![Page 1: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/1.jpg)
AVIATION
AIRPORTS AS ECONOMIC DRIVERS FOR LOCAL ECONOMIES AND COMMUNITIES
NORTHERN TERRITORY TRANSPORT FORUM 2012
PRESENTED BY JIM PARASHOS DIRECTOR OF AIRLINE & AIRPORT SERVICES
![Page 2: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/2.jpg)
BACKGROUND
![Page 3: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/3.jpg)
OVERVIEW OF DARWIN INTERNATIONAL AIRPORT Privatised in 1998 Owned by Airport Development Group Pty
Ltd 100% Australian owned, majority owned
Australian Superannuation Funds 2.3M passengers per annum Join User Facility (civil – military operations) Currently undergoing $50M terminal
expansion Four aerobridges 311 hectares (1258 hectares RAAF) 24 hour, curfew free operation 1,000 people employed aviation operations 800 people employed non-aviation
businesses
![Page 4: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/4.jpg)
4
![Page 5: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/5.jpg)
Darwin Airport is investing $100M in aeronautical related investments over the next 8 years
Australia’s Top End is developing as a narrowbody hub between Australia and the fast growing Asia region
Darwin will continue to grow as a significant tourism and business destination
Darwin has direct services to most key Australian cities
DARWIN AIRPORT FACTS
Current schedules cater for daylight services, or evening departures from east coast, arriving to Darwin before midnight
Return services depart morning, midday and late evening
Aim is for triple daily services via various carriers from most destinations
13 km from city centre (and no traffic)
![Page 6: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/6.jpg)
KEY DRIVERS FOR AIR TRAFFIC GROWTH
![Page 7: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/7.jpg)
Airport a significant contributor to economy, but not a driver
Most other actions drive activity, such as
business and tourism
![Page 8: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/8.jpg)
KEY DRIVERS FOR AIR TRAFFIC GROWTH
Mining
Oil and Gas (Inpex, ConocoPhillips, Shell Prelude)
Defence including USMC
Federal Intervention Program ‘closing the gap’
Tourism
Darwin Convention Centre
Two iconic visitor destinations
– Red Centre
– Tropical Top End, Kakadu
![Page 9: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/9.jpg)
Domestic Visitors to Northern Territory (FY2011)
DARWIN DOMESTIC PASSENGERS Domestic passengers represented approximately 80% of DIA’s total passengers in FY2012
Commentary
DIA is expected to handle 1.9 million domestic and regional passengers in FY2013, with volumes having grown from 0.9 million in FY1998 at an average compound growth rate of 5.2% p.a.
The five major interstate routes (Brisbane, Sydney, Melbourne, Adelaide and Perth) accounted for approximately 73% of Darwin’s domestic passengers in FY2012. Brisbane was the major route in FY2012 accounting for 20% of domestic passengers.
Recent service developments include the addition of Virgin services in FY2012, and increased services by Jetstar, Qantas and Airnorth to select domestic and regional locations
DIA Domestic & Regional Passengers (FY2002-FY2012)
Domestic Destinations FY2012
Adelaide 10%
Brisbane 20%
Melbourne 16% Sydney
18%
Perth 9%
Other 27%
Holiday 40%
Visiting friends & relatives
19%
Business 32%
Other 9%
0
500,000
1,000,000
1,500,000
2,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Domestic OD Domestic Trans
![Page 10: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/10.jpg)
DARWIN INTERNATIONAL PASSENGERS Increased service developments providing international passengers with more options
Commentary
DIA handled total international passengers of 0.44 million in FY2012. Total international traffic has grown at an average compound growth rate of 5.7% pa since FY2005.
Jetstar remains the dominant international carrier with over 75% market share, with Indonesia being the main destination of choice followed by Singapore and Philippines
Recent additions to international services include Silk Air commencing 4 services per week to Singapore in March 2012.
