Annual Review & KaitiakitangA 2020 - Infratil

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Annual Review & KaitiakitangA 2020 - Infratil
Annual Review
 & KaitiakitangA 2020

  I N T E R N AT I O N A L V I S I TO R   W E L L I N G TO N A I R P O R T ’ S       A R R I VA L O F
    S P E N D I N W E L L I N G TO N      P OT E N T I A L F O OT P R I N T      SINGAPORE AIRLINES
         REGION UP +12%                         I N CR E AS E D 13%                       A350
                                                      TO 1 3 3 H A

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Annual Review & KaitiakitangA 2020 - Infratil
2020
        WELLINGTON AIRPORT
          ANNUAL REVIEW

                          CONTENTS

    Introduction                                5

    Key Highlights                              7

    Travel and Tourism                          8

    Traveller services                         10

    Coping with COVID-19 travel restrictions   14

    2040 Masterplan                            16

    Celebrating 60 Years                       18

    Kaitiakitanga                              22

    Our people                                 24

    A safe workplace                           25

    Our community                              26

    Our environment                            28

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Annual Review & KaitiakitangA 2020 - Infratil
Wellington Airport is essential infrastructure for central New Zealand and will continue to
                                     play an important role in the recovery of our local community and economy in the wake of the
                                     COVID-19 pandemic. Last year our economic contribution to the region was $2.3b, supporting
                                     11,000 jobs. While these large economic figures get thrown around a lot, we are currently
                                     seeing the tangible impacts of a significant reduction in that economic contribution.
                                     We all have a role in ensuring New Zealand remains a safe place to live, work and visit. At Wellington Airport,
                                     we are doing everything we can to support safe travel and enable freight to continue flowing in and out of the
                                     country. Tourism is New Zealand’s biggest export earner, supporting 365,000 jobs. We are working hard with
                                     Government, the New Zealand Aviation Coalition and the Australia New Zealand Leaders Forum to help the
                                     industry recover. As one of the best short stay destinations in the country, the Wellington region will continue to
                                     play a significant role in both domestic and international tourism.

                                     Like the entire aviation industry, our passenger numbers and operations were severely impacted by Covid-19
                                     at the tail end of the financial year. However, during the year we achieved several major milestones including a
                                     major upgrade to our domestic terminal, welcoming the new Singapore Airlines’ Airbus A350-900, concluding
                                     consultation and publishing our 2040 Masterplan, acquiring the old Miramar South School site and signing a
                                     contract with the Miramar Golf Club to purchase the ‘back 9’ for future airport development.

                                     Wellington Airport’s net profit after taxation was $28.9 million for the year ended 31 March 2020, with underlying
                                     earnings showing an EBITDAF before subvention payment of $103.2 million, up 1.8% on last year.

                                                                                                               Audited             Audited
                                                                                                            year ended          year ended
                                                                                                           31 March 20         31 March 19            Variance

                                                    Passengers Domestic                                     5,225,999           5,488,013            (262,014)

                                                    Passengers International                                  919,741             929,457                 (9,716)

                                                    Aeronautical income                                        $80.8m              $81.5m                 ($0.7m)

                                                    Passenger services income                                  $52.1m              $43.5m                  $8.6m

                                                    Property/other income                                      $13.5m              $12.9m                  $0.6m

                                                    Operating expenses                                       ($43.2m)             ($36.5m)                ($6.7m)

                                                    EBITDAF before subvention payment1                       $103.2m              $101.4m                  $1.8m

                                                    Net Profit After Tax                                       $28.9m              $23.5m                  $5.4m

                                                    Capital investment                                         $80.6m              $72.5m                  $8.1m

                                                    1. EBITDAF before subvention payment is a useful non-NZ GAAP measure of earnings which presents
                                                    management’s view of the underlying business operating performance. A reconciliation between WIAL’s
                                                    NPAT and EBITDAF before subvention payment is set out in the NZX announcement and Note A1 of the
                                                    Annual Report for the year ended 31 March 2020.

                                                   Steve Sanderson                                         Tim Brown
                                                   Chief Executive                                         Chairman
4   Photos taken during lock down.                                                                                                                                  5
Annual Review & KaitiakitangA 2020 - Infratil
KEY HIGHLIGHTS

                           5.2m
                       D O M E ST I C PA SS E N G E R S
                                                                                                     920,000
                                                                                                          I N T E R N AT I O N A L PA SS E N G E R S

               $103.2m
         E B I T D A F - B E F O R E S U B V E N T I O N PAY M E N T
                                                                                                          $80.6m
                                                                                                               CAPITAL INVESTMENT

                    40%
         LOSS O F PA SS E N G E R S I N
                                                                                  0
                                                                               SERIOUS
                                                                                                                                    45
                                                                                                                               NET PROMOTER
        MARCH 2020 AS COVID-19                                                 INJURIES                                            SCORE
          RESTRICTIONS START

                     ONE OF THE TOP RATED AIRPORTS IN AUSTRAL ASIA FOR SERVICE QUALITY

                        A I R PO RT O F T H E Y E A R AWA R D, N E W Z E A L A N D A I R PO RTS ASSO CI AT I O N

                                 ACQUIRED 15 HECTARES OF L AND FOR FUTURE DEVELOPMENT
                                  INCRE ASING THE AIRPORT ARE A BY 13% TO 133 HECTARES

                       $2.5m
                      COMMUNITY INVESTMENT2
                                                                                                               $2.3b
                                                                                                            TOTAL ECONOMIC OUTPUT

                     1,508tC O 2e
                                                                                                                 A350
                                                                                                      A R R I VA L O F N E X T-G E N E R AT I O N
                 GREENHOUSE GAS EMISSIONS3                                                                        A350 SERVICES

    2. Investment includes sponsorships, community awards and noise insulation programme for residents.
    3. Scope 1, 2 and 3 (staff travel) emissions

