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About Airport
Development Group

Darwin Airport
Alice Springs Airport
Tennant Creek Airport

Airport Development Group Pty Limited (ADG) is the ultimate parent company of the ADG Group. ADG owns 100% of the shares in Northern Territory Airports Pty Limited (NTA) and Tennant Creek Airport Pty Limited (Tennant Creek Airport). NTA owns 100% of the shares in Darwin International Airport Pty Limited (Darwin International Airport) and Alice Springs Airport Pty Limited (Alice Springs Airport).

ADG has been a member of the Northern Territory community since 1998. As part of Australia's airport privatisation program, we acquired leases from the Australian Federal Government for Darwin International Airport, Alice Springs Airport and Tennant Creek Airport.

Each airport lease is for a term of 50 years, with an option of a further 49-years.

ADG is proudly 100% Australian owned.

Vision, Purpose, Values

Vision

"TO BE THE MOST SUCCESSFUL AIRPORT BUSINESS IN AUSTRALASIA."

We will achieve this by:

  • developing a commercial non-aviation property portfolio of more than $200 million
  • growing passengers at Darwin International Airport to three million and 700 000 at Alice Springs Airport
  • maintaining the respect of all our airline customers
  • creating a positive work environment and making ADG an attractive place to work
  • being recognised as a significant contributor to the Northern Territory's economy
  • ensuring development is done in accordance with the airport Master Plans and the Airport Environment Strategies
  • securing strong and diverse community support for our airport businesses
  • continuing to outperform other Australasian airports' growth of Total Shareholder Return.

Purpose

Our purpose is to provide safe, efficient and environmentally sound services that represent value for money for our customers, and optimise the financial returns to our shareholders.

We will do this by:

  • operating a safe and secure airport
  • providing outstanding customer service
  • developing a sustainable airport (aviation and non-aviation) business
  • excelling in environmental and financial management
  • maximising long term value for our shareholders
  • contributing to the NT's economic growth and our community.

Values

We recognise that stakeholders and the community judge us by the way we act. Our reputation is paramount and as a result, we will act with honesty and integrity at all times.

The following is a list of our corporate values that are embedded in our workplace:

Safety First
Safety is our number one priority.

Customer Focused
Our customers are important and our focus on their needs will ensure our relevance and success.

Honesty & Integrity
We are honest, ethical and professional in all that we do.

Accountability
We will deliver on our commitments and take ownership of our responsibilities.

Innovative & Creative
We encourage new thinking in our team.

Respect for each other
Our people are our most important resource and we appreciate their values, respect their rights, promote their talents and reward their commitment.

Community Engagement
We are an important part of our community and we will seek to engage with them at all levels.

Team Work
We will work together to achieve common goals.

Board of Directors

Mr Chris Barlow, Chairman

Mr Chris Barlow, Chairman

Chris Barlow has over 32 years experience in the aviation industry. From July 2000 until August 2007, Chris was Managing Director and Chief Executive Officer of Australia Pacific Airports Corporation, the operator of Melbourne and Launceston Airports. Prior to that, he had several roles with BAA plc (formerly British Airports Authority), the United Kingdom airports company, including Managing Director of Aberdeen Airport and Corporate Development Director. Chris has also worked in the United Kingdom and North America. He is currently a Director of Asciano, Chairman of their Remuneration Committee and Chairman of the Melbourne Visitor and Convention Bureau.

Chris has a Bachelor of Science (Honours) in Civil Engineering.

Mr Julio Garcia, Director (resigned November 2011)

Julio Garcia, Director

Julio Garcia is an Executive Director in the Infrastructure Group at Industry Funds Management (IFM). Since joining IFM in 2008, Julio has been responsible for sourcing, evaluating and executing new domestic and international investments and managing existing investments within IFM's Australian infrastructure portfolio. Julio's experience spans roles in asset management, investment banking and strategy consulting. Prior to joining IFM, Julio held positions with Viant Capital, Bank of America, Robertson Stephens and Gemini Consulting. Julio is also a director on the boards of the Port of Brisbane, Ecogen Energy and Wyuna Water.

