18 of the Act
were granted following these consultative processes.
Perth Airport further engaged Aboriginal monitors
during work on these sites.
In addition an archaeological excavation program
was undertaken to ascertain the archaeological
importance of one of the sites.
In order to further our knowledge base of the
existing environment, Perth Airport is in the process
of monitoring indicators of ecological health for the
conservation precincts. A number of fauna surveys
were completed during the reporting period with
more to be undertaken in spring 2008, including
macro-invertebrates in several wetlands.
Comprehensive surveys of flora communities and
condition have been undertaken across the airport
estate during the year to inform the revision of the
Airport Environment Strategy and the management
of the conservation precincts.
Perth Airport and Kings Park Botanic Gardens have
continued to build on the collaborative work
undertaken over the last four years to better
understand the biological and/or environmental
reasons leading to species rarity of two species of
federally listed rare flora, these are Macathuria
keigheryi and Conospermum undulatum.
The current program of study is further enhancing
our understanding to allow for the establishment of
off-site populations to ensure their protection in the
event of a catastrophic event in the conservation
precincts.
Studies are also being undertaken in collaboration
with the university of Western Australia to further
our understanding of the Southern Brown Bandicoot.
The current study involves understanding the
effectiveness of translocation and the carrying
capacities of the conservation precincts. A thorough
account of our environmental activities is available
in the Perth Airport Environment Report 2007/08.
environMent
G R i N D i N G tO O l U N e A Rt H e D D U R i N G A N A R C H A e O l O G i C A l D i G At P e Rt H A i R P O Rt
41 42
4 01 0fiRst time tRAVelleR
It’s an exciting day for Autumn, she’s all
packed and ready to board her first ever plane
trip to visit her grandparents in Glasgow.
Have a great flight Autumn.
Autumn
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . s A f e t y A N D s e C U R i t y . p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . s A f e t y A N D s e C U R i t y
facilitates a fully automated process to screen 100
per cent of checked baggage loaded on domestic
air services operating from the terminal.
The company experienced two lost time injuries to
our employees during the year and a number of near
miss incidents were thoroughly investigated.
We also developed enhanced Risk and Safety
Management Frameworks which are now being
progressively implemented to achieve even greater
effectiveness in assessing and treating risks.
O H s i N i t i A t i V e s
d e v e l o p M e n t o f a s a f e t y M a n a g e M e n t f r a M e w o r k
s a f e t y c u l t u r e s u r v e y u n d e r ta k e n b y a l l s ta f f a n d k e y c o n t r a c t o r s
p r o d u c t i o n o f a n o n - l i n e s a f e t y a n d e n v i r o n M e n t i n d u c t i o n p a c k a g e
c o M M e n c e d a c o M p r e h e n s i v e s t u d y o f n o i s e e x p o s u r e l e v e l s a c r o s s t h e a i r p o r t
e x t e n s i v e f i r s t a i d a n d f i r e e x t i n g u i s h e r t r a i n i n g a c r o s s t h e o r g a n i s a t i o n
p a r t i c i p a t e d i n s a f e w o r k a u s t r a l i a w e e k
Major review of existing airfield perimeter fencing
Passenger screening x-ray equipment replaced
Developed a safety management framework
Perth Airport continues to maintain the protection
of critical infrastructure and the operation of a safe
and secure environment for the travelling public
and staff as a number one priority. We continued
with our close and effective working arrangements
with Commonwealth police and border protection
agencies and the Western Australian Police Force.
On 3 May 2008 Perth Airport activated emergency
response procedures in response to security concerns
about certain freight items identified on an arriving
international air service. The International Terminal
precint was closed for a period of approximately
twelve hours. The incident resulted in the
mobilisation of emergency response personnel
including the Australian Federal Police and the State
Police to assess and clear the suspect items.
