Adelaide Airport breaks through 8 million barrier in 2016

China Southern flight CZ663, operated by Airbus A330-200 B-6135 receives an ARFF monitor cross after arriving in Adelaide. (Adelaide Airport/Simon Casson)

Adelaide Airport says it exceeded eight million passengers for the first time in 2016 and is hopeful of further growth in the current year amid new international and domestic flights.

The airport said on Tuesday it handled 8.007 million passengers in the 12 months to December 31 2016, an increase of 2.5 per cent from the prior corresponding period.

International passengers grew 5.9 per cent to 924,000, while the number of domestic and regional travellers at the airport was up 2.1 per cent to 7.083 million.

The airport benefitted from the arrival of Qatar Airways in May 2016 and China Southern in December 2016, while on the domestic front Jetstar commenced nonstop flights from Adelaide to Melbourne Avalon and Sunshine Coast airports.

And there is more new capacity planned for 2017 with Fiji Airways set to link Adelaide and Nadi with twice weekly flights from June using Boeing 737-800 equipment.

Adelaide Airport managing director Mark Young said the airport was on track to reach one million international passengers in 2017.

“Adelaide Airport has come a long way in a relatively short time, particularly since the opening of the new terminal just over a decade ago,” Young said in a statement.

“Our next likely milestone will be to hit one million international passengers per year, and there is a good chance we’ll reach that mark in the course of the 2017/18 financial year.”

Adelaide Airport is building 14 new self-service bag drop and 32 check-in kiosks as part of a technology upgrade and contact extension with technology provider SITA.

Further, a new on-site hotel was expected to open its doors to guest by the end of 2018 as part of the 30-year, $2 billion site development plan that also included expanding Adelaide’s existing domestic and international terminals.

“There are positive signs for future growth, and importantly we are continuing to upgrade facilities to cater for that demand,” Young said.

 

Australian Aviation

Adelaide Airport keen on nonstop US flights after welcoming China Southern inaugural service

China Southern flight CZ663 landing in Adelaide. (Adelaide Airport/Simon Casson)

Adelaide Airport Ltd (AAL), having just achieved its ambition of securing nonstop service into mainland China, will turn its attention to targeting nonstop flights to the US.

AAL chief executive Mark Young said the advent of the Boeing 787 provided the opportunity for nonstop flights between Adelaide and the US west coast.

The potential might lure Qantas back to Adelaide, he said.

The national carrier does not operate any international services from Adelaide at present, having abandoned its Adelaide-Singapore route in March 2013.

Young, speaking outside the ceremony for the arrival of China Southern’s inaugural service into Adelaide from Guangzhou on Tuesday, said the airport was being realistic about the prospects for nonstop flights between Adelaide and the US.

Such services were probably two years away, when airlines had “bedded down” initial service with the long-distance Boeing 787, he said.

However, AAL would continue to hold talks with international carriers, including Qantas, on the prospects for non-stop US flights.

China Southern flight CZ663, operated by Airbus A330-200 B-6135 receives an ARFF monitor cross after arriving in Adelaide. (Adelaide Airport/Simon Casson)

Australia, China and China Southern flags being waved from the flight deck after China Southern's Guangzhou-Adelaide inaugural. (Adelaide Airport/Simon Casson)

Meanwhile, he said AAL was delighted to welcome China Southern to Adelaide following about six years of negotiations.

Flight CZ662, operated by Airbus A330-200 B-6135, touched down in Adelaide at about 0940 local time, after a nine hour and 15 minute journey from China Southern’s Guangzhou hub.

The aircraft, which was welcomed to the city with an Airservices Aviation Rescue and Fire Fighting (ARFF) monitor cross, was on the ground for about 90 minutes before taking off as the reciprocal CZ664 bound for Guangzhou.

China Southern planned to operate three times a week to Adelaide initially, to test the market, but has ambitions for daily flights on the route.

Previously the Skyteam alliance member operated several charter services into Adelaide but year-round scheduled flights from Guangzhou were secured after recent negotiations involving South Australian Premier Jay Weatherill, Tourism Minister Leon Bignell and officials from the SA Tourism Commission and Tourism Australia, as well as AAL.

