Improved profit for Dunedin airport

Additional car parks at Dunedin International Airport are expected to be completed in May. Photo...
Additional car parks at Dunedin International Airport are expected to be completed in May. Photo by Craig Baxter.
Dunedin International Airport yesterday reported a much improved interim profit for the six months ended December.

The airport company's before-tax profit of $161,949 for the period was well ahead of the $27,415 in the previous corresponding period.

Operating revenue was down slightly to $3.97 million but gross revenue was up marginally at $4 million thanks to improved interest and dividend income.

No dividend was paid for the period compared to $176,000 paid last year.

Aeronautical revenue of $1.42 million was down nearly 10% due to a reduction in international services by Air New Zealand. Non-aeronautical income was up 10.6% to $2.6 million.

The profit after tax was $110,000 compared with a loss of $41,000 last year.

Chairman Richard Walls said while it was pleasing to report a small increase in gross revenue, it was disappointing aeronautical revenue was below 2008 levels due to reduced landing tonnes resulting from the reduction in international services operated by Air New Zealand and the replacement of heavy jet aircraft with lighter turbo-prop aircraft on some domestic sectors.

The period under review was the first enabling a "like-for-like" comparison of domestic passenger numbers following the arrival of Pacific Blue on July 1, 2008.

For the period, total domestic passenger movements were 3.4% below the same period in 2008 but when compared to the same period in 2007 - without Pacific Blue services - total domestic passenger movements had increased by 14.8%.

The entry of Pacific Blue on the transtasman routes, and the loadings being achieved by both Pacific Blue and Air New Zealand, again underlined the benefits to passengers of market competition, Mr Walls said.

The directors were satisfied with the state of the company's affairs.

"Despite the challenges that the current state of the domestic and international economies place on us all, the company approaches 2010 with a level of optimism and a readiness to take advantage of those opportunities that we believe will present themselves," he said.

In a development update, Mr Walls said site works were recently started to enable the relocation of the rental car service depots, presently dotted around the car park, to purpose-built facilities next to the airport entry road.

The completed development would be available for use in May.

The additional car parks would be developed in two stages with the first stage - about half of the development - being completed by May and the second stage being developed by December.

 

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