Investing in our strategy

Investing in our infrastructure

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During the 2017 financial year Auckland Airport undertook its most significant upgrade programme ever in support of the strong and ongoing growth in New Zealand tourism. We are now investing more than $1 million every working day on our core airport infrastructure and over the next five financial years we expect this level of aeronautical capital expenditure to total around $2 billion. Our investment in infrastructure will ensure we can accommodate the current and forecast passenger and aircraft growth over the next 30 years, as well as the increasing traffic volumes being experienced in our part of Auckland and into the airport.

In the 12 months to 30 June 2017, we progressed the major upgrade of our international departure area. This upgrade includes a reconfigured landside farewell portal, a new and expanded security screening and processing area, a new retail hub and a new passenger lounge. It creates a uniquely New Zealand departure experience and is themed a “haerenga”, or journey, from sea to land to sky. The construction of this significant infrastructure project is well underway, with the opening in late June 2017 of the new security screening space and the first phase of the new stores for our two main duty free operators. During the 2018 financial year we will deliver the rest of the new international departure experience, with the project due to be completed around the end of the 2018 financial year. When finished, our new international departure area will be more than twice the size of the previous space.

During the 2017 financial year we also commenced construction of the international terminal’s Pier B extension. This project will provide two more gate lounges and additional airbridges to accommodate the increasing number of international aircraft using our airport. The first new gate lounge and airbridges – Gate 17 – will open on Pier B prior to the 2017/18 summer peak season and the second gate lounge and airbridges – Gate 18 – will be completed by early-2018. This extension project will enable Pier B to accommodate four A380 or B787 aircraft at the same time or, alternatively, it could accommodate eight smaller international aircraft.

In addition to the investments we made in our terminal infrastructure during the 2017 financial year, we significantly expanded our airfield infrastructure to better service international aircraft during our busiest months. We built a new taxiway – Taxiway Echo – and completed the construction of a new international airfield stand, fully serviced with fuel and other utilities. We progressed the construction of a second, fully serviced international airfield stand, which is scheduled for completion prior to the 2017/18 summer peak season. We upgraded two remote international airfield stands so they can each accommodate an A380, or two smaller aircraft. These airfield upgrade works significantly increased our airfield pavement by more than 63,000m2, or the equivalent of six rugby fields.

In the 12 months to 30 June 2017, we also progressed the design and planning approvals needed to build our second runway, and have advanced the concept planning of the new domestic jet terminal.

The strong and ongoing growth of Auckland continues to put additional pressure on the city’s transport infrastructure, including around Auckland Airport. Given the importance of air connectivity for New Zealand’s travel, trade and tourism sectors, improving land transport access to and from Auckland Airport must remain a priority for central and local government transport agencies. The opening of the $1.4 billion Waterview Connection in July 2017 has improved travel times between the city and the airport and its surrounding suburbs. It has also positively impacted wider Auckland traffic flows. The $146 million upgrade of the State Highway 20A/Kirkbride Road intersection – scheduled to open during the 2018 financial year – should also improve travel times to and from the airport.

Auckland Airport is making a significant investment in its infrastructure which will both benefit and excite generations of Kiwis and international visitors. You can immediately tell from the number of cranes above the international terminal and the number of construction workers on site that this is one of the biggest infrastructure upgrades currently underway in New Zealand.
– Stephen Selwood, Chief Executive Infrastructure New Zealand
Gateway bridge over George Bolt Memorial Drive
$1m

–––– WE ARE NOW INVESTING MORE THAN $1 MILLION EVERY WORKING DAY ON OUR CORE AIRPORT INFRASTRUCTURE.

$2b

–––– OVER THE NEXT FIVE FINANCIAL YEARS WE EXPECT THIS LEVEL OF AERONAUTICAL CAPITAL EXPENDITURE TO TOTAL AROUND $2 BILLION.

We continued to advocate throughout the 2017 financial year for additional transport network improvements, in particular an upgrade to State Highway 20B/Puhinui Road and improved public transport services. We are working closely with the New Zealand Transport Agency and Auckland Transport to advance both short and longer-term roading and public transport solutions for South Auckland and the airport precinct, including a rail service.