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Annual Review & KaitiakitangA 2020 - Infratil
Travel and Tourism
    After several years of consistent
    passenger growth, 2019-20 delivered
    mixed results. Covid-19 travel
    restrictions came into effect in March
    resulting in a -40% reduction in
    passengers for the final month of the
    financial year, and a -99% reduction
    in the final week as national borders
    were closed and all but essential
    domestic travel was restricted. Overall,
    passengers were down -4.2% to 6.1M
    compared to the previous year, with
    domestic passengers -4.8% to 5.2M
    and international -1.0% to 920,000.
                                                 its flights to Queenstown from three        product. And, in January 2020, Singapore     International visitors spent
    Before Covid-19, total passenger             days a week to daily from the end of        Airlines boosted its Wellington-           $928M in the Wellington region,
    numbers were stable compared to the          October. Jetstar’s Nelson services were     Melbourne-Singapore frequency from         over the year to Janurary 2020,
    previous year, with domestic passengers      withdrawn in December along with all        four to five flights per week.                   up +12% compared
    down -1.2% and international up              their New Zealand regional services.
                                                                                             The strong commitment of our airline          with a +7% increase for
    +2.9%. Overall demand held up
                                                 We saw a strong increase in international   partners to the Wellington market also        the rest of New Zealand.
    well despite a challenging aviation
                                                 capacity prior to Covid-19 with seats       contributed to a significant increase
    environment, primarily due to a softer
                                                 +5.7% over the year. Air New Zealand’s      in international visitor spend, with the
    Global economy (international trade
                                                 new Brisbane service and Virgin             region outperforming the rest of New
    sanctions and Brexit) impacting air travel
                                                 Australia’s new Sydney service both         Zealand. For the 12 months to January
    demand and airlines managing capacity,
                                                 contributed to this growth. Jetstar’s       2020, International visitors spent $928M
    particularly on the domestic main trunk
                                                 Wellington-Gold Coast route continued       in the Wellington region, up $100M
    network, after a number of years of
                                                 to perform strongly, with the airline       (+12%) on the previous year compared
    growth.
                                                 announcing an increase in frequency for     with a +7% increase for the rest of
    Regional domestic services continued         FY21 from three flights a week to six a     New Zealand. It was pleasing to see the
    to exhibit strong growth in both capacity    week prior to Covid-19.                     region continuing to be more appealing
    and loads with notable increases on                                                      to a wider range of visitors with Asian
                                                 In November, we welcomed the new
    Hamilton, Invercargill, Napier, New                                                      visitor spend up +19%, United States/
                                                 Singapore Airlines’ Airbus A350-900 – the
    Plymouth, Queenstown, Tauranga                                                           Canada up +20%, and Australia up +9%
                                                 first aircraft out of Wellington offering
    and Timaru routes. Jetstar increased                                                     over the 12 months prior to Covid-19.
                                                 customers the option of flying its latest
                                                 Premium Economy and Business Class
    Right:Bradley Garner Photograpjhy

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Annual Review & KaitiakitangA 2020 - Infratil
TRAVELLER

                                           services
     In August 2019, we completed a            The upgrade has continued to lift              and Government agencies together.
     major upgrade to the main terminal,       customer experience and we are proud
                                                                                              During its first year in operation,
     transforming it into an open space for    to be consistently rated as one of the top
                                                                                              Rydges Wellington Airport Hotel was
     more passenger seating and better         airports in Australasia for service quality;
                                                                                              well received with occupancy rates
     retail, food and beverage options         most recently being recognised as ‘New
                                                                                              in line with expectations. The six
     showcasing local and international        Zealand’s Airport of the Year’ by the New
                                                                                              new conference rooms became fully
     favourites. This includes Mojo,           Zealand Airports Association.
                                                                                              operational in June 2019 and in October
     Superfino, the Blue Lady, Ben & Jerry’s
                                               In October we opened a new Integrated          the hotel opened the Peloton Bar and
     scoop shop, Peloton and most recently
                                               Operations Centre providing a                  Eatery, offering a sophisticated and
     Cosmetique.
                                               collaborative workspace shared with Air        relaxing environment to enjoy a social
                                               New Zealand and Aviation Security. This        catch up before or after a flight. Hotel
                                               has enabled the airport community to           operations were closed for a period due
                                               work more closely together to improve          to Covid-19 and are now scaled back
                                               response times and manage disruptions.         with occupancy levels decreased in line
                                               It’s an Australasian first and has set a       with overall passenger numbers.
                                               new benchmark for how airports, airlines

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Annual Review & KaitiakitangA 2020 - Infratil
CASE STUDY                                                                                               CASE STUDY

     First in southern   We can now access real-time data
                         about runway conditions after
                                                                   The new technology enables pilots to
                                                                   more accurately calculate an aircraft’s
                                                                                                               State of the art   Wellington travellers are now able to
                                                                                                                                  check-in their luggage using state-of-
                                                                                                                                                                             We were the second airport in New
                                                                                                                                                                             Zealand to install ICM’s Auto Bag
     hemisphere to       installing state of the art sensors to
                         monitor runway surface conditions.
                                                                   landing or take-off performance.
                                                                                                               auto bag drops     the-art technology with seven new
                                                                                                                                  auto-bag-drop units.
                                                                                                                                                                             Drop units, with Air New Zealand
                                                                                                                                                                             operating the units in Auckland Airport’s
     install real-time   The nine fixed sensors automatically
                                                                   From November 2020, the International
                                                                   Civil Aviation Organisation (ICAO)                             The units match a facial scan with
                                                                                                                                                                             international terminal.

     runway monitoring   measure temperature, moisture or ice
                         on the runway surface and transmit
                                                                   requires all airport operators to be able
                                                                   to assess and notify runway conditions
                                                                                                                                  a passenger’s passport details,
                                                                                                                                  simultaneously checking a bag’s size

     system              the data directly to our new Integrated
                         Operations Centre. We’re working with
                                                                   using a new standardised methodology.
                                                                   We are one of the first airports to
                                                                                                                                  and weight and create a tag in a matter
                                                                                                                                  of seconds.
                         industry stakeholders to enable the       have achieved this, particularly using
                                                                                                                                  Developed by Sydney-based
                         information to be sent directly to air    technology to automate the process.
                                                                                                                                  organisation ICM Airport Technics, the
                         traffic control and pilots.
                                                                                                                                  units are currently available for Qantas
                                                                                                                                  and Singapore Airlines passengers.

