4421 WAC Cover FINAL (Page 2)

Transcription

WESTRALIA AIRPORTS CORPORATION ABN 24 077 153 130 ACN 077 153 130
A N N UA L R E P O RT 2 0 0 0
WESTRALIA AIRPORTS CORPORATION
ANNUAL REPORT TWO THOUSAND
CONTENTS
LIST OF FIGURES
5
CHAIRMAN’S REPORT
6
REVIEW OF OPERATIONS
8
BOARD OF DIRECTORS
10
COMPANY OVERVIEW
12
BUSINESS OVERVIEW
14
FINANCIAL REPORT
33
CORPORATE DIRECTORY
69
LIST OF FIGURES
Fig 1.
Fig 2.
Fig 3.
Fig 4.
Fig 5.
Westralia Airports Corporation Pty Ltd Group Structure. SOURCE WAC.
Westralia Airports Corporation Pty. Ltd. Comparison of Financial Performance. SOURCE WAC.
Operating Revenue by Source for 1998/99 versus 1999/2000. SOURCE WAC.
Expenses by Source for 1998/1999 versus 1999/2000. SOURCE WAC.
Four year comparison for International and Domestic Passengers
1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
Fig 6. Four year comparison for International and Domestic Movements
1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
Fig 7. Four year comparison for International and Domestic Tonnes Landed
1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
Fig 8. Total Break-up in Domestic and International Passengers for Perth International Airport
FY 1999/00. SOURCE WAC.
Fig 9. Total Break-up in International Outward and Inward Passengers for Perth International
Airport FY 1999/00. SOURCE WAC.
Fig. 10. Total International Passenger Arrivals by Airline for Perth International Airport
FY 1999/00. SOURCE DIMA.
Fig. 11. Total International Passenger Departures by Airline for Perth International Airport
FY 1999/00. SOURCE DIMA.
Fig. 12. Total International Passenger Arrivals by Region of Nationality for Perth International
Airport FY 1999/00. SOURCE DIMA.
Fig. 13. Total International Passenger Departures by Region of Nationality for Perth International
Airport FY 1999/00. SOURCE DIMA.
Fig. 14. International Short Term Visitor Arrivals for Perth International Airport by Reason for
Journey Financial Year 1999/00. SOURCE ABS.
Fig. 15. International Short Term Resident Departures for Perth International Airport by Reason
for Journey Financial Year 1999/00. SOURCE ABS.
Fig. 16. International Short-term Visitor Arrivals by Reason for Journey by Origin for Perth
International Airport Financial Year 1999/00. SOURCE ABS.
Fig. 17. International Short-term Resident Departures by Reason for Journey by Destination
for Perth International Airport Financial Year 1999/00. SOURCE ABS.
Fig. 18. Total Passengers For Perth International Airport By Airline - 2 Year Analysis. SOURCE DIMA.
Fig. 19. Australian Nationality International Departures Perth International Airport 2 Year Analysis. SOURCE DIMA.
Fig. 20. International Route Map. SOURCE WAC.
Fig. 21. Weekly Airline Capacity Report into Perth from last Port - June 2000 versus June 1999
versus June 1998. SOURCE WAC.
Fig. 22. Airline Capacity Report into Perth from last Port FY 1999/00 versus FY 1998/99 versus
Fig. 23. Summary of Dedicated Air Freight Services Into Perth International Airport 1999/00.
Fig 24. Westralia Airports Corporation Property Development ‘VisionTowards 2018’.
Fig 25. Property revenue proportion FY 1999/2000. SOURCE WAC.
Fig 26. Trading revenue proportion FY 1999/2000. SOURCE WAC.
Fig 27. Summary of Trading Revenue Performance 1999/2000. SOURCE WAC.
Fig 28. Revenue break-up for the international terminal FY 1999/2000. SOURCE WAC.
Fig 29. Summary of ‘Arrivals’ Performance Indicators. SOURCE WAC.
Fig 30. Summary of ‘Departures’ Performance Indicators. SOURCE WAC.
Fig 31. Summary of ‘Taxi Arrivals’ Performance Indicators. SOURCE WAC.
Fig 32. Summary of ‘Overall Customer Service’ Performance Indicators. SOURCE WAC.
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C H A I R M A N ’ S R E P O RT
Westralia Airports Corporation experienced a solid trading
and financial performance for the 1999/2000 year.
The company’s trading performance for
A 3.6 percent growth in international
the year, measured using Earnings Before
passengers contributed towards a 4.6
Interest, Tax, Depreciation, Amortisation
percent increase ($1.19 million) in
and Abnormals (EBITDAA), reached $45
income from trading activities, which
million, up $3.48 million, or 8.4 percent
amounted to $27.08 million.
on the 1998/99 financial year. After
Income from property increased by 6.6
allowing for depreciation, amortisation,
primary and sub-ordinated debt interest
and abnormals, WAC recorded an
operating loss before tax of $22.39
million. This shows an improvement
of $5.19 million on the previous year.
percent ($0.83 million) to $13.49 million
on the result for the previous year.
Containing costs is a primary objective
for WAC to ensure financial performance
is maximised. The company’s total
operating expenses for the year were
In addition to the growth in EBITDAA, the
reduction in the company’s operating loss
$24.15 million, an increase of just
$0.36 million, or 1.5 percent.
reflected an amendment to its accounting
policy in respect of the amortisation of
capitalised borrowing costs. This was
increased from five years to a period that
more appropriately reflects the maturity
term of the debt. This is consistent with
In addition to having the capacity to meet
the needs of the aviation industry well
into the twenty first century, the airport is
Western Australia’s most unique property
development site. This year, WAC initiated
AASB 1036, and application of the
several projects as part of a tenant driven
revised accounting policy has resulted in
property strategy targeted at companies
a reduction in current year amortisation
in the transport and logistics sector.
charges of $2.45 million.
Initially, WAC has provided finance
EBITDAA growth was driven by increases
for the developments but Directors are
in revenues, with total revenues of
considering a number of financial
$69.15m up by $3.84 million, or 5.9
structures, including third party
percent. Each of the company’s primary
arrangements, to accommodate the
revenue streams contributed to the
potential programme. WAC envisages
overall revenue increase.
this to be in the order of $250 million
Aeronautical revenues reached $19.83
over the next decade.
Left: Graham Muir, CEO
Westralia Airports Corporation
Pty Ltd. Right: David Crawford,
Chairman Westralia Airports
Corporation Pty Ltd.
WAC and other airport lessees committed
has been established, and has continued
considerable resources in seeking a
to consult with the aviation industry over
satisfactory outcome on these issues.
its future aeronautical investment plans
Unfortunately, the ACCC decision on the
during the year.
allowed rate of return did not, in WAC’s
This year’s annual report is structured
opinion, have sufficient regard to the
to report to the company’s corporate
robust economic arguments put forward
objectives, as well as provide an
by WAC and its expert advisers in support
overview that highlights the significance
million, an increase of $1.13 million or
A significant milestone was reached during
of a higher rate of return, and does not
of the airport in Western Australia’s
6.0 percent due to strong tonnage growth.
the year with the decision by the ACCC
adequately reflect the risks of aeronautical
business community.
This was a solid result considering that a
on the definition of Necessary New
investments. This could discourage future
further reduction in unit aeronautical
Aeronautical Investment and a
investment in aeronautical infrastructure.
charges of 3.8 percent was implemented
determination of the allowable rate
Notwithstanding these concerns, WAC
for the year due to the CPI-x price cap.
of return on such investments.
management accepts that some clarity
6
7
David Crawford, Chairman
Westralia Airports Corporation Pty Ltd.
R E V I E W O F O P E R AT I O N S
Perth International Airport has enjoyed an excellent year with
strong business growth and international recognition for its
ongoing high standard of service quality.
A successful preparation for the Year
consecutive year. WAC has agreed to
2000 changeover ensured that WAC
extend this sponsorship for a further two
recorded no major disruptions or
years. In addition, WAC participated in
incidents, and no adverse financial
the Partnership 21 Steering Committee,
The results of a survey conducted at 57 major
with international passengers up 3.6
outcomes. Importantly, this was achieved
which is responsible for overseeing the
airports worldwide by the International Air
percent to 1,595,701 and domestic
without significant expenditure.
implementation of the new five year
Transport Association (IATA) were released in
passengers up 3.7 percent to 3,385,825.
The company also committed resources
tourism strategy for Western Australia.
June. Of all airports handling up to 15 million
WAC’s increased focus on property
towards the planning for the
Management and staff have commenced
passengers annually, Perth International
development saw several new non-
implementation of the New Tax System
the new century with positive commitment
aeronautical property projects undertaken
(NTS) from July 1 2000. WAC was
to ensure Perth International Airport meets
during the year. These involved capital
successful in achieving GST readiness
the expectations of it’s owners and
investment of approximately $8 million
prior to June 30 and was well equipped
stakeholders generally.
and are the forerunner of a $250 million
to meet the NTS reporting requirements.
programme of developments expected
WAC played a key role in the State’s
over the next 10 years.
tourism industry again this year, being
Airport was rated as the best airport in the
Asia Pacific region for passenger satisfaction,
and eighth best overall in the world for
meeting passenger needs.
This was a fantastic achievement that shows
WAC, airlines and government agencies
have worked together very well to provide a
service that is world class.
During the year, WAC gave notice to
the existing Australian Airports
The IATA result was supported by the
Australian Competition and Consumer
Commission’s (ACCC’s) second report
on service quality at the airport that
was released during the year. The report
concluded that airport users and
passengers were satisfied with almost
all aspects of the facilities and services
Superannuation Fund of its intention
Council of Australia Western Australian
Tourism Awards for the second
to withdraw from the fund from 1 July
2000. This measure was taken in the
interests of employees to move them
away from the defined benefit fund
to a more flexible, accumulation style
superannuation arrangement.
provided at Perth International Airport.
Following up on a commitment in the
In terms of an aeronautical activity, Perth
approved Perth International Airport
experienced the strongest growth in
Master Plan, WAC submitted a Noise
international tonnes landed of any major
Management Strategy to the
gateway airport, with an increase of 10.5
Commonwealth Minister for Transport
percent on the previous year. Carriers such
and Regional Services. This strategy was
as Singapore Airlines and Malaysia Airlines
prepared following extensive consultation
were the major contributors to the capacity
with industry and community groups.
increase. Domestically, landed tonnes grew
The success of the consultation process
by 5.3 percent as both Qantas and Ansett
undertaken by WAC was acknowledged
increased capacity into Perth.
subsequently by the Minister – a very
For the first time, the total number of
pleasing outcome. WAC now looks
passengers using Perth International
forward to implementing the strategy
Airport exceeded five million (inc.
with the assistance of industry and the
domestic on-carriage and transits),
community groups who helped prepare it.
8
the major sponsor of the Tourism
9
Graham Muir, Chief Executive Officer
Westralia Airports Corporation Pty Ltd.
B OA R D O F D I R E C T O R S
MR DAVID CRAWFORD, MA (POL. SC.) CANADA. BCOMM (HONS)
Appointed as Non-Executive Chairperson to Board in April 2000. Mr Crawford is also currently
Chairman of Export Grains Centre Ltd, Member of WA Advisory Board for Transfield Pty Ltd.,
and Councilor for the National Competition Council.
MR MICHAEL FITZPATRICK BENG(HONS), BA(HONS) OXON
Mr Fitzpatrick is currently Managing Director and founder of Hastings Funds Management.
Other Directorships include Pacific Hydro Limited, AusPower Pty Limited (the holding
company of Yallourn Energy), Utilities of Australia Pty Limited (the trustee of the Utilities Trust
of Australia), and an alternate director of the Sydney Light Rail Company Limited. He is also a
former Chairman of the Australian Sports Commission.
DR ALLAN GRIFFIN PH.D, B. FOOD TECH FRMIT (MANAGEMENT);
GRAD DIP BANKING AND FINANCE; GRAD DIP APP FINANCE AND INVESTMENT
Dr Allan Griffin is Chairman of WAC’s Audit Committee. Since 1995, he has been a Director of
Utilities Trust of Australia Pty Ltd and is now the corporate trustee.
MR ROSS BEAMES BE (CIVIL) MBA
Mr Beames is currently Director, Utilities with infrastructure investment adviser
HRC Morrison & Co (Australia) Pty Ltd. He is also a director of Airstralia Development Group
Pty. Ltd., Airport Development Group Pty. Ltd. and Northern Territory Airports Limited
MR PHILLIP WALKER BE (INDUSTRIAL) MENGSCI
Mr Walker is employed as Director, Airports with infrastructure investment advisor
HRC Morrison & Co (Australia) Pty Ltd. He is also a Director of Airstralia Development Group
Pty. Ltd., Airport Development Group Pty. Ltd. and Northern Territory Airports Limited.
MR ROBERT BULLOCK
Mr Bullock is employed by TBI, parent company of Airport Group International.
MR GEORGE CASEY
Mr Casey is employed by TBI, parent company of Airport Group International.
C O M PA N Y OV E RV I E W
About Westralia Airports Corporation
About Perth International Airport
Westralia Airports Corporation (WAC)
Perth International Airport is the principal
is a wholly owned subsidiary of
international, domestic and regional
Airstralia Development Group (ADG)
gateway to Western Australia for
that comprises:
commercial aircraft and freight. It is one
•
Infratil Australia Limited - 49.5
percent equity interest;
•
•
Asia, Europe and Africa and is located
12km from Perth on 2,105 hectares.
Perth Airport Property Fund (PAPF)
- 24.6 percent equity interest;
•
of Australia’s closest airports to South East
Perth International Airport is Australia’s
fourth largest in terms of passenger
Australian Infrastructure Fund (AIF)
traffic and operates 24 hours per day
- 9.8 percent equity interest;
throughout the year. In the 1999/2000
Airport Group International
financial year, the airport recorded
Holdings LLC (AGI) - 16.1
5,155,346 passengers and 94,896
percent equity interest.
aircraft movements as compared to
Hastings Funds Management Limited
manages PAPF and AIF, giving it a
total equity interest of 34.4 percent.
Through AIF, Hastings has a number
of investments in airports, electricity,
gas, toll roads and rail.
4,969,318 passengers and 98,480
aircraft movements for the previous
financial year.
Future projections indicate this will
reach around 14 million passengers and
190,000 aircraft movements in 2018.
The airport plays a key role in the
State’s economy, generating over $900
FIG 1. DIAGRAM - WESTRALIA AIRPORTS
CORPORATION PTY LTD
GROUP STRUCTURE. SOURCE WAC
million annually in salaries and wages,
while approaching 17,500 jobs*.