The response and resolution of this incident
demonstrated the robustness of the airport’s
emergency response procedures and the capability
of responding agencies to resolve serious security
incidents. While the incident significantly
inconvenienced the travelling public and the airport
community, the manner in which it was handled was
commended by the State Police.
Audits of Perth Airports’ systems undertaken during
the year by the Civil Aviation Safety Authority and
Commonwealth Department of Transport security
confirmed the voracity of our systems.
In consultation with industry stakeholders Perth
Airport has introduced improved inspection
measures for persons and vehicles entering airside.
Closed circuit television systems continue to be
expanded to provide improved coverage and
surveillance capability of critical infrastructure and
operational areas. Passenger screening x-ray
equipment has been replaced in Terminal 3 to
provide a more efficient screening process and to
meet the increased passenger demand.
In October 2007 Perth Airport commissioned a new
baggage handling system in Terminal 3 which
safety and security
45 46
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . m A J O R A i R P O R t R e D e V e l O P m e N t P l A N s . p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . m A J O R A i R P O R t R e D e V e l O P m e N t P l A N s .
$1 billion invested over thenext five to seven years
Consolidated terminals
Terminal Western Australia commenced
2008 marked a defining moment in the history of
Perth Airport when we announced plans to bring
forward the consolidation of all large scale air
services into one integrated precinct.
The major redevelopment will see Perth Airport
merge into a consolidated hub around the existing
International Terminal. The new facilities will be
delivered over the next five to seven years.
Phase 1 will see a new terminal constructed which
will serve internal Western Australian air services
and some interstate services. This new facility, called
Terminal WA, will particularly suit workers on fly-in
fly-out resources projects who will have quick access
to their flights with convenient, low cost car
parking nearby. The adaptability of this new terminal
will also enable Perth-based carriers to grow their
fleet from turboprop aircraft to medium sized jets
and expand their market reach. This new facility
reflects the fact that services from Perth to regional
Western Australia have doubled since 2005 and
now account for more than 40 per cent of all aircraft
movements at Perth Airport. Construction has
commenced on the apron for Terminal WA and the
new facility is expected to be completed in late 2010.
Phases 2 and 3 of the redevelopment will see large
scale international and domestic services come
together in new terminal facilities. The existing
international terminal will be redeveloped, and
along with newly constructed terminal building
space, we will create a world class hub for domestic
and international travellers. While the design of
these new facilities is yet to be finalised, improved
passenger processing and baggage handling is a
priority for Perth Airport’s planners. This will include
changing the current split level international
arrivals and departures halls to convenient single
level arrangements. Passenger amenities will be
vastly improved with more retail, better food and
beverage offerings and greater space for airline and
passenger lounges. The number of aircraft parking
positions will be vastly increased, giving the new
Perth Airport the capacity to support the growing
demand for interstate and international air services
well into the future.
It is expected that the consolidated airport precinct
will incorporate an airport hotel within easy walking
distance of the terminal buildings which will give
travellers the convenience of a place to stay before
and after their flight. Car parking capacity will
receive a massive boost with a new multi-storey car
park to be built with pedestrian connections to the
terminal buildings. There will also be more low cost
long term parking supported by convenient shuttle
bus services to the terminals. With these changes the
new Perth Airport will become an outstanding
facility for the people of Western Australia and for
the many thousands of visitors to our State.
The journey towards a new Perth Airport will be
exciting and challenging and visitors will soon see
the changes taking shape.
MaJor airport redevelopMent plans
A Rt i s t ’ s i m P R e s s i O N : i N t e R i O R V i e W, t e R m i N A l WA .