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Annual Review & KaitiakitangA 2020 - Infratil
COPING WITH

                                           COVID-19    TRAVEL RESTRICTIONS

     On 30 January the New Zealand                also been reduced, including reduced              WellingtonNZ on domestic marketing
     Government chartered an Air New              passenger related costs, cost-out                 campaigns, they will not be enough
     Zealand flight to evacuate New               initiatives and substantially delaying            to sustain the many inbound tourism
     Zealanders from Wuhan. The next              capital projects where practicable.               operators around the country and the
     day the World Health Organisation                                                              biggest hope lies in a trans-Tasman
                                                  Wellington Airport has worked with its
     declared the Covid-19 outbreak to                                                              bubble.
                                                  lenders and shareholders to put in place
     be a “public health emergency of
                                                  funding to ensure smooth operations
     international concern”. A few days                                                             Australia used to account for 40% of
                                                  and overall financial flexibility until traffic
     later on 3 February, the Government                                                            New Zealand’s international visitors
                                                  and income stabilises over time. This
     placed the first entry restrictions                                                            and that also equated to 13% of all
                                                  has involved agreeing terms with banks
     on foreign nationals travelling here                                                           outbound Australian travellers. With a
                                                  for an increase of facilities by $70 million
     from, or transiting through, mainland                                                          lack of other options for Australians,
                                                  to $170 million, a temporary waiver of
     China, requiring them to self-isolate                                                          especially during the ski season, and a
                                                  certain banking covenants and a $75
     for 14 days. By 11 March the World                                                             lot of available capacity in New Zealand
                                                  million underwriting agreement with
     Health Organisation had declared a                                                             we could expect that number to rise
                                                  shareholders Infratil and Wellington City
     global pandemic and all those entering                                                         significantly. It is vital for the survival of
                                                  Council. Negotiations are progressing
     the country needed to self-isolate                                                             our tourism industry and our economy
                                                  with US lender Pricoa for it to accept
     for 14 days. By the 25 March 2020                                                              that a trans-Tasman bubble is enabled as
                                                  terms similar to those agreed with the
     the Government declared a State of                                                             soon as possible. We are working closely
                                                  banks.
     Emergency and the country went into                                                            New Zealand and Australian aviation
     full lock down for over four weeks.          The support of these capital providers            groups and our respective Governments
                                                  reflects well on the good relationships           to develop solutions to ensure safe travel
     COVID-19 continues to have an
                                                  built up by the airport’s management              options and safely re-open our borders
     unprecedented impact on the aviation
                                                  and the general confidence that traffic           to our neighbours.
     and tourism industry and on Wellington
                                                  will resume over the next few years.
     Airport. Passenger numbers plummeted
                                                  Unlike some other businesses impacted             Right: @binghamcreative
     in March, down -40%, and then all the
                                                  by the Covid-19 crisis, restructuring
     way to -99% in April. The recent move
                                                  of Wellington Airport’s finances has
     to Level 2 has, however, been a positive
                                                  not been overly expensive or caused
     start for the aviation sector with an
                                                  shareholder dilution.
     increase in scheduled domestic flights
     within New Zealand.                          Looking forwards, the Wellington region
                                                  will play a significant role in the recovery
     In response, we have taken significant
                                                  of domestic and international tourism.
     action to resize our operation for the
                                                  Tourism was New Zealand’s biggest
     forecast impact of reduced airline travel.
                                                  export earner and total tourism spend
     There have been a lot of sacrifices made
                                                  in 2019-20 was $41 billion, employing
     from Directors, Management and Staff.
                                                  365,000 people. The picture now is in
     This has included reducing airport staff
                                                  stark contrast. While we are working
     by 30%, salary reductions and reduced
                                                  with both Tourism New Zealand and
     working hours. Other expenditure has

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Annual Review & KaitiakitangA 2020 - Infratil
2040

                           masterplan
     In October 2019, we initiated public     The masterplan reflects a forecast that    terminal, with the surrounding apron and
     consultation on our proposed 2040        passenger numbers will double from 6.4     at-grade carparking areas repurposed
     Masterplan after consulting with         million to 12 million by 2040 – doubling   for jet aircraft. Meanwhile, the northern
     airlines and airport stakeholders. The   our economic contribution to the region    parts of the terminal would be converted
     plans show how we will accommodate       from $2.3 to $4.3 billion per year and     for regional traffic – essentially ‘flipping’
     future growth for the region. We         facilitating more than 22,000 additional   the terminals around. Also included
     invited stakeholders and the local       jobs.                                      in the plans were runway and taxiway
     community to provide feedback and                                                   system improvements, new freight
                                              Under the 20 year staged development
     published a final version in early                                                  facilities, additional aircraft parking
                                              plans, a new multi-purpose domestic
     December 2020.                                                                      stands, and a modern fire station.
                                              and international jet terminal would be
                                              constructed to the south of the existing

                                                                                                                                         A significant element of the staged        plan as the World recovers from the          Wellington Airport has
                                                                                                                                         plan is the ability to extend aircraft     economic impact.                             increased its potential
                                                                                                                                         parking and gates to the east, over
                                                                                                                                                                                    We do however have to keep our                 footprint by 13% to
                                                                                                                                         the back half of Miramar Golf Course.
                                                                                                                                                                                    eye on the ongoing resilience needs           133 hectares to cater
                                                                                                                                         Following extensive discussions with
                                                                                                                                                                                    and regulatory compliance of our              for future demand in
                                                                                                                                         the golf course and its members, the
                                                                                                                                                                                    infrastructure. The sea wall that protects     aircraft parking and
                                                                                                                                         airport signed a contract to purchase
                                                                                                                                                                                    Wellington Waters’ main sewerage                support services.
                                                                                                                                         the golf course land in December 2019.
                                                                                                                                                                                    line, the Council’s road and the airports
                                                                                                                                         Wellington Airport also acquired the
                                                                                                                                                                                    runway is nearing end of life and still
                                                                                                                                         former Miramar South School land for
                                                                                                                                                                                    needs to be strengthened. The recent
                                                                                                                                         aviation support purposes in the same
                                                                                                                                                                                    swells that inundated the south coast
                                                                                                                                         month. The two acquisitions have
                                                                                                                                                                                    caused more damage and repair plans to
                                                                                                                                         increased the airport’s land holdings by
                                                                                                                                                                                    the sea wall are already underway.
                                                                                                                                         13% to 133 hectares

