The FINANCIAL — Almost $250 million worth of capital investment has helped Melbourne Airport preserve a decade-long trend of international passenger growth. This growth contributed to an 11 per cent increase in operating revenue, and an after tax profit of $267 million.
For the year to 30 June 2016, international passenger numbers through Melbourne Airport grew by 9.5 per cent, to reach 9.2 million, according to Melbourne Airport.
Speaking at the airport’s annual stakeholder event, Chief Executive, Lyell Strambi, credited the work of Victoria’s collaborative visitor industry stakeholders in helping deliver a strong financial year result.
“We’re proud to say that Victoria’s share of Australia’s international passenger market is now more than 25 per cent and Melbourne once again outperformed Sydney and Brisbane in international passenger growth, continuing the pattern of recent years,” said Mr Strambi.
“Our growth in international passengers was supported by two new international airlines coming to Melbourne, along with additional routes and capacity from existing carriers.
“The China market performed strongly through the year, with a 21 per cent increase in Chinese passports which was achieved largely by extra capacity from the established Chinese carriers.
“The arrival of Scoot during the year contributed to a 31 per cent increase in passport holders from Singapore. The Middle Eastern carriers also continued to grow.
“The United States market achieved double digit growth for the second consecutive year, and of course New Zealand remains a key market for Melbourne with passenger numbers approaching 1.4 million for the year reflecting steady growth.”
In 2015/16 total passenger numbers grew by 5 per cent to reach 33.9 million.
International capacity to Victoria increased by 7 per cent, with the growth in international passengers exceeding that, increasing by 9.5 per cent.
Domestic passengers grew by 3.7 per cent to almost 25 million passengers, and Mr Strambi noted the competitive strengths of Victoria, and Melbourne Airport, in attracting a growing number of travellers.
“The enduring competitive advantages of Melbourne Airport are what make it so attractive, from our relative proximity to the CBD, to our curfew-free operations,” said Mr Strambi.
“Best of all, it is the aviation gateway to the world’s most liveable city, and this wonderful, vibrant state with its natural beauty and diversity.
“Despite a softening in the domestic market over recent years, Victoria’s share of domestic travel grew above the national average, to make us the second highest growing major domestic airport in the country.
“These numbers were driven by consistent performance by all of our domestic carriers.”
For the year to 30 June 2016, air freight exports from Melbourne Airport increased by 21 per cent to almost 163,000 tonnes.
“Exports are an important and growing part of the Victorian economy, particularly low-volume, high-value perishable goods that travel most efficiently by air to interstate and overseas markets,” said Mr Strambi.
“It is this growth, combined with the ability to send goods into international markets twenty-four hours a day, which has made Melbourne the leading air freight export hub in the country.
“More than one-third of Australia’s total air freight exports left from Melbourne.”
Mr Strambi identified the value of Melbourne Airport’s commitment to meeting stakeholder needs as the foundation for the airport’s success.
“At the heart of our approach is the understanding that our sustainability as a business will be driven by getting the balance of stakeholder interests right,” said Mr Strambi.
“We know that in order for us to be successful, our airline and other customers who operate their businesses here need to be successful too.
“We know that without the support of governments, and the wider community, that we wouldn’t continue to have their trust, and the freedom to respond to the growth Victoria is generating.
“We couldn’t achieve what we do without the strong support of our Shareholders.
“They have an eye on both the short term returns for their investors, and how we build the value of their airport asset.
“Delivery for all these stakeholders drives our decision making and direction. Our strategies are all about getting the right balance.”
Over the past financial year Melbourne Airport invested almost $250 million in a series of capacity-building and critical maintenance projects, all delivered while maintaining round-the-clock services from the airport’s existing terminals.
Key projects included the opening of a new domestic Terminal 4, including a dedicated parking and transport hub.
Significant projects that are less visible to the travelling public included the four-year, $84 million project to replace over 7 hectares of 45-year-old concrete taxiways on the airfield, and the commissioning of the new airport coordination centre.
“This new state of the art facility coordinates activity across the airport, can operate as a command centre in the event of a crisis, and embodies impressive technology including connection of hundreds of CCTV cameras throughout the airport precinct,” said Mr Strambi.
Investment in road infrastructure within the airport boundaries has seen a marked reduction in localised congestion both on and off airport.
Linking the M80 Ring Road to the airport, Airport Drive was opened in 2015, making travel easier from the west as well as providing access to the freight and logistics precinct.
And the new Terminal 4 transport hub containing a dedicated public pick up and drop off area, taxi rank and bus interchange as well as the T4 At Terminal Car Park, made a huge difference to traffic flows around the airport.
“Since the transport hub opened we have seen an almost 10 per cent reduction in traffic volumes in our main forecourt area which services terminals 1, 2 and 3,” said Mr Strambi.
Acknowledging the importance of the community in which Melbourne Airport operates, Mr Strambi outlined ongoing efforts to strengthen ties.
“More than two thirds of all people who work at Melbourne Airport come from the seven municipalities that sit around the airport,” said Mr Strambi.
“We are committed to supporting communities in and around the airport, and we are incredibly proud of our partnerships with Western Chances, the Banksia Gardens Community Centre in Broadmeadows and the Salvation Army.
“From providing scholarships to talented students, to school education programs, to supporting victims of family violence, these organisations do extraordinary work and we are delighted to continue our work with them.
“We want our community, whether that be our neighbours, airlines, business partners, investors, travellers, people who work at Melbourne Airport – indeed, every Victorian, to feel pride in our reflection of this great state and importantly, we want our people to be proud to come to work every day.”
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