Julio holds a Master of Business Administration degree from the Stanford University Graduate School of Business and a Bachelor of Arts (Public Policy) degree from Stanford University. He is also a Graduate Member of the Australian Institute of Company Directors.

Julio resigned 20.10.11 and has subsequently been replaced by Adrian Croft.

Ms Alexandra Campbell, Director

Alexandra Campbell, Director

Alexandra Campbell is an Associate Director for Hastings Funds Management, largely working with the Australian Infrastructure Fund and the Hastings Diversified Utilities Fund, which are listed on the Australian Stock Exchange. Alexandra represents the Australian Infrastructure Fund on the Boards of ADG, Port of Geelong and Metro Transport Sydney. Prior to joining Hastings in April 2007, Alexandra was a solicitor with Freehills.

Alexandra has a Bachelor of Business and Bachelor of Laws (Honours) from Monash University, a Graduate Diploma in Applied Finance and Investments from the Financial Services Institute of Australia (FINSIA) and a Masters of Applied Finance and Investments (FINSIA).

Mr Jeff Pollock, Director

Jeff Pollock, Director

Jeff Pollock is part of Hastings Funds Management's executive management team and holds the dual role of Head of Listed Infrastructure and Chief Executive Officer of the Australian Infrastructure Fund.

Prior to joining Hastings, Jeff was part of the senior management team at Prime Infrastructure/Babcock and Brown Infrastructure (BBI) where he was Chief Operating Officer for BBI Transport Infrastructure. Jeff previously held senior positions with Queensland Treasury and Price Waterhouse.

Jeff holds a Bachelor of Accountancy from the University of Glasgow, and has been a member of the Institute of Chartered Accountants of Scotland since 1988.

Mr Roger Lloyd , Director

Roger Lloyd , Director

Roger Lloyd has 17 years of funds management and investment banking experience, with over three years with Perpetual Investments, including as Head of Infrastructure, and 12 years with Macquarie Bank and previously Bankers Trust, prior to joining Palisade Investment Partners in 2008.
Roger was in the project finance division of Macquarie's Investment Banking Group, where he focused on Public Private Partnerships working with both Government and private sector clients. In this role, Roger was involved in origination of transactions, consortium formation, structuring and arranging debt and equity across a broad range of infrastructure projects. He also played an important role in the Government advisory business of the bank and has an intimate knowledge of Government requirements in privately financed projects.

Roger is a Chartered Accountant, a Graduate of the Australian Institute of Company Directors and holds a Bachelor of Business from Kuring-gai College (now University Technology Sydney).

Mr Adrian Croft, Director (appointed November 2011)

Tom Ganley, Company Secretary

Adrian Croft joined Industry Funds Management (IFM) in July 2009 as Investment Director (Infrastructure). Prior to IFM, Adrian was employed with Credit Suisse (formerly Credit Suisse First Boston - CSFB) since 1998. For the 3½ years prior to joining IFM, Adrian held the position of Vice President with Credit Suisse's Tokyo office, where he managed all aspects of arranging leveraged and structured financings for corporate and private equity clients. Prior to his appointment to the Tokyo office, Adrian worked in the New York and Melbourne offices of CSFB, focusing on debt financing and investment banking.

Adrian holds a Bachelor of Economics (Honours)/Bachelor of Laws (Honours) from the University of Sydney.

Mr Tom Ganley, Company Secretary

Tom Ganley, Company Secretary

Tom Ganley is Chief Financial Officer of ADG.

With over 23 years experience in aviation finance, Tom Ganley joined ADG in June 1998. Previously, Tom held various senior finance and commercial management roles at Adelaide and Alice Springs Airports.