•
Our Facilities
INFRATIL
AUSTRALIA
AIRPORT GROUP
INTERNATIONAL
16.1%
The primary aviation related facilities at
AIF & PAPF
49.5%
AIRSTRALIA
DEVELOPMENT
GROUP
34.4%
100%
BANK
SYNDICATE
Westralia
Airports
Corporation
100%
•
CAPITAL
MARKETS
•
Perth International
Airport Lease
And Related Assets
•
•
general aviation and corporate facilities;
vision and mission;
•
air traffic control facilities; and
•
24 hour rescue and fire fighting services.
6. Operate in an environmentally
responsive manner.
intercontinental commercial aircraft;
Business Plan Overview
WAC’s business units cover a wide
international terminal building with five
WAC operates to six corporate
range of activities, including:
aerobridges and seven aircraft stands;
objectives, which are:
•
airport operations;
domestic terminal complex with a
1. Maximise shareholder returns;
•
aeronautical infrastructure
total of five aerobridges, 18 aircraft
2. Position WAC as a leading
stand-off positions and three
corporate identity and international
freighter positions;
airport operator;
air freight, aviation fuel and inflight
catering facilities;
* Economic Impacts associated with Perth International
Airport - October 1999
12
focused on achieving corporate
three-runway system capable of
handling any existing or planned
5. Build a workplace environment
associated infrastructure;
Perth international Airport include:
•
aircraft maintenance hangars and
3. Achieve a reputation for excellence
in customer service;
4. Achieve excellence in management
standards and procedures;
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maintenance and development;
•
property to include property
development and retail;
•
car parking;
•
electricity reticulation; and
•
airport consultancy.
B U S I N E S S OV E RV I E W
SHAREHOLDER RETURNS
Financial Results Summary
FIG 2. WESTRALIA AIRPORTS CORPORATION PTY. LTD. COMPARISON OF FINANCIAL PERFORMANCE. SOURCE WAC.
PROFIT AND LOSS ACCOUNT for the financial year ended 30 June 2000
Operating Revenues
Actual 99/00
$m’s
Actual 98/99
$m’s
$m’s
%
19.8
27.1
13.5
6.9
1.8
69.1
18.7
25.9
12.7
6.9
1.1
65.3
1.1
1.2
0.8
0.0
0.7
3.8
5.88%
4.63%
6.30%
0.00%
63.64%
5.82%
6.6
11.6
4.0
1.9
24.1
45.0
-15.2
6.2
11.2
4.4
2.0
23.8
41.5
-17.6
0.4
0.4
-0.4
-0.1
0.3
3.5
2.4
6.45%
3.57%
-9.09%
-5.00%
1.26%
8.43%
-13.64%
-36.7
-15.1
0.5
-21.5
-0.9
-22.4
-35.7
-15.3
0.7
-26.4
-1.2
-27.6
-1.0
0.2
-0.2
4.9
0.3
5.2
2.70%
-1.31%
-28.57%
-18.67%
-25.00%
-18.95%
Aeronautical charges
Commercial trading
Property
Recharge property service costs
Other
Total Operating Revenues
Operating Expenses
Employee expenses
Services and utilities
General administration and other
Leasing and maintenance
Total Operating Expenses
EBITDAA
Depreciation and amortisation
Interest expense
- Primary Debt Holders
- Subordinated Debt Holders
Interest revenue
Operating loss before abnormal items and income tax
Abnormal items before income tax
Operating loss before income tax
FIG 3. OPERATING REVENUE BY SOURCE FOR
1998/99 VERSUS 1999/2000. SOURCE WAC.
30
Variance
FIG. 4. EXPENSES BY SOURCE FOR 1998/1999
VERSUS 1999/2000. SOURCE WAC.
12
98/99
Aeronautical Revenues
FIG 5. FOUR YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC
PASSENGERS 1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
3500000
1999/00
3000000
1998/99
2500000
1997/98
2000000
1996/97
98/99
1500000
25
10
99/00
20
8
15
6
10
4
5
2
0
1999/00 ACTUALS
1998/99 ACTUALS
Aeronautical
19.8
18.7
Trading
27.1
25.9
Property
13.5
12.7
Re-Charging
6.9
6.9
Other
1.9
1.1
0
1999/00 ACTUALS
1998/99 ACTUALS
99/00
1000000
500000
0
International Passengers
Domestic Passengers
The WAC 1999/00 capital expenditure
programme was $10.8 million with the
major projects for the year being a $2
million upgrade of the public car park
access control and revenue equipment, a
$3.4 million investment to provide office,
warehouse and workshop facilities for
Cummins (balance of the $7 million project
to be completed in 2000/2001),
a $1.8 million investment to provide vehicle
auction facilities for Fowles and
a $1.2 million investment to provide hangar,
warehouse and office facilities for Skywest.
Labour &
Overheads
6.6
6.2
Services &
Utilities
11.6
11.2
General
Administration
4.0
4.4
Leasing &
Maintenance
1.9
2.0
14
The remainder of the expenditure was
spread over 37 minor projects including:
•
runway sweeper;
•
rejuvenation of western parallel taxiways;
•
baggage make-up and reclaim conveyors;
•
•
•
•
Change
% Change
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
91,611
28,100
56,151
6.5%
1.9%
3.6%
Domestic
Passengers
Change
% Change
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
61,304
54,453
121,366
1.9%
1.7%
3.7%
DEFINITIONS
FIG 6. FOUR YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC
MOVEMENTS 1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
50000
1999/00
Change
% Change
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
165
457
478
1.8%
5.0%
5.0%
20000
Domestic
Movements
Change
% Change
10000
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
-1,192
860
872
-2.5%
1.9%
1.9%
1998/99
40000
1997/98
0
upgrade international terminal power
house controls;
upgrade international terminal flight
information display system;
•
security upgrade; and
•
runway flank protection.
1996/97
International Movements
(including freight)
Domestic Movements
1500000
Change
% Change
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
99,229
33,436
119,251
9.9%
3.0%
10.5%
600000
Domestic
Tonnes Landed
Change
% Change
300000
97/98 - 96/97
98/99 - 97/98
99/00 - 98/99
544
28,881
69,217
0.0%
2.3%
5.3%
1998/99
1997/98
0
1996/97
International Tonnes Landed
(includes freight)
15
Domestic Tonnes Landed
destination airports with
one of those airports not
within Australia
A passenger travelling
between two Australian
with MTOW of greater
than 20,000 kgs.
Aircraft Movements:
International
Tonnes Landed
900000
between origin and
airports on an aircraft
1999/00
1200000
A passenger travelling
Domestic Passenger:
FIG 7. FOUR YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC TONNES
LANDED 1996/97 1997/98 1998/99 1999/2000. SOURCE WAC.
IT network upgrade;
northern apron floodlighting;
International passenger:
International
Movements
30000
Capital Expenditure
International
Passengers
A landing or take off of
an aircraft. Excludes
general aviation
Landed Tonnes:
Represents the MTOW of a
landed aircraft subject to
WAC aeronautical charges.
Excludes general aviation
B U S I N E S S OV E RV I E W C O N T I N U E D
FIG 8. TOTAL BREAK-UP IN DOMESTIC AND INTERNATIONAL
PASSENGERS FOR PERTH INTERNATIONAL AIRPORT
Domestic
International
FIG 9. TOTAL BREAK-UP IN INTERNATIONAL OUTWARD
AND INWARD PASSENGERS FOR PERTH INTERNATIONAL
AIRPORT FY 1999/00. SOURCE WAC.
68%
32%
International In
International Out
100000
FIG. 16. INTERNATIONAL SHORT-TERM VISITOR ARRIVALS BY REASON FOR JOURNEY BY ORIGIN FOR PERTH
INTERNATIONAL AIRPORT FINANCIAL YEAR 1999/00. SOURCE ABS.
Convention/conference
51%
49%
Business
80000
Visiting friends
Holiday
Employment
60000
Education
Other and not stated
40000
20000
0
Other & Not Stated
United States of America
Canada
Other North East Asia
Taiwan
Korea
Japan
HongKong
China
Other South East Asia
Thailand
Singapore
Malaysia
Indonesia
Other Europe & Former USSR
4%
Air New Zealand
Ansett International
2%
10%
British Airways
4%
Cathay Pacific
6%
Garuda Indonesia
Malaysia Airline System 15%
Qantas Airways
23%
2%
Royal Brunei
26%
Singapore Airlines
2%
South African Airways
Thai Airways International 5%
Other
1%
United Kingdom
Air New Zealand
3%
2%
14%
British Airways
4%
Cathay Pacific
6%
Garuda Indonesia
Malaysia Airline System 15%
Qantas Airways
21%
2%
Royal Brunei
25%
Singapore Airlines
2%
Thai Airways International 5%
Other
1%
Germany
FIG. 11. TOTAL INTERNATIONAL PASSENGER
DEPARTURES BY AIRLINE FOR PERTH INTERNATIONAL
AIRPORT FY 1999/00. SOURCE DIMA.
New Zealand
FIG. 10. TOTAL INTERNATIONAL PASSENGER ARRIVALS BY
AIRLINE FOR PERTH INTERNATIONAL AIRPORT FY 1999/00.
SOURCE DIMA.
FIG. 17. INTERNATIONAL SHORT-TERM RESIDENT DEPARTURES BY REASON FOR JOURNEY BY DESTINATION
FOR PERTH INTERNATIONAL AIRPORT FINANCIAL YEAR 1999/00. SOURCE ABS.
80,000
Convention/conference
Business
70,000
Visiting friends
60,000
Holiday
Employment
50,000
Education
Other and not stated
40,000
FIG. 12. TOTAL INTERNATIONAL PASSENGER ARRIVALS
BY REGION OF NATIONALITY FOR PERTH INTERNATIONAL
AIRPORT FY 1999/00. SOURCE DIMA.
FIG. 13. TOTAL INTERNATIONAL PASSENGER
DEPARTURES BY REGION OF NATIONALITY FOR PERTH
INTERNATIONAL AIRPORT FY 1999/00. SOURCE DIMA
30,000
20,000
Australia
39%
Australia
42%
New Zealand
4%
New Zealand
4%
Europe & Former USSR
8%
Europe & Former USSR
7%
0%
Other
0%
Other
0%
FIG. 18. TOTAL PASSENGERS FOR PERTH INTERNATIONAL
AIRPORT BY AIRLINE - 2 YEAR ANALYSIS. SOURCE DIMA.
50000
FIG. 14. INTERNATIONAL SHORT TERM VISITOR ARRIVALS
FOR PERTH INTERNATIONAL AIRPORT BY REASON FOR
JOURNEY FINANCIAL YEAR 1999/00. SOURCE ABS
Convention/Conference 1%
Business
7%
Visiting Friends/Relatives 25%
54%
Holiday
1%
Employment
Education
5%
Other
7%
Convention/Conference 3%
Business
13%
Visiting Friends/Relatives 22%
54%
Holiday
3%
Employment
Education
1%
Other
4%
40000
Other
Thai Airways International
Singapore Airlines
Royal Brunei
Qantas Airways
Malaysia Airline System
Garuda Indonesia
Cathay Pacific
British Airways
Air New Zealand
FIG. 19. AUSTRALIAN NATIONALITY INTERNATIONAL
DEPARTURES PERTH INTERNATIONAL AIRPORT - 2 YEAR
ANALYSIS. SOURCE DIMA.
40000
1998/99
1999/00
30000
30000
20000
20000
10000
10000
0
0
Jun-00
May-00
Apr-00
Mar-00
Feb-00
Jan-00
Dec-99
Nov-99
Oct-99
Sep-99
Aug-99
Jul-99
Jun-99
May-99
Apr-99
Mar-99
Feb-99
Jan-99
Dec-98
Nov-98
Oct-98
Sep-98
Aug-98
Jul-98
16
FIG. 15. INTERNATIONAL SHORT TERM RESIDENT DEPARTURES
FOR PERTH INTERNATIONAL AIRPORT BY REASON FOR
JOURNEY FINANCIAL YEAR 1999/00. SOURCE ABS.
Other & Not Stated
Middle East
United States of America
0%
Canada
3%
Middle East
Other North East Asia
Africa
Taiwan
3%
Korea
2%
Africa
Japan
North America
HongKong
2%
China
0%
North America
Other South East Asia
6%
South/Central America
Thailand
North East Asia
0%
Singapore
7%
South/Central America
Malaysia
North East Asia
0
Indonesia
21%
Other Eurpoe & Formaer USSR
15%
South East Asia
United Kingdom
UK
20%
Germany
17%
South East Asia
New Zealand
UK
10,000
17
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
FIG 20. INTERNATIONAL ROUTE MAP. SOURCE WAC.
ON
E
ST
FIG. 22. AIRLINE CAPACITY REPORT INTO PERTH FROM LAST PORT FY 1999/00 VERSUS FY 1998/99 VERSUS FY 1997/98. SOURCE WAC.
Port
Airline
Auckland
Air New Zealand
Bangkok
Qantas Airways
Total FY
Total FY
1998/99
1998/99
Flights Available Seats
Total FY
1997/98
Flights
Total FY
1997/98
Available Seats
Tokyo
OP
TO
EU
R
E
P
O
Hong Kong
Bangkok
Phuket
Kuala
Lumpur Brunei
121
28,512
113
26,668
0
0
0
0
67
15,276
32,941
122
32,055
156
39,897
Brunei
Royal Brunei Airlines
104
21,712
104
21,821
104
23,155
Christmas Island
0
0
0
0
22
1,714
National Jet Systems
47
3,692
42
3,237
30
2,224
Bali
0
0
0
0
15
1,170
35
2,695
35
2,686
36
2,536
181
24,724
185
26,000
134
19,296
Garuda Indonesia
413
67,032
587
73,915
371
78,141
0
0
97
25,824
81
17,010
177
39,235
180
40,986
157
34,473
0
0
61
15,054
US
A
Dar win
32,248
104
Cocos Island
Jakar ta
Christmas I.
Cocos Is.
136
Kuching
Singapore
Denpasar
TO
P
TO
Harare
Johannesburg
Total FY
Total FY
1999/00
1999/00
Flights Available Seats
Mauritius
E
ON
Brisbane
AUSTRALIA
S
Merpati Nusantara Airlines
Auckland
PERTH
Qantas Airways
Sydney
Adelaide
Sempati Air
Melbourne
Hobar t
Gatwick
Britannia Airlines
11
3,608
19
6,232
17
5,576
Harare
Qantas Airways
52
21,435
52
21,576
53
21,476
Hong Kong
Cathay Pacific
157
49,094
151
46,940
156
48,648
Jakarta
Garuda Indonesia
FIG. 21. WEEKLY AIRLINE CAPACITY REPORT INTO PERTH FROM LAST PORT - JUNE 2000 VERSUS JUNE 1999 VERSUS JUNE 1998. SOURCE WAC.
