Annual Report 2010 - Christchurch City Council
Annual Report 2010 - Christchurch City Council
Annual Report 2010 - Christchurch City Council
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p262. <strong>Annual</strong> <strong>Report</strong><br />
<strong>Christchurch</strong> Otautahi<br />
<strong>2010</strong><br />
Group structure<br />
<strong>Christchurch</strong><br />
International Airport Ltd<br />
Individual organisation descriptions<br />
<strong>Christchurch</strong> International Airport Ltd<br />
The international gateway to the South Island, <strong>Christchurch</strong><br />
International Airport Ltd (CIAL) hosted just over six million<br />
passengers in the <strong>2010</strong> year, arriving or departing on over 79,000<br />
aircraft servicing destinations as close as Timaru and as distant as<br />
Tokyo.<br />
Ten airlines arrive from ten international and 16 domestic airports,<br />
meaning a wide range of direct services available to the city’s<br />
travellers.<br />
The company is embarking on a major project to build a new<br />
combined domestic and international terminal. With large<br />
passenger lounges, extra seating, improved passenger flows and<br />
enhanced retail and cafe areas, the new terminal will offer a top<br />
class airport experience.<br />
The company is jointly owned by <strong>Christchurch</strong> <strong>City</strong> Holdings<br />
Limited (75 per cent) and the New Zealand Government (25 per<br />
cent). The primary activity of the company is to own and operate<br />
<strong>Christchurch</strong> International Airport efficiently and on sound<br />
business principles for the benefit of both commercial and<br />
non-commercial aviation users and in accordance with the terms of<br />
the aerodrome licence which defines standards and conditions laid<br />
down by the Ministry of Transport.<br />
Nature and scope of activities<br />
CIAL operates the airport for the benefit of commercial and<br />
non-commercial aviation users, and in accordance with its<br />
aerodrome licence.<br />
The company arranges for the design, provision and maintenance<br />
of runways, taxiways, turnouts and aprons in co-operation with the<br />
Airways Corporation of New Zealand and other airport users. It also<br />
seeks to earn revenue by providing services and facilities meeting<br />
the needs of air travellers.<br />
In addition to its primary business of serving the aviation industry<br />
and its customers, the company actively markets <strong>Christchurch</strong>,<br />
Canterbury and the South Island as a major destination for overseas<br />
visitors.<br />
Policies and objectives relating to ownership and control<br />
CIAL is considered a regional strategic asset. The <strong>Council</strong>’s policy is<br />
for it to be operated in a commercial manner, but also in a way that<br />
benefits the region as a whole.<br />
Through a Statement of Intent, the <strong>Council</strong> establishes broad<br />
parameters reflecting the public nature of this company without<br />
inhibiting proper commercial management. To continue to do this<br />
the <strong>Council</strong> has a policy of maintaining a controlling interest in this<br />
company.<br />
Key performance targets<br />
<strong>2010</strong> <strong>2010</strong><br />
Actual<br />
Target<br />
Dividend payment $10,541,000 $11,530,000<br />
Domestic passengers 4,377,773 4,332,107<br />
International passengers 1,622,641 1,588,252<br />
Financial summary<br />
Statement of financial performance for the year ended 30 June <strong>2010</strong> <strong>2010</strong> 2009<br />
Actual Actual<br />
$000s $000s<br />
Operating revenue 96,140 90,730<br />
Operating and other expenses 58,812 68,641<br />
Operating profit (loss) before tax 37,328 22,089<br />
Tax expense (benefit) 37,588 7,403<br />
Net profit (loss) for the year (260) 14,686<br />
The <strong>2010</strong> results include a one off deferred tax adjustment which has increased the tax expense, therefore reducing net profit (loss) after tax for<br />
the year.