                                                                                                                                         In the wake of Covid-19, we have
                                                                                                                                         deferred major capital projects until
                                                                                                                                         passenger numbers pick up again. The
                                                                                                                                         Masterplan provides a blueprint for the
                                                                                                                                         future and while Covid-19 delays its
                                                                                                                                         roll-out, we will continue to review the

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Annual Review & KaitiakitangA 2020 - Infratil
CELEBRATING

                                                                                                                                                                                                       60 years
                                                                                                                                                                 25 October 2019 marked 60 years                      The corrugated iron building was                         In the last twenty years the airport has
                                                                                                                                                                 since Wellington Airport was opened                  planned as a five-year temporary fix but                 developed many significant and award-
                                                                                                                                                                 with thousands of spectators there                   held on for 40 years, with a few add-ons                 winning facilities including ‘The Rock’
                                                                                                                                                                 to witness the event. The very first                 and improvements along the way before                    international terminal, domestic terminal
                                                                                                                                                                 terminal was a converted aircraft                    the new terminal opened in 1999.                         expansion, multi-level transport hub and
                                                                                                                                                                 hangar, affectionately known as the                                                                           the Rydges Wellington Airport Hotel.
                                                                                                                                                                                                                      Since then the airport has grown and
                                                                                                                                                                 ‘tin shed’.
                                                                                                                                                                                                                      evolved to become one of the country’s
                                                                                                                                                                                                                      busiest and most popular hubs.

         1910
         1910 - First airplane
                                  1920
                                  1929 - Grass runway
                                                        1930
                                                        1935 - First
                                                                                1940
                                                                                1948 - Prime Minister
                                                                                                          1950
                                                                                                          1953 - 28 hectares of
                                                                                                                                   1960
                                                                                                                                   1964 - The Beatles
                                                                                                                                                        1970
                                                                                                                                                        1972 - Runway
                                                                                                                                                                               1980
                                                                                                                                                                               1983 - Prince Charles
                                                                                                                                                                                                       1990
                                                                                                                                                                                                       1997 - Southern Pier
                                                                                                                                                                                                                              2000
                                                                                                                                                                                                                              2005 - Airport Retail
                                                                                                                                                                                                                                                      2010
                                                                                                                                                                                                                                                      2010 - The Rock             2013 - Lyall Bay
                                                                                                                                                                                                                                                                                                         2019
                                                                                                                                                                                                                                                                                                         2016 - Singapore
         flight from Wellington   opens at Rongotai     scheduled Cook Strait   announces Rongotai        land reclaimed           touch down in        extended to handled    and Lady Diana visit    opens                  Park opens              International Terminal      cafe opens. New fire   Airlines services
         by Mr Arthur Schaef                            service                 as Wellington’s airport                            Wellington           DC8 aircraft                                                                                  opens                       appliances arrive      commence
                                                                                                          1958 - De Havilland                                                  1987 - Ansett           1998 - South West      2006 - Southern
                                                        1939 - De Havilland                               factory converted into   1966 - American      1977 - International   terminal opens          Pier opens, car park   tunnel opens            2011 - Corporate Jet        2015 - Expanded        2018 - Multi-Level
                                                        factory opens                                     main terminal            President Lyndon     pier opens                                     building opens                                 Hangar opens                domestic terminal      transport hub opens
                                                                                                                                                                                                                              2007 - Southern
                                                                                                                                   Johnson visits                                                                                                                                 opens
                                                                                                          1959 - Grand opening                                                                         1999 - New main        runway safety area                                                         2019 - Rydges hotel
                                                                                                          of Wellington Airport                                                                        terminal building      extension                                                                  opens

     memorable
       moments

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OUR LEADERSHIP

                                      TEAM
                                                                                                                                       We want to warmly thank our team
                                                                                                                                       at Wellington Airport and the many
                                                                                                                                       people who work within the wider
                                                                                                                                       airport community for their support
                                                                                                                                       during the year including our volunteer
                                                                                                                                       ambassadors and all our airlines:
                                                                                                                                       Air New Zealand, Jetstar, Qantas, Fiji
                                                                                                                                       Airways, Virgin Australia, Singapore
                                                                                                                                       Airlines, Sounds Air, Air Chathams &
                                                                                                                                       Golden Bay Air.

     Steven Sanderson                           Matt Clarke                      Leanne Gibson                        Greg Thomas
     Chief Executive                            Chief Commercial Officer         General Manager IT and Facilities    General Manager Communication

 Jackie Holley                                  John Howarth                     Ayolt Wiertsema                     Martin Harrington
 General Manager People and Culture             General Manager Infrastructure   General Manager Aeronautical        Chief Financial Officer

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OUR K AITIAKITANGA VISION

                   Kaitiakitanga                                                                                                  CONNECTING
                                                                                                                                 CENTRAL NZ TO
                                                                                                                                   THE WORLD
                                                                                                                                                                   CONNECTING PEOPLE,
                                                                                                                                                                    THEIR EXPERIENCE
                                                                                                                                                                   & OUR ENVIRONMENT
                                                                                                                                                                                                               SUSTAINABLE
                                                                                                                                                                                                                 GROWTH

