AIA bucks slump in air travel

By DANIEL RIORDAN aviation writer

Auckland International Airport has lifted its profit for the four months to October 31, despite the slump in air travel after the terrorist attacks of September 11.

Chairman Wayne Boyd told a packed annual meeting yesterday that the company's profit of $21 million was 15.4 per cent higher than the same period last year, on revenue 9.8 per cent greater at $65.5 million.

He also predicted increased six-month and annual profits.

Last year, the airport made an interim profit of $28.5 million and $59 million for the full year.

For the latest four months, international passenger numbers were up by 6.7 per cent and domestic passengers by 6.1 per cent. Total numbers were 6.5 per cent higher.

Before the attacks, international passenger numbers were heading for a 10 per cent increase on last year.

Total aircraft tonnages were 3.4 per cent higher - up 1.2 per cent for international and 8.2 per cent for domestic.

But passenger numbers after October 14 were running behind those of last year, and Mr Boyd said a feel for second-half performance (to June next year) would become clear only in February and March, after the peak holiday season.

He cited recent surveys suggesting the downturn might be "a lot less negative than originally expected". Visitor numbers for the November-March season were expected to stay at last year's level and rebound next summer.

Mr Boyd said all airlines had accepted the compromise on higher landing charges, reached between the airport and Air New Zealand two weeks ago.

The airport has agreed not to increase its charges from next September and hold charges at least through to 2007, when consultation is expected to start on the effects on landing charges of constructing a second airport runway.

The Commerce Commission has delayed its report on airport price control until the second quarter of next year.

Despite predictions of another record profit, managing director John Goulter said the company needed to keep a tight lid on costs and would be adopting a no-frills policy.

Shareholders nodded in approval, but were taken aback when Mr Goulter said the policy included feeding them only Round Wine biscuits with their post-meeting tea and coffee.

One shareholder said he hoped directors would be sticking to the same plain fare for their meetings, and another promised to move to have directors' fees cut at next year's annual meeting.

Mr Goulter held out the promise of butter on the biscuits for next year.

The company was in the final stages of documentation for three building projects on its land - a coolstore, logistics company and vehicle company - and was considering retail developments, which could include a cinema complex.

The international passenger terminal's refitted first floor would be opened the week before Christmas.

Yesterday also heralded the opening of priority customs clearance for duty-free customers carrying New Zealand and Australian passports.