We also fast-tracked a number of planned roading and transport upgrades on our own network. In the first half of the 2017 financial year we:

  • upgraded the Puhinui Road roundabout to help improve the eastern access to the airport from State Highway 20B/Puhinui Road
  • added more car parks to our Park & Ride facility, mostly for use by staff working at the international terminal to remove staff traffic from the inner airport roads
  • upgraded the traffic light phasing and lane configurations at the airport’s George Bolt Memorial Drive and Tom Pearce Drive intersection to improve traffic flows
  • updated the lane configurations at the airport’s George Bolt Memorial Drive and Laurence Stevens Drive roundabout to improve traffic flows
  • developed new traffic management plans for use when the airport roading network is particularly busy.

In June 2017 we announced four transport projects as part of our longer–term plan to improve travel around the airport over the next three financial years. These include:

  • construction of an iconic new gateway bridge over George Bolt Memorial Drive for pedestrians and cyclists to connect “the Quad” hotel and commercial precinct with the airport terminals and take cars off the main road network
  • improving traffic flows and improving public transport access to the domestic terminal by Christmas 2017 through the provision of more space for buses on the terminal forecourt and a new and separate access road for taxis and buses
  • implementing a transit lane system across the airport precinct between December 2017 and 2020 for buses and high occupancy-vehicles.
  • upgrading Nixon Road by October 2017 to provide a new route to Auckland Airport’s Park & Ride on Verissimo Drive without the need for drivers to use the main intersection that connects the domestic and international terminals at Tom Pearce Drive and George Bolt Memorial Drive.

These new transport projects will help improve traffic flows and travel times around the airport, and help our transport network accommodate the increasing number of buses that will travel to and from the airport in the future.

Our new gateway bridge will be a spectacular sight as you enter and leave Auckland Airport to the north towards the city. Designed by architects Warren and Mahoney, the suspension bridge will feature a 40m-high concrete mast inspired by the form of a huia feather with a white light–tipped column and Māori motifs. It will be an urban beacon and precinct marker that will be visible across the airport, both during the day and at night. The bridge will also significantly improve the walking and cycling experience between our commercial precinct and the terminals.

Investment property

During the 2017 financial year, Auckland Airport continued to invest in its property business. We completed construction of the new Quad 7 office building, delivering 9,000m2 of office space for both aeronautical and non-aeronautical tenants on Leonard Isitt Drive. We also completed a 15,000m2 Fonterra chilled and frozen facility on Timberly Road and a fully-leased 9,600m2 development on Maurice Wilson Avenue. We commenced construction on a new building to accommodate the Ministry for Primary Industries and a new 7,000m2 warehouse and office facility for international freight-forwarding specialist Röhlig Logistics. The new facility will complete the Stage 2 development of The Landing, our world-class business park. In the 12 months to 30 June 2017 we also advanced civil and roading works on Phase 3 of The Landing, which will deliver an additional 12 hectares of developed land, to ensure we can accommodate new business seeking space close to the airport.

Auckland Airport is an economic powerhouse for the region and New Zealand, connecting workers, employers and manufacturers with their domestic and international markets. The investment being made by Auckland Airport to upgrade its infrastructure, including the strong focus on improving transport around the airport and advocating to central and local government the need to improve access to and from the airport, will benefit us all – for many, many years to come.
– Kim Campbell, Chief Executive Employers' and Manufacturers' Association (Northern)
Scott Standring, Project Manager, Airport Development & Delivery
During the 2017 financial year, we significantly expanded our airfield infrastructure
63,000m2+

–––– OUR AIRFIELD UPGRADE WORKS SIGNIFICANTLY INCREASED AIRFIELD PAVEMENT BY MORE THAN 63,000m2, OR THE EQUIVALENT OF SIX RUGBY FIELDS.

–––– WE ANNOUNCED THE IMPLEMENTATION OF A TRANSIT LANE SYSTEM ACROSS THE AIRPORT PRECINCT OVER THE NEXT THREE FINANCIAL YEARS FOR BUSES AND HIGH-OCCUPANCY VEHICLES.

Investing in tourism growth

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Anil Varma, Manager Security and Emergency Services, Aeronautical Operations.

Sustainably growing Auckland Airport’s air connectivity continues to be essential for our long-term performance, and the combination of new airlines, new services and new capacity provides the growth that underpins our ongoing success.

