"Shops stop drop at Melbourne airport"

Saturday, February 15, 2003

Shops stop drop at Melbourne airport
By Philip Hopkins
Australia - The Age


Retailing is now Melbourne Airport's biggest money spinner, with revenue
from retailing rising 74 per cent since privatisation five years ago.

New and expanded shops have pushed up retail revenue by more than 4 per cent
to $79.9million, the airport's owner, Australia Pacific Airport Corporation,
says in the 2002 annual report. APAC also owns Launceston Airport.

Melbourne Airport's retailing contributed almost 40 per cent of the
company's $201.5 million sales in 2001-02. Aeronautical revenue remained
stable at $56.8 million, while property revenue grew by 3.4 per cent to
$42.3 million. APAC recorded a maiden pretax profit of $3.6 million.

Retail revenue per passenger was up 8.8 per cent for the year, despite
overall passenger numbers being down by 4.2 per cent mainly due to the
collapse of Ansett Airlines.

The amount of shop space at the international terminal has grown by 64 per
cent since privatisation in 1997 to almost 9000square metres.

APAC's chief executive and managing director, Chris Barlow, said that, with
the $25 million acquisition of the Ansett terminal, there would be more
retail development this financial year.

Melbourne and Launceston airports attracted 12 new retailers in 2002. In
addition, 15 existing contracts were renewed, bringing the total number of
retailing contracts to 88.

The Hilton at Melbourne Airport helped boost property growth, as did
McDonald's, BP, the Qantas lounge and the DHL freight terminal, and the
350-hectare business park received its first tenants.

Mr Barlow said that, despite the September 11 terrorist attacks,
international passenger numbers grew by 1.3 per cent to 3.4 million, the
best performance in Melbourne Airport's history.

Domestic travel was down 5.5per cent on the previous year due to the
collapse of Ansett and the transition from having four domestic carriers in
May 2001 to only two by September that year. International numbers were
boosted by new carriers into Melbourne, Air Canada and Philippines Airlines,
increased capacity on Emirates, Singapore Airlines, Thai Airways and Vietnam
Airlines. After September11, Gulf Air stopped flying to Australia and Qantas
stopped one daily service to Europe.

Launceston Airport also had a 1.7 per cent growth in passenger numbers
despite the collapse of Ansett.

Despite the turbulent year, Mr Barlow said APAC achieved good results
through a rationalisation of investment. New capital expenditure was cut,
spending on daily operations was curtailed and staff numbers were reduced.

Attached Photo:

Retailing now accounts for 40 per cent of Melbourne Airport's revenue.

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