                                                                                                                                OUR                                 OUR COMMUNITY                     OUR
                                                                                                                                PEOPLE                                                                ENVIRONMENT
     Wellington Airport is committed to    Our Kaitiakitanga vision guides us to      We recently completed the annual                                              • Be a good neighbour;
                                                                                                                                • Safeguard operations;             • Build meaningful community      • Protection for future
     embedding sustainability across       manage our operations efficiently, to      GRESB Infrastructure Assessment                                                                                   generations to enjoy;
                                                                                                                                • Care for all airport users and      partnerships.
     everything we do. We understand       care for our environment and our people,   for FY19. Our GRESB score of 4*             the community.                                                      • Transition to a 1.50C world.
     our responsibility to manage an       to support the local economy and to give   validates, and benchmarks our
     efficient operation that delivers     back to the community.                     Environmental, Social and Governance
     excellent connectivity and customer                                              (ESG) performance data against other
                                           We work closely with our partners
     experience, whilst also caring for                                               airports and infrastructure assets. The   The United Nations’ Sustainable Development Goals provide a widely regarded
                                           – airlines, tenants, consultants and
     our people, our community and the                                                score was a very good start and we have   international framework to achieve a better and more sustainable future for all
                                           contractors – to realise this vision by
     environment.                                                                     implemented many additional measures      – integrating economic, social and environmental aspects.
                                           seeking opportunities to adopt energy
                                                                                      and expect that score to lift in 2020.
                                           efficient and sustainable processes                                                  We have identified the most appropriate goals for us based on our ability to make or
                                           across everything we do at the airport.                                              influence change and alignment with our values.

                                                                                                                                        UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS

                                                                                                                                                                   5. GENDER EQUALITY

                                                                                                                                  9. I N D U S T R Y I N N O V A T I O N                        7. A F F O R D A B L E
                                                                                                                                       & INFRASTRUCTURE                                        & CLE AN ENERGY

                                                                                                                                               13. CLIMATE ACTION                        1 7. P A R T N E R S H I P S
                                                                                                                                                                                           FOR THE GOALS

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OUR                                                                                                                               A SAFE

                                                People                                                                                                               Workplace

     Our people come first. We recruit          Diversity and inclusion remain an           ensuring gender diversity across our        Best practice health and safety             inspections, an internal auditing team     This year we also undertook a large
     people who share a common set of           imperative to ensure we continue to         interview panels, reducing unconscious      processes are an integral part of our       carry out continuous checks to ensure      scale, multi-agency, emergency training
     values that guide our decisions, inform    attract and retain high performers and      bias, increasing the number of females      operations and will always be the           both compliance and identify areas for     exercise to put all our practice into
     how we work together and enable us         continue to be a great place to work. Our   we are interviewing for historically        number one priority. Everything we          improvement.                               action.
     to perform to our best.                    demographic is diverse in age, ethnicity,   male oriented roles, introducing targets    do is designed with the safety and
                                                                                                                                                                                    Regular maintenance checks are             Going forward we will continue to
                                                background, experience and thought.         to increase gender diversity at senior      security of our customers, employees,
     We provide our people with a safe and                                                                                                                                          programmed to ensure equipment             review our health and safety processes
                                                                                            management level and encouraging            contractors, community and the
     supportive work environment and invest                                                                                                                                         remains workable and safe, and all         to ensure they remain fit for purpose
                                                Currently our total workforce is made       female staff to attend leadership           country in mind.
     in a range of learning and development                                                                                                                                         airport staff are involved in a monthly    in our new post-Covid-19 operational
                                                up of 22% females and 78% males.            courses.
     initiatives to grow their experience and                                                                                           The airport is certified by the Civil       hazard identification check, to look for   environment.
                                                However in the corporate office the
     help reach career aspirations.                                                                                                     Aviation Authority (CAA). Under the         anything not already picked up.
                                                balance is more evenly split with           In coming years, we will continue to
                                                                                                                                        CAA’s Part 100 safety rules, we are
                                                46% females and 54% males. We are           support inclusivity through culture-                                                    The Airport coordinates with
     Our values are:                                                                                                                    required to achieve and maintain a Safety
                                                continuing to address the overall balance   focused projects and biannual                                                           stakeholders including Airlines, ground
     • Whānau Kotahi (one team)                                                                                                        Management System, which aligns
                                                throughout the airport and in senior        engagement surveys, enabling us to                                                      handlers and Government agencies with
     • Diversity & Inclusion                                                                                                            with the Health and Safety at Work Act
                                                management positions.                       capture staff feedback and take action to                                               regular meetings, spot checks and safety
     • Be Exceptional                                                                                                                   2015 and meets all safety regulations. In
                                                                                            improve staff experience.                                                               programmes like the Airport Safety
     • Courage & Freedom                                                                                                                addition to CAA and WorkSafe audits and
                                                This year we’ve introduced a number                                                                                                 week.
     • Customer Obsessed                        of initiatives to address this, including

24                                                                                                                                                                                                                                                                       25
“It’s amazing to have our growth
                                                                                                                                                  as an organisation recognised
                                                                   OUR COMMITMENT TO                                                              with this award. It represents
                                                                                                                                                      the work of our team of

                                             Community
                                                                                                                                                 incredible staff, volunteers and
                                                                                                                                                 all the rainbow young people in
                                                                                                                                                 Wellington who are striving for
                                                                                                                                                    inclusion in their schools.”
                                                                                                                                                         – TABBY BESLEY
                                                                                                                                                       MANAGING DIRECTOR
                                                                                                                                                            INSIDEOUT

                                                                                                                                                 2019 WELLINGTON AIRPORT
                                                                                                                                                    COMMUNITY AWARDS
                                                                                                                                                      SUPREME WINNER

                                                                                                                                               We also partnered with Cystic Fibrosis
                                                                                                                                               Wellington to host the annual Christmas
                                                                                                                                               Tree Festival at the airport. This year
                                                                                                                                               more than 30 businesses sponsored
                                                                                                                                               and decorated a tree, raising enough
                                                                                                                                               money to employ a Family Support
                                                                                                                                               Worker and essential medical supplies
                                                                                                                                               for the Central region.