China Southern chief executive Tan Wangeng, who flew into Adelaide on the inaugural service, admitted the airline had brought forward its plans to serve Adelaide after the SA delegation had convinced it of strong tourism and trade opportunities.

Weatherill said the new service offered exciting opportunities for SA in attracting Chinese tourists and boosting trade with China, which was the state’s largest export market.

It was estimated the China Southern link would add about $23 million to SA’s tourism revenue, he said.

The SA Government would not reveal incentives used to attract China Southern to Adelaide, but Bignell said the government and airline would work together on joint marketing.

The government also had worked with Chinese authorities to fast-track SA produce – particularly seafood – into Guangzhou and beyond, using eight to 10 tonnes of cargo space in the A330-200 to accelerate exports, he said.

The China Southern A330-200s used to serve Adelaide service are configured with four first-class, 24 business class and 188 economy seats.

Officials at Tuesday’s ceremony said the response from the public had been strong, with initial services fully booked.

It was understood at least 60 per cent of travellers on the route were outbound Chinese passengers.

At present, the government estimates Chinese visitors generate $240 million annually for the SA economy. The target is $450 million by 2020.

China Southern is the second overseas airline to start Adelaide service in 2016. Qatar Airways began daily Airbus A350-900 flights between Adelaide and Doha in May but wound them back to five a week in October.

Some special treats at Adelaide Airport to mark China Southern's inaugural service to Adelaide. (Adelaide Airport/Simon Casson)

There was an official ceremony at the airport to mark China Southern's inaugural Guangzhou-Adelaide flight. (Adelaide Airport/Simon Casson)

China Southern, which with the start of its Adelaide service now has 56 flights a week into Australia, has signed a three-year memorandum of understanding with Tourism Australia in Adelaide.

Tourism Australia noted China Southern carried a fifth of all Chinese arrivals into Australia, more than any international carrier.

Tan said in a statement the airline was looking to grow its presence in this market.

“Australia is a market we value highly where we still see opportunities to expand our operations further, as demonstrated by our decision to add Adelaide to our global network,” Tan said in a statement.

Australian Aviation

Adelaide Airport reports decline in net profit for 2015/2016

Adelaide's air traffic control tower features the new INTAS suite. (Airservices)

Adelaide Airport (AAL) has suffered a fall in profit for 2015/16, despite an increase in revenue.

The airport said net profit after tax fell 15 per cent to $31 million, from $36.5 million in the previous year, with the decline blamed largely on a lower increase in property values.

However, earnings before tax, interest and amortisation – and excluding property valuations – edged ahead from $108 million to $112 million and revenues rose 4.6 per cent to $187.9 million, despite the withdrawal of AirAsia X from Adelaide services, and Jetstar dumping its Adelaide-Auckland service.

That sent international passenger traffic falling 8.3 per cent, according to the airport’s annual report.

Chairman Rob Chapman forecast a better year ahead, following the start of Qatar Airways services in May – just ahead of Adelaide Airport Ltd’s balance date – and the introduction of China Southern’s service between Adelaide and Guangzhou on December 13.

The advent of China Southern’s flights will give Adelaide eight international airline routes and complete the campaign to gain direct services to mainland China. The airport continues to target nonstop services to the US.

After a fall in passenger numbers in the first half of the financial year, traffic picked up in the second half, enabling AAL to post an overall rise of 0.7 per cent for the year to 7.89 million passengers, underpinned by a 1.9 per cent improvement in domestic passenger numbers as a result of incremental airline capacity.

On the revenue split, aeronautical income rose from $88.3 million to $93.6 million, commercial trading income was $46.7 million, up from $45.3 million, and property revenue was $44.7 million, versus $43.2 million previously.

AAL’s solid result enabled the company to increase its special dividend to shareholders from $30 million to $45 million, on top of its slightly higher $21.8 million dividend on its preference shares.

Meanwhile, the airport company said it was advancing negotiations for a hotel near the passenger terminal, as it seeks a developer and operator. AAL managing director Mark Young said directors were “hopeful of resolution” before the end of the calendar year.

AAL was also continuing to plan for the proposed expansion of the 10-year-old passenger terminal, he said.

In another development, the Royal Flying Doctor Service has opened its $13 million aeromedical centre on the western side of the airport, combining operations and administration for the first time. The new hangar has space for parking and maintenance for up to six of the Central Operations Pilatus PC-12 aircraft.