International Passengers (FY2002–FY2012)
International Visitors to Northern Territory FY2012 International Destinations FY2012
Singapore 29%
Ho Chi Minh City 7%
Manila 10%
Denpasar 43%
Dili 10%
Other 1%
0
100,000
200,000
300,000
400,000
500,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
International OD International Trans Source: ADG Management
Holiday 75%
Visiting friends & relatives
8%
Business 7%
Education 4%
Employment 4%
Other 2%
![Page 11: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/11.jpg)
STRATEGIES TO INCREASE OPERATIONAL EFFICIENCIES
![Page 12: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/12.jpg)
PROJECTS
![Page 13: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/13.jpg)
DIA TERMINAL EXPANSION The $60M expansion will include: $45M partial three-story building providing an additional 11,000
square metres of floor space and a new goods delivery area $15M in associated apron expansion and car parking works
Expansion will increase floor space by 65% and will be modular in design
![Page 14: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/14.jpg)
NEW & EXPANDED CLUB LOUNGES
The existing Qantas lounge will be relocated and expanded as part of the new
Terminal Expansion
Virgin Australia have committed to opening a
lounge at Darwin International Airport
which has been very well received and long anticipated by the
travelling public
![Page 15: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/15.jpg)
CHALLENGES
![Page 16: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/16.jpg)
Challenging environment – High AUD
– Weak global economies
– High cost for domestic travel
Being a 24 hour low volume airport makes it difficult to achieve efficiencies
Environmental factors, including 24/7 air-conditioning, high operating costs such as electricity etc
![Page 17: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/17.jpg)
It’s crazy to see hotels promoting Territorian specials to population of 130K, when airlines are offering cheap flights to key markets
If airlines can’t fill these seats, they simply don’t operate them. This is counter productive
![Page 18: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/18.jpg)
Tourism sector challenging due to accommodation sector being occupied by higher yield business travellers
Airline and accommodation sectors are counter intuitive in many respects
Airlines Accommodation
Short decision making; in and out of markets within three months.
Long lead times and approvals. High fixed costs (such as airports)
When business demand high, restrict capacity and increase yields
With high business demand, increase room rates, impacting leisure travel
Reduced leisure travel means reducing capacity (volume v yield)
Less leisure travellers means less revenue in off peak times
![Page 19: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/19.jpg)
If Australians travelling overseas in record numbers, inbound is soft, domestic is considered expensive as a stand alone destination and we need accommodation investment, what are our options?
![Page 20: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/20.jpg)
DIA SUPPORTING & PROMOTING DARWIN STOPOVERS
DIA Website promoting Creative Holidays’ campaign ‘Discover Asia’ & the Top End
![Page 21: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/21.jpg)
![Page 22: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/22.jpg)
Benefits – Reduces low and shoulder seasons – Increases occupancy rates for hotels year round,
which provides appetite to investment – Keeps seats full on airline services year round,
providing year round access and capacity
![Page 23: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/23.jpg)
Need to get the right balance between yield and volume to ensure the tourism and aviation sectors (including the airport) continue to grow
![Page 24: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/24.jpg)
POSITIVES
![Page 25: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/25.jpg)
Darwin well positioned geographically to capitalise on Australian outbound travel to Asia
High desire of Australians to visit the Top End, on the bucket list, but not just yet
Opportunity to give them a taste at little extra cost
![Page 26: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/26.jpg)
Manila
Ho Chi Minh
Singapore
Denpasar (Bali)Dili (East Timor)
Maningrida, Milingimbi, Elcho Island, Gove
Groote Eylandt
Cairns
BrisbaneGold Coast
Sydney
Canberra
Melbourne
AdelaidePerth
Karatha
Port Hedland
Broome
Darwin
Tennant Creek
Mt Isa
Alice Springs
Kununurra
Manila
Ho Chi Minh
Singapore
Denpasar (Bali)Dili (East Timor)
Maningrida, Milingimbi, Elcho Island, Gove
Groote Eylandt
Cairns
BrisbaneGold Coast
Sydney
Canberra
Melbourne
AdelaidePerth
Karatha
Port Hedland
Broome
Darwin
Tennant Creek
Mt Isa
Alice Springs
Kununurra
Manila
Ho Chi Minh
Singapore
Denpasar (Bali)Dili (East Timor)
Maningrida, Milingimbi, Elcho Island, Gove
Groote Eylandt
Cairns
BrisbaneGold Coast
Sydney
Canberra
Melbourne
AdelaidePerth
Karatha
Port Hedland
Broome
Darwin
Tennant Creek
Mt Isa
Alice Springs
Kununurra
Manila
Ho Chi Minh
Singapore
Denpasar (Bali)Dili (East Timor)
Maningrida, Milingimbi, Elcho Island, Gove
Groote Eylandt
Cairns
BrisbaneGold Coast
Sydney
Canberra
Melbourne
AdelaidePerth
Karatha
Port Hedland
Broome
Darwin
Tennant Creek
Mt Isa
Alice Springs
Kununurra
DIA NORTHERN AUSTRALIA HUB STRATEGY – NEXT PHASE
Improve access from other regional ports. Make Darwin the preferred access point to Asia and other
domestic ports. “Own” Northern Australia
Townsville
![Page 27: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/27.jpg)
Single terminal, 100 metres on foot transfer
No terminal change (unlike Perth, Sydney, Brisbane and Cairns)
24 hour flexibility
Flying in the right direction (why backtrack?)
