AUSTRALIA. Australia Pacific Airports Corporation (APAC), the operator of Melbourne and Launceston Airports, today revealed a strong commercial revenues and retail performance for the year ended 30 June.
Retail revenue grew strongly this year, outstripping passenger growth to increase +12.9% to A$155.6 million. Passenger numbers at Melbourne Airport rose +3.1% overall to 21.43 million with international traffic up by 1.9% to 4.4 million. Aeronautical revenues rose +8% to A$147.3 million.
APAC’s operating profit increased by +10% to A$270 million. Overall revenue was up +10% to A$384 million, driven by a strong performance of the Australian domestic air travel market, significant growth in the company’s property developments, and strong showings from APAC’s long term car parks at Melbourne and Launceston Airports. Post-tax profit reached A$158 million, an increase of +1% on the previous year.
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T2 will have a new international passenger precinct by 2011, including over 5,000sq m of commercial space |
New concessions at Melbourne Airport remained true to the airport’s philosophy of providing choice, value and quality in its retail offer, APAC said. The airport introduced a range of new stores including the first Virgin News and Books in Australia, Siricco leather and fashion accessory store Diva.
Melbourne Airport also welcomed Australia’s first Bijoux Terner outlet, with the US-based jewellery and accessory retailer opening stores in T2 and T3.
Currency exchange and banking services performed strongly in the first full year since ANZ joined Travelex as an airport currency exchange provider. “Passengers have responded positively to on-site competition, driving up transaction numbers and stimulating growth in the business,” APAC said.
A new contract signed with Eye Corp to manage in-terminal advertising will expand promotional opportunities and improve technology to maximise impact for advertisers at Melbourne Airport.
Melbourne Airport also concluded negotiations with Nuance-owned Downtown Duty Free [now F1RST Tax and Duty Free – Ed]on new contract arrangements that provide a solid foundation for future growth in the duty free business, APAC said.
Launceston Airport’s food, beverage and gifts retailer Kavihan continued to perform strongly in its third year of operation.
CAR PARKING GROWTH
A commitment to delivering the right products at the right price stimulated patronage and revenue growth in the car parking businesses, APAC said.
Melbourne Airport expanded its overall parking capacity by around +30% this year to more than 16,000 spaces in total.
As part of the multi-level car park expansion, a new 1100 space Undercover Long Term Car Park product was launched. The new product provides customers with a secure, covered, long term car parking option a short walk from all three terminals for less than A$100 per week.
The traditional Long Term Car Park business also continued to grow. This year Melbourne Airport added around 1300 spaces to accommodate continued growth in demand for affordable parking close to the terminals.
KEEPING THE CUSTOMER SATISFIED
Chris Barlow, who is retiring as CEO and Managing Director of APAC (to be replaced by former BAA executive Chris Woodruff – Ed), said 2006/2007 represented a strong year with many highlights for the company.
The company’s retail revenue continued its strong performance, delivered through a simple mantra: deliver a good product and the right price. Barlow said the airport had undertaken extensive research of its car park users, with improved car parking options and competitive price points being the result.
“More people are choosing to park at the airport – and importantly our surveys tell us that they are very happy with the developments,” said Barlow.
APAC’s Property & Rental revenue performed strongly during 2006/2007, increasing by +12%. Melbourne Airport’s Business Park saw a series of major brand names open their doors onsite during the year, including warehouse and distribution centres for Kathmandu, The Reject Shop and Caterpillar Logistics, along with a sales and service centre for Mercedes-Benz.
APAC, which recently entered its 10th year of operating Melbourne Airport, invested more than A$100 million into capital works at Melbourne Airport during the 2006/2007 financial year. This investment is more than any single year to date, which APAC said underlines its “clear confidence” in the airport’s – and Melbourne’s – futures.
MORE STORIES ON MELBOURNE AIRPORT
‘Revolutionising’ the passenger experience in Melbourne; A$330m expansion unveiled – 27/08/07
Nuance unveils F1RST brand amid spectacular new-look Melbourne Airport store – 01/08/07
HDS Retail Asia Pacific unveils new look for NewsLink at Melbourne International Airport – 06/07/07
Newrest acquires 40% stake in Nuance Australia and New Zealand as new partnership formed – 01/02/07
