Transcript Slide 1

Market Change
Let’s get ready!
Asia - Australasia - Americas
Auckland Airport | April | 1
Ambition 2020
3.5m+ Arrivals
*YE Dec 2011 2.6 million….Forecast 2016 2.99 million
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1.5m from Australia
900,000 from Asia
China 400,000 plus, Japan 100,000
Nth America 300k
UK back at 250k, Germany 80,000
Asia largest growth 450,000 ….35% higher than Australia Growth
Source: TFI/MED/AIAL
Auckland Airport | April | 2
Longer Horizon View of Growth Potential
Growth in Visitor Arrivals 2011-2020
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
Growth
We still need to compete to capture
Source: TFI/MED/AIAL
Auckland Airport | April | 3
Asia will be our second largest market
Breakdown of Visitor Arrivals 2020
76,183, 2%
45,473, 1%
56,279, 2%
Asia
245,744,
7%
345,877, 10%
249,451, 7%
164,125, 5%
433,942, 12%
900,143, 25%
96,176, 3%
80,957, 2%
21,315, 1%
49,821, 1%
25,421, 1%
65,735, 2%
33,845, 1%
58,321, 2%
34,611, 1%
1,497,107, 42%
Aust
Pacific
USA
Canada
United Kingdom
Germany
France
China
Japan
Korea
Taiwan
Singapore
Thailand
Malaysia
Hong Kong
India
Indonesia
Other
Source: TFI/MED/AIAL
Auckland Airport | April | 4
The market is changing.
Let’s work together to
capture our share.
Numbers and spending of
global middle class.
2009 - 2030
2009
2020
2030
66%
3,228 million
Of the world’s
middle class
by 2030
13%
Of the world’s
middle class
by 2030
635 million
Source: OECD/AIAL
Auckland Airport | April | 5
With risk in Europe and US Airlines will Look to Asia
OECD’s assessment of the downside risk to GDP
2011
2012 central forecast
2012OECD scenario
Eurozone
US
China
World
Source: IATA
Auckland Airport | April | 6
Cost rises are forcing changes
Each week IATA updates it’s jet fuel price index to provide the latest price data from the leading energy
information provider Platts. The weekly index and price data shows the global average price
paid at the refinery for aviation jet fuel.
This weeks’s prices of aviation jet fuel:
Percentage change vs.
20 Apr 2012
Index*
$/b
Cts/gal
$/mt
1 week ago
1 month ago
1 year ago
Jet fuel price
368.3
134.7
320.8
1061.9
-1.1%
-2.6%
-3.9%
Source: Platts. * 100 in 2000 (87 cts/gal)
Impact on this year’s fuel bill of the global airline industry:
New fuel price average from 2012
Impact on 2012 fuel bill
$135.1/b
+$41 billion
Estimated by IATA Methodology
Auckland Airport | April | 7
Rising Fuel Causing issue in Ultra Long Haul
AKL Routes
Source: TFI/MED/AIAL
Auckland Airport | April | 8
Ambition 2020
$8.5b+ Value
*YE Dec 2011 $5.76 billion….Forecast 2016 $6.6 billion
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Asia will be largest value market worth $2.75 billion
China $1.5b plus, Korea $330m, Japan $300m
Australia $2.35 billion
North America $800m
UK $690m, Germany $290m
Indonesia $100m, Singapore $100m, Malaysia $100m
Source: TFI/AIAL/MED
Auckland Airport | April | 9
Longer Horizon View of Growth Potential
Visitor Spend Growth 2011-2020 (NZD Millions)
1,200
1,000
800
600
Visitor Spend Growth
400
200
0
Australia
Auckland Airport | April | 10
United
Kingdom
Germany
United
States
Canada
China
Japan
South
Korea
Singapore
Taiwan
Other
Source: TFI/MED/AIAL
Delivering $3 billion additional visitor spend
$70 , 1%
$72 , 1%
Visitor Value 2020 by Country (NZD millions)
$96 ,
1% $94 , 1%
$118 , 1%
$957 , 11%
$118 , 1%
$126 , 1%
$151 , 2%
$167 , 2%
$2,346 , 27%
$290 , 3%
$306 , 4%
$1,496 , 18%
$331 , 4%
$454 , 5%
$655 ,
8% $693 , 8%
Aust
China
United Kingdom
USA
Pacific
Korea
Japan
Germany