                                                                                                                                               In early 2020, we were a leading partner
                                                                                                                                               for the New Zealand Festival of the
                                                                                                                                               Arts. Our partnered event Te Ata, a
                                                                                                                                               festival within the festival consisted of
                                                                                                                                               two weeks of ground-breaking creative
                                                                                                                                               development between the community
                                                                                                                                               of Porirua and international artists.
     As a truly city airport, we take pride               At the start of the year we partnered      and Sport and Leisure, as well as a       This culminated in a week of public
     in supporting our local businesses                   with the World of Wearable Art to          Rising Star award. A Supreme Winner is    performances and events.
     and communities – helping to keep                    capture imagination taking flight,         also chosen with all winners receiving
                                                                                                                                               Events are one of the hardest hit areas
     Wellington on the map as one of the                  facilitating a photoshoot on our runway    a share of $50,000 for their community
                                                                                                                                               by Covid-19 and this has significantly
     ‘coolest little capitals’ in the world.                                                         group. Last year we received
                                                          and later showcasing award-winning                                                   impacted our sponsorships for the
                                                                                                     nominations from over 200 volunteer
     Throughout 2019, we’ve hosted a wide                 garments in our terminal. The WoW                                                    coming year. The Community Awards
                                                                                                     groups with InsideOUT taking home the
     variety of activities in our terminal –              season itself was a huge success                                                     have been put on hold and Cuba Dupa,
                                                                                                     Supreme Winner award.
     providing both financial support to                  attracting over 60,000 people, with                                                  World of Wearable Art, and the
     Wellington-based businesses and                      many travelling to Wellington from other   In June, travellers were treated to a     Phoenix FC, to name just a few, are all
     entertainment for passengers and                     parts of New Zealand or from overseas.     series of live performances as part       re-grouping. We can only look forward
     visitors.                                                                                       of the Wellington Jazz Festival. And,     to when the cultural and sporting events
                                                          This year was the 16th Wellington
                                                                                                     in September, we partnered with the       that make our city great are back on the
                                                          Airport Community Awards, organised
                                                                                                     National Library and Te Puna Foundation   calendar.
     Above: Uplifting, David Kirkpatrick, Waikato, New    in collaboration with Wellington
     Zealand. Deadly Beauty, Zhang Xi of Donghua                                                     to showcase Māori performances as
     University, China. Eye See You Fluffy Kōwhai, Tina
                                                          Community Trust and the region’s
                                                                                                     part of Te Wiki o te Reo Māori Language   Top right: InsideOUT
     Hutchison-Thomas, Christchurch, New Zealand.         councils. The awards recognise the
     Underling, Gilllian Saunders, Nelson, New Zealand.                                              Week.                                     Bottom right: Te Ata, New Zealand Festival of the Arts
                                                          amazing work of volunteer groups in the
                                                          areas of Arts and Culture, Education and   Later in 2019, over 1,000 members of
                                                          Child/Youth Development, Health and        the public learnt valuable lifesaving
                                                          Wellbeing, Heritage and Environment        skills as part of Restart a Heart Day.

26                                                                                                                                                                                                      27
TARGET ARE AS                       INITIATIVES
                                                   OUR

                                                                                                               Reducing carbon emissions           Purchased Voluntary Emission Reductions to offset our 2019 operational

         Environment
                                                                                                                                                   carbon emissions (including staff travel). This makes us Carbon neutral for
                                                                                                                                                   2019.

                                                                                                                                                   Replacing our fleet of vehicles with electric alternatives

                                                                                                                                                   Reviewed operating procedures to reduce unnecessary use of emergency
                                                                                                                                                   stationary generation

                                                                                                               Reducing energy use                 Replacing all halogen lightbulbs in the airport with energy efficient LED

     By 2030, we aim to reduce our operational carbon emissions, waste to landfill and electricity                                                 lighting
     use by 30%. To achieve these targets, Wellington Airport is adopting energy efficient and
     sustainable construction into our projects. We must also make changes to how we manage                                                        Investing in building analytics technologies to provide a real time, integrated
     our waste and resources.                                                                                                                      view of our building performance – enabling us to identify changes, patterns
                                                                                                                                                   and opportunities.
     The specific targets are ambitious and are considered as part of our daily decision making. Our
     carbon emissions target is absolute, which means we are committed to reducing our operational             Sustainable design                  Adopting energy efficient and sustainable construction into our projects –
     emissions irrespective of airport growth.                                                                                                     targeting a GreenStar 5* design rating

     The reduction in travellers due to Covid-19 and consequential deferral of the terminal extension          Reducing waste                      Replacing single use plastic with reusable or compostable alternatives
     programme will mean a delay in the replacement of our heating and ventilation systems.
     Replacement of those systems was a key driver to achieve the reduction target. We will continue           Diverting waste from landfill       Trialling and implementing coffee cup composting with ‘For The Better Good’
     to focus on maximising the efficiency gains from our existing systems and all other emissions
     sources.                                                                                                                                      Implementing new processes to enable more efficient separation of
                                                                                                                                                   recyclable and compostable material from landfill waste – most recently
                                                                                                                                                   opening a new Resource Recovery Centre and introducing mobile sorting
                                 2030 TARGET AGAINST OUR FY17 BASELINE                                                                             trolleys

                                                                                                               Influencing the supply chain        Developed a Guide to Sustainable Procurement to ensure the goods and
        Intensity-Based                                                          Absolute % (volumetric)                                           services we purchase make a positive contribution – environmentally, socially
                                                                                                                                                   and economically
        Terminal Electricity
        kWh/m2/yr                       30%
                                                                                                               Regenerating the local community Partnered with Trees that Count, Te Motu Kairangi and Predator Free
                                                                                                                                                   Wellington to support the regeneration of the Miramar Peninsula and our local
                                                                                                                                                   community
        Operational Waste                                                               Circular economy
        kg/Pax/yr                       30%                   0%                   Zero single-use plastics                                        Installed traps and bait stations around the airport’s perimeter in support of
                                                                                                                                                   Predator Free Miramar’s effort to rid the Peninsula of rats and mice

                                                                                                               Supporting industry                 Installed common-use electric chargers for our electric airside ground support
                                                                                     Scope 1 + 2 Carbon
                                                                                                    tCO2e/yr                                       equipment (GSE) and vehicles
                                                              30%                WIAL’s footprint reduction

                                                                                                                                                   Installed electrical ground power at some gates so aircrafts can get electricity
                                                                                                                                                   straight from the local grid without the need to run their auxiliary power units
                                                                                                                                                   (APUs)
        Terminal Potable Water
        litres/Pax/yr                   30%                                                                                                        Trialled Performance Based Navigation routes to enable quieter and more
                                                                                                                                                   fuel-efficient arrivals into Wellington Airport. Results indicate airlines using
                                                                                                                                                   Performance Based Navigation are flying fewer kilometres, reducing their fuel
                                                                                                                                                   burn and CO2 emissions and shortening passenger travel time.

