Your SlideShare is downloading. ×
0
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Airports as economic drivers for local economies and communities
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Airports as economic drivers for local economies and communities

193

Published on

Jim Parashos, Director Commercial & Aviation Development at Northern Territory Airports delivered this presentation at the 2012 Northern Territory Transport Infrastructure Summit. The annual …

Jim Parashos, Director Commercial & Aviation Development at Northern Territory Airports delivered this presentation at the 2012 Northern Territory Transport Infrastructure Summit. The annual conference is the only event that focuses solely on the particularities and difficulties in implementing new transport infrastructure projects at Australia's top end. For more information, please visit the conference website: www.statetransportevents.com.au/nttransport

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
193
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. AVIATION AIRPORTS AS ECONOMIC DRIVERS FOR LOCAL ECONOMIES AND COMMUNITIES NORTHERN TERRITORY TRANSPORT FORUM 2012 PRESENTED BY JIM PARASHOS DIRECTOR OF AIRLINE & AIRPORT SERVICES
  • 2. BACKGROUND
  • 3. OVERVIEW OF DARWIN INTERNATIONAL AIRPORT  Privatised in 1998  Owned by Airport Development Group Pty Ltd  100% Australian owned, majority owned Australian Superannuation Funds  2.3M passengers per annum  Join User Facility (civil – military operations)  Currently undergoing $50M terminal expansion  Four aerobridges  311 hectares (1258 hectares RAAF)  24 hour, curfew free operation  1,000 people employed aviation operations  800 people employed non-aviation businesses
  • 4. 4
  • 5. DARWIN AIRPORT FACTS  Darwin Airport is investing $100M in aeronautical related investments over the next 8 years  Australia’s Top End is developing as a narrowbody hub between Australia and the fast growing Asia region  Darwin will continue to grow as a significant tourism and business destination  Darwin has direct services to most key Australian cities  Current schedules cater for daylight services, or evening departures from east coast, arriving to Darwin before midnight  Return services depart morning, midday and late evening  Aim is for triple daily services via various carriers from most destinations  13 km from city centre (and no traffic)
  • 6. KEY DRIVERS FOR AIR TRAFFIC GROWTH
  • 7.  Airport a significant contributor to economy, but not a driver  Most other actions drive activity, such as business and tourism
  • 8. KEY DRIVERS FOR AIR TRAFFIC GROWTH  Mining  Oil and Gas (Inpex, ConocoPhillips, Shell Prelude)  Defence including USMC  Federal Intervention Program ‘closing the gap’  Tourism  Darwin Convention Centre  Two iconic visitor destinations – Red Centre – Tropical Top End, Kakadu
  • 9. DARWIN DOMESTIC PASSENGERS Domestic passengers represented approximately 80% of DIA’s total passengers in FY2012 Commentary DIA Domestic & Regional Passengers (FY2002-FY2012)  DIA is expected to handle 1.9 million domestic and regional passengers in FY2013, with volumes having grown from 0.9 million in FY1998 at an average compound growth rate of 5.2% p.a. 2,000,000  The five major interstate routes (Brisbane, Sydney, Melbourne, Adelaide and Perth) accounted for approximately 73% of Darwin’s domestic passengers in FY2012. Brisbane was the major route in FY2012 accounting for 20% of domestic passengers. 1,000,000  Recent service developments include the addition of Virgin services in FY2012, and increased services by Jetstar, Qantas and Airnorth to select domestic and regional locations Domestic Destinations FY2012 1,500,000 500,000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Domestic OD Domestic Visitors to Northern Territory (FY2011) Other 9% Adelaide 10% Other 27% Domestic Trans Brisbane 20% Holiday 40% Business 32% Perth 9% Sydney 18% Melbourne 16% Visiting friends & relatives 19%
  • 10. DARWIN INTERNATIONAL PASSENGERS Increased service developments providing international passengers with more options Commentary International Passengers (FY2002–FY2012)  DIA handled total international passengers of 0.44 million in FY2012. Total international traffic has grown at an average compound growth rate of 5.7% pa since FY2005.  Jetstar remains the dominant international carrier with over 75% market share, with Indonesia being the main destination of choice followed by Singapore and Philippines 500,000 400,000 300,000 200,000 100,000  Recent additions to international services include Silk Air commencing 4 services per week to Singapore in March 2012. 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 International OD Source: International Destinations FY2012 Dili 10% Other 1% Singapore 29% International Trans ADG Management International Visitors to Northern Territory FY2012 Education 4% Business 7% Employment Other 4% 2% Visiting friends & relatives 8% Denpasar 43% Ho Chi Minh City 7% Manila 10% Holiday 75%
  • 11. STRATEGIES TO INCREASE OPERATIONAL EFFICIENCIES
  • 12. PROJECTS
  • 13. DIA TERMINAL EXPANSION The $60M expansion will include:  $45M partial three-story building providing an additional 11,000 square metres of floor space and a new goods delivery area  $15M in associated apron expansion and car parking works Expansion will increase floor space by 65% and will be modular in design
  • 14. NEW & EXPANDED CLUB LOUNGES Virgin Australia have committed to opening a lounge at Darwin International Airport which has been very well received and long anticipated by the travelling public The existing Qantas lounge will be relocated and expanded as part of the new Terminal Expansion
  • 15. CHALLENGES
  • 16.  Challenging environment – High AUD – Weak global economies – High cost for domestic travel  Being a 24 hour low volume airport makes it difficult to achieve efficiencies  Environmental factors, including 24/7 airconditioning, high operating costs such as electricity etc