47 48
4 01 3
CHef, QANtAs CAteRiNG
It’s 2.30pm and the Qantas kitchen is in full
swing as Chef Toni prepares the final touches
to one of the many delicious and beautifully
presented meals that will be served on the next
flight out of Perth, destination Sydney.
toni
C
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C O m m U N i t y p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C O m m U N i t y
coMMunity
D e PA Rt m e N t O f P l A N N i N G A N D
i N f R A s t R U C t U R e ( s tAt e )
D e PA Rt m e N t O f t H e P R e m i e R & C A B i N e t
m i D l A N D R e D e V e l O P m e N t A U t H O R i t y
P R O P e Rt y C O U N C i l O f A U s t R A l i A ( WA )
Q A N tA s A i RWAy s
s H i R e O f K A l A m U N D A
s K y W e s t A i R l i N e s
s WA N C AtC H m e N t C O U N C i l
tO U R i s m W e s t e R N A U s t R A l i A
U R B A N D e V e l O P m e N t
i N s t i t U t e O f A U s t R A l i A ( WA )
Direct community contact is made possible through
the Perth Airports’ Municipalities Group (PAMG)
a forum sponsored by several local government
authorities with close proximity to Perth’s two
metropolitan airports, Perth and Jandakot. As an
active participant in this forum, Perth Airport responds
to issues raised by local councillors and keeps
councillors informed of airport developments
and plans.
Perth Airport is actively involved in community
programs and sponsorships that seek to benefit the
Western Australian community or are directly related
to the tourism sector. In 2007/08 Perth Airport was
proud to support the following activities and not
for profit organisations:
W e s t e R N A U s t R A l i A N tO U R i s m AWA R D s
( PA Rt N e R s P O N s O R )
yO U t H f O C U s R i D e f O R yO U t H
tA X i C O U N C i l O f W e s t e R N A U s t R A l i A
tA X i D R i V e R O f t H e y e A R AWA R D
B e l m O N t s m A l l B U s i N e s s AWA R D s
l O C A l C H A m B e R s AWA R D s
C O m m i t t e e f O R e C O N O m i C D e V e l O P m e N t
A U s t R A l i A ( C e D A ) f O R U m s
W e s t O z W e l C O m e R s
m i s s i O N A U s t R A l i A C H R i s t m A s
l U N C H i N t H e PA R K
m A K e A D i f f e R e N C e f O U N D At i O N
s WA N tA f e WA s t U D e N t AWA R D s
f O Ot H i l l s e A R ly y e A R s C A l e N D A R
Perth Airport supports public art and is forming a
Public Art Advisory Group to assist us to deliver a
suitable public art program as part of the airport’s
redevelopment. Three stunning sculptures
produced by local WA artist Jon Tarry symbolising
flight are displayed in the international and
conservation precincts. Further art projects are
underway including an acquisition program for local
and Indigenous artwork.
Committed to understanding the needs of the community
Developing sponsorship programs to benefit Western Australians
Strengthening ties with our neighbours
Perth Airport plays an important role in the lives of
many Western Australians and we acknowledge the
responsibility we have to the people through its
custody of this essential public asset. Whether it is a
place of work, with more than 8,000 people working
on the airport estate, a means of transport to and
from work, particularly for the State’s resources
sector, or as a vital link to the rest of the country and
the world, Perth Airport is one of the State’s most
important infrastructure assets.
The community’s interest in the airport is appreciated
and Perth Airport remained committed in 2007/08
to keeping key stakeholders informed on various
airport related issues. On a local level, Perth Airport’s
neighbours include the City of Belmont, City of Swan
and City of Kalamunda.We actively engage with
representatives from these councils and others on the
Perth Airport Advisory Board (PAAB). The PAAB
provides a forum through which public, private and
community sector organisations provide Perth Airport
with advice on various aspects of the airport
operations and Perth Airport is able to keep
stakeholders informed of airport plans.