28                                                                                                                                                                                                                                    29
supporting our global environment                                                                                                                         REDUCING OUR ENERGY USE

                                                                                                                                               Heating, ventilation and air              To ensure our systems are operating as      This helps us to:
     We continue to partner with Trees that This year we planted 1500 low growing            We have purchased Voluntary Emission
                                                                                                                                               conditioning systems are essential        efficiently as possible, we have recently
     Count, Te Motu Kairangi and Predator   regenerative plants on Wexford Hill and          Reductions to offset our operational                                                                                                    •   reduce our energy consumption and
                                                                                                                                               for maintaining appropriate levels of     invested in cutting edge data analytics
     Free Wellington to preserve Miramar    1500 native trees in Tawatatawa Reserve,         carbon emissions for 2019. This gives                                                                                                       carbon emissions,
                                                                                                                                               comfort for passengers and airport        technology. The smart technology
     Peninsula as a space for future        taking our total community tree planting         us the opportunity to make a positive
                                                                                                                                               community while they are in the           enables us to continuously review our       •   manage peak demand,
     generations to enjoy.                  count to 5,500.                                  impact on the global environment
                                                                                                                                               terminal. However, they also make the     building management system data.            •   lower maintenance and repair costs,
                                                                                             while we work to reduce our own
                                            Our location between the Peninsula and                                                             biggest contribution to our operational   It also provides us with information
                                                                                             operational emissions in line with our                                                                                                  •   improve asset life cycles.
                                            the city make us an important zone in the                                                          carbon emissions.                         to promptly identify any faults in our
                                                                                             30% target. The credits are generated
                                            Predator Free Miramar project. Over the                                                                                                      systems and opportunities to improve
                                                                                             by international projects, helping to
                                            past two years, we have installed traps                                                                                                      our energy efficiency.
                                                                                             build wind farm capacity in India and
                                            and bait stations around the perimeter of
                                                                                             assisting local farmers with sustainable
                                            the airport. This ‘virtual barrier’ is helping
                                                                                             agricultural techniques and forest
                                            to eradicate rats, stoats and weasels,
                                                                                             management to avoid deforestation in
                                            bringing back the birds and bush to
                                                                                             Brazil. Our operational emissions include
                                            Wellington’s eastern suburbs.
                                                                                             Scope 1 and 2 emissions and staff travel.

                                                                                             Above: Griffin Hunt, Te Motu Kairangi - Miramar
                                                                                             Ecological Restoration

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Reducing our waste to landfill                                                                                                     Supporting our airline partners

     Each day over 2000 takeaway coffees       We’re proud to be the first airport in New   The trial has been incredibly successful     The aviation industry is collectively        Air New Zealand identified ground            We also now provide electric ground
     are purchased at the airport. This year   Zealand to introduce reusable coffee         and we’ve diverted over 25,000 cups from     working hard to address aviation             electrification as one of their material     power at gates on the south and south
     we’ve taken steps to reduce this waste cups in partnership with ‘Again Again’          landfill.                                    emissions. This year our focus               sustainability issues – with a goal to be    west piers. This enables aircraft to ‘plug
     by introducing a reusable coffee cup      – a Wellington-based social enterprise                                                    has been on providing ground                 fully electric by 2025. We’ve worked         in’ and power their onboard lighting and
                                                                                            Our next project is to investigate options
     scheme and composting trial.              who provide reusable steel cups                                                           electrification at the airport – making it   closely with Air New Zealand and our         electronics without the need to run their
                                                                                            for establishing a community garden with
                                               available by deposit and return at                                                        possible to replace diesel and petrol-       other airline partners (including Planebiz   auxiliary power units.
                                                                                            a composting facility near the airport.
                                               any participating café. In addition to                                                    powered ground service equipment             and Swissport) to provide a ground
                                               introducing the scheme, many café                                                         with electric alternatives, and enabling     servicing equipment electric charging
                                               operators have also increased their dine-                                                 airlines to power aircraft using             system.
                                               in options and acceptance of keep cups.                                                   electricity at the gate, rather than
                                                                                                                                                                                      In February, following a joint
                                                                                                                                         relying on their fuel-powered auxiliary
                                               We also started a composting trial with                                                                                                procurement initiative with Auckland
                                                                                                                                         power unit.
                                               social enterprise ‘For The Better Good’                                                                                                Airport, Christchurch Airport, and
                                               to establish if we can develop a robust                                                                                                Queenstown Airport, we successfully
                                               regenerative system for compostable                                                                                                    installed two Fastcharge ground service
                                               packaging waste.                                                                                                                       equipment charging systems as stage
                                                                                                                                                                                      one of this project.