Port
Airline
Total Weekly
Flights
as at
30 June 2000
Total Weekly
Available
Seats as at
30 June 2000
Total Weekly
Flights
as at
30 June 1999
Total Weekly
Available
Seats as at
30 June 1999
Total Weekly
Flights
as at
30 June 1998
Total Weekly
Available
Seats as at
30 June 1998
Auckland
Air New Zealand
3
708
2
472
2
472
Bangkok
2
634
2
634
3
741
Brunei
Royal Brunei Airlines
2
418
2
418
2
458
Christmas Island
Cocos Island
1
77
1
77
2
154
Denpasar
Garuda Indonesia
Merpati Nusantara Airlines
Qantas Airways
3
7
0
3
402
1,178
0
595
4
10
0
4
546
1,240
0
912
2
14
3
3
288
1,736
630
657
Harare
Qantas Airways
1
420
1
420
Hong Kong
Cathay Pacific
3
942
3
933
3
933
Jakarta
Garuda Indonesia
Qantas Airways
0
2
0
456
0
1
0
228
0
3
0
684
Johannesburg
Qantas Airways
3
4
1,124
1,180
3
4
1,242
1,180
2
3
840
854
Kuching
Malaysia Airlines
1
278
1
278
1
278
Kuala Lumpur
Malaysia Airlines
11
3,058
9
2,502
7
2,060
Mauritius
Air Mauritius
1
181
1
301
1
301
Narita
Qantas Airways
3
684
3
684
3
684
Phuket
2
634
1
317
0
0
Singapore
British Airways
Qantas Airways
Singapore Airlines
7
7
21
2,807
1,596
5,887
7
7
17
2,807
1,596
4,597
7
6
14
2,807
1,368
3,710
87
23,247
83
21,384
82
20,075
TOTAL
18
Qantas Airways
Sempati Air
Johannesburg
0
0
2
248
80
23,543
57
12,996
85
19,380
154
35,085
0
0
0
0
15
3,810
Qantas Airways
166
68,164
149
61,896
104
41,742
207
60,681
170
49,158
156
44,502
Kuching
Malaysia Airlines
52
15,080
51
14,226
35
10,075
Kuala Lumpur
Malaysia Airlines
553
155,499
410
114,179
365
102,058
Manchester
Britannia Airlines
0
0
0
0
5
1,586
Mauritius
Air Mauritius
52
12,052
54
16,014
52
13,372
Narita
Qantas Airways
155
35,340
150
34,200
157
35,796
Phuket
104
32,968
36
9,872
0
0
Singapore
British Airways
365
146,365
365
146,384
365
146,365
Qantas Airways
364
82,992
366
83,448
362
82,536
1025
288,231
773
210,236
729
172,890
4,517
1,208,784
4,306
1,089,025
4,152
1,065,674
Singapore Airlines
TOTAL
FIG 23. SUMMARY OF DEDICATED AIR FREIGHT SERVICES INTO PERTH INTERNATIONAL AIRPORT 1999/00
Type of A/C
No. Services
B747 Freighter
Weekly service
International
Singapore Airlines
Domestic
Australian Air Express
B727 Freighter
Daily service
Independent Air Freighters Pty Ltd
B727 Freighter
Daily service
Independent Air Freighters Pty Ltd
F27 Freighter
Daily service
Regional Freight Airline
19
Property
➤ WAC entered into a long-term deal
With many existing aviation tenants,
with the Cummins Engine Company to
ground leases and commercial tenants,
develop a new regional headquarters
WAC is committed to making property a
valued at over $7 million. The deal
significant driver of the business in the
followed a four month consultation
coming years. In 1999/2000, WAC’s
period allowing WAC and Cummins to
revenue from property grew $12.7
evaluate the specific business needs and
million to $13.5 million.
design a building of quality and vision.
This financial year saw the announcement
The flexibility to choose a site to suit the
of the ‘Vision Towards 2018’ which sets
ultimate design was a major advantage.
out the development potential of land
along the entrance to WAC’s major
property asset, the international terminal.
The development strategy includes
redeveloped passenger terminals, an airport
business centre, a corporate campus and
transport and logistics park providing real
opportunities for business to grow in a
unique and managed environment.
Projects leading the vision in 1999/
2000 include:
Located on Horrie Miller Drive close to
the Tonkin Highway, the new premises
consists of a total building area of
8,500m2 and 12,000m2 of hardstand.
The premises will be completed in
December 2000. The building also
features raised office accommodation
providing the occupant with views and
an attractive work environment;
➤ construction of a 4.65ha site for the
Fowles Auction Group was completed in
February 2000 on a 10 year lease deal.
The site can accommodate storage for
FIG 24 - WESTRALIA
AIRPORTS CORPORATION
PROPERTY DEVELOPMENT
‘VISION TOWARDS 2018’.
more than 1,200 vehicles and was
purposely designed and provides for
future expansion of the business;
➤ market research and tenant driven
➤ WAC purchased and redeveloped
demand identified the need for WAC
an existing airline hangar for
to provide for a Freight Park in the
Skywest Airlines.
vicinity of the international terminal.
The first stage of the Freight Park will
be completed in late 2000 providing
Other
80%
proximity to international aircraft and
Property
20%
direct airside access.
The first building in this precinct was
constructed by Perth Cargo Centre
on a long term ground lease. The
1.08ha site has direct access to the
internal airside road; and
20
FIG 25. PROPERTY REVENUE PROPORTION FY
1999/2000. SOURCE WAC.
21
Trading
Retail
Revenue from trading activities totaling
Revenue from retailing businesses in the
$27.08 million increased by $1.19 million,
international terminal showed a 4.9
or 4.6 percent over the previous year.
percent increase over the previous year.
The result was largely due to a growth
This was a direct result in the increased
of 3.9 percent in international
number of enplaned passengers over the
passengers, which included a rebound
previous year. Revenue per enplaned
in passenger traffic from the major
passenger for the year was similar to the
Asian markets, particularly in the
previous year at approximately $19.00.
second year. The balance of the
Revenue from Duty Free increased by 4
revenue growth for the year came from
percent with Money Exchange showing
the full year impact of the fuel
8 percent growth and our revenue per
throughput fee, which was introduced
passenger from Fashion increasing by
in June 1999.
15 percent.
FIG 26. TRADING REVENUE PROPORTION
FIG 28. REVENUE BREAK-UP FOR THE INTERNATIONAL
TERMINAL FY 1999/2000. SOURCE WAC.
Other 61%
Trading 39%
Duty Free Out
Duty Free In
News & Gifts
Money Exchange
Food & Beverage
Australian Produce
Other
57%
21%
6%
6%
5%
1%
4%
International Terminal Retail Outlets
The Oz Shop - Gifts
A R R I VA L S - A I R S I D E
Purely Australian - Clothing
Downtown Duty Free - Tobacco,
Off Shore - Surfwear
perfume and liquor products
D E PA R T U R E S - A I R S I D E
Airport Fine Foods - Gourmet Food
FIG 27. SUMMARY OF TRADING REVENUE
PERFORMANCE 1999/2000 SOURCE WAC.
Duty Free
Car Parking
Car Rental
Service Station
Advertising
Ground Transport Fee
Fuel Through-Put Fee
Other
and Wine
42%
28%
10%
1%
1%
2%
3%
13%
The Oz Shop - Gifts
Downtown Duty Free - A varied and
large range of duty free items
The WA Shop - Arts and craft
Purely Australian - Clothing
Wings Food Court and Sports Bar Food and beverages
Off Shore - Surfwear
Aromas Cafe - Food and beverages
Newslink - Books and magazines
Thomas Cook - Currency exchange
Downtown Duty Free - A varied and
Fruitscoops - Icecream
large range of duty free items
Thomas Cook - Currency exchange
Australian Gems and Jewellery Gems and jewellery
Final Call Bar - Food and beverages
GSM - Rent a Fone - Mobile telephones
Australian Gems and Jewellery -
Expresso Coffee Bar - Food and beverages
Gems and Jewellery
GSM - Rent a Fone - Mobile telephones
Car Rentals - Service desks for Hertz,
Avis, Thrifty, Budget and National
Tourism Refund Scheme - GST Refunds
Baggage Lockers
LANDSIDE
Accommodation Booking Service
Airport Fine Foods - Gourmet Food
Export Air - Unaccompanied luggage
requirements
and Wine
22
Newslink - Books and magazines
23
Ground Transport Services
Car Rental
Five car rental companies operate from
Fuel Throughput Fee
WAC implemented a throughput fee
on fuel dispensed from the
international terminal fuel facility
counters in the domestic and international
operated by BP with effect 1 June
terminals. These companies include Avis,
1999. In accordance with dispute
Hertz, Budget, Thrifty, and National.
resolution procedures in the lease,
Another 13 car rental organisations
an independent expert determined
have limited authority to operate from
that a fee based on the amount of
the public car parks.
fuel dispensed through this facility
Revenue increased 11.82 percent
for the 1999/2000 FY as compared
to 1998/1999.
was justified, in addition to ground
rental paid for the site.
While the airport’s refuelling companies
continue to pay this fee, the ACCC has
Public Car Parking
recommended to the Commonwealth
The car park payment system was
Government that this should be subject
replaced at the international terminal
to some form of regulation, i.e. a price
in October 1999 and at the domestic
cap. The matter remains with the
terminal in December 1999 with
government for a decision.
‘pay on foot’ equipment using the
move into the design, development
latest in technology.
International Terminal
Development Strategy
An expansion of the international car
The international terminal building was
Although the development will be for
park was also completed in December
commissioned in 1986. Since that time
incremental expansion over a number
1999 providing for an additional 150
there has been substantial change in the
of years, a 10-year planning horizon
parking bays and revised traffic flow
manner in which international services
has been selected.
to ease congestion in peak periods.
operate from Australia; together with a
Operations by proposed new large aircraft
substantial increase in passenger traffic.
will be accommodated within the design.
Revenue increased by 4.27 percent in
FY 1999/2000 as compared to 1998/1999.
WAC has been working with the
stage of the project.
aviation industry and consultants to
Master Plan
Ground Transport Fee
develop concepts for terminal expansion
The Master Plan, having been approved
The collection of a ground transport
to accomodate forecast demand. At this
by the Minister for Transport and Regional
time planning includes a rework of the
Services in May 1999, has been published
existing building to achieve a more
in final form and made available to
efficient operation and expansion of the
stakeholders and interested parties as
retail offer to provide new services for
required by the Airports Act 1996.
customers. A new satellite building to
WAC is currently assessing the
Part of the revenue collected from the
accommodate additional aircraft stands
development potential and capabilities
fee is used to improve ground transport
is also proposed.
of the areas identified within the Master
services at the airport.
WAC plans to finalise the concepts
Plan. Development plans and guidelines
late in 2000 and following extensive
are being prepared in accord with the
consultation with the industry, will
Plan to direct and control development.
fee commenced in January 1999 and
Kerbside Commissioners were employed
to facilitate customer service and
improve waiting times.
24
25
placed reliance on the establishment of
Corporate
the Noise Management Committee as
a consultative forum for representatives
of local government and the
WAC continued to develop good
community to work cooperatively with
working relationships with local, State
representatives of the aviation industry.
In May 2000, the airport’s ‘Aircraft Noise
Management Strategy’ was completed
and submitted to the Minister for
endorsement. The Strategy identifies
role in the State’s tourism industry with
•
review of land use planning in the
the signing of a three year sponsorship
vicinity of Perth International Airport;
agreement of the Western Australian
determine whether aircraft engine
•
remained a business development
produce and monitor Australian noise
enhance the existing noise
produce an Environmental Impact
Noise Management
As part of the ongoing consultative
inform existing and prospective owners
of properties of aircraft noise impacts;
process and as stated in the approved
•
educate the community about airport
operations;
working with airlines, air traffic controllers
•
manage aircraft noise impacts. A primary
•
Partnership 21.
to the community;
Statement for the parallel runway;
•
the State’s tourism industry plan -
Air service development has also
monitoring program;
•
Tourism Awards and fully supporting
ground running noise is of concern
exposure contour plans;
of a Noise Management Committee. The
a wide range of issues and interests.
WAC continued to play an important
•
initiative in this regard was the formation
and groups for the State that covered
Key issues include:
review the existing Noise Abatement
priority with discussions being initiated
and continued with potential new
international entrants.
The Perth International Airport was
also announced as the best airport in
the Asia Pacific region for passenger
satisfaction for all airports handling
up to 15 million passengers, and
eighth best in the world in meeting
passenger needs.
These outstanding results came out of
regular publication of Australian noise
a survey conducted by the International
exposure contour plans; and
Air transport Association (IATA), which
continue community consultation on
interviewed around 60,000 passengers
airport noise.
at 57 airports.
principal purpose of the Committee was
The Noise Management Committee will
As part of WAC’s commitment to the
to contribute to the development of a
work closely with the Western
State, WAC has provided an
Noise Management Strategy for Perth
Australian Ministry for Planning to
aeronautical development fund of $5
International Airport.
develop a State policy regarding land
million for approved projects.
The Minister for Transport and Regional
use planning in the vicinity of Perth
This year has seen the approval of
Services in approving the Master Plan,
funds towards projects that include:
26
•
Leonara runway extension;
•
Ibis Aerial Highway;
•
Perth/Busselton/Margaret River
Air service;
•
represented on a variety of committees
proposes actions for implementation.
Procedures;
and relevant government agencies to
1999/2000. The company was also
Marketing
•
Mt Magnet runway extension;
and Commonwealth governments during
10 key issues for noise management and
•
Master Plan, WAC is committed to
Government Relations
•
27
market development for South Africa;
and
•
market development for United
Arab Emirates.
FIGURE 30. SUMMARY OF ‘DEPARTURES’
PERFORMANCE INDICATORS. SOURCE WAC.
Customer Service
Ver y Poor
1
2
Survey
WAC has submitted the Quality Service
3
Fa i r
4
5
6
Ex cellen t
7
Ch ec k -In
Monitoring report to the ACCC as
Gover nment
Inspecti on
required under the Airports Act.
This is the third consecutive year of the
quality service monitoring programme
Secur i ty
for the international terminal, and
rating criteria has continued to record
Gate
Lounge
above average levels of satisfaction.
FIGURE 29. SUMMARY OF ‘ARRIVALS’
Ver y Poor
1
2
3
Fa i r
4
5
6
Excellent
7
Ba g g a ge
Trolley s
Si gna ge
I mmig ration
Wa sh
Rooms
Baggage
I nspection
Management Standards
and Procedures
0a r Pa r k
Baggage
System
Ker bsi de
S er vi ce
Year 2000 Readiness
Signage
Over a ll
S er vi ce
1
2
Ver y Poor
Baggage
Trol l eys
99/00 Ratings
3
4
Fa i r
5
6
98/99 Ratings
7
Ex cellen t
97/98 Ratings
Wash
Rooms
O veral l
Ser vice
1
2
Ver y Poor
99/00 Ratings
3
4
Fa i r
5
6
98/99 Ratings
7
Excellent
FIGURE 32. SUMMARY OF ‘OVERALL CUSTOMER
SERVICE’ PERFORMANCE INDICATORS. SOURCE WAC.
