Revenue up as terminal work looms

Tony Porter

Hawke's Bay Airport announced a $1.3 million profit as it prepares to expand to three airlines. Chairman Tony Porter said the terminal will be redeveloped to cater for more passengers.

Sounds Air will commence flights to Blenheim next month and Jetstar to Auckland in December. Passenger numbers increased 4.3 per cent to 476,000 during the last financial year and are projected to increase by at least 15 per cent in the next five years. The airport's revenue of $4.37 million was 9.1 per cent up on the previous year. Mr Porter said operating expenses of $1.6 million were 12.3 per cent below the previous year, reflecting reduced maintenance, salaries and consultancy fees.

A repayment of debt during the year brought the outstanding amount to $611,160.

Airport assets, which include the adjoining Airport Business Park, were revalued, at an increased $33.8 million.

A shareholder dividend would be recommended next month. Last year it paid $360,000 to Napier City Council, Hastings District Council and central government.

Work on the terminal expansion, which includes a new fire station, was due to begin early next year and expected to be finished in 2017.

In July, the airport company said it would fund the $6-8 million development from its own cashflows and bank borrowing. Shareholders would not be asked to contribute. Implementing a name change, to Ahuriri Airport Hawke's Bay, as part of the development would enable the absorption of any legal and branding costs into operational budgets.