A Justice of the Peace, he has a Bachelor of Accountancy from the University of South Australia, a Graduate Diploma in Applied Corporate Governance and an Australian Institute of Company Director's Diploma. Tom holds Fellow memberships with CPA Australia, the Institute of Chartered Secretaries and Administrators, the Australian Institute of Company Directors and the Australian Institute of Management.

Tom is currently a Director on the Board of the Northern Territory Chamber of Commerce and Industry and is the current Chair of the Northern Territory Brolga Tourism Awards.

I am pleased to report that the Airport Development Group (ADG) performed strongly in what was an increasingly challenging year, as we progressed towards our vision of being the most successful airport business in Australasia.

The group has come a long way since privatisation 13 years ago. We have overcome a number of hurdles to become a key Northern Territory business, now contributing 2% to the local economy each year. We have implemented a program of significant investment at each of our three airports, enhanced our aviation facilities and driven non-aeronautical development, and we are looking forward to the exciting years ahead.

In 2010/11, ADG received Australian Federal Government planning approval for our biggest project yet, the $50 million expansion of the Darwin International Airport Terminal. This expansion will provide the space and facilities for even more aviation growth in the Territory and ensure we can meet the needs of the airlines and all other airport users.

We continued to improve our customer experience, with capital expenditure up by 4%. This included a considerable injection of funds to upgrade the Tennant Creek Airport, which provides a vital link to the Territory's Barkly district and beyond. I was delighted to hold a Board meeting in Tennant Creek in March 2011, giving members a first-hand look at this vibrant regional town and the results of the terminal upgrade. In Alice Springs, we signed a lease agreement for the airport to become the Southern Hemisphere's first dedicated aircraft storage and recycling facility.

Passenger numbers were strong during the year, with the ADG collectively handling a record 2.9 million travellers, up almost 4%, a solid achievement given the sluggish domestic economy and the reduced number of international visitors to Australia partly due to the high Australian dollar. This growth enabled the company to increase our revenue by 10%. This together with disciplined cost control delivered an increase in earnings before interest, tax depreciation and amortisation of 9%.

It was also a significant year for innovation, as Alice Springs Airport switched on its unique $2.3 million Solar Power Project. In September 2010, Alice Springs Airport installed the largest scale solar energy plant feeding back to its electricity grid, providing approximately 28% of its daily energy needs. This award-winning innovation will reduce our annual carbon emissions by an estimated 470 tonnes, the equivalent of 70 Alice Springs households. This is an outstanding result for a regional airport and we are proud to be leading the way in clean energy. We will continue to look for ways to be more sustainable and energy-conscious.

Being 100% Australian owned, ADG is committed to providing solid long-term financial returns to its shareholders, through continuing to operate a safe and responsible business, minimising costs and providing excellent customer service.

On behalf of the Board, it is my pleasure to deliver the 2010/11 ADG Annual Report.

CHRIS BARLOW
Chairman

2010/11 was a positive year for ADG, featuring a number of solid achievements. With revenue reaching $84 million, we experienced significant financial growth, enabling us to deliver better returns to our shareholders and some 70 000 Territorians who have superannuation invested in us. I have no doubt ADG will continue to be a catalyst for economic growth in the Northern Territory, particularly as construction work begins on the terminal expansion at Darwin International Airport in mid 2012.

Significantly, we reached commercial terms of a long term pricing agreement with our airline customers. This agreement will pave the way for further investment at our airports, and allows us to progress to the design phase of the Darwin International Airport terminal expansion project. Demand fuelled new flights, including a direct Qantas Darwin to Melbourne service, Jetstar and Air Asia flights to Manila and Bali respectively, while Hardy Aviation (Fly Tiwi) launched a Darwin to Tennant Creek service.