97/98 Ratings
Ver y Poor
1
2
3
Fa i r
4
5
6
Ex cellen t
7
Ar r i va ls
FIGURE 31. SUMMARY OF ‘TAXI ARRIVALS’
Ver y Poor
1
2
3
Fa i r
4
5
6
Depa r tures
Excellent
7
Ar r i va ls
Ta xi
Facil ities
O veral l
Customer
Exper ience
Over a ll
Indi cator
1
2
Ver y Poor
99/00 Ratings
3
4
Fa i r
98/99 Ratings
28
5
6
7
Excellent
97/98 Ratings
1
2
Ver y Poor
99/00 Ratings
3
4
Fa i r
98/99 Ratings
5
6
7
Ex cellen t
97/98 Ratings
GST Readiness
In response to the ‘A New Tax System’
(“GST”) legislation introduced in late
1998 to take effect on 1 July 2000, WAC
WAC assumed the role of leading the
commenced a readiness project to ensure
Year 2000 Project at Perth International
that all facets of the business were ready
Airport including coordination and
for the introduction of GST. This project
integration of relevant businesses and
was managed using internal and external
service providers and related
resources including specialist taxation,
communication with national and
legal, and business systems advice along
international organisations.
with project management skills.
The project was successfully achieved
WAC undertook an initial review of the
without incident through thorough
business in November 1999 to determine
planning and testing of processes
the scope and impact of the project. This
and procedures.
identified a number of business units that
The Year 2000 contingency planning
required assistance to implement the
process updated existing contingency
requirements of GST and ensure
plans and created new plans that have
compliance with all aspects of the reforms.
added value to the WAC Business
During the intervening period to the
Continuity Plan.
introduction of GST:
Industry and other business partners
•
WAC undertook to engage in a
have acknowledged the success of the
communication process with key
WAC Year 2000 Project particularly
stakeholders both internal and
regarding the co-operative approach
external to ensure minimal exposure
adopted and the effectiveness of the
to both parties as a result of the
WAC communication strategies.
imposition of GST;
29
•
•
substantial modifications were made
•
one minor accident;
Environment
P R O G R E S S O N E N V I R O N M E N TA L S T R AT E G Y
to existing business systems to ensure
•
election and training of occupational
Environment Strategy
A comprehensive set of systems
their capability to handle compliance
safety and health representatives in
designed to better manage
requirements; and
accordance with WA legislation; and
environmental issues at Perth
monthly hazard inspections implemented.
International Airport have been
extensive training programme was run
•
internally to ensure all staff were able
advanced including an Environmental
to continue to operate in the GST
Superannuation
Management System aligned with the
environment.
The company withdrew from its defined
ISO 14001 standard. Significant
WAC will continue to communicate
benefit superannuation fund and
achievements during the year include:
with relevant stakeholders as the
provided employees with more flexible
process of settling in occurs over the
superannuation arrangements. New
coming financial year. WAC is preparing
superannuation arrangements included
a similar response to the proposed
a choice of any complying accumulation
requirements contemplated
style superannuation fund, salary
in the Business Tax Reform during the
sacrifice arrangements for employee
2000/01 financial year.
superannuation contributions and
The environment strategy approved by
removed the requirement for employees
the Minister for Transport and Regional
to make superannuation contributions.
Services is a five point strategy that sets
Workplace
•
Environmental Sites Register;
•
out the basic principles for
Staffing levels averaged 91 during
environmental management at Perth
1999/2000 and a number of staff were
International Airport and provides a
recruited to further develop WAC’s
structured approach to consult, report
Property & Development activities.
and prevent or minimise adverse
above, the strategy indicates the
for all staff supported through the
framework for continuous improvement
efforts of an active occupational safety
regarding procedures and facilities
and health committee and well
through action plans.
developed procedures.
The strategy specifies:
The committee meets every two
•
objectives for environmental
months and comprises management
management at Perth International
representatives and representatives
Airport;
•
accordance with the occupational safety
environmentally significant;
management representatives and seven
•
•
•
•
nil lost time injuries;
studies, reviews and monitoring to
be carried out; and
development of a new occupational
safety and health plan;
sources of environmental impact
associated with airport operations;
workgroups. Achievements during the
year include:
areas of Perth International
Airport identified as being
and health legislation. There are five
employees representing the various
•
specific measures to be carried out for
the purpose of preventing, controlling
and reducing the environmental impact.
30
•
emergency response plan review;
•
integrity testing of WAC fuel
storage facilities;
•
31
integrity testing by selected tenants
of their fuel storage facilities;
•
Perth International Airport Noise
Management Committee convened;
•
WAC landfill site closed;
•
fire access tracks rationalised; and
•
environmental handbook for
environmental impacts. Further to the
environment continues to be provided
who are elected by staff and trained in
tenant handbook encouraging
energy efficient practices;
Organisational Staffing
A safe and healthy working
maintenance of the airport
developers and builders distributed.
XXXXXXXXXXXXXXXXX
F I N A N C I A L R E P O RT
FOR THE
YEAR ENDED 30 JUNE TWO THOUSAND
33
D I R E C T O R S R E P O RT
CONTENTS
DIRECTORS’ REPORT
35
PROFIT AND LOSS STATEMENT
38
BALANCE SHEET
39
STATEMENT OF CASH FLOWS
40
CONTENTS OF THE NOTES TO
41
Your directors present their report on
the financial report for the year ended
AND FORMING PART OF THE
30 June 2000.
FINANCIAL STATEMENTS
Directors
Dividends
WAC has not paid or declared any
dividends during the financial year and the
directors have not recommended any
dividends be paid or declared.
The following persons held office as
directors during the financial year and
NOTES TO AND FORMING PART OF
42
up to the date of this report:
Mr Michael Clifford Fitzpatrick
THE FINANCIAL STATEMENTS
Mr Charles Snyder
(resigned 23 February 2000)
DIRECTORS’ DECLARATION
65
INDEPENDENT AUDIT REPORT
66
Mr Ross Morris Beames
Mr Phillip James Walker
Dr Allan Thomas Griffin
Mr Frank Patrick Cowell
(resigned 23 February 2000)
TO THE MEMBERS
Mr David Ian Crawford
(appointed 11 April 2000)
PROFIT AND LOSS ACCOUNT
67
Mr George Casey
(appointed 23 February 2000)
Mr Robert Benson Bullock
(appointed 23 February 2000)
Mr Peter Taylor
(appointed 25 July 2000)
Principal Activities
The principal activities of Westralia
Airports Corporation Pty Ltd (WAC)
during the financial year consisted of
management of Perth International
Airport and associated retail and
property interests.
Review of Operations
Details regarding the results from
operations are contained on page 8.
Significant Changes in the
State of Affairs
No significant change in the nature of the
economic entity’s activities occurred during
the year.
Matters Subsequent to the
End of the Financial Year
No matters or circumstances have arisen
since the end of the financial year which
significantly affected or may significantly
affect the operations of the company, the
results of operations, or the state of affairs
of the company in future financial years
other than as noted below.
Takeover Bid for Infratil by Australian
Infrastructure Fund
On 10 April 2000, Australian Infrastructure
Fund (‘AIF’) announced a proposal for the
merger of AIF with Infratil Australia
Limited (‘Infratil’) under which AIF would
acquire five shares in Infratil in return for
the issue of two AIF stapled securities. On
20 June 2000, the AIF was joined by its
sister fund, Utilities Trust of Australia
(‘UTA’) in its takeover offer for Infratil. UTA
supported AIF’s revised offer of $0.95
cash, whereby all Infratil shares acquired
for cash after 20 June 2000 will be held
by AIF on behalf of UTA until UTA held
approximately 24 million Infratil shares.
35
Thereafter, a ratio of approximately 3:1
(UTA:AIF) will be maintained with respect
to Infratil shares. At 30 June 2000, AIF
had a 15.7% interest in Infratil, which
includes 0.47% acceptances under the
cash bid offer.
On 28 July 2000, AIF closed its
takeover offer for Infratil with 98.4%
acceptances. AIF will now move to
compulsory acquire all remaining shares in
Infratil and to delist Infratil from the
Australian and New Zealand Stock
Exchanges. Subsequent to year-end and
up to the date of this report, AIF acquired
(both on market and through acceptances)
an additional 29,042,554 shares in Infratil.
Infratil Australia Limited currently holds a
49.5% shareholding in Airstralia
Development Group (ADG). AIF and
related entities currently hold a 34.4%
shareholding in ADG. WAC is a wholly
owned subsidiary of ADG.
Likely Developments and Expected
Results of Operations
Information on likely developments in the
operations of the economic entity and the
expected results of operations have not
been included in this report because the
directors believe it would be likely to
result in unreasonable prejudice to the
economic entity.
D I R E C T O R S R E P O RT C O N T I N U E D
Environmental Regulation
WAC is subject to environmental regulation
in respect of its land development and
operations. Regulations include but are not
limited to the:
• Airports Act 1996 and Airports
(Environmental Protection) Regulations
1997;
• Environmental Protection (Impact of
Proposals) Act 1974 (since succeeded by
the Environment Protection Act 1999);
• Native Title Act 1993;
Land Development Approvals
During the year no major developments
were initiated that required compliance
with requirements under the Airports Act
1996 or the Environmental Protection
(Impact of Proposals) Act 1974.
Environmental Protection
During the year there were no known
breaches of the requirements of the
Airports (Environmental Protection)
Regulations 1997, Australian Heritage
Commission Act 1975, Endangered Species
Act 1992 or Native Title Act 1993.
1975;
• National Environment Protection
Measures (Implementation) Act 1998;
• Endangered Species Act 1992; and
• Western Australian Dangerous Goods
Regulations 1992.
Environment Strategy and
Reporting
An Annual Report was submitted to
the Department of Transport and
Regional Services in October 1999 in
fulfilment of the requirements under
the Airports (Environmental Protection )
Regulations 1997.
The Perth International Airport Noise
Management Strategy was submitted to
the Department of Transport and Regional
Services in May 2000 in accord with the
commitment tabled in the approved
Environment Strategy.
contamination and has prepared an
person becomes obligated to pay on
environmental management plan to
account for claims made for wrongful
address the resultant issues.
acts committed, attempted or allegedly
No other significant environmental
incidents are known to have occurred
during the past year.
Dangerous Goods
Dangerous Goods Licences are required
under the Western Australian Dangerous
Goods Regulations 1992 for the fuel
storage facilities operated by WAC at the
airport. This follows the application of the
Airports Act 1996, and the Regulations
made pursuant to that Act, together with
the approval in August 1998 by the
Minister of the Perth International Airport’s
Environment Strategy. During the year,
additional information in support of WAC’s
application for Dangerous Goods Licences
was provided to the Western Australian
Department of Minerals and Energy. WAC
is waiting on the issue of the licences.
Incidents
During the year, a fire at the AGR Joint
Venture operation resulted in localised soil
contamination in the drainage system.
AGR has initiated a comprehensive
remediation program to address the
36
committed during the period of
insurance. Directors covered under this
insurance policy are outlined in note 26
to the financial statements. The officers
Non-Compliance
of WAC covered by the insurance
Notices/Prosecutions
include the directors, executive officers
No injunctions, notices or prosecutions were
and employees.
issued by any State or Commonwealth
Environmental Protection Agency in respect
of any activity or operation conducted at
the airport over the past year.
• Australian Heritage Commission Act
D I R E C T O R S R E P O RT C O N T I N U E D
Director’s Benefits and Emoluments
No director has received or become
entitled to receive, during or since the
contract made by the economic entity or
Indemnification
a related body corporate with a director, a
The economic entity has not, during or
firm of which a director is a member or an
since the financial year, in respect of any
entity in which a director has a substantial
person who is or has been an officer or
financial interest.
body corporate:
Proceedings on Behalf of Company
No person has applied for leave of the
Court to bring proceedings on behalf of
the company or intervene in any
proceedings to which the company is a
party for the purpose of taking
responsibility on behalf of the company
for all or any part of those proceedings.
The company was not a party to any such
proceedings during the year.
financial year, a benefit because of a
Director’s and Auditors
auditor of the economic entity or a related
rounded off in the directors’ report and
financial report to the nearest thousand
dollars in accordance with that Class Order.
This report is made in accordance with a
resolution of the directors.
Director’s remuneration is detailed at
Note 20.
• Indemnified or made any relevant
agreement for indemnifying against a
Share Options
liability incurred as an officer, including
No options to shares in WAC have been
costs and expenses in successfully
granted during the financial year and there
defending legal proceedings; or
were no options outstanding at the end of
• Paid or agreed to pay a premium in
Dr Allan Griffin
Director
Perth, Western Australia
6th September 2000
the financial year.
respect of a contract insuring against a
Rounding of Amounts to Nearest
liability incurred as an officer for the
Thousand Dollars
costs or expenses to defend legal
The company is of a kind referred to in
proceedings, except for a premium of
Class Order 98/0100 issued by the
$9,334 paid to insure directors and
Australian Securities and Investments
officers for any loss, including any costs
Commission, relating to the “rounding
of legal proceedings, which is not
off” of amounts in the directors’ report
indemnified by WAC and for which the
and financial report. Amounts have been
37
P RO F I T A N D L O S S S TAT E M E N T
BALANCE SHEET
for the financial year ended 30 June 2000
as at 30 June 2000
The above profit and loss
account should be read in
EBITDAA*
conjunction with the
accompanying notes.
*EBITDAA represents
Notes
Consolidated
99/00
98/99
$’000
$’000
Parent
99/00
$’000
98/99
$’000
2(c)
69,677
65,958
69,677
65,958
45,000
41,513
45,000
41,513
Operating loss before abnormal items and income tax 2(a)
2(b)
Earnings before Interest,
Tax, Depreciation,
Income tax attributable to operating loss
3
Operating loss after income tax
26
Amortisation and
Abnormals.
(21,462)
(931)
(22,393)
-
(26,417)
(1,166)
(27,583)
-
(21,462) (26,417)
(931)
(1,166)
(22,393) (27,583)
-
-
(22,393)
(27,583)
(22,393) (27,583)
Retained losses at the beginning of the financial year
(54,512)
(26,929)
(54,512) (26,929)
Retained losses at the end of the financial year
(76,905)
(54,512)
(76,905) (54,512)
Notes
The above balance sheet
should be read in
conjunction with the
accompanying notes.