In the 2017 financial year, the total number of passenger movements was up 10.2% to 19 million. International passengers (excluding transits) were up 11% to 9.7 million, and domestic passengers were up 8.9% to 8.6 million. International transit passenger movements were up 16.8% to 0.7 million.

International

The 12 months to 30 June 2017 saw the following broad-based growth in our international passenger markets:

  • Australia grew by 6.2%
  • Europe grew by 15.6%
  • North America grew by 29.1%
  • Asia grew by 7.4%.

The above growth in arriving and departing international passengers reflects the efforts made by Auckland Airport and the New Zealand tourism industry to diversify international passenger growth across a number of markets and to mitigate the risks that any one market declines in the future. Pleasingly, travel by New Zealand residents was also strong, up by 11.5%, and now represents 47% of our total growth in international passengers.

Building on the capacity growth in the 2016 financial year, the 12 months to 30 June 2017 also saw the launch of eight new international routes, seven new international airlines and a 14.5% increase in international seat capacity.

  • In July 2016, United Airlines introduced a three-flights-per-week B787 Dreamliner service between Auckland and San Francisco. From October 2016 this service increased to a daily service using a larger B777 aircraft; however, it was placed on hold in April 2017 and will recommence in October 2017.
  • The success of Emirates’ Auckland to Dubai direct daily service, launched in the 2016 financial year, saw the airline replace its B777 aircraft with a larger A380 in October 2016.
  • In November 2016, Hong Kong Airlines commenced a daily A330 service between Hong Kong and Auckland. The airline increased this service to 10 flights per week between December 2016 and February 2017.
  • In December 2016, Tianjin Airlines commenced its first Australasian service, with up to three-flights-per-week using an A330 aircraft between Auckland and the Chinese cities of Tianjin and Chongqing.
  • Also in December 2016, Hainan Airlines started a new direct A330 service from Shenzhen in southern China.
  • In February 2017, Qatar Airways started a new daily B777 service between Doha and Auckland – our second direct Middle Eastern route and the world’s longest-duration commercial passenger flight.
  • Sichuan Airlines launched a three-times-per-week A330 service from Chengdu in June 2017. Sichuan Airlines is the seventh airline flying passengers between Auckland and mainland China.

The 2017 financial year also saw Air New Zealand continue its international route expansion, adding a seasonal three-flights-per-week B787 service between Auckland and Osaka from November 2016. This is in addition to the new seat capacity delivered by its Ho Chi Minh City, Houston and Buenos Aires services, launched in the 2016 financial year. Also in the 2017 financial year, Norfolk Island Airlines reopened services on the Norfolk Island to Auckland route.

Domestic

The 2017 financial year saw strong growth in Air New Zealand’s domestic seat capacity, up by 8.8% or 650,000 seats. This growth was driven by additional capacity from new aircraft and increased frequency on the airline’s Wellington, Christchurch and Queenstown services. Pleasingly, market stimulation saw passenger numbers increase at a greater rate than capacity growth on Air New Zealand’s regional services.

Jetstar also experienced strong capacity growth in the 12 months to 30 June 2017, up by 8.9% or 197,000 seats. This growth was a result of the airline operating a full year of regional services, with an average of 11 return Jetstar services every day between Auckland Airport and Nelson, Napier, New Plymouth and Palmerston North.

Queenstown Airport and North Queensland Airports

We maintained our support for the development of Queenstown Airport and North Queensland Airports during the 2017 financial year, providing strategic and commercial advice on everything from master-planning to aeronautical operations, retail and funding.

Queenstown Airport’s passenger numbers continued to grow in the 12 months to 30 June 2017. It increased its number of international passengers to more than 532,000, up 12.1%, and also increased the number of domestic passengers to 1.4 million, up 15.6%. In the 2017 financial year Queenstown Airport started welcoming evening flights during winter months, allowing the airport to maximise its operating hours of 6am to 10pm and reduce peak-time pressure on its facilities and services. All four airlines operating at Queenstown Airport – Air New Zealand, Jetstar, Virgin Australia and Qantas – are now certified to fly after-dark services in and out of the resort town. This is an exciting development for the region, the airport and passengers who now have more flexibility and connectivity across airline networks. To provide its visitors with greater choices and to help address car parking pressures, Queenstown Airport has opened a new 150-space Park & Ride facility. In the 2017 financial year Queenstown Airport also expanded its commercial transport operator pick-up and drop-off zone, and extended its short and long-term car parking facilities.