Supporting other regional ports
Opportunity for joint marketing
Targeted audience – FIFO, business, tourism
Assists smaller regional carriers
- provide year round pax - leading to increased services - leading to increasing connection opportunity and flexible schedules - increased access which boost pax numbers - market growth which can be supported by data demonstrating opportunity for
direct flights to new ports
DARWIN’S SELLING PROPOSITION
![Page 28: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/28.jpg)
NON-AVIATION PRECINCTS
![Page 29: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/29.jpg)
DARWIN AIRPORT PROPERTY PORTFOLIO Airnorth $4M hangar and office completed 2001 Environment Australia building, completed 2002 AQIS building $6.1M completed 2005 CASA Building $2.5M completed 2005 ABC Childcare completed 2004 Bunnings Warehouse $10M completed 2006 Darwin Airport Resort $10M completed 2005 Darwin Airport Inn $17.5M completed 2008 Darwin Airport Lodge $16M completed 2011 AFP police station and K9 project circa $20M
completed Major Development Plan for $100M bulky
goods complex approved
![Page 30: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/30.jpg)
COMMERCIAL DEVELOPMENTS
Rydges Airport Resort
Department of Environment, Water & Heritage
![Page 31: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/31.jpg)
TOP END AERO MEDICAL RETRIEVAL SERVICE
![Page 32: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/32.jpg)
TEMRS FACILITY An investment in aero facilities for CareFlight as the incumbent
operator of the NT Government Aero-Medical service for 10 years
Facility details: 1,820sqm Hangar
1,623sqm Offices (fatigue management/engineering offices/workshops/storage)
46 car parking bays
DIA to provide 24/7 Property and Facilities Management
5,500sqm Site
5,800sqm Aircraft Apron
![Page 33: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/33.jpg)
Strategic Planning Session – 18 - 20 March 2012
TEMRS
![Page 34: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/34.jpg)
ARDENT LEISURE
![Page 35: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/35.jpg)
AXIS 12o130o aims to provide the first fully integrated, master planned and controlled commercial precinct of its kind within the Northern Territory
To create a vibrant, innovative, sustainable and community & user sensitive urban habitat offering premium facilities
The AXIS 12o130o Land Use Plan divides the 60 hectare precinct into four main development zones
The Master Plan will create a mixed-use environment for vibrant retail, commercial, bulky goods and entertainment precincts, supported by excellent public domain and community facilities including
AXIS 12o130o0o
![Page 36: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/36.jpg)
Vision - To create a dynamic, integrated, activated entertainment precinct that will potentially include:
Family Entertainment Centre (FEC) including tenpin bowling and laser skirmish – commercial terms agreed in-principle; Board approval received
Petrol station – to be provided to Board for approval Cinemas – 2 parties interested; on-going discussions, pending FEC Drive-through fast food outlets – preparing proposal in response to recent
enquiry Children’s Playland and Café – discussions progressing Future expansion potential
ENTERTAINMENT PRECINCT
![Page 37: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/37.jpg)
Indicative Concept Plan Entertainment Precinct
![Page 38: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/38.jpg)
MYTHBUSTER
![Page 39: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/39.jpg)
$-
$10
$20
$30
$40
$50
$60
Sydney Brisbane Cairns Darwin Perth Gold Coast Adelaide
Charges Breakdown International Return trip
Airport Charges Government Mandated Security Charges
AIRPORT CHARGES
![Page 40: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/40.jpg)
SUMMARY
![Page 41: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/41.jpg)
Darwin Airport is investing $100M in aeronautical related investments over the next 8 years
Australia’s Top End is developing as a narrowbody hub between Australia and the fast growing Asian region
Darwin will continue to grow as a significant tourism and business destination
DIA is in negotiations to increase the number of direct services to key Australian cities
![Page 42: Airports as economic drivers for local economies and communities](https://reader034.vdocuments.site/reader034/viewer/2022051513/546fc606af7959b30a8b4689/html5/thumbnails/42.jpg)
THANK YOU