Consolidated
30 June 30 June
2000
1999
$’000
$’000
Parent
30 June 30 June
2000
1999
$’000
$’000
Current Assets
Cash
4,19
7,969
6,981
7,969
6,981
Receivables
5,19
6,381
5,696
6,381
5,696
Inventories
6
72
68
72
68
Other
7
1,698
3,628
1,698
3,628
16,120
16,373
16,120
16,373
Total Current Assets
Non-Current Assets
Receivables
8
-
-
5,239
-
Investments
9
-
-
-
-
Infrastructure, plant and equipment
10
197,075
201,261
197,075 201,261
Lease franchise fee
11
417,570
421,920
417,570 421,920
Other
12
40,257
35,928
Total Non-Current Assets
654,902
659,109
654,902 659,109
Total Assets
671,022
675,482
671,022 675,482
35,018
35,928
Current Liabilities
Accounts payable
13,19
14,337
12,822
14,337
12,822
Borrowings
14,19
-
-
-
-
Provisions
15
Total Current Liabilities
1,505
1,485
1,505
1,485
15,842
14,307
15,842
14,307
587,418
571,020
Non-Current Liabilities
Borrowings
16,19
Provisions
17
587,418 571,020
102
102
Total Non-Current Liabilities
587,520
571,122
587,520 571,122
Total Liabilities
603,362
585,429
603,362 585,429
67,660
90,053
144,565
144,565
144,565 144,565
(76,905)
(54,512)
(76,905) (54,512)
67,660
90,053
Net Assets
102
67,660
102
90,053
Shareholders’ Equity
Share capital
18
Retained losses
Total Shareholders’ Equity
38
Contingent liabilities
22
Commitments for expenditure
23
39
67,660
90,053
S TAT E M E N T O F C A S H F L OW S
N OT E S
to and forming part of the Financial Statements
Notes
The above statement of
cash flows should be read
in conjunction with the
accompanying notes.
Consolidated
99/00
98/99
$’000
$’000
Parent
99/00
$’000
98/99
$’000
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Net cash inflow from operating activities
26
68,465
63,511
(23,716)
(25,499)
68,465
63,511
(23,716) (25,499)
529
652
529
652
45,278
38,664
45,278
38,664
21
50
21
50
1,946
7,309
1,946
7,309
Cash Flows from Investing Activities
Proceeds from sale of infrastructure,
plant and equipment
Proceeds from reserve accounts released
Payments transferred to reserve accounts
-
Payments for infrastructure, plant and equipment
Net cash inflow/(outflow) from investing activities
(180)
-
(180)
(11,090)
(5,090)
(5,851)
(5,090)
(9,123)
2,089
(3,884)
2,089
Cash Flows from Financing Activities
Proceeds from borrowings
Borrowing costs: Primary debt holders
Subordinated debt holders
Loans to wholly-owned subsidiary
6,608
(28,132)
(26,656)
(28,132) (26,656)
(15,082)
(19,711)
(15,082) (19,711)
-
Financing and re-financing costs
-
Net cash (outflow) from financing activities
(35,167)
Net increase in cash held
988
Cash at the beginning of the financial year
Cash at the end of the financial year
4
Financing arrangements
16
40
8,047
(41)
(39,800)
953
8,047
(5,239)
-
6,608
(41)
(40,406) (39,800)
988
953
6,981
6,028
6,981
6,028
7,969
6,981
7,969
6,981
Contents
Summary of Significant Accounting Policies
Operating Loss
Income Tax
Current Assets
Cash
Receivables
Inventories
Other
Non-Current Assets
Receivables
Investments
Infrastructure, Plant and Equipment
Lease Franchise Fee
Other
Current Liabilities
Accounts Payable
Borrowings
Provisions
Non-Current Liabilities
Borrowings
Provisions
Shareholders’ Equity
Share Capital
Financial Instruments
Remuneration of Directors
Remuneration of Auditors
Contingent Liabilities
Commitments for Expenditure
Employee Entitlements
Related Parties
Reconciliation of Operating Loss after
Income Tax to Net Cash Inflow from
Operating Activities
Segment Reporting
Events Subsequent to Balance Date
41
note
page
1
42
2
47
3
49
4
49
5
50
6
50
7
50
8
51
9
51
10
51
11
52
12
52
13
53
14
53
15
53
16
53
17
55
18
55
19
55
20
58
21
59
22
59
23
60
24
61
25
62
26
64
27
64
28
64
N OT E S
N OT E S
to and forming part of the Financial Statements continued
Note 1 Summary of
Significant Accounting Policies
This general purpose financial report has
been prepared in accordance with
Accounting Standards, other authoritative
pronouncements of the Australian Accounting
Standards Board, Urgent Issues Group
Consensus Views and the Corporations
Law. It is prepared in accordance with the
historical cost convention, except for certain
assets which, as noted, are at valuation.
Unless otherwise stated, the accounting
policies adopted are consistent with those
of the previous period. Comparative
information is reclassified where
appropriate to enhance comparability.
a Principles of Consolidation
The consolidated accounts comprise the
accounts of Westralia Airports Corporation
Pty Ltd and all of its controlled entities.
A controlled entity is any entity controlled
by Westralia Airports Corporation Pty Ltd.
Control exists where Westralia Airports
Corporation Pty Ltd has the capacity to
dominate the decision making in relation
to the financial and operating policies of
another entity so that the other entity
operates with Westralia Airports Corporation
Pty Ltd to achieve common objectives.
A list of controlled entities is contained in
note 9 to the accounts.
All inter-company balances and transactions
between the entities in the economic entity,
including any unrealised profit or losses,
have been eliminated on consolidation.
42
b Income Tax
Tax effect accounting procedures are
followed whereby the income tax expense
in the profit and loss account is matched
with the accounting profit after allowing
for permanent differences. The future
income tax benefit relating to tax losses is
not carried forward as an asset unless the
benefit is virtually certain of realisation.
Income tax on cumulative timing
differences is set aside to the deferred
income tax or the future income tax
benefit accounts at the rates which are
expected to apply when those timing
differences reverse.
c Foreign Currency Translation
(i) Transactions
Foreign currency transactions are initially
translated into Australian currency at the
rate of exchange at the date of the
transaction. At balance date, amounts
payable and receivable in foreign
currencies are translated to Australian
currency at rates of exchange current at
that date. Resulting exchange differences
are brought to account in determining the
profit and loss for the year.
(ii) Specific Commitments
Hedging is undertaken to avoid possible
exposure to financial effects of movements
in exchange rates. Gains or losses on
hedging transactions intended to hedge
monetary items are brought to account in
the year in which the exchange rates
change. Gains or costs arising at the time
of entering into such hedging transactions
are brought to account in the profit and
loss statement over the lives of the hedges.
Any receivable or payable at balance date
is netted against foreign currency
borrowings as the timing of closing out
hedge transactions matches the term to
maturity of related borrowings and it is
intended that they will be settled on a
Gross revenue is raised when there is an
unconditional right to receive that revenue
and it can be measured reliably.
e Receivables
All trade debtors are recognised as the
amount receivable as they are due for
settlement no more than 30 days from the
date of recognition.
simultaneous basis.
d Revenue Recognition
i) Aeronautical Revenue
Comprises Landing Fees and International
Terminal charges, based on the maximum
take-off weight (MTOW) of aircraft, and a
security charge for the recovery of charges
imposed by Australian Protective Services.
ii) Commercial Trading
Comprises concessionaire rent and other
charges received including income from
public car parks.
iii) Property Revenue
Comprises income from Company owned
terminals, buildings and other leased areas.
iv) Recharge Property Service costs
Comprises recharged service and
utility expenditure.
v) Interest Revenue
Comprises earnings on funds deposited
with financial institutions to provide for
reserving requirements as part of the
financing documents.
vi) Asset Sales
Comprises revenue on disposal of assets
brought to account at the transaction date.
43
Recoverability of trade debtors is reviewed on
an ongoing basis. Debts, which are known to
be unrecoverable, are written off. A general
provision for doubtful debts is raised together
with a specific provision for debts where
recoverability is deemed to be doubtful.
f Inventories
Inventories have been stated at the lower
of cost and net realisable value. The basis
of accounting for inventories is on a first-in
first-out basis.
g Acquisition of Assets
The cost method of accounting is used for
all acquisitions of assets regardless of
whether shares or other assets are
acquired. Cost is determined as the fair
value of the assets given up at the date of
acquisition plus costs incidental to the
acquisition. Where shares are issued on
acquisition, the value of the shares is
determined by reference to the fair value of
the assets acquired, including goodwill and
other intangible assets where applicable.
The lease franchise fee, arising from the
acquisition of the Perth International
Airport lease, is brought to account on the
basis described in note 1(j)(i).
N OT E S
N OT E S
h Recoverable Amounts
The recoverable amount of an asset is the
net amount expected to be recovered
through the net cash inflows arising from
its continued use and subsequent disposal.
Where the carrying amount of a non-current
asset is greater than its recoverable amount
the asset is revalued to its recoverable
amount. To the extent that a revaluation
decrement reverses a revaluation increment
previously credited to, and still included in the
balance of, the asset revaluation reserve, the
decrement is debited directly to that reserve.
Otherwise the decrement is recognised as an
expense in the profit and loss statement.
The expected net cash flows included in
determining recoverable amounts of noncurrent assets are discounted to their
present values using a market determined,
risk adjusted discount rate.
Operational Land
1.01%
Investment Land
0.00%
Plant and Equipment
Buildings
15.00%
6.25-15.00%
Fixed Plant and Equipment
10-15%
Runways, Taxiways and Aprons 1.00-6.67%
Other Infrastructure
6.25-20%
Refer to Note 10(b) for information on the amendments
to the useful lives of Runways, Taxiways and Aprons.
(iii) Leasehold Improvements.
Leasehold improvements have been
amortised over the shorter of the
unexpired period of the lease and
estimated useful life of the improvements.
(iv) Major Repairs and Maintenance.
Major asset maintenance costs incurred on
runways, taxiways and aprons are
capitalised and are written off over the
period between major asset maintenance
i Land and Buildings and
Infrastructure, Plant and Equipment
projects. This recognises that the benefit is
to future periods and also apportions the
(i) Cost and Valuation.
The cost base assigned to land and
buildings and infrastructure, plant and
equipment is set out in note 10.
cost over the period of the related benefit.
(ii) Depreciation and Amortisation
(including infrastructure assets under lease)
have been depreciated using the straightline method based upon the estimated
useful life of the assets to WAC.
all materials used in construction, direct
Depreciation and amortisation rates used
are as follows:
intervals. Revaluations reflect independent
44
(v) Non-Current Assets under Construction.
The cost of non-current assets constructed
by the economic entity includes the cost of
labour on the project and consultancy and
professional fees associated with the project.
(vi) Revaluations of Non-Current Assets .
Land, buildings and fixed plant and
equipment are revalued at three yearly
assessments of the fair market value of the
land and buildings based on existing use.
Potential capital gains tax is not taken into
account in determining revaluation amounts
unless there is an intention to sell the assets
concerned and crystallise a tax liability.
straight-line basis over 5 years. This
j Lease Franchise Fee and
Expenditure Carried Forward
(i) Lease Franchise Fee.
The franchise fee paid on acquisition of
the Perth International Airport lease, which
represents the difference between the
Perth International Airport purchase price
and the fair value of the net tangible assets
acquired, is amortised on a straight line
basis over the life of the lease, being 99
years from 2 July 1997.
All fees and costs incurred relate to
ii) Capitalised Bid Costs
The costs incurred in relation to the Perth
International Airport bid and acquisition
have been capitalised and are amortised on
a straight-line basis over the life of the
lease, being 99 years from 2 July 1997.
days of recognition.
(iii) Capitalised Finance Costs and
Capitalised US Note Issue Finance Costs
All fees and costs incurred in establishing
the funding facilities for the acquisition of
the Perth International Airport lease and in
refinancing the debt structure have been
capitalised and are amortised on a straight
line basis according to the term to maturity
of the relevant debt issue.
(iv) Capitalised Masterplan Costs
All fees and costs incurred in the
development of the masterplan have been
capitalised and are amortised on a
45
represents the statutory period over which
the masterplan is valid.
(v) Capitalised Property, Terminal and
Regional Development Costs
constructions or feasibility analysis and
are currently in progress. These costs will
be amortised from the completion of
these projects.
k Trade and Other Creditors
These amounts represent liabilities for
goods and services provided to the
economic entity prior to the reporting date
and which are unpaid. The amounts are
unsecured and are usually paid within 30
l Borrowing Costs
Borrowing costs are recognised as
expenses in the period in which they are
incurred, except as noted in note 1(j)(iii).
Borrowing costs include:
• interest on bank overdraft and long term
borrowings;
• interest on short and long term
subordinated debt;
• interest on bonds payable (including
capitalised interest component); and
• ancillary costs incurred in connection
with the ongoing conduct of borrowings.
m Derivative Financial Instruments
The economic entity has entered into
interest rate and currency swap agreements.
N OT E S
N OT E S
These derivative financial instruments are
not recognised in the financial statements
on inception.
The net amount receivable or payable
under interest rate swap agreements is
brought to account when due and
payable under the terms of each contract.
The amount recognised is accounted for
as an adjustment to interest expense
A liability for long service leave is
recognised based on employees’ current
pay rates and associated on costs in
respect of services provided by employees
up to the reporting date. When assessing
the adequacy of the provision, consideration
is given to the present value of these
payments after assessing expected future
wage and salary levels, experience of
employee departure and period of service.
Note 2 Operating Loss
a Operating Loss before abnormal
items and income tax is arrived at
after crediting and charging the
following specific items
detailed in note 1(c)(ii).
n Maintenance and Repairs
Maintenance, repair costs and minor
renewals, excluding maintenance on
runways, taxiways and aprons, are charged
Parent
99/00
98/99
99/00 98/99
$’000 $’000
$’000 $’000
Credits
Gain on disposal of plant
and equipment
18
1
18
1
Charges
Interest expense
– Primary Debt Holders
36,264 35,231
36,264 35,231
– Subordinated Debt Holders
15,055 15,239
15,055 15,239
Capitalised finance costs amortised 2,275
during the period.
The accounting policy for currency swaps is
Consolidated
q Cash
For the purposes of the statement of
cashflows, cash includes deposits at call
which are readily convertible to cash on
hand and are subject to an insignificant
risk of change in value, net of outstanding
bank overdrafts.
Other borrowing expenses
Borrowing costs expensed
439
4,665
2,275
4,665
505
439
505
54,033 55,640
54,033 55,640
Depreciation
Plant and equipment
576
565
576
565
3,756
3,741
3,756
3,741
204
224
204
224
Taxiways and Aprons
1,944
2,020
1,944
2,020
Leased - Other infrastructure
1,392
1,489
1,392
1,489
7,872
8,039
7,872
8,039
Leased – Buildings
Leased – Fixed Plant and Equipment
Leased – Runways,
as expenses as incurred.
Total depreciation
Maintenance on runways, taxiways and
Amortisation
aprons is treated in accordance with note
Operational land
1(i)(iv).