India
Canada
France
Singapore
Malaysia
Indonesia
Hong Kong
Taiwan
Thailand
Other
We still need to compete to capture
Source: TFI/MED/AIAL
Auckland Airport | April | 11
Economics
HNWI Population by Country 2010
3104
2866
(
3500
N
u
3000
m
b
T 2500
e
h
r
o 2000
u
o
s 1500
f
a
n 1000
H
d
N
s 500
W
I
0
'
s
1739
1650
862 924
477 535
448 454
383 396
)
USA
Japan
Germany
China
UK
France
HNWI (000's) 2009
251 282
222 243
174 193
179 170
147 155
127 153
Canada
Switzerland
Australia
Italy
Brazil
India
HNWI (000's) 2010
The wealth at top is growing
Source: Capgemini,/Merrill Lynch/Knight Frank/AIAL
Auckland Airport | April | 12
Asia Wealth Growth is Strong
Forecast Asian HNWI (USD 1 M) by Country
HNWI 2010 (ooo's)
HNWI 2015 (ooo's)
1956
1739
1378
502
403
310
173
Japan
China
India
138
South Korea
70
136
Taiwan
86 131
64
129
Hong Kong Singapore
47
129
Thailand
33
99
Indonesia
32 68
16 38
Malaysia
Philippines
We need to compete at that end
Source: CLSA/Capgemini,/Merrill Lynch/Knight Frank/AIAL
Auckland Airport | April | 13
Need to grow Mono NZ for Maximum Value
Holiday Arrivals Mono v Dual Destination 2011
Dual Aus
China
NZ Only
86%
Germany
5%
46%
UK
31%
54%
75%
Canada
23%
2%
64%
USA
11%
42%
Taiwan
35%
Singapore
18%
5% 3%
23%
24%
58%
Other
9%
22%
23%
Korea
Japan
Dual Other
31%
15%
43%
14%
51%
0%
82%
92%
Building New Zealand Mono & Longer Stay
Source: TFI/MED/AIAL
Auckland Airport | April | 14
Ambition 2020
Key Pillars
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Auckland Airport | April | 15
More Air Capacity with Emphasis on Direct/Hubs/Connectivity
Building Value to Ensure Sustainable Growth/Yield
Work with Industry on New Value Customer Segments
Develop Channel Partnerships
Expanding into New Growth Regions (China 2nd Tier, Indonesia, Perth etc.)
Assisting with Industry Readiness & Developing Quality Position
Premium Value Partnerships
Ambition 2020
China 430,000
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Grow Directs from 12 per week to 35 per week
New regional development through CZ/MU networks connects across Asia
Work with Industry on New FIT segments/Development Corporate/MICE
Develop Channel build premium value and yield for airlines
GDP Growth 2012 +8.3%...
Market Share 0.8% 2020 v 2011 0.7% and 2010 0.6% (Total Outbound less HKG & Macau)
Need to compete with Australia for Dual v Mono
Auckland Airport | April | 16
Build Direct China Air Capacity to 35 Flights PW
500000
Development of Longer Stay Mono NZ via Direct Flights
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
Today
2020
Total Visitor Arrivals China
Direct Flight Chinese Visitor Arrivals
We still need to compete to capture
Source: TFI/AIAL/Sabre
Auckland Airport | April | 17
Enabling us to Grow Share
AUS 7.5:1 NZ
AUS 11:1 NZ
We still need to compete to capture
Source: TFI/MED/TA/AIAL
Auckland Airport | April | 18
8M, Liaoning Province 44M,
GDP USD 77 Billion
Heavy Industry, Aerospace,
Machine Tools, Auto
27.9%
Growth in China
Harbin
Changchun
Shenyang
City
Beijing
Dalian
Tianjin
Taiyuan
14M, Sichuan Province 80M,
GDP USD 111 Billion
Food , Medicine, Machinery, IT
22.9%
Qingdao
Zhengzhou
269.9%
Xianyang
226.6%
49.4%
Jinan
9M, Shandong Province 96M,
GDP USD 711 Billion ,
Cotton, Wheat, Gold, Diamond
, Sapphires, Petroleum, Wine
Nanjing
25.8%
Chengdu
Hongqiao
Shanghai
Ningbo
Wuhan
Hangzhou
Wenzhou
Chongqing
20.8%
Changsha
Nanchang
Guilin
Kuming
Nanning
Haikou
Auckland Airport | April | 19
Sanya
Guangzhou
Fuzhou
Xiamen
7M, Fujian Province 37M,
GDP USD 59 Billion
Food Processing, Industrial