AAL will gain future benefit from plans to build a major shopping centre on its Parafield Airport for general aviation.

 

Australian Aviation

Adelaide Airport posts slight drop in international passengers in 2015/2016

Adelaide Airport has logged continued growth on the back of improved load factors and increased capacity.

Adelaide Airport suffered a drop in international passengers in 2015/16 due to the withdrawal of AirAsia X’s service to Kuala Lumpur.

The airport handled 858,000 international travellers in the 12 months to June 30 2016, a decline of 8.3 per cent from 936,000 in the prior corresponding period.

“The (-8.3 per cent) decline in passengers observed over the financial year reflects the cancellation of the daily AirAsia X service in January 2015,” Adelaide Airport said in its quarterly traffic report.

“Combined with the Malaysia Airlines reductions in September 2015, there was a net reduction of 10 services per week to Kuala Lumpur.”

Malaysia Airlines cut its daily flight to Adelaide to four flights per week, while AirAsia X dropped the route entirely as the low-cost carrier battled to turnaround heavy financial losses.

On a positive note, Adelaide received new long-haul service to Doha from Qatar Airways withAirbus A350-900 equipment in May, helping offset the reductions from the two Malaysian carriers.

The airport is also preparing to welcome new nonstop flights to Guangzhou with China Southern starting in December.

Domestic passengers at Adelaide rose 1.9 per cent in 2015/16, as new nonstop flights to Melbourne (Avalon) started in March and the number of travellers to the the other mainland capitals increased – Sydney grew 3.3 per cent, Melbourne was 2.4 per cent higher and Brisbane was up 4.3 per cent.

And looking ahead, Jetstar has scheduled a new three-times-a-week Adelaide-Sunshine Coast service with Airbus A320s starting on September 30.

Overall, there were 7.893 million passengers at Adelaide Airport in 2015/16, an 0.7 per cent improvement from 7.842 million in the prior year.

 

Australian Aviation

Adelaide Airport well positioned for strong future growth

An aerial view of Adelaide Airport.

Adelaide Airport Ltd (AAL) has maintained its status as the nation’s fastest growing capital city airport, enabling the company to almost triple its annual profit.

The annual report, just released, showed AAL pre-tax profit soared from $19.7 million to $52.3 million in 2014/15, helped by a significant lift in property values and lower financing costs.

The net profit result rose from $13.7 million in 2013/14 to $36.5 million in 2014/15.

Total operating revenue climbed from $171.1 million to $178.7 million, AAL said in its annual report.

AAL chairman Rob Chapman said the solid financial results had positioned Adelaide Airport for strong future growth and enabled the airport company to make “some critical decisions on future infrastructure”, including plans to expand the passenger terminal with additional gates.

Adelaide Airport added two new international gates in the past year.

Discusions for a developer and operator for the proposed 200-room airport hotel near the terminal, for which AAL sought expressions of interest earlier this year, were well advanced, Chapman added.

Despite flat global economic conditions, and the withdrawal of AirAsia X’s services to Kuala Lumpur and Jetstar’s Adelaide-Auckland flights, Chapman said international services continued to lead passenger growth, with the number of overseas travellers passenger rising three per cent to 935,500 in 2014/15.

The star performers were the direct Emirates service to Dubai and Cathay Pacific’s nonstop flights to Hong Kong, while Jetstar and Virgin Australia’s flights to Bali “continued to shine”.

The current year will receive a small boost from the start of Qatar Airways services to Doha with Airbus A350-900s in May, and AAL will boost its search for new airline entrants to the South Australian market.

In its quest for more overseas airlines to serve Adelaide, Chapman said connections with “cities in China and the US are very much on our radar”.

To assist its drive, AAL is expanding its business development team.

AAL managing director Mark Young said that in appointing Jonathon Cheong as head of aviation business development, in what is a new role, AAL was seeking to build on its recent successes in attracting airlines to Adelaide.

AAL’s current shareholders are UniSuper (49 per cent), Statewide Super (19.5 per cent), Colonial First State (15.3 per cent), Industry Funds Management (12.8 per cent) and Perron Investments (3.4 per cent).