Lease franchise fee
Capitalised bid costs
188
188
188
188
4,350
4,330
4,350
4,330
151
151
151
151
Capitalised finance costs AUD Bonds 1,479
2,465
1,479
2,465
Modification Costs
Capitalised finance costs USD Bonds
796
2,200
796
2,200
Costs relating to the modification of computer
Capitalised masterplan costs
395
233
395
233
7,359
9,567
7,359
9,567
-
8
-
8
495
793
495
793
495
793
495
793
61
-
61
-
o Year 2000 Software
software for Year 2000 compatibility are
Total amortisation
charged as expenses as incurred.
Provision for doubtful debts
Other provisions
p Employee Entitlements
Employee entitlements
Provision has been made for long service
Total other provisions
leave and annual leave payable to employees
Loss on disposal of plant
on the basis of statutory and contractual
and equipment
requirements. Vested entitlements are
classified as current liabilities. Contributions
made to superannuation funds are charged
against profits.
46
47
N OT E S
N OT E S
b Operating loss after income tax
is also arrived at after (charging)/
crediting the following abnormal
items:
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
c Revenues
Note 3 Income Tax
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
Revenue from Operating Activities
19,832 18,698
Commercial trading
27,076 25,888
27,076 25,888
Charges in respect of prior years
Property
13,495 12,660
13,495 12,660
resulting from the completion of
assessment of fair value on acquisition
Other
of Runways, Taxiways and Aprons
Increase in RTA’s depreciation
6,876
6,936
1,848
1,074
69,127 65,256
(RTA’s) (refer Note 10)
The aggregate amount of income tax
benefit attributable to the financial year
differs from the amount calculated on the
operating loss. The differences are
reconciled as follows:
19,832 18,698
6,876
6,936
1,848
1,124
69,127 65,306
Consolidated
99/00 98/99
$’000 $’000
(862)
-
(862)
Y2K Readiness expenses
(126)
-
(126)
-
Interest revenue
GST Readiness expenses
(388)
-
(388)
-
Proceeds on sale of infrastructure,
(43)
-
(43)
-
plant and equipment
-
236
-
236
Amortisation of
(374)
(540)
(374)
(540)
lease franchise fee
Decrease in Lease Franchise
fee amortisation
Redundancy payments
(931) (1,166)
(931) (1,166)
Applicable income tax credit
on abnormal items
Abnormal items after income tax
calculated @ 36%
Operating Activities
Total Revenues
652
529
652
21
50
21
50
Amortisation of
69,677 65,958
operational land
Entertainment
69,677 65,958
-
(931) (1,166)
-
-
(931) (1,166)
8,061
9,930
8,061
9,930
(11)
(19)
(11)
(19)
(68)
(68)
(68)
(68)
Tax effect of permanent differences:
529
(1,566) (1,474)
(ii) the economic entity continues to
comply with the conditions for
deductibility imposed by tax legislation,
and
(iii) no changes in tax legislation adversely
affect the economic entity in realising
the benefit from the deductions for
the losses.
Note 4 Cash
(54)
(54)
-
-
(54)
(54)
-
-
Amortisation of
capitalised masterplan costs
Non-allowable depreciation
Capital allowances
(2,119) (2,384)
(2,119) (2,384)
489
336
489
336
prior year
-
(387)
-
(387)
Sundry items
-
(47)
-
(47)
Overprovision during
Future income tax benefit
not brought to account
(4,732) (5,833)
(4,732) (5,833)
Income tax benefit adjusted for
permanent differences
-
-
-
-
The directors estimate that the potential future income tax benefit
at 30 June 2000 not brought to account is:
Tax losses – operating
Timing differences
18,038 13,306
(689)
(689)
17,349 12,617
48
(i) the economic entity derives future
assessable income of a nature and of
an amount sufficient to enable the
benefit from the deductions for the
losses to be realised
(1,566) (1,474)
Amortisation of
capitalised bid costs
-
22,393 27,583
Income tax benefit
Revenue from outside
-
Loss on sale of assets
22,393 27,583
Parent
99/00 98/99
$’000 $’000
This benefit for tax losses will only be
obtained if:
49
18,038 13,306
(689)
(689)
17,349 12,617
Cash at bank and on hand
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
7,969
6,981
7,969
6,981
7,969
6,981
7,969
6,981
-
-
-
-
7,969
6,981
7,969
6,981
The above figures are reconciled to
cash at the end of the financial year
as shown in the statement of cash
flows as follows
Balances as above
Less: Bank overdraft (note 14)
Balance per statement
of cash flows
N OT E S
N OT E S
Note 5 Current Receivables
Trade debtors
Less: Provision for doubtful debts
Other debtors
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
6,286
5,658
6,286
5,658
(20)
(22)
(20)
(22)
6,266
5,636
6,266
5,636
115
60
115
60
6,381
5,696
6,381
5,696
Note 6 Current Inventories
Raw materials – at cost
Consolidated
99/00 98/99
Parent
99/00 98/99
$’000 $’000
$’000 $’000
72
68
72
68
Note 7 Current Assets Other
Consolidated
99/00 98/99
$’000 $’000
Prepayments
68
Parent
99/00 98/99
$’000 $’000
66
68
66
Major O&M Reserve Account
(a)
615
641
615
641
Capex Reserve Account
(a)
899
2,819
899
2,819
102
102
102
102
Security Trustee
Indemnification Reserve
GST Clearing Accounts
14
-
14
-
1,698
3,628
1,698
3,628
50
a Pursuant to its Financing
Documentation, WAC is required
to establish, fund and maintain
the following reserve accounts:
Capex Reserve Account (CRA):
This account was established for the
purpose of partially funding approved
capital expenditure. The account is required
to be funded by equity to the extent of
30% of projected capital expenditure for
the next 3 years. The funding balance of
this account is determined by a bank
appointed independent engineer. Any
excess balance of the reserve, following the
review by the independent engineer, can be
transferred back to the Proceeds Account.
Major O&M Reserve Account:
Major maintenance consists of maintenance
of a non-recurring nature on runways,
taxiways, aprons, roads and terminals.
The balance of the reserve account is
calculated as 30% of the average annual
maintenance expenditure expected to be
incurred over the following 10 year period.
Note 8 Non-Current Receivables
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
Note 10 Infrastructure, Plant and
Equipment
Consolidated
99/00 98/99
$’000 $’000
Amounts receivable from:
wholly-owned entities
-
-
5,239
-
Plant and Equipment
Plant and equipment – at cost
Less: accumulated depreciation
Note 9 Non-Current Investments
Parent
99/00 98/99
$’000 $’000
Total Plant and Equipment
3,939
3,558
3,939
(1,627)
(1,140)
(1,627) (1,140)
3,558
2,312
2,418
2,312
(a) 18,650
18,650
(565)
(376)
18,085
18,274
18,085 18,274
(a) 80,000
80,000
80,000 80,000
98,085
98,274
98,085 98,274
48,774
48,237
48,774 48,237
(11,213)
(7,470) (11,213) (7,470)
37,561
40,767
1,757
1,338
1,757
1,338
(644)
(441)
(644)
(441)
1,113
897
1,113
897
(b) 55,022
52,488
(6,009)
(4,066)
(6,009) (4,066)
49,013
48,422
49,013 48,422
2,418
Infrastructure Assets under Lease
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
Shares in:
subsidiaries at cost
Country
of Inc
Class
of Share
%
-
-
-
Percentage Cost of Parent
Ownership Entity’s Investment
$’000
2000 1999 2000 1999
Land – at valuation
Operational land
Less: accumulated amortisation
Investment land
Buildings – at cost
Subsidiaries:
WAC Investments Pty Ltd
Aust.
Ord.
100% Nil
-
-
Fixed plant and equipment – at cost
18,650 18,650
(565)
(376)
37,561 40,767
Runways, Taxiways and
Aprons – at cost
Security Trustee Indemnification Reserve:
This account was established as part of the
re-financing for the purpose of paying or
reimbursing the Security Trustee or any
Receiver for any loss or damages sustained
in connection with the Tripartite Agreement.
Other infrastructure – at cost
Assets under construction – at cost
55,022 52,488
12,626
9,618
12,626
(4,441)
(3,049)
(4,441) (3,049)
9,618
8,185
6,569
8,185
6,569
806
3,914
806
3,914
Total Infrastructure Assets under Lease 194,763 198,843 194,763 198,843
Total Infrastructure, Plant
and Equipment
51
197,075 201,261 197,075 201,261
N OT E S
N OT E S
a Valuation of Land
The basis of the valuation of operational
land is at replacement cost on an existing
use basis. The basis of valuation of
investment property is using fair market
value. The valuation was carried out at 2
July 1997 by Mr PJ Logan FAPI and Mr JK
McNamara LFAPI. The Directors do not
consider that there has been a significant
movement in this valuation to balance date.
b Valuation of Runways,
Taxiways and Aprons
During the previous financial year, WAC
undertook an assessment of the fair value
on acquisition, as at 2 July 1997, using a
depreciated replacement value. This
valuation was undertaken by management,
reviewed by an independent consultant
and approved by the Board of Directors.
The increment upon completion of the
assessment adjusts the Lease Franchise Fee
arising upon acquisition. The useful lives of
this class of asset were amended
concurrently resulting in the adjustment to
the profit and loss statement detailed in
Note 2(b).
Note 13 Current Accounts Payable
Note 11 Lease Franchise Fee
Consolidated
99/00 98/99
$’000 $’000
Lease franchise fee
10(b)
Trade creditors
(13,029) (8,679) (13,029) (8,679)
Bank debt interest payable
417,570 421,920
417,570 421,920
(a)
Capitalised bid costs
Capitalised finance costs
3,973
3,973
3,973
3,973
14,949 14,949
(454)
(302)
(454)
696
Bank loans
Bond (AUD) interest payable
1,476
1,394
1,476
1,394
AUD Bonds
149,727 141,376 149,727 141,376
Bond (USD) interest payable
4,675
4,704
4,675
4,704
USD Bonds
229,000 229,000
Subordinated debt interest payable
3,771
3,799
3,771
3,799
3,550
2,076
3,550
2,076
Shareholder loans
14,337 12,822
Shareholder loans
14,495 14,647
12,327 12,327
12,327 12,327
(6,409) (4,930)
(6,409) (4,930)
5,918
5,918
7,397
14,337 12,822
US Dollars
-
-
-
-
(302)
14,495 14,647
Note 14 Current Borrowings
Consolidated
99/00 98/99
$’000 $’000
7,397
11,208 11,208
11,208 11,208
(3,462) (2,665)
(3,462) (2,665)
7,746
8,543
7,746
8,543
1,501
1,501
1,501
1,501
(665)
(270)
(665)
(270)
836
1,231
836
1,231
153
865
14,949 14,949
Capitalised US Note issue finance costs
Capitalised masterplan costs
-
696
Current liabilities not effectively hedged:
3,973
3,973
Parent
99/00 98/99
$’000 $’000
Secured
Bank overdrafts
-
-
-
-
-
-
-
-
Note 15 Current Provisions
Capitalised property, terminal and
7,289
137
2,050
137
7,289
137
2,050
137
40,257 35,928
(a) Further information relating to reserve accounts is set
out in note 7.
35,018 35,928
Parent
99/00 98/99
$’000 $’000
153
(a) Foreign Currency Liabilities
3,973
Consolidated
99/00 98/99
$’000 $’000
-
Parent
99/00 98/99
$’000 $’000
3,973
Parent
99/00 98/99
$’000 $’000
865
Other creditors
Consolidated
99/00 98/99
$’000 $’000
Capex Reserve Account
Consolidated
99/00 98/99
$’000 $’000
430,599 430,599 430,599 430,599
Note 12 Non-Current Assets Other
regional development costs
52
Parent
99/00 98/99
$’000 $’000
Note 16 Non Current Borrowings
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
Annual leave
669
647
669
Long service leave
836
838
836
838
1,505
1,485
1,505
1,485
53
647
Secured
45,441 37,394
45,441 37,394
229,000 229,000
Unsecured
5,000
5,000
5,000
5,000
158,250 158,250
158,250 158,250
587,418 571,020
587,418 571,020
Bank loans comprise of an interest only
facility whereby the principal is repayable
in full at the end of a 7 year term ending 1
July 2004.
Fixed/floating AUD bonds have a period
to maturity of 20 years ending 1 July
2017. Over the course of the first 11
years a fixed coupon of 4% per annum is
payable to the bondholders. A separate
capitalising component currently set at
5.78% per annum applies during this
period. A floating interest component
applies from the 11th year replacing the
fixed/floating structure. The cumulative
outstanding principal of the bond is
repayable in full at maturity.
USD Bonds have a period to maturity of 12
years ending 1 April 2010. The bonds pay a
fixed semi-annual coupon of 6.48%. Primary
issue of the bonds raised USD150 million.
N OT E S
N OT E S
At issue of the bonds, the economic entity
entered into a cross-currency foreign
currency swap effectively hedging all USD
foreign exchange and interest rate risks
associated with the bond’s coupon payments
and principal repayment at maturity.
The bank debt and both bond facilities are
fully secured over all the assets of WAC,
including a mortgage over the economic
entity’s interest under the Perth
International Airport lease. In addition,
ADG has guaranteed repayment of the
outstanding indebtedness by providing a
charge over its shares in WAC.
a Financing Arrangements
Note 17 Non Current Provisions
Consolidated
99/00 98/99
$’000 $’000
Total facilities available
Stand-by Letter of Credit
8,000
8,000
8,000
8,000
Bank overdrafts
8,000
8,000
8,000
8,000
Bank loan facilities
The terms and conditions of the economic
entity’s financing arrangements provide for
the subordination of payment obligations
to the unsecured debt holders for such
time as any secured money remains owing
to the banks and bondholders. Further
details with respect to the provider of
subordinated debt are set out in note 26.
54
Consolidated
99/00 98/99
$’000 $’000
66,886 66,886
66,886 66,886
82,886 82,886
82,886 82,886
Long service leave
102
Bank overdrafts
-
-
-
-
-
-
-
-
45,441 37,394
Paid up capital:
45,441 37,394
45,441 37,394
144,564,774 Ordinary shares
fully paid
Bank overdrafts
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
21,445 29,492
21,445 29,492
37,445 45,492
37,445 45,492
The unused bank loan facility includes an
amount of $21,445,000 available for the
purpose of funding approved capital
expenditure subject to certain approvals by
the Bank Group and Bondholders.
102
Consolidated
99/00 98/99
$’000 $’000
45,441 37,394
Unused at balance date
Instruments
In the normal course of business, the
economic entity is party to financial
instruments with off-balance sheet risk in
order to hedge exposures to fluctuations in
interest rates and foreign exchange rates.