Chemicals , Wood & Paper
Shanghai
Beijing
Guangzhou
Shenyang
Fuzhou
Qingdao
Dalian
Chengdu
Nanjing
Xiamen
Wuhan
Xianyang
Zhengzhou
Hangzhou
Hongqiao
Changsha
Kuming
Tianjin
Chongqing
Harbin
Jinan
Nanning
Changchun
Ningbo
Haikou
Sanya
Taiyuan
Nanchang
Guilin
Wenzhou
YE Feb 12 YE Feb 11 Growth
67907
57773
34689
6240
5618
4317
3942
3836
3682
3278
2728
2682
2476
2416
2112
2053
2042
1826
1392
1332
1059
1036
787
745
669
524
522
495
450
361
69803
58682
13813
4877
4650
3513
3248
3049
2788
2858
2085
1795
758
1713
571
1586
1417
1104
1242
500
560
441
344
502
315
309
67
173
285
80
Source: AIAL/Sabre/AI
-2.7%
-1.5%
151.1%
27.9%
20.8%
22.9%
21.4%
25.8%
32.1%
14.7%
30.8%
49.4%
226.6%
41.0%
269.9%
29.4%
44.1%
65.4%
12.1%
166.4%
89.1%
134.9%
128.8%
48.4%
112.4%
69.6%
679.1%
186.1%
57.9%
351.3%
Auckland Airport | April | 20
Passengers
Mariana Islands
Kazakstan
India
Japan
Turkmenistan
Maldives
Pakistan
Egypt
Sweden
Indonesia
Libya
Brunei Darussalam
Singapore
Mongolia
Iran
Hungary
Italy
Australia
Turkey
Austria
Qatar
Belgium
Saudi Arabia
United Arab Emirates
Canada
Israel
Netherlands
Finland
Denmark
United Kingdom
Ethiopia
Germany
New Zealand
Spain
United States
France
8000000
Switzerland
Mexico
South Africa
Algeria
Competing at High End
9000000
2500
Top 40 Average Fare & O&D Traffic from China by Country YE Feb 2012
7000000
2000
6000000
5000000
1500
4000000
1000
3000000
2000000
500
1000000
0
0
ODAvgOneWayFareInUSD
We compete with Europe & Nth America
Source: AIAL/Sabre/GCM
Premium JV AIAL/ATEED/Trade
Auckland Airport | April | 21
Premium JV AIAL/TNZ/Airline China
Building FIT & Value Market
Auckland Airport | April | 22
Competitive Products
地区/Region
行程名字/Name of the trip
前往国家/城市 Countries/Cities
价格/元 Price in RMB
出发日期 Departure Date
酒店标准 Hotel Standard
品味轩尼诗,意瑞法(世纪冰河,
世界酒庄)12天 Tast of
瑞士、法国、意大利 Switzerland, France,
欧洲 Europe
Hennessy, Glacier, World
Italy
famous winery, 12 days
18499-19199
2012-5-22、2012-6-14、20126-16、2012-6-22、2012-7-8、 当地三星或 四星 Local 3 or 4
2012-7-12、2012-7-17、2012- star
7-22、2012-7-27
德意荷法瑞（郁金香花季，
意大利（米兰）、瑞士、德国、法国、比利
浪漫之路）10天 Tulip flower
欧洲 Europe
时、荷兰 Italy (Milan), Switzerland,
season, Romantic pathway, 10
Germany, France, Belgen, Holland
days
13799-14199
2012-5-16、 2012-5-29、
2012-6-13、 2012-6-27
当地三星或 四星 Local 3 or 4
star
2012-5-29、
当地三星或 四星 Local 3 or 4
star
翡翠王国爱尔兰英格兰（奥运
场馆巡游）纯美10天 Kingdom
英伦三岛：英格兰、苏格兰、爱尔
欧洲 Europe of Jade, Ireland/England
England, Scottland, Ireland
(Olympic Stadium), 10 days
pure and beautiful
欧洲 Europe
西班牙圆舞曲四星品味10天 埃斯可里尔、塞哥维亚、巴塞罗那、马德
Spanish 4 star 10 days
里 Esk Lille, Segovia, Barcelona, ​Madrid
意瑞法(依云镇TGV高铁)四星
法国、瑞士、意大利 France, Swissland,
欧洲 Europe 10天 Evian Water town, TGV
Italy
highspeed rail, 4 star, 10 days
欧洲 Europe
德奥瑞（阿尔卑斯山之路）10 瑞士、奥地利、德国 Switzerland, Austria,
Germany
天 Alps Road 10 days
Auckland Airport | April | 23
18199
15199-16199
2012-5-26、2012-7-13、2012- 当地三星或 四星 Local 3 or 4
7-27
star
17499-18499
2012-5-21、2012-6-11、20126-16、2012-6-18、2012-6-23、
当地四星 Local 4 star
2012-7-9、2012-7-14、2012-723、2012-7-30
17199-17799
2012-6-16、2012-7-13、2012- 当地三星或 四星 Local 3 or 4
7-22
star
Premium Development
Auckland Airport | April | 24
Building NZ Preference
5000
25000
AKL V MEL CAN-AKL by Fare Class YE Feb 12
4500
4000
20000
3500
3000
15000
2500
2000
10000
1500
1000
5000
500
0
0
J
I
P
D
C
W
AKL Pax
K
T
Y
M
MEL Pax
G
*
S
Z
L
H
AKL AvgOneWayFareInUSD
Q
B
E
R
V
F
U
O
N
MEL AvgOneWayFareInUSD
Developing the Airline Preference for NZ
Auckland Airport | April | 25
X
Thank You
Let’s get ready!
Asia - Australasia - Americas
Auckland Airport | April | 26