Airstralia Development Group (Perth Airport)

Perth Airport is strategically located as one of Australia's closest airports to South East Asia, Europe and Africa. It is Australia's fourth largest airport in terms of passenger traffic, and is the principal gateway to Western Australia and its significant resources sector.

Performance highlights 2010

Total normalised revenue and EBITDA for the financial year adjusted for unrealised property revaluation gains were $246.4 million and $158.2 million respectively which represents an increase of 17.5 percent and 21.4 percent over the prior year.

Passenger numbers for the year to 30 June 2010 outperformed the prior year by 7.5 percent driven primarily by low cost carrier services, particularly increased capacity and demand on international routes. International passengers increased 14.2 percent due to strong growth in capacity on the Bali and Kuala Lumpur routes coupled with a strong Australian dollar stimulating outbound travel. Domestic passenger traffic also performed strongly with growth in low cost carriers and intrastate passengers contributing to a 5.0 percent increase on the prior year. The number of seats available across all routes grew by 7.3 percent in the 2010 financial year.

In October 2009, the airport successfully refinanced maturing bank facilities amounting to $431 million and raised additional facilities of $309 million, which, together with $142 million committed by shareholders, will fund growth plans over the next three to five years. Perth Airport now has no scheduled debt maturing until October 2012.

Perth Airport achieved a number of important milestones during the year including approval of its Master Plan, which sets out the development plans for the airport over the next 20 years. The Master Plan confirms Perth Airport's intention to expand and reconfigure the airport over the next five to 10 years. Phase 1 will add significant domestic and international terminal capacity to improve customer services and accommodate future growth. Phases 2 and 3 will deliver new consolidated international and domestic passenger facilities, with timing to be determined by future demand.

Works on the domestic terminal forecourt to improve traffic flows were completed during the year, whilst Qantas also completed a $75 million investment upgrade of its domestic terminal. A number of road upgrades around the airport have been identified as the state's number one infrastructure priority and have been included in the Western Australian Government's submission to Infrastructure Australia. These improvements are critical to relieve congestion around the airport and support Phases 2 and 3 of the airport expansion. To complement these works, Perth Airport is planning to construct a new internal public link road to directly connect the domestic and international terminals which is expected to be completed within 12 months.

Performance outlook

The outlook for Perth Airport remains positive for financial year 2011, underpinned by growth in the Australian and Western Australia economies. A key priority for management in the short term is to finalise aeronautical price negotiations with airlines to allow the Phase 1 expansionary works to begin.

Perth Airport
Financial and operational performance

* CAGR: Compound Annual Growth Rate
(1) Excluding unrealised valuation gains on investment properties.
(2) Normalised EBITDA.

For further information please visit the Perth Airport website.

For historical Annual Reports please click here.