4.78 MB - Perth Airport

PERTH AIRPORT 2004/2005 ANNUAL REPORT

ABOUT THIS REPORT This report is one of three published reports covering the company’s activities during the 2004/05 financial year.
It is structured to respond to the company’s corporate objectives, to demonstrate progress and to accurately reflect achievements during
the 2004/05 financial year. The Annual Financial Report is contained within this document and the Environment Report is published
separately. All reports can be downloaded from the Perth Airport website www.perthairport.com

CONTENTS
Chairman’s Review 2
CEO’s Report 4
Westralia Airports Corporation 7
Vision 7
Corporate Objectives 7
Group Structure 7
About Perth Airport 9
Economic Benefits of Perth Airport 9
Perth Airport Facilities 9
Board of Directors 10
Corporate Structure 12
Executive Committee 12
Highlights 2004/2005 13
Passenger Statistics 2004/2005 14
Financial Statistics 2004/2005 17
Financial Results Summary 19
Cash Flow Summary 21
A World Class Airport 23
Corporate 23
Airport 27
Retail & Ground Transport 33
Planning 35
Environment 37
Property 39
1

REVIEW
CHAIRMAN’S REVIEW
I am pleased to report that Westralia Airports Corporation (WAC) has experienced healthy growth and consolidation throughout all
its activities in 2004/2005.
Passenger numbers have continued to grow both internationally and domestically with a record number of Western Australian’s
travelling abroad. Travel into Western Australia has been stimulated by the ongoing availability of low cost international and domestic
airfares, with airlines competing vigorously for passenger growth. Also, the strong Australian dollar and the buoyant local economy
have encouraged outbound international travel by Western Australians.
In 2004/2005, WAC achieved an operating profit before tax of $0.34 million, a result impacted by the decision of the Board to write
off future commitments arising under a contractual agreement entered into during the original acquisition of the airport lease in 1997.
This resulted in a one-off expense of $6 million.
During the year, WAC also realised $12 million of revenue (with associated costs of $11.1 million) in relation to the transfer of
properties to the Perth Airport Property Trust (PAPT). Westralia Airports Corporation also realised further property income of $5.7
million (with cost of sales of $1.9 million) associated with capital leases of non-aeronautical land, compared to revenues of $9.7 million
and cost of sales of $2.9 million in the previous year.
Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was $76.2 million, an increase of 3%.
Total revenue increased by 20.8% to $139.8 million. This included the transfer of properties to PAPT and capital leases.
Total expenses increased by 52.5% to $63.6 million including the one-off items. Excluding the one-off expense items, underlying
expenses increased by 11.6%, largely due to increases in security costs arising from Federal Government aviation security
requirements. These costs are, for the most part, passed through to airlines. These recoveries account for part of the increase in
aeronautical revenues.
Record passenger numbers, more than 6.6 million for the year, contributed strongly to the growth in aeronautical, ground transport
and retail revenues, which rose 13.7%, 20.7% and 13.9% respectively.
Total property revenue grew by 39%, boosted by the inclusion of revenue from the PAPT transfer. Excluding the recognition of
revenues from the PAPT transfer during the year, and adjusting for the capital leases in the current and previous years, total underlying
property revenues of $18.6 million increased by 13.4%.
This underlying growth in property revenue reflected the continuation of the successful implementation of the company’s property
development strategy, which stimulated considerable interest in the airport estate.
Perth Airport Property Trust was finalised during 2004/2005 to facilitate funding and development of non-aviation property at Perth
Airport. It was capitalised with two existing properties. These, along with other WAC properties, will be used as collateral by PAPT to
fund further property development.
2

During the year, WAC undertook the largest capital works program since assuming ownership of the airport in 1997. Total capital
expenditure in 2004/2005 was $51.7 million across a range of projects including:
An expansion of Terminal 1 (International) and installation of an automated baggage processing system;
Provision of infrastructure for the development of a commercial subdivision in Precinct 2; and
Upgrade of Runway 06/24 to accommodate regular operations of wide-bodied aircraft, including the recently launched Airbus 380.
A further $46 million of capital expenditure is earmarked for 2005/2006 to further improve aviation facilities and the development of
the airport’s property estate.
To assist in funding the large capital works program, a $20 million convertible note issue was completed.
The company maintained high levels of liquidity throughout the year and together with the strong cash flows generated from
operations, maintains strong senior debt credit qualities and coverage ratios.
During the year, the company invested significantly in preparing for the introduction of international accounting standards in 2006.
The changes required by the new standards are expected to have a significant impact on the company’s financial statements. Further
details are provided in the notes to the financial statements accompanying this report.
On behalf of the Board and all shareholders, I would like to pay tribute to the substantial contribution made by Michael Fitzpatrick to
WAC. Michael has recently resigned as a Director. As a founding Director of WAC, Michael’s guidance, skill and determination have
been major factors in the success of the company to this point.
The Board also thanks management and staff for their wonderful efforts and support during the year.
David Crawford
Chairman - Westralia Airports Corporation
3