21/1/97 Issued upon incorporation
Issue Price $000
$
12
$1.00
-
63,835,100
$1.00
63,835
1/7/97 Issued as part of airport acquisition
80,106,118
$1.00
80,106
623,544
$1.00
144,564,774
Parent
99/00 98/99
$’000 $’000
Non-current liabilities not effectively hedged to a date
at least 12 months after balance date:
-
-
-
Parent
99/00 98/99
$’000 $’000
6/5/97 Issued as part of airport acquisition
30/6/99 Closing balance
Consolidated
99/00 98/99
$’000 $’000
102
a Movements in issued and
paid-up ordinary share capital since
incorporation (1 January 1997) are
as follows:
Number of
Shares
b Foreign Currency Liabilities
102
144,565 144,565 144,565 144,565
17/3/98 Balance upon acquisition of airport
US Dollars
a Off-balance Sheet Derivative
Note 18 Share Capital
Used at balance date
Parent
99/00 98/99
$’000 $’000
The Subordinated Debt of $5,000,000
relates to a short-term loan facility from the
shareholders that can be repaid from the
proceeds of the $4,100,000 drawdown of
Tranche D Bank Debt and existing working
capital. This drawdown was completed by
31 December 1998 and as yet the
shareholders of the parent company have
not elected to receive these proceeds.
Parent
99/00 98/99
$’000 $’000
Note 19 Financial Instruments
-
55
623
144,565
Interest Rate Swap and Cross Currency
Foreign Exchange Swap Contracts
It is a requirement of the economic entity’s
funding arrangements that a specific portion
of its debt be hedged against movements
in interest rates and foreign exchange.
Accordingly, the economic entity has entered
into a series of interest rate and cross
currency foreign exchange swap contracts.
Interest Rate Profile Combining Underlying
Debt Instruments with Swap Instruments
As at reporting date and taking into account
all underlying financial debt instrument
cashflows and all associated swap
instrument cashflows, the economic entity
has the following debt interest rate profiles:
Source of Debt
Bank Overdraft
144A Bond Issue
144A Bond Issue
144A Bond Issue
Bank Debt
Bank Debt
Bank Debt
Bank Debt
A$ Bonds
A$ Bonds
Subordinated Loan 1
Subordinated Loan 2
N OT E S
N OT E S
Period
in Years
Principal
in $’000
Base
Interest Rate
n/a
4
4
6
2
2
2
4
8
9
1
22
0.000
202,707
26,292
229,000
22,000
9,927
12,073
23,441
149,727
237,074
5,000
158,250
Benchmark
7.75
8.49
7.86
8.30
9.09
BBSY(*)
BBSY(*)
9.78
BBSW(*)
90 Day Bills
1 Year Bills
Interest
Rate Margin
%PA
0.75
.4767
.4767
.4767
1.000
1.000
1.000
1.000
0.0000
1.45
4.00
4.00
b Credit Risk Exposures
The credit risk on financial assets of the
economic entity which have been
recognised on the balance sheet is
generally the carrying amount net of
any provisions for doubtful debts.
Total Interest
Rate %PA
Comments
B/Mark +0.75
8.2267
8.9667
8.3367
9.30
10.09
BBSY+1.000
BBSY+1.000
9.7800
BBSW+1.45
Bills + 4%
Bills + 4%
Floating
Fixed 1/7/00 to 1/4/04
Fixed 1/7/00 to 1/7/04
Fixed 1/4/04 to 1/4/10
Fixed 1/7/00 to 1/7/02
Fixed 1/7/02 to 1/7/04
Floating 1/7/02 to 1/7/04
Fixed 1/7/00 to 1/7/08
Reference Rate – Mid
The economic entity’s exposure to interest
rate risk for each class of financial asset
and financial liability is set out below.
(*) BBSY – Bank Bill Swap
Reference Rate – Bid
For off-balance sheet financial instruments,
including derivatives, credit risk also arises
from the potential failure of counterparties
to meet their obligations under the
respective contracts or arrangements. The
economic entity’s credit risk exposures in
relation to off-balance sheet instruments
can be summarised as follows:
30 June 2000
Floating Fixed
interest interest
rate
over1 to
5 years
$’000
$’000
Fixed
interest
over
5 years
$’000
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
A$ Fixed/Floating
US$/A$ FX Swap
US$/A$ FX Swap
56
Period
in Years
2
2
2
2
4
6
4
2
0.25
6
6
10
10
NonTotal
interest
Bearing
$’000
Floating Fixed
interest interest
rate
over1 to
5 years
$’000
$’000
Fixed
interest
over
5 years
$’000
NonTotal
interest
Bearing
$’000
$’000
Financial Assets
Cash and deposits
6,981
-
-
-
Other deposits
7,535
-
-
-
7,535
-
-
-
5,696
5,696
14,516
-
-
5,696
20,212
-
-
-
-
15,394 22,000
-
-
37,394
Receivables
$’000
Financial Assets
6,981
Weighted Average Interest Rate 4.90%
Cash and deposits
7,969
-
-
-
7,969
Financial Liabilities
Other deposits
5,589
-
-
-
5,589
Bank overdrafts
-
-
-
6,381
6,381
Bank facility
13,558
-
-
6,381
19,939
AUD Bonds
-
-
141,376
USD Notes
-
-
229,000
- 229,000
163,250
-
-
- 163,250
Receivables
Weighted Average Interest Rate 6.20%
Financial Liabilities
Other loans
Bank overdrafts
-
Bank facility
-
-
-
-
23,441 22,000
-
-
45,441
-
Trade and other creditors
-
-
178,644 22,000
-
370,376
- 141,376
12,822
12,822
12,822 583,842
AUD Bonds
-
-
149,727
- 149,727
Weighted Average Interest Rate:The interest rates for financial liabilities
USD Notes
-
-
229,000
- 229,000
in 1999 are the same as those disclosed in the Interest Rate Profile in
163,250
-
-
- 163,250
-
-
186,691 22,000
378,727
Other loans
Trade and other creditors
-
14,337
14,337
National Counterparty’s Period
Principal Credit Rating
in ’000s
67,569
AA1/7/00 to 1/7/02
50,677
AA1/7/02 to 1/7/04
48,292
A1/7/00 to 1/7/02
36,219
A1/7/02 to 1/7/04
67,569
AAA
1/7/00 to 1/4/04
76,333
AAA
1/4/04 to 1/4/10
67,569
AA
1/7/00 to 1/4/04
16,892
AA
1/7/02 to 1/4/04
25,656
AA
1/4/04 to 1/7/04
76,333
AA
1/4/04 to 1/4/10
76,333
AA
1/7/04 to 1/4/10
76,333
AAA
1/7/00 to 1/4/10
152,667
AA1/7/00 to 1/4/10
Note 19(a)
Net financial liabilities (164,128) (22,000) (370,376)
(7,126) (563,630)
14,337 601,755
Weighted Average Interest Rate: Refer Interest Rate Profile in Note 19(a)
Net financial liabilities (173,133) (22,000) (378,727)
Swap Description
30 June 1999
c Interest Rate Risk Exposures
(*) BBSW – Bank Bill Swap
(7,956) (581,816)
Reconciliation of Net Financial Assets to
Net Assets
Note
Net financial liabilities as above
99/00
$’000
98/99
$’000
(581,816) (563,630)
Non-financial assets and liabilities
Inventories
6
72
Prepayment and advances
7
68
66
10
197,075
201,261
Lease franchise fee
11
417,570
421,920
Other assets
12
36,298
31,955
15,17
(1,607)
(1,587)
67,660
90,053
Provisions
Net assets per balance sheet
57
68
N OT E S
N OT E S
d Net Fair Value of Financial
Assets and Liabilities
(i) On-balance Sheet
The net fair value of cash and cash
equivalents and non-interest bearing
monetary financial assets and
financial liabilities approximates
their carrying value.
The net fair value of the AUD bonds
issued by the economic entity has been
determined as the carrying value which
represents the outstanding principal
amount at the reporting date. The
principal amount will be payable in full
on the maturity date of 1 July 2017.
The net fair value of financial assets or
financial liabilities arising from interest
rate swap and cross-currency swap
agreements has been determined as
the carrying value of each swap contract
that remains open at the reporting
date. The carrying value represents the
amount currently receivable or payable
at the reporting date.
Note 21 Remuneration of Auditors
the international refuelling facility at Perth
Consolidated
99/00
98/99
$
$
The net fair value of other loans has
been determined as the carrying value
which represents the outstanding
principal amount at the reporting date.
99/00
$
98/99
$
(ii) Off-balance Sheet
The economic entity has potential financial
liabilities that may arise from certain
contingent liabilities disclosed in note 23.
No material losses are anticipated in
respect of any contingencies.
58
economic entity by the entities
of which they are directors and
-
-
-
Income paid or payable to
all directors of the parent entity
by the parent entity and any
-
-
10,000 -
The number of Australian based executive officers (including directors)
whose remuneration from entities in the consolidated entity and related
parties was within the specified bands as follows:
$0 – $9,999
6
6
6
6
$10,000 – $19,999
1
-
1
-
WAC has effected insurance policies to
insure certain officers of the economic
entity as outlined in the directors report.
Commission (ACCC) conducted an
investigation into this charge following
63,751
50,121
63,751
50,121
148,545
114,210 148,545 114,210
212,296
164,331 212,296 164,331
complaints by oil companies and airlines.
The investigation concluded that airports
possessed market power in the provision
of re-fuelling services and that they had
Directors of the
Parent Entity
Income paid or payable to
related parties
The Australian Competition and Consumer
of the economic entity for:
Other services
Directors of the
Consolidated
Entity
99/00
98/99
$
$
10,000
Remuneration of the auditors
financial reports
Note 20 Remuneration of Directors
any related parties
Parent
99/00 98/99
$
$
Audit and review of the
all directors of each entity in the
The net fair value of the USD notes
issued by the economic entity has been
determined as the carrying value which
represents the outstanding principal
amount at the reporting date. The
principal amount will be payable in full
on the maturity date of 1 April 2010.
0.5cents per litre on fuel pumped through
Note 22 Contingent Liabilities
taken advantage of this market power by
introducing a fuel throughput levy. The
Currently, native title claims exist over parts
of Perth International Airport. The Directors
believe that these claims will not have any
adverse impact on the operation or growth
of the airport.
Parts of Perth International Airport (the
Munday Swamp Bushland and Forrestfield
Bushland) have been entered in the Interim
List of the Register of the National Estate
by the Australian Heritage Commission.
The Minister for Transport and Regional
Services may approve development of land
on the Register if he or she is satisfied that
there is no prudent or feasible alternative
to the development.
Fuel Throughput Levy
WAC has recognised revenue of $0.727m
for the year ending 30 June 2000 and
$0.785m cumulatively in respect of a fuel
throughput levy, pursuant to leases it has
with oil companies at Perth International
Airport. The fuel throughput levy was
introduced in June 1999 at the rate of
59
ACCC subsequently recommended to the
Commonwealth Treasurer stricter forms of
price oversight in respect of this charge.
WAC is of the view that it is exercising its
existing contractual rights, enshrined in
the oil company leases in implementing
the fuel throughput levy and does not
accept the findings of the ACCC that the
charge is an abuse of market power.
In September 1999, an independent
expert was appointed by WAC and BP
Australia Limited to adjudicate on a
dispute regarding the basis and amount of
the fuel throughput fee levied by WAC.
The determination by the independent
expert confirmed WAC’s right to apply the
levy, and although the charge of 0.5cents
per litre was found to be within a range of
comparable fees at other airports, a rate
of 0.35cents per litre was determined.
The oil companies are now paying this fee
without qualification.
N OT E S
N OT E S
Since referring the matter to the
Commonwealth Government over 12
months ago, no further action or response
has been made by the Government. WAC
will continue to seek a satisfactory
resolution through further consultation
with the Commonwealth.
Ground Facilities Fee
WAC introduced a fee for ground
transport providers deriving revenue from
airport generated activities in January
1999. The fees payable are $1 per pick-up
for taxi operators and $2 per pick-up for
charter and tour bus operators.
In its Regulatory Report relating to Perth
International Airport issued in December
1999, the ACCC re-affirmed a view it had
expressed previously that revenue derived
from what it described as vehicle access
charges fall under the definition of
‘aeronautical services’ defined in Pricing
Declaration 83, and that, as a result,
revenue derived from these charges should
be included in the aeronautical price cap.
Inclusion of these revenues in the
aeronautical price cap would require
corresponding reductions in aeronautical
charges to achieve the required CPI-x price
reductions. The regulatory framework allows
for over recovery of revenue in any given
year, provided that the revenue amount is
passed back to users within 2 years.
The ACCC identified an over-recovery of
$0.169m for the 1998–99 financial year on
the basis of their interpretation of these
60
fees as being aeronautical. WAC has
recognised a further $0.439m as revenue
in respect to ground facilities fees for the
1999–2000 financial year.
to 2002 inclusive and additional sums
totalling $33,300,000 during the 5 fiscal
years 2003 to 2007. WAC is seeking to
renegotiate these commitments as
provided for under the sale agreement.
WAC has made strong representations to
the ACCC and to the Commonwealth
Government that the ground facilities fees
do not relate to aeronautical services and are
therefore not covered by the price cap.
WAC believes its views are supported by
principles set out in a discussion paper issued
by the Commonwealth Department of
Transport and Regional Services in December
1998 dealing with Ground Access Fees and
the CPI-x Price Cap. WAC is continuing to
seek a satisfactory resolution to this matter
with the Commonwealth Government.
Regional Development Initiatives – Perth
International Airport Aviation Development
Programme
As part of its tender for the acquisition of
the Perth International Airport lease, WAC
committed to the Western Australian State
Government to establish a fund to provide
up to $5,000,000 in seed capital for
strategic state economic development
projects with the potential to enhance the
air transportation market. The selection of
projects to benefit from this fund is at the
discretion of WAC with preference given to
projects that provide the opportunity of
commercial returns to WAC. To date WAC
has approved projects totalling $1.4m to
be funded from this program.
Note 23 Commitments for Expenditure
Capital Commitments
Commitments for the acquisition of plant
and equipment contracted for at the
reporting date but not recognised as
liabilities, payable:
Not later than one year
Note 24 Employee Entitlements
Consolidated
99/00
98/99
$’000
$’000
Parent
99/00 98/99
$’000 $’000
3,641
3,641
2,122
2,122
Consolidated
99/00
98/99
$’000
$’000
Parent
99/00 98/99
$’000 $’000
1,505
1,485
1,505
1,485
102
102
102
102
1,607
1,587
1,607
1,587
Current (note 15)
Capital Expenditure Commitments
Non-current (note 17)
As part of its tender for the acquisition of
the Perth International Airport lease, WAC
committed to the Commonwealth
Government to fund capital expenditure
for aeronautical infrastructure and other
improvements totalling a minimum of
$54,600,000 during the 5 fiscal years 1999
Aggregate employee entitlement
liability
61
Australian Airports Superannuation Scheme
During the year, WAC gave notice to
withdraw from the Australian Airports
Superannuation Scheme effective 1 July
2000. New superannuation arrangements
have been established for WAC and its
employees to contribute to a complying,
accumulation style, superannuation fund
of the employees choice, or to WAC’s
nominated complying default fund
(Westscheme). WAC was a participating
employer in the Australian Airports
Superannuation Scheme for the year to 30
June 2000. WAC made contributions to
this scheme in respect of its employees at
the rates specified in the Superannuation
Trust Deed for the year.