  • 17.  It’s crazy to see hotels promoting Territorian specials to population of 130K, when airlines are offering cheap flights to key markets  If airlines can’t fill these seats, they simply don’t operate them. This is counter productive
  • 18.  Tourism sector challenging due to accommodation sector being occupied by higher yield business travellers  Airline and accommodation sectors are counter intuitive in many respects Airlines Accommodation Short decision making; in and out of markets within three months. Long lead times and approvals. High fixed costs (such as airports) When business demand high, restrict capacity and increase yields With high business demand, increase room rates, impacting leisure travel Reduced leisure travel means reducing capacity (volume v yield) Less leisure travellers means less revenue in off peak times
  • 19.  If Australians travelling overseas in record numbers, inbound is soft, domestic is considered expensive as a stand alone destination and we need accommodation investment, what are our options?
  • 20. DIA SUPPORTING & PROMOTING DARWIN STOPOVERS DIA Website promoting Creative Holidays’ campaign ‘Discover Asia’ & the Top End
  • 21.  Benefits – Reduces low and shoulder seasons – Increases occupancy rates for hotels year round, which provides appetite to investment – Keeps seats full on airline services year round, providing year round access and capacity
  • 22.  Need to get the right balance between yield and volume to ensure the tourism and aviation sectors (including the airport) continue to grow
  • 23. POSITIVES
  • 24.  Darwin well positioned geographically to capitalise on Australian outbound travel to Asia  High desire of Australians to visit the Top End, on the bucket list, but not just yet  Opportunity to give them a taste at little extra cost
  • 25. DIA NORTHERN AUSTRALIA HUB STRATEGY – NEXT PHASE  Improve access from other regional ports.  Make Darwin the preferred access point to Asia and other domestic ports.  “Own” Northern Australia Manila Ho Chi Minh Singapore Dili (East Timor) Denpasar (Bali) Maningrida, Milingimbi, Elcho Island, Gove Darwin Groote Eylandt Kununurra Broome Cairns Tennant Creek Townsville Port Hedland Mt Isa Karatha Alice Springs Brisbane Gold Coast Perth Adelaide Sydney Canberra Melbourne
  • 26. DARWIN’S SELLING PROPOSITION  Single terminal, 100 metres on foot transfer  No terminal change (unlike Perth, Sydney, Brisbane and Cairns)  24 hour flexibility  Flying in the right direction (why backtrack?)  Supporting other regional ports  Opportunity for joint marketing  Targeted audience – FIFO, business, tourism  Assists smaller regional carriers - provide year round pax leading to increased services leading to increasing connection opportunity and flexible schedules increased access which boost pax numbers market growth which can be supported by data demonstrating opportunity for direct flights to new ports
  • 27. NON-AVIATION PRECINCTS
  • 28. DARWIN AIRPORT PROPERTY PORTFOLIO Airnorth $4M hangar and office completed 2001 Environment Australia building, completed 2002 AQIS building $6.1M completed 2005 CASA Building $2.5M completed 2005 ABC Childcare completed 2004 Bunnings Warehouse $10M completed 2006 Darwin Airport Resort $10M completed 2005 Darwin Airport Inn $17.5M completed 2008 Darwin Airport Lodge $16M completed 2011 AFP police station and K9 project circa $20M completed  Major Development Plan for $100M bulky goods complex approved          
  • 29. COMMERCIAL DEVELOPMENTS Rydges Airport Resort Department of Environment, Water & Heritage
  • 30. TOP END AERO MEDICAL RETRIEVAL SERVICE
  • 31. TEMRS FACILITY  An investment in aero facilities for CareFlight as the incumbent operator of the NT Government Aero-Medical service for 10 years  Facility details:  1,820sqm Hangar  1,623sqm Offices (fatigue management/engineering offices/workshops/storage)  46 car parking bays  DIA to provide 24/7 Property and Facilities Management  5,500sqm Site  5,800sqm Aircraft Apron
  • 32. Strategic Planning Session – 18 - 20 March 2012 TEMRS
  • 33. ARDENT LEISURE
  • 34. AXIS 12o130o0o  AXIS 12o130o aims to provide the first fully integrated, master planned and controlled commercial precinct of its kind within the Northern Territory  To create a vibrant, innovative, sustainable and community & user sensitive urban habitat offering premium facilities  The AXIS 12o130o Land Use Plan divides the 60 hectare precinct into four main development zones  The Master Plan will create a mixed-use environment for vibrant retail, commercial, bulky goods and entertainment precincts, supported by excellent public domain and community facilities including
  • 35. ENTERTAINMENT PRECINCT Vision - To create a dynamic, integrated, activated entertainment precinct that will potentially include:  Family Entertainment Centre (FEC) including tenpin bowling and laser skirmish – commercial terms agreed in-principle; Board approval received  Petrol station – to be provided to Board for approval  Cinemas – 2 parties interested; on-going discussions, pending FEC  Drive-through fast food outlets – preparing proposal in response to recent enquiry  Children’s Playland and Café – discussions progressing  Future expansion potential
  • 36. Indicative Concept Plan Entertainment Precinct
  • 37. MYTHBUSTER
  • 38. AIRPORT CHARGES Charges Breakdown International Return trip $60 $50 $40 $30 $20 $10 $Sydney Brisbane Airport Charges Cairns Darwin Perth Gold Coast Government Mandated Security Charges Adelaide
  • 39. SUMMARY
  • 40.  Darwin Airport is investing $100M in aeronautical related investments over the next 8 years  Australia’s Top End is developing as a narrowbody hub between Australia and the fast growing Asian region  Darwin will continue to grow as a significant tourism and business destination  DIA is in negotiations to increase the number of direct services to key Australian cities
  • 41. THANK YOU

×