CHIEF EXECUTIVE OFFICER’S REPORT
The financial year ending 30 June 2005 saw WAC complete its eighth year as the operator of Perth Airport. It was the company’s most
successful year, with record passenger growth, strong retail sales, increased revenues from car parks and other ground transport
businesses and rising demand for airport sites from a range of businesses.
The airport welcomed and farewelled a record 6.6 million passengers with domestic activity up 9.5% and international growth of 12%.
Airlines have responded to increased demand by adding a raft of new air services for travellers on both international and domestic routes.
International travellers benefited from the introduction of Australian Airlines services to Bali; increased flights to Bali by Garuda
Airlines; daily flights to New Zealand by Air New Zealand; increased services to Jakarta by Qantas and increased services to Singapore
by Singapore Airlines.
On the domestic front, Qantas increased inbound services to Perth, while Virgin Blue added services on the Perth - Broome route.
Perth Airport Terminals were re-named in March 2005 to reflect the naming convention observed by other multi-terminal airports
throughout the world. The International Terminal is now known as Terminal 1, Qantas Domestic is Terminal 2, and the Multi-User
Domestic Terminal is now Terminal 3. Terminal 1 and Terminal 3, which are operated by WAC, are undergoing upgrades to improve
the passenger amenity and efficiency.
Parking facilities at Perth Airport have been impacted by the upturn in air travel. Parking capacity at Terminals 2 and 3 was increased
by 70%, with further expansions currently underway. Much of the growth in parking has come from long-term parking, assisted by
WAC’s popular $2 per day rate (available after day three for domestic passengers and after day two for international passengers).
Demand for retail services has been boosted by increased passenger traffic and a variety of additional shops and services that have
been introduced.
Australasia’s first Relay and Hub Convenience store opened in May 2005 to provide essential items for domestic travellers
returning home.
In the 2005/2006 reporting period domestic passengers will benefit from the construction of a Dome Café, located in the forecourt
of Terminal 3. The café is scheduled to open in September 2005. It will cover 350 square metres, making it one of the largest Dome
Cafés in WA. It will feature boutique beers, an extensive wine and food menu and alfresco dining.
The WAC property group has further consolidated its status as a fast growing property developer and lessor of industrial property
through the completion of a number of significant projects, with airport sites increasingly being seen as the location of choice for
many Western Australian companies, particularly those seeking large lot sizes.
The $80 million, 65,000 square metre Woolworths Distribution Centre is a major non-aviation initiative and anchors the 44-hectare
warehouse and distribution park on Horrie Miller Drive.
The Honourable Warren Truss, former Federal Minister for Agriculture, Fisheries and Forestry, opened the new Australian Quarantine
and Inspection Service (AQIS) facility at Perth Airport, in February 2005.
Perth Airport management is committed to its conservation program and implemented a number of initiatives during the year, in line
with the commitments stated in the Environment Strategy 2004.
4

An agreement with Conservation Volunteers Australian (CVA) resulted in a variety of environmental activities taking place at Perth
Airport in 2004/2005. These included plantings of native wetland and bushland species, erosion control, seed collection and the
erection of signs, fencing and vehicle control bollards.
Aviation security continued to be a significant operational issue for Perth Airport in 2004/2005. Perth Airport is committed to providing
a safe and secure environment for all airport users. To this end management continues to work closely with Government and industry
participants to ensure appropriate security measures are in place.
Perth Airport plays an important role in the State’s tourism industry and participated in a number of Government and industry
initiatives to increase air services into Western Australia. Westralia Airports Corporation was once again the major sponsor of the
Western Australian Tourism Awards.
In summary, 2004/2005 has been a remarkable year at Perth Airport during which many successful projects and initiatives were
commenced and completed.
I am privileged to work with skilful and committed management and staff whose efforts are much appreciated.
I would also like to express my gratitude to Michael Fitzpatrick for his outstanding service to the company as a founding
Board Member.
Graham Muir
Chief Executive Officer - Westralia Airports Corporation
5

