Australia Pacific Airports Corporation (APAC)

Australia Pacific Airports Corporation (APAC) owns and operates Melbourne Airport, a key access point to Victoria and Australia for domestic and international travellers, as well as Launceston Airport, a gateway for travel between Tasmania and mainland Australia.

Performance highlights 2011

Total revenue was $561.1 million and EBITDA (excluding change in fair value of investment property) was $422.6 million, an increase of 8.4 percent and 9.1 percent respectively on the previous year.

Total passengers through Melbourne Airport for the financial year were 28.3 million, an increase of 7.8 percent over the previous year. This comprised 6.3 million international passengers, up 13.5 percent, and 22.0 million domestic and transit passengers, up 6.2 percent. Total passengers through Launceston Airport increased 2.2 percent to 1.1 million for the year. The number of seats available on all routes at Melbourne Airport grew by 8.6 percent in the 2011 financial year, whilst the number at Launceston Airport grew by 2.0 percent. Melbourne Airport welcomed the commencement of services by Royal Brunei and Strategic Airlines and the introduction by a number of existing airlines of new routes as well as increased services on existing routes, particularly into Asia.

Work on Melbourne Airport's $330 million international terminal expansion project progressed further during the year. Following completion of the new 7,000m2 passenger concourse in December 2009, and the provision of additional outbound passenger security and screening facilities in March 2010 (including additional customs desks and x-ray stations), new passenger lounge and retail facilities were unveiled in November 2010 offering more café, lounge and speciality retail opportunities. Work also commenced during the year on the $45 million runway overlay project which involves the resurfacing of both runways and upgrading the runway lighting system.

One of Melbourne Airport's environmental initiatives during the year was the installation of KyotoCooling at its new data centre to significantly reduce IT power consumption and carbon emissions.

Melbourne Airport recently successfully issued US$600 million in the US Private Placement market, spread evenly over 10, 12 and 15 year tenors, and earlier in the year raised $900 million in new bank facilities and $350 million in domestic notes. These capital raisings provide the Airport with sufficient funds to refinance maturing debt and fund the Airport's planned investment in new and improved facilities.

Performance outlook

Melbourne Airport is currently working with airline operators to renegotiate the Airport's Aeronautical Services Agreement which determines the pricing and conditions under which airlines access the Airport for the next five-year period. The agreement will be an important factor in the future performance of the Airport. The outlook for Melbourne Airport remains positive. Recent announcements, such as Jetstar's new daily service to Beijing, China (commencing late November 2011), support the continued growth expected for 2012. The coming year will also see Melbourne Airport deliver the remainder of the International terminal expansion project and runway overlay project.

APAC
Financial and operational performance

* CAGR: Compound Annual Growth Rate

For further information please visit the Melbourne Airport website.

For historical Annual Reports please click here.