Pleasingly, Cairns Airport continued to play its part in growing travel markets during the 2017 financial year. The number of international passengers increased 7.4% to 667,650, domestic passengers increased 3.5% to 4.4 million and transfer and transit passengers increased 17.3% to 171,603. The airport’s strong international passenger performance was in part due to growth on the airport’s Tokyo and Osaka routes, which were up 19%. The arrival of a new international airline, Jin Air, also contributed to the growth, as did increased flight frequencies by Hong Kong Airlines, SilkAir and Jetstar. We expect that Cairns Airport’s international passenger numbers will continue to grow in the 2018 financial year with the announcement that China Southern Airlines will commence a year-round, three-flights-per-week, service from Guangzhou to Cairns in December 2017.

Unfortunately, Mackay Airport’s passenger numbers decreased by 8.4% to 774,969 during the 2017 financial year, in part due to its Sydney route being cancelled and the ongoing softening of the mining and resources industry.

7

–––– THE 2017 FINANCIAL YEAR SAW SEVEN NEW INTERNATIONAL AIRLINES.

up14.5%

–––– INTERNATIONAL SEAT CAPACITY INCREASED 14.5% IN THE 12 MONTHS to 30 JUNE 2017.

up8

–––– EIGHT NEW INTERNATIONAL ROUTES WERE LAUNCHED IN THE 2017 FINANCIAL YEAR.

$50,000x2

–––– WE PROVIDED TWO $50,000 TO SUPPORT OPERATORS WHO OFFER OUTSTANDING SEASONAL AND REGIONAL TOURISM PRODUCTS FOR VISITORS FROM CHINA, AUSTRALIA, UNITED STATES OR INDIA.

Ngati Whatua Orakei welcoming the new day
Qatar Airways started a new daily B777 service between Doha and Auckland in February 2017

Tourism

Auckland Airport plays an important tourism sector leadership role, ensuring there is sufficient capacity and connectivity to allow tourism, travel and trade markets to continue to grow.

We have continued to develop strategic off-shore markets, such as Australia, the United States, Indonesia and India, to drive passenger volumes and demand, especially in the low, off-peak season. We also continued to support New Zealand tourism operators during the 2017 financial year. Once again we brought together travel and tourism industry leaders from throughout the country to participate in an international travel summit, and we also provided two grants of $50,000 to support operators who offer outstanding seasonal and regional tourism products for visitors from China, Australia, United States or India.

Given the ongoing strong growth in tourism, we worked with Air New Zealand, Christchurch Airport and Tourism Holdings Limited during the 2017 financial year to commission research on how best to fund New Zealand’s public tourism- related infrastructure. The project proposed that a new national tourism entity be created, focused on developing local and mixed-use infrastructure and funded by a targeted tourism infrastructure levy and new government funding. The project report was provided to the Government to assist it with policy development. Following the report’s launch, the Government announced that it will invest $102 million over four years in a new Tourism Infrastructure Fund to develop mixed public and tourist infrastructure.. The Government also announced it will invest $76 million over four years to improve the Department of Conservation’s tourism-related infrastructure.

As a large tourism operation Te Puia continues to see the benefits of Auckland Airport’s efforts to grow international inbound air capacity. The growth in air capacity has meant a significant increase in visitor numbers and revenue for Te Puia. This in turn has given us the confidence to invest over $20 million in new facilities that will enhance the visitor experience in the future. Auckland Airport’s drive to grow air capacity is tangible for Te Puia and as such we look at increased air capacity as one of the most critical leading indicators in our business and investment planning.
– Tim Cossar, Chief Executive – Te Puia, Rotorua
Queenstown Airports passenger numbers continued to grow in the 12 months to 30 June 2017

Investing in our customer experience

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Our new 5-Star Pullman Hotel

During the 2017 financial year we remained focused on our customers to ensure they have safe and enjoyable journeys when travelling through Auckland Airport.

