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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% shares in Northern Territory Airports Pty Limited (NTA) and Tennant Creek Airport Pty Limited (TCA). NTA owns 100% shares in Darwin International Airport Pty Limited (DIA) and Alice Springs Airport Pty Limited (ASA).

ADG has been a member of the Northern Territory (NT) community since 1998. As part of Australia's airport privatisation program, we acquired leases from the Australian Federal Government (AFG) 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-year lease.

ADG is proudly 100% Australian owned by Industry Funds Management (55.6%), Hastings Funds Management (28.23%) and Palisade Investment Partners Limited (16.17%).

On average, one in three Territorians benefit from ADG through their superannuation funds.

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 to 3 million at DIA and 700 000 at ASA
  • maintaining the respect of all of our airline customers
  • creating a positive work environment and making ADG an attractive place to work
  • being recognised as a significant contributor to the NT 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 aviation and non-aviation airport 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.

Our workplace reflects our corporate values:

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.

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 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.

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 Chair of Judges for the Northern Territory Brolga Tourism Awards and a national judge for the Australian Tourism Awards.

The Airport Development Group (ADG) has had a busy year planning and designing the expansion of Darwin Airport to prepare the business for the unprecedented growth forecast for the Northern Territory. We also continued our infrastructure program across the Group to maintain our airports to meet the needs of all Territorians and visitors alike.

In the Top End, several projects of significance are underway making Darwin the second fastest growing capital city in Australia at a rate of 2.9% pa. Contributing projects of national significance include the INPEX LNG Processing Facility in Darwin and the Darwin Marine Supply Base. The timely expansion project for Darwin International Airport's terminal will be at the centre of this activity, meeting to growing movement in and out of the region and further contributing to the growing local economy.

During financial year 2011/12 ADG has increased capital expenditure by a significant 38.5%, putting resources into vital assets such as $8.5 million into an Apron Overlay Project in Alice Springs. This project has ensured no major maintenance is required to over 80% of the airport's runways, taxiways and aprons in the next 5 years.

I must reflect however, on the wider economic climate which has provided ADG Executive Management with challenges and opportunities to diversify revenue streams given our 3.1% decline in passenger numbers on the previous year. The continuing high Australian Dollar has limited the appeal of domestic travel while our neighbours in South East Asia have gained in popularity and affordability as a holiday destination. As Australia's Gateway to Asia, Darwin is well positioned to target these travellers to South East Asia and in 2012 the airport received industry recognition at the Routes Asia conference in Chengdu, China, for initiating innovative campaigns to attract travellers in Australia's southern states to stop over in Darwin.

Despite this uncertain economic climate and drop in passenger numbers I am very pleased to report ADG's revenue increased 7% on the previous year. This encouraging result is largely attributed to increases in airport retail and ground transport revenue, rate increases in accordance with our airline pricing agreement and non-aeronautical income through our growing property portfolio.

I would like to thank Ian Kew and the staff at all our airports for the hard work and professionalism they continue deliver. I also thank my board for their productive contributions this year in guiding ADG towards this exciting growth phase.

On behalf of the board, it is my pleasure to present the 2011/12 ADG Annual Report.

CHRIS BARLOW
Chairman


ADG experienced a challenging yet rewarding 2011/12 financial year and I'm very proud of what my team has achieved during this period in Darwin, Alice Springs and Tennant Creek.

While global economic uncertainly and the high Australian dollar continued to provide a disincentive for leisure travel in Australia, ADG saw pleasing growth in domestic and international business travel largely as a result of new mining and construction projects underway in the Top End, which are set to accelerate the Northern Territory economy.

In line with this new growth period, planning for Darwin International Airport's largest Terminal Expansion Project progressed as we welcomed our dedicated Project Team. The terminal expansion will ensure the airport adequately supports and sustains current economic growth as well as meet future capacity projections to 2018.

Importantly, we achieved our long term objective of securing a full service international carrier to Darwin with Singapore Airlines regional wing, SilkAir commencing services between Singapore and Darwin in March 2012. Our travellers are now offered a competitive service on this route and are able to connect throughout the entire Singapore Airlines and SilkAir global network direct from Darwin. Despite continuing with only one commercial operating airline, being Qantas, in Alice Springs, we welcomed the decision of additional services to Melbourne in June 2012.

The strong and trusting relationships we have built with our airline customers resulted in Darwin International Airport being awarded the Routes Asia Airport Marketing Award in April 2012. Voted by airlines, the award acknowledges Darwin's initiatives to build and promote our route network as best in Asia and I am incredibly proud of my team for this achievement.

Our Property team has worked hard to continually build our portfolio in both Darwin and Alice Springs. This year we saw the completion of Project Jupiter at Darwin International Airport which included an Australian Federal Police (AFP) Aviation Operations Centre and a Canine Kennel and Training Facility. The AFP's Aviation Operations Centre has been strategically positioned to attract new commerce to our General Aviation hub into the future. In Alice Springs a new hangar for Northern Territory Police Air Wing was approved in February 2012 and is expected to be completed in December 2012.

We continue to value the importance of community involvement and consultation and have actively engaged with local industry during the first year of our Community Aviation Consultative Group and Planning Coordination Forum in Darwin and Alice Springs. We were creative with our sponsorships partners including Darwin Festival, the inaugural Darwin Fridge Festival and the Alice Springs Masters Games to bring a sense of atmosphere about these events to the travelling public in our terminals; and we were delighted to raise $24,000 for our Annual Charity Golf Day recipient Carpentaria Disability Services.

Our commitment to the health and safety of our staff and the preservation and conservation of our environment remained central to our business operations. In October 2011 we celebrated winning a Northern Territory Landcare Award for our work along the rapid creek catchment in our urban environment.

Thank you to all our stakeholders', staff and industry partners for your hard work, enthusiasm and commitment to working with us towards successful outcomes. We look forward to a positive year ahead as we build on our achievements through innovation, team work and great customer service.

IAN KEW
Chief Executive Officer.



People and Culture

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 Engagement

In December 2011 both Darwin and Alice Springs terminal buildings celebrated their 20 year anniversary. Both airports invited guests to events to mark the occasion and reflect on the past 20 years of commercial aviation in the NT alongside our airline partners, local and federal Government representatives, airport tenants and on-airport operators.

DIA's celebrations were held the Darwin terminal's Qantas Club with the runway setting the backdrop while, ASA's celebrations were held in the terminal forecourt and doubled as the community family Christmas Party with Santa arriving as special guest in time for the birthday cake.

Both events recognised the significant growth and development of not only the each airport over this period but also the significant growth and development of their surrounding communities and the importance the airport places on supporting and working with these communities through sponsorship and donation, consultation, engagement and through facilitating industry development.

Community Consultation
Interactive Media

Environment and Sustainability

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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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Airport Operations

Management of airport operations is crucial to ADG'S commitment of providing a safe and secure environment for airport users. The complex and diverse range of terminal activities pose an array of challenges and rewarding experiences for our operations teams.

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Property

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Financial Performance Report

View Financial Performance Report

Fast Facts

Fast Facts