Active membership of the PAAB in 2007/08 included
A U s t R A l i A P O s t
C H A m B e R O f C O m m e R C e A N D i N D U s t Ry
O f W e s t e R N A U s t R A l i A
C H A m B e R O f m i N e R A l s A N D e N e R G y
O f W e s t e R N A U s t R A l i A
C O m m i t t e e f O R P e Rt H
C i t y O f B e l m O N t
C i t y O f P e Rt H
C i t y O f s WA N
D e PA Rt m e N t O f i N D U s t Ry A N D R e s O U R C e s ( s tAt e )
D e PA Rt m e N t O f i N f R A s t R U C t U R e ,
t R A N s P O Rt, R e G i O N A l D e V e l O P m e N t
A N D l O C A l G O V e R N m e N t ( C O m m O N W e A lt H )
51 52
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . C O m m U N i t y
A website dedicated to educating students about
Perth Airport was launched. The site includes
interactive activities designed specifically for students
and teachers. A comprehensive list of programs
aligned with the State’s education curriculum was
developed and is utilised by teachers.
Perth Airport is developing its sponsorship programs
and aims to see the airport playing a greater role for
the benefit of the Western Australian community.
At a local level, programs are being established with
local community groups and in 2007/08 we
committed to the sponsorship of sports uniforms to
local school Redcliffe Primary School, with additional
schools also benefiting in the forthcoming year.
Staff actively participate in charity events such as the
Great Bike Ride and gain much satisfaction from
supporting the local community.
Further sponsorship events are planned for the
2008/09 year with Perth Airport actively engaging
in local, state and national events.
53 54
6 01 0
eNViRONmeNt AND CONseRVAtiON
ADVisOR, PeRtH AiRPORt
While we build you a better airport, Kathy has
the important job of ensuring the airport estate
is a healthy and sustainable environment.
We have over 350 hectares set aside for
permanent conservation and Kathy is one of
our environment guardians.
Kathy
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A B O U t W e s t R A l i A A i R P O R t s C O R P O R A t i O N p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . A B O U t W e s t R A l i A A i R P O R t s C O R P O R A t i O N
Hastings Funds Management administers uTA,
PAPF, AIF and TIF which represent a combined equity
interest of 89.60 per cent. Hastings Funds
Management is an Australian company and specialist
manager of infrastructure, private equity and high
yield investments.
The ownership of Perth Airport is heavily weighted
towards superannuation fund investors, with uTA,
WS and OSF all having a strong superannuation focus.
The future retirement capacity of many thousands
of Australian employees is therefore closely linked to
the ongoing profitability of Perth Airport.
Westralia Airports Corporation is the private
operator of Perth Airport under a 99 year lease from
the Commonwealth of Australia. Perth Airport
occupies an important place in Australia’s history as
the first capital city to be privatised under the
Airports Act 1996 (Cth). The tenure of the lease
remains subject to the requirements of the Airports
Act 1996 (Cth) and its Regulations. The Australian
Competition and Consumer Commission maintains
a watching brief on all Australian airports to ensure
acceptable standards in areas including access,
pricing and customer service.
Perth Airport’s core business is the delivery of
aeronautical services through the provision of airfield,
terminal and ground transport infrastructure and
ancillary services.
about westralia airports corporation
O W N e R s H i P
W e s t R A l i A A i R P O Rt s C O R P O R At i O N i s A W H O l ly O W N e D s U B s i D i A Ry O f t H e A i R s t R A l i A D e V e l O P m e N t
G R O U P ( A D G ) A N D C O m P R i s e s O f t H e f O l l O W i N G s H A R e H O l D e R s t R U C t U R e :
H O l D i N G s B y A i R s t R A l i A D e V e l O P m e N t G R O U P s H A R e H O l D e R A s At 2 8 m A R C H 2 0 0 8 :
utilities of Australia Pty Ltd ATF utilities Trust of Australia (uTA) 55,309,041 38.26%
Hastings Funds Management Ltd AREF Australia Infrastructure Fund (AIF) 42,988,298 29.74%
utilities of Australia Pty Ltd ATF Perth Airport Property Fund (PAPF) 25,062,116 17.33%
Hastings Funds Management Ltd ATF The Infrastructure Fund (TIF) 6,171,045 4.27%
Westscheme Pty Ltd as trustee of Westscheme (WS) 7,228,239 5.00%
Citicorp Nominees Pty Ltd as custodian for Officers Superannuation Fund (OSF) 4,583,478 3.17%
Colonial First State Private Capital Limited (CFS) 3,222,557 2.23%
144,564,774 100%
O U R V i s i O N
tO O P e R At e A N O U t s tA N D i N G A i R P O Rt B U s i N e s s P R O V i D i N G G R e At C U s tO m e R s e RV i C e .