We made significant strides in our property portfolio, following the completion of the $9.6 million Australian Federal Police office building - our third largest non-aviation development to date. Illustrating the strength of property values, the Darwin Airport Inn and Darwin Airport Resort were sold for $68 million, and we are delighted to welcome Rydges as the new hotel operator. Meanwhile, Alice Springs Airport has signed a lease for the development of the Asia-Pacific's first aircraft storage and recycling facility.

Importantly, we reached our goal of engaging more closely with the community. Following extensive consultation, we received overwhelming support for our Major Development Plans for the Darwin International Airport terminal expansion and our 20-year Airport Master Plan for Darwin which was approved by the Australian Federal Government in December 2010. We also created the Community Aviation Consultative Group and the Planning Coordination Forum at both Darwin International and Alice Springs Airports to encourage direct interaction with key stakeholders.

ADG led the way in social media in 2010/11, with Darwin International Airport and Alice Springs Airport becoming the first airports in Australia to launch their own Apps for iPhone, iPad and iPod Touch. This digital communication greatly enhances customer service by streaming live arrival and departure times, flight specials and airport news.

ADG is an active member of the Darwin, Alice Springs and Tennant Creek communities, and we continued to support key artistic, cultural and sporting events that make where we live unique. We were proud sponsors of the Darwin Festival, the inaugural Darwin International Film Festival, the Alice Springs Desert Festival and the Arafura Games, and we look forward to continuing these valuable partnerships. We also grew our support for not-for-profit associations, donating much-needed funds to the Handicapped Persons Association, the Alan Walker Cancer Centre and Wongabilla Equestrian Centre. In total, our Corporate Giving Committee arranged donations to 16 Northern Territory organisations.

ADG continued to strive in its commitment to preserve and promote the ecological values of our land, planting 3500 trees and seedlings across Darwin International Airport and collecting more than 500 kilograms of rubbish during Clean-up Australia Day. In a bid to extend our conservation efforts beyond our boundaries, we helped students from Darwin High School design their own native garden. We also introduced a range of energy-efficient initiatives across our Airports, complementing our award-winning Solar Power Project at Alice Springs Airport.

We look forward to another great year of growth, innovation and community involvement in 2011/12.

IAN KEW
Chief Executive Officer.



Our People

The ADG team has continued to grow and diversify over the past year, reflecting the company's business growth and project developments.

We're proud to boast a team that combines experience, knowledge and a passion to break new ground and contribute to the development of ADG and the aviation industry.

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Sponsorship
Charity

Community Involvement

ADG values and respects the communities in which it operates, and continued to be an avid supporter of a range of artistic, sporting and charity events in 2010/11. This is in line with our vision of having strong and diverse community support.

Art and Culture
Social Media

Environment and Sustainability

CARING FOR OUR ENVIRONMENT

ADG is the custodian of large and environmentally significant parcels of land in Darwin, Alice Springs and Tennant Creek, having acquired the lease from the Australian Government in 1998. We recognise the need to preserve and promote the ecological value of the sites as they are increasingly affected by growing urban populations. We also strive to minimise our environmental footprint through energy-efficient technologies.

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Airline & Airport Services

ADG airports provide key links in our community, transporting passengers and enabling critical business, trade and tourism activity. We continue to research and identify new opportunities to grow our airline services to the Northern Territory market.

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Operations and Development

Effective asset management is important in achieving and maintaining a sustainable airport business. In 2010/11, ADG has been focused on better understanding the performance of our assets, using our asset management system to its fullest potential and reviewing the effectiveness of our maintenance contractors and suppliers. We have placed significant effort on our critical assets such as airfield lighting, electrical infrastructure and terminal air conditioning and as a result, recorded great improvements in the reliability of the system.

Recently, we awarded a number of maintenance contracts on a long term basis, emphasising our partnership approach while reducing long term expenditure.

By reinvigorating our asset management system, we will be able to better manage our growing asset base through developments such as the Darwin International Airport terminal expansion and our increasing property portfolio.

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Property

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Financial Performance Report

View Financial Performance Report

Fast Facts

Fast Facts