32                                                                                                                                                                                                                                                                              33
Improving operational resilience                                                                                                                           Noise management

     Climate change and resilience is        As the climate continues to change, we     We also completed a detailed                  Few cities in the world benefit from        package of acoustic mitigation treatment           I have really been
     one of our material issues and our      are planning for rising sea levels, more   investigation of our stormwater               an airport as conveniently located as       designed to reduce aircraft noise. We          impressed with the team.
     risk analysis is aligned with the       extreme weather and climate related        infrastructure network, flows and capacity.   Wellington’s. This accessibility and        are continuing to roll out the programme
     recommendations of the Task Force on    events which will present a risk to        This, together with our groundwater and
                                                                                                                                                                                                                                  Without exception they
                                                                                                                                      proximity to residential properties         for the properties most affected by air
     Climate-Related Financial Disclosures   infrastructure and property.               stormwater quality monitoring data will                                                                                              were friendly and helpful which
                                                                                                                                      means we must carefully monitor and         noise, completing 25 property upgrades
     and informs our design, planning and                                               inform our site-wide stormwater discharge                                                                                             I really appreciated. The high
                                             This year we started planning for the                                                    manage the effects of airport noise on      this year.
     infrastructure development decisions.                                              resource consent and the design of future     our neighbours.
                                                                                                                                                                                                                                 standard of workmanship
                                             upgrade of our coastal protection                                                                                                    Operational constraints at the airport
                                             structures (seawalls and breakwater)
                                                                                        airport infrastructure.                                                                                                                 by all in what is a fairly old
                                                                                                                                      The Wellington City Council District        often require construction and
                                             – inviting feedback from the local                                                                                                                                                      house was noted.
                                                                                                                                      Plan governs the total noise for aircraft   maintenance works to be done during
                                             community to help inform our design.                                                     movements and the hours of flight, with     the flight curfew. We are mindful of the
                                                                                                                                                                                                                                  – IAN MACDONALD
                                             The new structures need to withstand                                                     a night curfew in place. We currently       close proximity of our neighbours to
                                             rising sea levels, increased frequency                                                   operate well within the noise limits and    Wellington Airport, and our procedures
                                             and intensity of storm events and                                                        curfew conditions.                          require noise mitigation measures to
                                             earthquakes.                                                                                                                         be planned and implemented for all
                                                                                                                                      As part of our Noise Management Plan,
                                                                                                                                                                                  projects.
                                                                                                                                      which is overseen by the Wellington
                                                                                                                                      Air Noise Management Committee,
                                                                                                                                      we’ve implemented a range of noise
                                                                                                                                      mitigation measures within the Air Noise
                                                                                                                                      Boundary. This includes the Quieter
                                                                                                                                      Homes package which offers almost           Above: @yourlocalplanephotographer

                                                                                                                                      700 homeowners a specifically tailored

34                                                                                                                                                                                                                                                               35
FY20

                                            Results
     Energy                                                                           TERMINAL ENERGY USE                                                Carbon                                                                        C O 2e E M I S S I O N S
     TOTAL GAS AND ELECTRICITY                                                                                                                           S C O P E 1 + 2 C O 2e E M I S S I O N S
     CONSUMPTION (KWH)                                                                                                                                   KG / Y R | KG / PA X / Y R                            2200                                                                      0.3
     TERMINAL ELECTRICITY                                       16,000                                                                    350            Our scope 1 (direct emissions from                    2000
     KWH/M2/YR                                                                                                                                           Wellington Airport-owned sources)                                                                                               0.25
                                                                14,000                                                                                                                                         1800
                                                                                                                                          300
     Terminal energy consumption is                                                                                                                      and Scope 2 (indirect emissions from
                                                                12,000                                                                                                                                         1600
     influenced by the local weather conditions                                                                                           250            purchased energy used by our operations)
                                                    KWH (000)

                                                                                                                                                                                                                                                                                         0.2

                                                                                                                                                KWH/M2
                                                                10,000                                                                                                                                         1400

                                                                                                                                                                                                                                                                                                TO N N E S / PA X
     throughout the year, with the number of                                                                                              200            have decreased for FY20. This was the
     heating and cooling days impacting on                      8,000                                                                                    result of a combination of factors, most              1200

                                                                                                                                                                                                      TONNES
                                                                                                                                                                                                                                                                                         0.15
                                                                                                                                          150
     our gas and electricity use respectively.                  6,000                                                                                    significantly being the considered use of             1000

                                                                                                                                          100            our emergency generator, reduced fuel                  800
     The ongoing optimisation of the                            4,000                                                                                                                                                                                                                    0.1
                                                                                                                                                         use by our vehicle fleet and gas terminal              600
     terminal building management system                        2,000                                                                     50
                                                                                                                                                         heating, and the lower emissions factor
     has resulted in average annual energy                                                                                                                                                                      400                                                                      0.05
                                                                      0                                                                   0              for purchased electricity from the New
     savings of 14% when compared to FY17.                                                                                  FY20                                                                                200
                                                                               FY17            FY18           FY19                                       Zealand grid.
     Investment in building data analytics                                                                                                                                                                        0                                                                      0
     technology should see further efficiency                                                                                                            The emissions associated with staff travel                          FY17         FY18               FY19       FY20
     improvements.                                                        Electricity consumption (kWh)          Gas consumption (kWh)                   (Scope 3) were 127.1 tonnes for FY20.

                                                                          Terminal electricity (kWh/m2)                                                                                                          Scope 1+2          Scope 3 (staff travel)          CO2 tonne/pax/year

     Waste                                                                                    SOLID WASTE
                                                                                                                                                                                                                                      Scope 1 and 2 emissions have been verified by Toitu
                                                                                                                                                                                                                                      Envirocare and is aligned with ISO 14064-1:2006.
     OPERATIONAL SOLID
                                                                800                                                                       35%
     M U N I C I PA L WA ST E
     KG / Y R | KG / PA X / Y R                                 700                                                                       30%

     Our total waste volume has slightly                        600
                                                                                                                                          25%
     decreased from FY19, however the
                                                                500
     volume of waste sent to landfill for every
                                                  TONNES

                                                                                                                                          20%
     100 passengers has remained the same                       400
     as FY19 at 7kg/100pax.                                                                                                               15%
                                                                300
     We are continuing to work on initiatives                                                                                             10%
                                                                200
     to reduce the overall volume of waste
     generated and increase the proportion of                   100                                                                       5%

     our waste that is diverted from landfill.
                                                                  0                                                                       0%
     Our FY20 diversion rate of 27% presents                                   FY17            FY18           FY19          FY20
     further opportunity for improvements
     in our waste collection and sorting
     capacity.                                                            Total waste (tonnes)            Recycling/Composting (tonnes)

                                                                          Diversion rate %

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