O U R C O R P O R A t e O B J e C t i V e s
increase shareholder value by
• conducting our business in a commercially astute manner
• ensure our facilities and services are safe and secure for all
• help our airline and other business partners develop their business
• meet the needs of our customers
• provide our employees with satisfying employment
• conduct operations in an ecologically sustainable manner
• identify and managing risk
• facilitate travel, trade and industry in Western Australia
• ensure we are a responsible and caring corporate citizen
57 58
6 51 1DRiVeR, tOll PRiORity
Signed, sealed and delivered. Alan works for one
of the many businesses who call the airport
estate home. Perth Airport plays a pivotal role
for large distribution and logistics operations.
A final check on the items for the afternoon’s
dispatch, then they’re ready to go.
Alan
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . B O A R D O f D i R e C t O R s p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . B O A R D O f D i R e C t O R s
mr Alan GoodF C A , B . C O M
Mr Good was appointed a Director of the Board
in July 2006. Mr Good is Chairman of CMA
Corporation Limited and of Straits Resources
Limited and a non executive director Snap
Franchising Limited. Mr Good was formerly a
Partner of Pricewaterhouse Coopers and was the
Managing Partner of that firm’s Perth office for
over six years.
mr richard hoskinsB C O M , L L B ( H O N S ) u N I V E R S I T y O F M E L B O u R N E
Mr Hoskins joined Hastings Funds
Management Limited in June 2006 as Director,
Infrastructure and was appointed as a Director
of Perth Airport at that time. Mr Hoskings is
currently Head of unlisted Infrastructure and
Joint Chief Operating Officer of utilities Trust of
Australia. Prior to joining Hastings, Mr Hoskins
worked with the law firm Mallesons Stephen
Jaques for over 16 years, becoming a Partner on
1 January 2000.
He specialised in project and infrastructure
finance and was one of Perth Airport’s
principal legal advisers.
mr Lyndon roweB E C ( H O N S ) u N I V E R S I T y O F A D E L A I D E
Mr Rowe is Executive Chairman of the WA
Economic Regulation Authority and
non-executive chairman of Interstaff
Recruitment Limited. Mr Rowe is a member of
the Senate of the university of Western Australia
and Chair of the university’s Audit and Review
Committee. He is also the former Chief
Executive of the Chamber of Commerce and
Industry of WA, a position he held from 1992
to 2004.
mr David Crawford (Chairman)B C O M ( H O N S ) M A ( P O L S C )
Appointed as Non-Executive Chairman of the
Board in April 2000, Mr Crawford is also
President of the National Competition Council,
Chairman of Canola Breeders Western
Australia Pty Ltd and HRZ Wheats Pty Ltd, and a
Director of Grain Foods CRC Ltd.
He is Chairman of the Board of Advisors of
Curtin university Graduate School of Business
and a management committee member of both
educational and service organisations. He was
previously Corporate Affairs Director of
Wesfarmers Limited and held senior executive
positions with Ranger Minerals NL and Western
Collieries Ltd. Mr Crawford has also been a
member and/or Chairman of a number of
government and non-government committees
in the agriculture and mining industries.
mr ron DoubikinA M
Mr Doubikin joined the Board as a Non-Executive
Director in August 2001. Mr Doubikin is the
owner and Chief Executive of the Doubikin
Group of Companies with interests in property,
self-storage, hotels and development.He is also
a Director of united Super Pty Ltd, Cbus Property
Pty Ltd, and Chairman of a number of private
companies including Koala Self Storage Pty Ltd.
