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CommunicatingNew ZealandAirports’ story Andrew Pirie Strategic Communications Advisor

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A place where inspiring journeys begin; where loved ones reunite

What is an airport?

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A necessary evil at the start and end of each journey

What is an airport?

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A money-making “tollbooth” that imposes costs on travellers and airlines

What is an airport?

Taxes and govt charges = 36% of total cost

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A provider of vital infrastructure that enables air services to grow

What is an airport?

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An important contributor to economic growth

What is an airport?

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A key facilitator in connecting Kiwis with the world and with one another

What is an airport?

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• A place where inspiring journeys begin; where loved ones reunite

• A “necessary evil” at the start and end of each travel journey

• A money-making “tollbooth” that imposes costs on travellers and airlines

• A provider of vital infrastructure that enables air services to grow

• An important contributor to economic growth

• A key facilitator in connecting Kiwis with the world and with one another

It’s up to us to shape the airports story

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Between us, we:

• Welcome and farewell over 99% of international travellers to our country

• Contribute directly to around 20% of New Zealand’s GDP

• Impact the travel service experience over 25 million times a year

• Can materially impact the recovery from the recession

We have a collective influence

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Airports vs Airlines: business drivers

AIRLINES

• Short to medium term investment horizon given dynamic operating environment

• Reasonable flexibility in asset utilisation

• Incumbents incentivised to constrain industry capacity to maximise load factors and yields

AIRPORTS

• Long term investment horizon focused on infrastructure development

• Greater risk of asset stranding

• Incentivised to grow industry capacity, in part by promoting stronger competition that drives down ticket prices

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Airports vs Airlines – PR “scorecard”

AIRLINES

• The “excitement” of flight

• Numerous touchpoints for customer service, VIP treatment

• Delays once on board are rare

• Link to tourism/economy is obvious and tangible

• Challenges of dynamic aviation industry are all too apparent in financial performance

AIRPORTS

• The “mundane reality” of bricks and mortar

• Touchpoints biased towards bureaucracy/control (e.g. border agencies)

• Delays on the ground are commonplace

• Link to tourism/economy needs to be explained

• Financial stability reinforces perceptions of “cosy monopolies”

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What the airlines say about us

“There is no room for (pricing) nonsense in our future … the shape of everything must change. This includes the comfortable position of our happy monopoly (airport) suppliers.”Giovanni BisignaniDirector General, IATA

"Airports are very, very good at earning revenues out of everything you could imagine - if they could charge for oxygen at the airport they probably would.'‘

Alan JoyceCEO, Qantas

We pay out $750,000 a day for airport and navigation charges Rob Fyfe, CEO, Air New Zealand

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Core communications strategies

1. Adopt a more disciplined, pro-active approach to stakeholder engagement that builds stronger relationships and encourages advocacy

2. Develop a succinct set of overarching key messages that summarize the airports ‘story’

3. Make a more compelling case about the contribution that airports make to NZ and NZ Inc

4. Build a more positive public profile as informed commentators on air travel, trade and tourism

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1. Stakeholder engagement

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2. Indicative Key Messages

• Airports make a vital contribution to tourism and trade, by strengthening connections within New Zealand and with the world

• We invest in quality airport infrastructure to ensure New Zealand has the capacity to maximise the growth potential of air travel

• We are working hard to improve the traveller experience, in collaboration with airlines and government agencies

• We are committed to working positively with our airline customers and recognising their varying commercial needs

• Focused on achieving fair returns for our owners over the long term whilst keeping pricing reasonable

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3. Compelling Case

• Airport capacity drives air travel growth

• “to get bums on airline seats, you first need the seats”

• Attracting new airlines

• Opening new routes

• Improving schedules

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Capacity drives growth

2000 2001 2002 2003 2004 2005 2006 2007 20082000

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2800

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3600

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1100Trans-Tasman seat capacity vs Australian visitor growth

Aircraft seat capacity from Aust Australian visitor arrivals

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4. Informed Commentators

• Tourism trends – national and regional

• Travel patterns: mine the data

• Foreign tourists taking domestic flights

• Domestic routes: business vs leisure

• Political/regulatory initiatives

• Regional development issues

• Streamlining the trans-Tasman border

• Domestic aviation security

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Discussion