We delivered a number of improvements across our terminals to help provide the best possible passenger experience during a period of significant change, including:

  • installing 45 mobile international self-service check-in kiosks
  • reconfiguring our international check-in area to provide 13 more serviced counters
  • upgrading our back-of-house international baggage handling system
  • adding new technology to monitor real-time traffic movements across the airport precinct so we can improve the journey time information we provide through our mobile and digital channels
  • expanding our popular concierge service for international passengers who prefer a personalised and dedicated arrival facilitation service.

We also recruited more than 60 Passenger Experience Assistants to help passengers during our busy December and January months, and additional Customer Service Agents were recruited to proactively assist travellers requiring assistance.

In March 2017 we launched Strata Club, inviting travellers and other customers to join our new, innovative, mobile-based programme designed to recognise their travel choices with personalised services and benefits. These include longer access to free and improved Wi-Fi, parking upgrades and discounts, special offers from participating general, duty free and food and beverage retailers, and discounted entry to Auckland Airport’s Emperor Lounge. More than 30,000 people became members of the free-to-join programme within the first few months of launch.

During the 2017 financial year we also completed a significant upgrade to the Auckland Airport app. The upgrade allowed us to incorporate both the Strata Club and a number of user experience improvements, many of which were based on specific customer feedback. In the 12 months to 30 June 2017 downloads of the app increased by 71%, user sessions increased by 56% and car parking bookings via the app increased by 185%.

Bus operations are commonplace in airports across the world, facilitating the transfer of passengers between lounges in the terminals and aircraft parked on remote airfield stands. At Auckland Airport buses have played a critical role in servicing new demand while new aircraft piers, gates and stands are developed. Internationally, bus operations often represent approximately 10% of an airport’s total international flight movements. During the 2017 financial year, 9% of our international flights were serviced using buses and only 5% of our domestic flights were serviced by buses – all of which related to Jetstar’s regional flight operations.

To improve the customer experience during bus operations, we purchased two Aviramp mobile jet bridges and completed a tender for a new airfield bus fleet. Aviramps are covered ramps that protect passengers from bad weather and allow passengers to enter or exit their aircraft without having to negotiate stairs. Aviramps also significantly improve the travel experience for passengers with reduced mobility or using a wheelchair by eliminating the need for a separate lift vehicle. Our two Aviramps will be delivered in October 2017 and if the trial is successful, we will purchase more. Our 10 new airfield buses will be supplied by SkyBus and are scheduled to arrive in early 2018. They have been specifically designed for the comfort of passengers being transferred between the terminals and aircraft parked on remote airfield stands.

We installed 45 check-in kiosks to help provide the best possible passenger experience
Anil Varma

Auckland Airport continued to work closely with government agencies during the 2017 financial year to improve the efficiency of border services for our passengers. In particular we worked with the New Zealand Aviation Security Service (AvSec) to improve processing times by installing a seventh security screening machine in the international departure area and improving the international transit screening facility. We remain focused on the importance of biosecurity screening to New Zealand. As a result, we have continued to work with the Ministry for Primary Industries (MPI) to improve its international arrival process, by introducing an additional baggage X-ray machine, new detector dog teams and a new biosecurity area layout and by opening a Green Lane. The Green Lane, which was constructed by Auckland Airport for MPI, helps deliver faster processing times for New Zealand and Australian passport holders who arrive in the country and do not have any food or other biosecurity risk items to declare.

During the 2017 financial year, we continued the process of selecting new tax and duty free retailers and food and beverage operators to sell products representing the best of New Zealand and the world. We will be announcing the names of new retailers closer to the store opening dates, which will start before Christmas 2017.

To further improve our customer experience before people reach the terminal buildings, we have provided additional public car parks closer to the international terminal and at our Park & Ride facility. At Park & Ride, we also introduced a new valet parking service and a new Drop & Ride service. Drop & Ride has reduced traffic volumes on the inner airport roads and in the drop-off/pick-up zones at the terminals and is a quick and easy way to drop off friends and family for their travel. We also introduced The Wait Zone for domestic customers, a 30-minute free parking option located just two minutes from the terminal which helps keep traffic moving in the domestic terminal’s drop-off/pick-up zone.