He is past President of Master Builders Inc. and
has served on the Australian Building Code
Board and the National Labour Consultative
Council. From 1994 to 2002 he was Chairman
of the Subiaco Redevelopment Authority.
mr Alan DundasB E ( H O N S ) , FA u S I M M , G A I C D
Mr Dundas joined the Board as a
Non-Executive Director in July 2006. He is also
Chairman of Barminco Limited and Deputy
Chairman of Horizon Power. Mr Dundas was
previously an Executive Director of WMC
Resources Ltd.
current board of directors
61 62
p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . B O A R D O f D i R e C t O R s p e r t h a i r p o r t a n n u a l r e p o r t 2 o o 8 . M a n a g e M e n t t e a M
mr Jeff pollock
Mr Pollock joined Perth Airport as a Director
in May 2008. Mr Pollock is part of Hastings’
executive management team and holds the
dual role of Head of Listed Infrastructure and
Chief Executive Officer of Australian
Infrastructure Fund. Prior to joining Hastings,
Mr Pollock was part of the senior management
team at Prime Infrastructure/Babcock and
Brown Infrastructure (BBI) where he was a key
member of the leadership team, first as Prime
Infrastructure/BBI’s Chief Financial Officer and
then as Chief Operating Officer for BBI
Transport Infrastructure. Mr Pollock’s main
areas of focus at BBI were the management
and operations of infrastructure and utilities
in the transport and energy sectors. Mr Pollock
also has broad experience in asset management
with his role as a Director on a range of BBI
subsidiary boards. Mr Pollock holds a Bachelor
of Accountancy from the university of Glasgow,
and has been a member of the Institute of
Chartered Accountants of Scotland since 1988.
mr Denis Adams
Mr Adams was appointed to the Board in
October 2007. Mr Adams is currently a director
of the Qantas subsidiary companies, Australian
Air Express Pty Ltd. and Star Track Express Pty
Ltd. He is also a director of Queensland
Airports Limited. Mr Adams has over 40 years
experience in the aviation and travel industries.
During this time he held several senior
executive positions including Chief Executive,
Jetset Tours, Chief Executive, Australian
Airlines and Executive General Manager
Associated Business for Qantas.
mr Chris mcArthurB . E N G , M B A , G A I C D
Appointed to the Board in February 2008,
Mr McArthur is the Senior Portfolio Manager,
Infrastructure Investment with Colonial First
State Global Asset Management.
Mr McArthur previously headed the commercial
division of the Toll/Patrick joint venture Pacific
National, Australia’s largest private rail group,
and held senior management positions with
Qantas in Sydney and London including as head
of the QantasLink Group of regional airlines.
Mr McArthur is also a director of Brisbane
Airport and the uK-based utility Inexus
Group Limited.
current board of directors ManageMent teaM
Brad GeatchesC H i e f e X e C U t i V e O f f i C e R
Dr peter CockG e N e R A l m A N A G e R C O R P O R At e R i s K
scott norrisG e N e R A l m A N A G e R B U s i N e s s D e V e l O P m e N t
tarita nealG e N e R A l m A N A G e R H U m A N R e s O U R C e s
Graeme wareG e N e R A l m A N A G e R A i R P O Rt O P e R At i O N s
Brett JacksonG e N e R A l m A N A G e R A s s e t s
malcolm BradshawG e N e R A l m A N A G e R C O R P O R At e A N D
l e G A l A f fA i R s
wayne ticehurstC H i e f f i N A N C i A l O f f i C e R A N D
C O m PA N y s e C R e tA Ry
neil KiddG e N e R A l m A N A G e R P R O P e Rt y
63 64
8 01 0
DeteCtOR DOG, WAQis
Boston is definitely one the cutest detector
dogs at Perth Airport. He has the nose that
knows and it’s all in a days work for Boston
the Beagle.
Boston
D