Meanwhile, Chapman said AAL has refinanced a maturing debt and gained working capital through a private bond issue in the US market – a first for the company.

 

Australian Aviation

Adelaide Airport reports slower passenger growth in 2014/2015

Adelaide Airport has logged continued growth on the back of improved load factors and increased capacity.
An aerial shot of Adelaide Airport.

Passenger traffic through Adelaide Airport continued to grow in the past year, albeit at a slower pace than previous years.

Overall, Adelaide Airport handled 7.84 million travellers in 2014/15, up 1.8 per cent from 7.7 million in the prior year.

The recent withdrawal from the Adelaide-Kuala Lumpur route of AirAsia X, and “a flat global economy” have been blamed by Adelaide Airport Ltd (AAL) for the slowing of its past rapid expansion.

“We’ve been the fastest growing capital city airport for the past four to five years,” chief executive Mark Young said.

Despite the increase being limited to 1.8 per cent in the past financial year, compared with five per cent growth in 2013/14, passenger numbers have almost doubled from the four million recorded when AAL took over the airport from the Commonwealth in 1998.

The biggest improver has been international passenger traffic, which rose to 935,500 in the 12 months to June 30 2015, from 908,000 in 2013-14, and was forecast to reach 1.5 million by 2019. By way of further comparison, Adelaide Airport handled 258,000 international passengers when AAL acquired the airport in 1998.

To counter the slower growth, the company is pressing ahead with its campaign to entice new entrants to the Adelaide market.

“We continue to talk with international airlines to attract more services to more destinations,” Young said, adding. direct links to China and the United States were the main targets.

Domestic traffic moved ahead 2.3 per cent to 6.36 million in 2014/15, largely on increased capacity by Qantas and Virgin.

However, regional passenger numbers fell from 575,000 to 550,000, reflecting cut-backs in mineral exploration and development in South Australia.

Among AAL’s expansion projects is the proposal for a 200-room hotel near the airport terminal.

The company defined a site in its 30-year plan last October and Young said negotiations with prospective developers were in the midst of a “competitive selection process”, with hopes for choosing a successful bidder by the end of the year.

 

Australian Aviation

Government releases new list of curfew-exempt aircraft for Sydney and Adelaide airports

A Dassault Falcon 7X is one example of an aircraft included on the new list. (Dassault)
A Dassault Falcon 7X, one example of new business aircraft included on the new curfew-exempt list. (Dassault)

Some new generation business jets that have been produced since 2005 will now be able to land and take off at Sydney and Adelaide airports during curfew hours, the federal government says.

The list of aircraft allowed to operate between 11pm and 6am at both airports has been updated following a review that commenced in September 2014.

Deputy Prime Minister and Minister for Infrastructure and Regional Development Warren Truss says the new list for both Sydney and Adelaide airports introduces a stricter noise standard during curfew hours, as well as providing flexibility and certainty to business aviation operators about the types of aircraft they can fly.

Sydney Airport’s list of permitted aircraft was last updated in 2005, while Adelaide’s list had been unchanged for 15 years.

Therefore, new aircraft that have been developed in that time have been prohibited from operating at Sydney and Adelaide despite often being quieter than older aircraft on the list of curfew-exempt aircraft.

“Updating the list of permitted aircraft is an important signal to commercial operators to upgrade their fleets and also harmonises the lists for both airports for the first time, simplifying fleet management for operators,” Truss said in a statement on Tuesday.

“The provisions had become out-dated and, by definition, only allowed older, noisier aircraft to operate during the curfew.”

While the new aircraft added to the list are able to operate immediately, certain older aircraft that do not meet the new noise requirements have been “grandfathered” and allowed to keep flying until December 31 2022, the Minister said.

The Department of Infrastructure and Regional Development and Airservices Australia have been asked to monitor curfew movements at Adelaide and Sydney to assess the impact of the changes.

Despite the change to the list of aircraft permitted to take off and land in curfew hours, Truss said the government was still committed to maintaining the curfew at both airports, as well as the 80 aircraft movements an hour limit at Sydney Airport during operational hours.