Two hotels are currently located at Auckland Airport, a 4.5-star Novotel hotel and a 2.5-star ibis budget hotel. Both hotels are popular with travellers and have high occupancy rates. Together with Tainui Group Holdings we progressed the design of a new 5-star, 300-room hotel during the 2017 financial year and selected Accor to operate it as a Pullman hotel. This new luxury hotel will be located close to our international terminal and increases the accommodation options available at the airport. The new 5-star hotel is scheduled to open in the 2020 financial year.

Auckland Airport is such an incredible place to work – seeing the excitement of passengers heading off on their journey and the sense of joy from both first-time and returning travellers. As a team, we are 100% committed to ensuring an amazing experience every day of the year for all passengers who pass through our international and domestic terminals.
– Trish Cochrane, Terminal Services Manager – Auckland Airport
New 5 Star Pullman Hotel

–––– DOWNLOADS OF THE AUCKLAND AIRPORT APP INCREASED BY 71% IN THE 2017 FINANCIAL YEAR.

30,000+

–––– MORE THAN 30,000 PEOPLE BECAME MEMBERS OF STRATA CLUB WITHIN THE FIRST FEW MONTHS OF LAUNCH.

In March 2017 we launched Strata Club.

Being a good employer and neighbour

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Manurewa High School's Joshua Roberts developing his skills through Ara's Work Experience Programme

Our people

Our company’s ongoing financial and non-financial success is very much due to the efforts of the people who work here. Auckland Airport has therefore remained focussed on being a good employer in the 2017 financial year.

The health and safety of employees, contractors, customers and visitors remained a top priority for Auckland Airport in the 12 months to 30 June 2017. The company continued to grow the team responsible for supporting our employees, with 23 people now trained to investigate health and safety incidents across the company, and significantly enhanced our permit to work system for managing higher risk and non-routine physical works. Pleasingly, in the 12 months to 30 June 2017 staff health and safety engagement increased to 68%, an indicator of an increasingly proactive culture in this all-important area. Underlying this result, the 2017 financial year saw a 27% increase in the reporting of safety observations, hazards and near misses, a 22% decrease in the employee recordable injury frequency rate and an 81% reduction in the contractor lost time injury frequency rate. These further improvements are evidence of a culture where people are increasingly focused on eliminating health and safety hazards before they cause injury.

The learning and development requirements of employees has also been a key focus for the company during the 2017 financial year. Investment in our people is essential and ensures they have the skills they need to do their jobs to the best of their abilities. To help achieve this, in the 2017 financial year we refreshed the company’s on-boarding and induction programme, completed talent reviews and succession plans, offered six new programmes under the professional development framework and initiated a new Leadership Congress for 70 of our senior managers.

Valuing different backgrounds and viewpoints underpins a constructive workplace environment and Auckland Airport has continued to focus on highlighting and celebrating the diversity of its people and its commitment to inclusion throughout the 2017 financial year. A particular focus in the 12 months to June 2017 has been increasing the number of women employed as a proportion of employees. During the 2017 financial year, women represented 38% of our workforce, 22% of our Leadership Team and 38% of our Board, and 100% of our Future Directors have been women. We have also continued to celebrate cultural diversity, with sponsorship of, and employee involvement with, Auckland’s ASB Polyfest, Māori Language Week activities and the development of a company waiata.

In addition to the number of investments we are making in Auckland Airport’s people and people-related systems, ongoing enhancements to the airport’s built and natural environment are also ensuring we are a great place to work. The significant investments we are making in improving the airport’s transport network and our advocacy to improve public transport and state highway access will play a key role in the long-term attractiveness of Auckland Airport as a place to do business and to work.

In August 2016, to recognise the efforts of our whole team and the contribution they made to strong company performance in the 2016 financial year, the Board and Chief Executive approved a one-off performance bonus payment of $1,500 (before tax) to all permanent employees who do not already participate in the short-term incentive scheme.

23

–––– 23 PEOPLE NOW TRAINED TO INVESTIGATE HEALTH AND SAFETY INCIDENTS.

up68%

–––– STAFF HEALTH AND SAFETY ENGAGEMENT INCREASED TO 68%, AN INDICATOR OF AN INCREASINGLY PROACTIVE CULTURE IN THIS
ALL-IMPORTANT AREA.

$1,500

–––– THE BOARD AND CHIEF EXECUTIVE APPROVED A ONE-OFF PERFORMANCE BONUS PAYMENT OF $1,500 (BEFORE TAX) TO ALL PERMANENT EMPLOYEES WHO DO NOT ALREADY PARTICIPATE IN THE SHORT-TERM INCENTIVE SCHEME.

