ian kew - darwin international airport - darwin international airport – fit for purpose expansion
DESCRIPTION
Ian Kew delivered the presentation at the 2014 Building the Territory Conference. The inaugural Building the Territory Conference 2014 is an opportunity to meet with the project owners and leaders, to hear about the new opportunities and developments for the built environment in the Territory. For more information about the event, please visit: http://bit.ly/BuildingtheNT2014TRANSCRIPT
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Ian Kew Chief Executive Officer
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Ownership and Company Structure
Industry Funds Management
Managed Funds 77.44%
Palisade Diversified
Infrastructure Fund
22.56%
Airport Development
Group
Northern Territory Airports
Tennant Creek Airport
Alice Springs Airport
Darwin International
Airport
Palisade
Diversified Infrastructur
e Fund 23%
[CATEGORY NAME]Invest
ors [PERCENTAG
E]
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Darwin International Airport
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• Privatised in 1998
• 100% Australian owned
• Airport centrally located
• Two runways
• 17 aircraft bays
• Currently undergoing $60M terminal expansion
• Two storey, modern, integrated terminal
• Joint User Facility (Royal Australian Air Force)
• 311 Hectares (1258 hectares RAAF)
• 24 hour, curfew free operation
• 50 + 49 year lease (June 1998)
• A380 Diversion Port
Airport Overview
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Our Location
Gateway to Asia
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Australia’s Northern Gateway
• Darwin offers direct flights from most major cities as well as regional centres
• On most sectors there are multiple airlines operating, offering choice and competition
• As a 24 hour airport, schedules are very flexible with a range of arrival and departure times. Peak times for arrivals include:
o 11.30 – 17.00 and 23.00-01.30
• Our extensive international schedule also offers competitive fares, which allows for easy pre and post touring
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Darwin best placed as hub for South East Asian traffic
Alternate Northern Gateways
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Key Drivers for Air Traffic Growth
• Mining
• Oil and Gas (Inpex, Connoco Philips, Shell Prelude)
• Defence including USMC
• Tourism
• Darwin Convention Centre
• Two iconic visitor destinations
o Red Centre
o Tropical Top End, Kakadu
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0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 B
Total Passengers (OD) - Darwin excludes transfers and transits
International Pax Domestic Pax
Darwin Airport Passengers
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Objectives
• To grow the seat capacity and route network at DRW
and ASP in a sustainable manner
• Deliver pax growth above the national average
Strategy
• Develop strong business cases to present to airline
customers
• Build the Darwin narrowbody hub (through access
and marketing)
• Increase competition on new & existing sectors
(Virgin, Jetstar and international carriers)
• Attract carriers that complement and grow the Darwin
pax mix and network – Full service international
network carrier secured Philippines Airlines, SilkAir &
Malaysia Airlines
• Develop growth markets such as China
Domestic and International Routes from Darwin
8 major domestic cities,
5 international destinations
Numerous regional centres
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Recent Local News
• Malaysia Airlines commenced 4pw Kuala Lumpur-Darwin Nov 2013
• Airnorth increased Darwin-Townsville from 4 to 5 per week in April 2014
• Virgin retimed Brisbane-Darwin to daylight services on 15 April 2014
• Tigerair commenced daily services Brisbane-Darwin 15 April 2014
• Qantas added 11 additional flights from Brisbane (4), Melbourne (4), Perth (2) and Sydney (1) from March 2014
• Jetstar withdrew 4pw Darwin-Manila-Tokyo in March 2014
• Jetstar increased Cairns-Darwin from 3 to 7 per week in March 2014
• SilkAir operates a 5th weekly supplementary during peak months
Darwin – Carriers YTD April 2014
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Adelaide 11%
Brisbane 21%
Melbourne
15%
Perth
9%
Sydney 19%
Regional 25%
Domestic Destinations FY14
Dili
9%
Denpasar
34%
Kuala Lumpur 4%
Manila
20%
Singapore
33%
International Destinations FY14
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Domestic Visitors to NT
Holiday 408,000
44%
Visiting friends and relatives
153,000 17%
Business 316,000
34%
Other 46,000
5%
Diversified traffic mix with a large
proportion of passengers
travelling for business and to visit friends and
relatives
DIA Passenger Profile
International Visitors to NT (Year Ended September 2013)
Holiday192,687
75%
Visiting friends & relatives
23,219 9%
Business12,771
5%
Employment11,695
5%
Education8,380
3%
Other7,665
3%
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0
50
100
150
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FY
98
FY
99
FY
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FY
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FY
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Rebased
(G
DP
vs. D
raw
in
Do
mestic P
AX
)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
FY
98
FY
99
FY
00
FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
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FY
13
PA
X (
millions)
1.4 1.4 1.5
1.8
1.4 1.5 1.6 1.8 1.82.0
2.2 2.3 2.4 2.5 2.4 2.52.6
2.83.0
3.13.3
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
FY
98
FY
99
FY
00
FY
01
FY
02
FY
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FY
04
FY
05
FY
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FY
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FY
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FY
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PA
X (
millions)
DIA International
DIA Domestic
ASA Domestic
NTA Total Passengers and External Shocks NTA – Historical and Forecast Pax
NTA – Historical and Forecast Pax Growth Rates DIA Domestic Passengers vs. Australian GDP
FY13-18 Forecast CAGR = 5.9%
Ansett collapse
September 11
Bali bombings
Iraq, SARS
Rise in Oil Prices
Global Financial Crisis
Swine Flu
Eurozone debt crisis
Since privatisation in 1998, domestic PAX at Darwin Airport have grown at
1.42x Australian GDP growth
FY08-13 Historical CAGR
= 2.5% FY03-08
Historical CAGR = 7.9%
Passenger Traffic Trends
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Darwin remains the second-fastest growing major international airport over the past decade
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With growth in Darwin exceeding Australia’s average and most other Airports in the past 5 years
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Route Development and Marketing • Grow base market to encourage non-
stop services
• Social media engagement
• On-airport promotions
• Aggressive multi-channel campaign in regional markets to encourage travel to Asia via Darwin. Currently rolled out in Townsville
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Resident Magazine
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Resident Magazine
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Traffic projections to 2030
Forecast Passenger Movements to 2030
Source: DIA Master Plan 2010
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The project will double the airport’s capacity and facilitate improved passenger facilities, and is the largest construction project undertaken at Darwin Airport since the original building was built in 1991.
• $100M invested over seven years to expand terminal, aprons and other facilities
• Completion of East End commissioned mid August
• Completion of West End - end of September 2014
• All works to be completed Christmas 2014
Overview & Timeline
TXP Project
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Bays 23-25
3 New Aircraft Parking Bays
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Capital Invested
Investments since Privatisation
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Retail upgrades
Dome Cafe
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Retail partners – Delaware North
The Corner Store
Two Brews
Hectors
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JR Duty Free
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Property Development
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View of JKC carpark from the entrance off Charles Eaton Drive
Aerial view of the Rydges hotels Aerial view of Bunnings Warehouse
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Australian Federal Police
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Qantas Ramp Engineering
TEMRS - Careflight
New Hangar - Careflight
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Ardent Leisure Centre
• Construction commenced August 2014
• Due to open Jan/Feb 2015
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Caltex