The Australian Airports Superannuation
Scheme is a complying fund under the
Commonwealth superannuation law. It is
a defined benefit scheme, except where a
person resigns before the minimum age
for a retirement benefit. The contributions
made by WAC satisfy the company’s
superannuation guarantee obligations for
its employees.
The last actuarial review of the scheme was
performed by Mr John Burnett BA, FIAA as
at 1 July 1997.
N OT E S
N OT E S
Details of the total position of the Australian
Airports Superannuation Scheme, as
extracted from FAC’s annual report and the
Trustees’ report of the scheme for the year
ended 30 June 1997, and correspondence
from the Trustee, are set out below:
$’000
Accrued benefits based on last actuarial review (1 July 1997)
63,097
Net market value (NMV) of scheme assets (30 June 1997)
66,333
Excess of NMV of scheme assets over accrued employee benefits
Vested Benefits (30 June 1997)
3,236
60,457
No part of the difference between the
accrued benefits and net market value of
the scheme has been recognised in the
accounts of the economic entity.
Contributions to the scheme are expensed
as incurred.
Note 25 Related Parties
Directors
The names of persons who were directors
of WAC at any time between 1 July 1999
and 30 June 2000 are as follows:
Name
Alternate Director
Michael Clifford Fitzpatrick
Charles Snyder (resigned 23/2/00)
Robert Bullock (resigned 23/2/00)
Ross Morris Beames
Robert John Clarke
Dr Allan Thomas Griffin
Phillip James Walker
Robert John Clarke
Frank Patrick Cowell (resigned 23/2/00) Charles Martin (resigned 23/2/00),
Jack Evans (resigned 23/2/00)
David Ian Crawford (app. 11/4/00)
George Casey (app. 23/2/00)
Keith Michael Brooks (app. 23/2/00)
Peter Taylor (app. 25/7/00)
Robert Benson Bullock (app. 23/2/00)
Caroline Fiona Price (app. 23/2/00)
62
Remuneration
Information on remuneration of directors is
disclosed in note 20.
Non-current liabilities
Purchase of the Perth International Airport
lease was partly funded by way of
shareholder sponsored subordinated debt.
Interest is payable on the debt at the
National Australia Bank’s Indicator Lending
Rate (or equivalent indicative rate) for 1
year commercial bills exceeding
$1,000,000 as at the first day of the
financial year plus a 4% margin.
Wholly-owned Group
The wholly owned group consists of
Airstralia Development Group Pty Ltd
(ADG) and its wholly owned controlled
entities, WAC and WAC Investments Pty Ltd.
Transactions between ADG and WAC
between 1 July 1999 and 30 June 2000
consisted of loans advanced by ADG.
Aggregate amounts payable to ADG by
WAC at balance date were as follows:
Current liabilities
Non- current liabilities
Consolidated
99/00
98/99
$’000
$’000
Parent
99/00 98/99
$’000 $’000
3,712
3,712
3,799
• on 31 December interest for that 6
months will be capitalised; and
3,799
163,250
163,250 163,250 163,250
166,962
167,049 166,962 167,049
Current liabilities
A short term subordinated loan was
advanced by the shareholders to ADG on
1 July 1997. ADG advanced this amount to
WAC on the same date. Interest is payable
on the short term loan at the National
Australia Bank’s Indicator Lending Rate (or
equivalent indicative rate) for 90 day
commercial bills exceeding $1,000,000
plus a 4% margin. At 30 June 2000,
accounts payable included $3,771,552
(1999: $3,799,494) of accrued interest on
subordinated debt. A total of $15,055,159
(1999: $15,238,725) interest was charged
during the year.
Where at the end of any period interest on
the debt is not paid by WAC because such
a payment would be in breach of the bank
finance agreement provisions then;
• on 30 June interest for the whole year
will be permanently reduced to the
extent it is not permitted to be paid.
Other Related Parties
A service agreement exists between WAC
and Airport Group International, Inc (AGI)
a subsidiary of TBI plc (‘TBI’), which
engages AGI for the purpose of providing
technical advice about management,
operations and maintenance of the airport.
TBI is a shareholder of ADG. The contract
was based on normal commercial terms
and conditions.
Ownership Interests
The ultimate Australian parent entity is
ADG, which at 30 June 2000 owns 100%
of the issued ordinary shares of WAC.
63
ADG is owned by the following
shareholders:
Infratil Australia
(a)
49.5%
Hastings
(b)
34.4%
TBI
(c)
16.1%
100.0%
(a) Infratil Australia Airports Limited as
trustee for Infratil Australia Limited;
(b) Hastings manage the equity interest
held by Utilities of Australia Pty Limited
(as trustee for the PAPF) and Hastings
Funds Management (as responsible
entity for AIF Trust); and
(c) The shareholding of TBI plc, a company
quoted on the London Stock Exchange,
is via a wholly controlled entity Western
Australia Airport Development Limited.
N OT E S
D I R E C T O R S ’ D E C L A R AT I O N
Note 26 Reconciliation of
Operating Loss after Income Tax
to Net Cash Inflow
Consolidated
99/00 98/99
$’000 $’000
Parent
99/00 98/99
$’000 $’000
(22,393) (27,583) (22,393) (27,583)
15,231 18,232
15,231 18,232
Interest expense
51,758 50,975
51,758 50,975
Net (gain)/loss on sale of property,
plant and equipment
Provision for doubtful debts
43
(1)
43
(1)
-
8
-
8
Change in operating assets and liabilities, net of effects from purchase
of business
(Increase)/Decrease in trade debtors
(Increase)/Decrease in inventories
(Increase) in other operating assets
(685) (1,786)
(685) (1,786)
(4)
(9)
(4)
(9)
(16)
(392)
(16)
(392)
1,325
(431)
1,325
(431)
19
(348)
19
(348)
Increase/(Decrease) in trade creditors
and bond interest payable
Increase/(Decrease) in other provisions
Net cash inflow from
operating activities
45,278 38,665
45,278 38,665
Note 27 Reconciliation of
Operating Loss after Income Tax
to Net Cash Inflow
The economic entity operates in the airport
and related industries management in
Western Australia.
Note 28 Events Subsequent
to Balance Date
No matters or circumstances have arisen
since the end of the financial year which
significantly affected or may significantly
affect the operations of the company, the
results of operations, or the state of affairs
of the company in future financial years
other than as noted below:
64
Takeover Bid for Infratil by Australian
Infrastructure Fund
On 10 April 2000, Australian Infrastructure
Fund (‘AIF’) announced a proposal for the
merger of AIF with Infratil Australia Limited
(‘Infratil’) under which AIF would acquire
five shares in Infratil in return for the issue
of two AIF stapled securities. On 20 June
2000, the AIF was joined by its sister fund,
Utilities Trust of Australia (‘UTA’) in its
takeover offer for Infratil. UTA supported
AIF’s revised offer of $0.95 cash, whereby
all Infratil shares acquired for cash after 20
June 2000 will be held by AIF on behalf of
UTA until UTA held approximately 24
million Infratil shares. Thereafter, a ratio of
approximately 3:1 (UTA:AIF) will be
maintained with respect to Infratil shares.
At 30 June 2000, AIF had a 15.7% interest
in Infratil, which includes 0.47%
acceptances under the cash bid offer.
On 28 July 2000, AIF closed its takeover
offer for Infratil with 98.4% acceptances.
AIF will now move to compulsory acquire
all remaining shares in Infratil and to delist
Infratil from the Australian and New
Zealand Stock Exchanges. Subsequent to
year-end and up to the date of this report,
AIF acquired (both on market and through
acceptances) an additional 29,042,554
shares in Infratil.
The directors declare that the financial
statements and notes set out on pages
38 to 64;
(a) comply with Accounting Standards, the
Corporations Law and other mandatory
professional reporting requirements; and
(b) give a true and fair view of the
company’s and consolidated entity’s
financial position as at 30 June 2000
and of their performance, as
represented by the results of their
operations and their cash flows, for the
financial year ended on that date.
In the directors’ opinion:
(a) the financial statements and notes are
in accordance with the Corporations
Law; and
(b) there are reasonable grounds to believe
that the economic entity will be able to
pay its debts as and when they become
due and payable.
This statement is made in accordance with
a resolution of the directors.
Dr Allan Griffin
Director
6th September 2000
Infratil Australia Limited currently holds a
49.5% shareholding in Airstralia Development
Group (ADG). AIF and related entities
currently hold a 34.4% shareholding in ADG.
WAC is a wholly owned subsidiary of ADG.
65
I N D E P E N D E N T AU D I T R E P O RT
P RO F I T A N D L O S S AC C O U N T
to the Members of Westralia Airports Corporation Pty Ltd
To the members of Westralia Airports
Corporation Pty Ltd:
Matters relating to the Electronic
Presentation of the Audited
Financial Report
This audit report relates to the financial
report of Westralia Airports Corporation
Pty Ltd for the year ended 30 June 2000
included on Westralia Airports Corporation
Pty Ltd’s web site. The company’s directors
are responsible for the integrity of the
Westralia Airports Corporation Pty Ltd
web site. The audit report refers only to
the statements named below. It does
not provide an opinion on any other
information which may have been
hyperlinked to/from these statements.
If users of this report are concerned with
the inherent risks arising from electronic
data communications, they are advised
to refer to the hard copy of the audited
financial report to confirm the information
included in the audited financial report
presented on this web site.
Scope
We have audited the financial report of
Westralia Airports Corporation Pty Ltd,
comprising the Profit and Loss Statement,
the Balance Sheet, the Statement of Cash
Flows, Notes 1 to 28 and the Directors’
Declaration for the year ended 30 June
2000. The financial report includes the
financial statements of Westralia Airports
Corporation Pty Ltd and the consolidated
financial statements of the consolidated
entity comprising the company and the
entities it controlled at year end or from
time to time during the year. The company’s
directors are responsible for the financial
report. We have conducted an independent
audit of the financial report in order to
express an opinion on it to the members of
the company.
Our audit has been conducted in
accordance with Australian Auditing
Standards to provide reasonable assurance
whether the financial report is free of
material misstatement. Our procedures
included examination, on a test basis, of
evidence supporting the amounts and
other disclosures in the financial report,
and the evaluation of accounting policies
and significant accounting estimates.
These procedures have been undertaken
to form an opinion whether, in all material
respects, the financial report is presented
fairly in accordance with Accounting
Standards and other mandatory
professional reporting requirements and
statutory requirements in Australia so as
to present a view which is consistent with
our understanding of the company’s
financial position, and performance as
represented by the results of its operations
and its cash flows.
The audit opinion expressed in this report
has been formed on the above basis.
66
Audit Opinion
In our opinion, the financial report of
Westralia Airports Corporation Pty Ltd is
in accordance with:
(a) the Corporations Law, including:
(i) giving a true and fair view of the
company’s and the consolidated
entity’s financial position as at 30
June 2000 and of their performance
for the year ended on that date; and
(ii) complying with Accounting
Standards and the Corporations
Regulations; and
(b) other mandatory professional reporting
requirements.
Notes
Parent
99/00
$’000
98/99
$’000
19,832
18,698
19,832
18,698
Commercial trading
27,076
25,888
27,076
25,888
Property
13,495
12,660
13,495
12,660
6,876
6,936
6,876
6,936
Interest revenue
Other
2(c)
528
652
528
652
1,870
1,124
1,870
1,124
69,677
65,958
69,677
65,958
Operating Expenses
Employee expenses
6,644
6,214
6,644
6,214
Services and utilities
11,588
11,218
11,588
11,218
General administration and other
3,980
4,399
3,980
4,399
Leasing and maintenance
1,937
1,963
1,937
1,963
15,232
17,606
15,232
17,606
Interest expense
51,758
50,975
51,758
50,975
91,139
92,375
Total Operating Expenses
Ernst & Young
Chartered Accountants
Consolidated
99/00
98/99
$’000
$’000
Operating loss before abnormal items and income tax
2(a)
2(b)
Income tax attributable to operating loss
3
26
91,139
92,375
(21,462)
(26,417)
(931)
(1,166)
(22,393)
(27,583)
-
-
(21,462) (26,417)
(931)
(1,166)
(22,393) (27,583)
-
-
(22,393)
(27,583)
(22,393) (27,583)
Retained profits at the beginning of the financial year
(54,512)
(26,929)
(54,512) (26,929)
Retained losses at the end of the financial year
(76,905)
(54,512)
(76,905) (54,512)
J W Copp, Partner
6th September 2000
67
C O R P O R AT E D I R E C T O RY
W E S T R A L I A A I R P O RT S C O R P O R AT I O N P RO P R I E T Y L I M I T E D
ABN 24 077 153 130
ACN 077 153 130
REGISTERED OFFICE
Location - Westralia Air por ts Cor poration Pty. Ltd.
Baker Road Per th Inter national Air por t 6105 Wester n Australia
Mail - Westralia Air por ts Cor poration Pty. Ltd.
PO Box 6 Cloverdale 6985 Wester n Australia
CONTACT NUMBERS
Te l e p h o n e + 6 1 8 9 4 7 8 8 8 8 8 F a c s i m i l e + 6 1 8 9 2 7 7 7 5 3 7
Email [email protected] Web Site www.perthairport.com
DIRECTORS
Mr David Crawford - NON-EXECUTIVE CHAIRMAN
Mr Michael Fitzpatrick
Mr Allan Griffin
Mr Ross Beames
Mr Phillip Walker
Mr Bob Bulloc k
Mr George Casey
COMPANY SECRETARY
Mr Wayne Ticehurst
CHIEF EXECUTIVE OFFICER
Mr Graham Muir
EXECUTIVES
Mr Ric hard Gates - DIRECTOR OPERATIONS
Mr Torben Peter sen - DIRECTOR ENGINEERING & MAINTENANCE
Ms Julie Reid - DIRECTOR MARKETING
Mr Wayne Ticehur st - CHIEF FINANCIAL OFFICER
Mr Andrew Whiteside - DIRECTOR PROPERTY & DEVELOPMENT
AUDITORS
Er nst & Young
Central Park, 152 St. George’s Terrace Per th 6000 Wester n Australia

4421 WAC Cover FINAL (Page 2)

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