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Airport poised for significant growth

Thursday 7 October 2004

Successful year leaves the airport poised for significant growth

Growth in air services and the development of tourism demand have enabled Christchurch International Airport Limited (CIAL) to achieve record revenues, resulting in an after tax surplus of $14.8 million for the year ended June 2004.

The 14% increase from last year’s result meant the majority owned Christchurch City Council company paid dividends of over $25 million in the last two years. The company has also managed to increase the value to shareholders a huge 36% in one year to $215 million.

‘Our biggest success has been the return to our shareholders and the strength of our balance sheet’ said chairman Syd Bradley ‘We’re now facing the challenges that arise from unprecedented growth and change in the aviation industry’

With international passenger growth in the first three months of the new financial year up 41% on the previous year, CIAL is focused on expansion needs and has forecast the need for significant capital expenditure. The company is currently reviewing and has commenced consultation with customers on development options for its domestic terminal, anticipating completion of a business case in the third quarter of 2005.

‘We have to be aware of the rapidly changing aviation market as well as developments by other airports such as Auckland, Dunedin and Queenstown, and potentially Whenuapai.’ Mr Bradley said.

With a strong balance sheet and an increase in the company’s Standard & Poor’s international credit rating to A+, CIAL is well positioned to meet future capital requirements and in a strong position to respond to the needs of a rapidly changing aviation industry.

The company is also aggressively marketing the region and route opportunities. In the past year CIAL was the only airport in the country to attract the development of services from all five airlines; Qantas, Air New Zealand, Freedom Air, Pacific Blue and Emirates Airlines.

ENDS

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