$346,000

–––– THE AUCKLAND AIRPORT COMMUNITY TRUST AWARDED $346,000 DURING THE 2017 FINANCIAL YEAR TO COMMUNITY PROJECTS IN THE PARTS OF SOUTH AUCKLAND MOST AFFECTED BY AIRCRAFT NOISE.

Martyn Fryer & Kate Thompson Suistainability Manager, Aeronautical and, Communications and Community Relations Manager, Corporate Affairs

Our neighbours

Throughout the 2017 financial year we have continued to invest in our local community, focusing our investment in our corporate social responsibility priorities of employment, education and the environment.

In June 2017 we were proud to host the official launch of Ara – the Auckland Airport Jobs and Skills Hub. The launch by the Minister of Tertiary Education, Skills and Employment was attended by around 100 employers, community members, local schools, central and local government representatives, people connected to jobs through Ara, training providers and people from across the wider airport community. It was a celebration of the achievements of Ara, which in the 12 months to 30 June 2017 organised 1,342 training opportunities and placed 190 people into employment – 156 of them living in South Auckland and 74 of whom were previously receiving a central government benefit. As we continue to build the airport of the future, we believe Ara will go from strength to strength. It showcases long-term, sustainable, ‘shared value’ corporate social responsibility by providing training and long-term employment opportunities for people in our local community, and at the same time assisting the company to progress its infrastructure development programme.

Our local communities tell us that education is important to them and Auckland Airport has continued to develop a comprehensive programme that empowers people through educational initiatives. In the 12 months to 30 June 2017 we have awarded eight education scholarships to students from local schools. Our educational focus also saw 50 students from five local schools participate in a work experience programme, and the ongoing sponsorship of the Counties Manukau Life Education Trust, ASB Polyfest and the Auckland Arts Festival’s schools programme.

As a major New Zealand company we are committed to operating in an environmentally sustainable way and we are well on track to achieving our 2020 goal of reducing our environmental footprint by 20% per passenger. Pleasingly, in the 2017 financial year the amount of waste per passenger sent to landfill decreased by a further 4% and energy use per passenger fell by 7%. We established a transitional waste facility to improve the sorting of aeronautical biosecurity waste and successfully completed a three-year energy savings agreement with the Energy Efficiency and Conservation Authority (EECA). We also undertook a new climate change analysis to increase our understanding and minimise our risk in relation to climate change events.

In addition to our focus on education, employment and the environment, we have continued to support local initiatives through our community grants programme, including:

  • 18 “Our Auckland” grants, each of $1,000, to community groups across Auckland nominated by our Auckland Airport staff
  • 8 “He Tangata” grants, totalling $40,000, to support organisations nominated by local community members for the excellent work they do in South Auckland
  • $120,000 to 12 charities across Auckland and New Zealand – also known as our “12 Days of Christmas” grants which distribute money donated by travellers into our collection globes.

The many corporate social responsibility initiatives undertaken by Auckland Airport are detailed in our annual Corporate Social Responsibility Report, which is available online: corporate.aucklandairport.co.nz/corporate-responsibility.

The Auckland Airport Community Trust awarded $346,000 during the 2017 financial year to community projects which supported learning, literacy and life skills in the parts of South Auckland most affected by aircraft noise. The Trust also provided some homeowners with financial assistance to pay their share of the installation of noise mitigation packages.

Throughout the 2017 financial year Auckland Airport has continued to develop its relationship with mana whenua. In addition to our regular engagement hui and consultation on airport development, the designers of our upgraded international departure experience and iconic gateway bridge have been working closely with iwi on some of the projects’ key design features. Auckland Airport also continues to support the administration and maintenance of the Te Manukanuka o Hoturoa Marae which is located at the airport and is an important community asset.

Auckland Airport clearly understands its role in ensuring the success of its local community. As one of the largest employers in the community, it is impressive to see how wide ranging its support is, and its focus on long term employment, as the key highlight.
– BACS, Business and Community Shares New Zealand
Fia Tauvela, Airport Security Coordinator presents the Auckland Airport Award on the Samoan Stage at Polyfest