Melbourne Airport passenger traffic soars +11% against busy commercial backdrop – 22/04/08

AUSTRALIA. Melbourne Airport has recorded a +11% increase in overall passenger numbers for the third quarter of the 2007/2008 financial year – the equivalent of about 646,000 additional passengers. The year-to-date increase is +7%, or an extra 1.2 million passengers.

Source: Melbourne Airport

Traffic on the 20 international airlines at Melbourne rose by +3% for the quarter, which included the busy Easter travel period. Transit passengers reduced as international carriers continued to replace services shared with other Australian capital cities with direct services to Melbourne.

The Nando’s outlet at Melbourne’s International Terminal

One of the fleet of buses that link Melbourne Airport with the Long Term Car Park

“Our international growth is a good result, considering the strong growth experienced during the previous year – particularly with significant traffic from the UK for the 2007 Ashes test cricket series,” said Melbourne Airport CEO Chris Woodruff.

Domestic passenger numbers grew by +14% compared to the same quarter of 2006/2007, a result that Woodruff attributed to a large number of new and additional services.

We will have a relatively flexible approach
Gilly Gray
General Manager Retail and Car Parks
Melbourne Airport

“We now have six domestic airlines operating at Melbourne Airport. We are optimistic about the potential for further growth on the domestic front,” he said.

The continued passenger growth will add momentum to the major commercial investments under way at the airport.

In June Melbourne Airport will launch a renovation of retail facilities in the 550sq m landside mezzanine area of T3, the base for domestic flights by Virgin Blue and Rex. Due for completion by Easter 2009, the project will relocate food & beverage outlets to window locations and provide both a better quality of retail experience and a better mix.

Construction is advancing meantime in the A$330 million (US$307.5 million) redevelopment of the international T2 – set to deliver 2,500sq m of new retail space.

“The bulk of the new space will come online towards the end of 2010, which is in line with most of our retail contracts including duty free expiring,” said General Manager Retail and Car Parks Gilly Gray.

“We will have a relatively flexible approach: if we feel that there is an outstanding operator offering a product that our customers want, we will have the freedom to negotiate with them.

“However, if we think there are a number of operators in the market who can satisfy that demand, then we will do a request for proposals,” she added.

NOTE: In the upcoming May edition of The Moodie Report Digital Print Edition, Gilly Gray will offer an in-depth profile of the four pillars of Melbourne Airport’s commercial strategy and its “commitment to the retail optimiser model”.


Melbourne Airport plots major commercial overhaul at key terminals – 15/04/08

Asian traffic buoys Melbourne Airport in Q2 – 21/01/08

Huge boost for Melbourne Airport as Korean Air expands route network – 05/09/07

‘Revolutionising’ the passenger experience in Melbourne; A$330m expansion unveiled – 27/08/07

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