Previous Sydney list for aircraft permitted during curfew
  • BAe 125-800B**
  • Beech 400A/Beechjet 400A++/Hawker 400XP
  • Canadair Challenger 300/601/604
  • Cessna 680
  • Cessna Citation 500/525/550/560/650**/750
  • Falcon 10/50/50EX/200/900/900C/900EX/2000/2000EX
  • Global Express
  • Global 5000
  • Gulfstream IV/SP/G300/G350/G400/G450/G500/G550
  • Gulfstream V
  • Hawker 800XP/850XP/Horizon
  • HS 125-700B**
  • Learjet 31A/35/36/40/45/45XR/60
  • Legacy EMB-135
  • Mitsubishi MU-300**
  • Premier 1/1A
  • Westwind 1124
New models included in the updated Sydney list
  • BAe DH.125 Series 1A/1B/3A/3B/400A/600A/F3B
  • Beechcraft 4000
  • Bombardier BD-7001A10/BD700-1A11/BD100-1A10/CL-600-1A11 (CL-600)/CL-600-2A12/CL-600-2B16)/CL-600-2B16)/CL-600-2B16/CL-600-2B19/CL-600-2C10/701/702/CL-600-2D15/CL-600-2D24/CL-600-2E25.
  • Cessna 510/525A/525B/525C/560XL/560XLS/560XLS+/552
  • Dassault Falcon 7X
  • Embraer 145/145ER/145MR/145LR/135ER/135LR/135KE/135KL/135BJ (/Legacy 600)/135BJ(Legacy 650)/145XR/145MP/145EP/500/505
  • Falcon 20C-C5/20-D5/20-E5/20-F5
  • Gulfstream Galaxy/200/100/150/GVI(650)/650ER
  • Hawker 900XP/Hawker 1000/Hawker 750
  • Learjet 24/24A/24B/24B-A/24C/24D/24D-A/24E/24F/24F-A/25/25A/25B/25C/25D/25F/28/29/31/35A/36A/45/55/55B/55C
  • Westwind 1121/1121B/1123/1124A
Previous Adelaide list for aircraft permitted during curfew
  • BAe 125-800B**
  • BAe 125-1000
  • Beech 400A
  • Canadair Challenger 601/604
  • Cessna Citation 500/525/550/560/650**/750
  • Falcon 10/50EX/200/900/2000
  • Gulfstream IV
  • HS 125-700B**
  • Learjet 31A/35/36/45/60
  • Mitsubishi MU-300**
  • Westwind 1124
New models included in the updated Adelaide list
  • BAe DH.125 Series 1A/1B/3A/3B/400A/600A/F3B
  • Beechjet 400A++/Hawker 400XP
  • Beechcraft 4000
  • Bombardier BD-7001A10/BD700-1A11/BD100-1A10/CL-600-1A11 (CL-600)/CL-600-2A12/CL-600-2B16)/CL-600-2B16)/CL-600-2B16/CL-600-2B19/CL-600-2C10/701/702/CL-600-2D15/CL-600-2D24/CL-600-2E25.
  • Canadair Challenger 300
  • Cessna 510/525A/525B/525C/560XL/560XLS/560XLS+/552/680
  • Dassault Falcon 7X
  • Embraer 145/145ER/145MR/145LR/135ER/135LR/135KE/135KL/135BJ (/Legacy 600)/135BJ(Legacy 650)/145XR/145MP/145EP/500/505
  • Falcon 20C-C5/20-D5/20-E5/20-F5/50/900C/900EX/2000EX
  • Global Express
  • Global 5000
  • Gulfstream Galaxy/200/100/150/GVI(650)/650ER/GIV-X /G150/SP/G300/G350/G400/G450/G-V/G500/G550
  • Hawker 800XP/850XP/Horizon /900XP/Hawker 1000/Hawker 750
  • Learjet 24/24A/24B/24B-A/24C/24D/24D-A/24E/24F/24F-A/25/25A/25B/25C/25D/25F/28/29/31/35A/36A/40/45/45XR/55/55B/55C
  • Legacy EMB-135
  • Premier 1/1A
  • Westwind 1121/1121B/1123/1124A/1125/Astra SPX

 

Notes:
** Grandfathered until 31 December 2022
++ Models of these aircraft which exceed 271 decibels noise total are not permitted to operate. Remaining models in this type are grandfathered until 2022.

Source: Minister’s office

 

Source : Australian Aviation