Business Herald aviation writer Grant Bradley on what awaits new Auckland International Airport CEO Simon Moutter
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Incoming Auckland International Airport boss Simon Moutter will take over the controls at the close of business tomorrow of an organisation in something of a holding pattern.
The former high ranking Telecom executive takes over as chief executive at the airport from Don Huse who this morning announced a solid $113 million profit - up 3.3 per cent on the previous year.
Under Huse's five year reign the airport embarked on an ambitious half billion dollar spendup on capital projects - remodelled terminals, new air bridges, substantial property development and turning the sod on a second runway.
With long-term plans mapped out, the big spending is at an end - over the 2008-9 year it will drop back to between $75 million and $85 million.
Moutter's been doing the rounds of major stakeholders in the past fortnight but today was keeping plans he must have to himself.
Huse took over as the aviation sector was well on the way from recovering from the September 2001 terror attacks, was freshly recovering from the first part of the Iraq war and had just seen off the SARs flu crisis. At times year on year international passenger growth approached double figures, the airport's major airline customer, Air New Zealand, was going through a period of significant revitalisation existing carriers such as Cathay Pacific were taking advantage of burgeoning Asian markets and new carriers such as Emirates touched down.
In other words he took over at a good time.
He leaves in less certain times. The impact of soaring aviation fuel prices is not fully known among airlines let alone airports and the global economic slowdown hovering menacingly. Over the past year total international passenger movements grew by 2.4 per cent - just half of the norm of the past few years.
But he points out domestic passenger movements have over the past year grown rapidly - 13 per cent - due to stimulation of the market by Pacific Blue, short haul international travel over the Tasman and parts of Asia could take the slack of long haul tourism and the property and retail side of the business remain robust and forecasts a profit in the coming year along the same lines as that announced this morning.
So Moutter faces only a partly cloudy forecast. One thing he won't have to deal with is suitors looking to take over the business. Since the Canadian pension fund was given its marching orders by the Government earlier this year there's been nobody knocking at the door.