WAC
WESTRALIA AIRPORTS CORPORATION
The 2004/2005 financial year was the eighth for Westralia Airports Corporation (WAC) as the owner and operator of Perth Airport.
Principal activities include:
Airport operations, aeronautical infrastructure development and maintenance and air service development
Property management and development
Provision and operation of ground transport facilities
Provision of retail facilities.
VISION
A world class airport and a great place to do business
CORPORATE OBJECTIVES
The corporate objective central to Perth Airport’s business planning is:
To operate and develop Perth Airport to grow value for its shareholders and to satisfy its stakeholders.
Underpinning this objective are seven corporate strategies. These are to:
1. Operate and develop the airport responsibly, safely and securely.
2. Deploy capital and other resources efficiently and effectively.
3. Work with airlines, the travel industry and Governments to grow air services.
4. Understand our customers and deliver appropriate retail and other services profitably.
5. Develop property infrastructure and secure tenants.
6. Develop high performing individuals and teamwork.
7. Communicate effectively with all stakeholders.
GROUP STRUCTURE
Westralia Airports Corporation is a wholly owned subsidiary of Airstralia Development Group (ADG).
Airstralia Development Group’s shareholders are:
HFM (a) 24.88%
HFM (b) 3.57%
UOA (c) 32.01%
UOA (d) 14.50%
BAAA (e) 15.00%
WES (f) 5.00%
NNL (g) 3.17%
CFI (h) 1.87%
100.00%
(a) Hastings Funds Management Ltd (HFM) is the single responsible entity for the Australian Infrastructure Fund.
(b) HFM is also the trustee for The Infrastructure Fund.
(c) Utilities of Australia Pty Ltd (UOA) is the trustee for the Utilities Trust of Australia.
(d) Utilities of Australia Pty Ltd (UOA) is the trustee for the Perth Airport Property Fund.
(e) BAA Australia Pty Ltd (BAAA).
(f) Westscheme Pty Ltd (WES) is the trustee for Westscheme.
(g) National Nominees Limited (NNL) is the nominee for the Officers Superannuation Fund.
(h) Colonial First State Private Capital Ltd (CFI)
In addition to providing airport management expertise at Board level, BAA has a technical services agreement with WAC. BAA provides
international airport business expertise to WAC in a range of areas to assist in the operation and development of the airport.
7

ABOUT
ABOUT PERTH AIRPORT
Strategically located in relation to South East Asia, Europe and Africa, Perth Airport is Australia’s fourth largest in terms of
passenger traffic and is the winner of the Australian Airports Association (AAA) award for Australian Major Airport of the Year for
2003 and 2004.
Only 12 kilometres from the heart of Perth, the capital of Western Australia, the airport is part of a 2,105-hectare estate with sufficient
capacity to expand and meet the projected commercial aviation demand of the 21st century.
Perth Airport is the premier international, domestic and regional gateway to this exciting State for commercial aircraft, freight and
passengers; and plays an important role in Western Australia’s economy.
Westralia Airports Corporation work closely with the tourism industry to develop tourism in Western Australia and is a member of the
Perth Convention Bureau, the Pacific Asia Travel Association and a gold member of the Tourism Council of Western Australia.
Westralia Airports Corporation is closely involved with Tourism WA in promoting the State as an attractive destination for overseas
visitors, with a strong focus on working with airlines to increase the number of passengers travelling to Western Australia.
ECONOMIC BENEFITS OF PERTH AIRPORT
Economic Research Associates Pty Ltd studied the economic significance of Perth Airport to Western Australia’s economy.
The report estimated that all airport associated activities generated approximately $2.2 billion a year, or 3% of the Gross State Product
(GSP) for Western Australia.
Direct employment is estimated at 5,960 jobs, with $342 million in direct salaries and wages. In total, Perth Airport provides around
16,800 jobs for Western Australians, generating approximately $850 million in wages.
PERTH AIRPORT FACILITIES
Perth Airport’s primary aviation facilities include:
A two runway system able to handle both existing and planned intercontinental commercial aircraft
An International Terminal building with nine operational aircraft bays, five of which have aerobridges
A Multi-User Domestic Terminal complex with three freighter positions and a total of 22 operational aircraft bays,
five of which have aerobridges
Air freight, aviation fuel and in-flight catering facilities
Air traffic control facilities
24-hour rescue and fire fighting facilities.
9

BOARD OF DIRECTORS
Mr David Crawford Mr Michael Fitzpatrick Mr Stuart Condie Dr Allan Griffin Mr Dominic Helmsley
Mr David Crawford (Chairman) BCom (Hons) MA (Pol Sc)
Appointed as Non-Executive Chairperson to the Board in April 2000. Mr David Crawford is also the current Chairman of the Export
Grains Centre Ltd, Chairman of Supersoftware International Pty Ltd, Chairman of the Advisory Board Curtin University Graduate
School of Business, Member of WA Advisory Board for Transfield Pty Ltd, and Acting President of the National Competition Council.
Mr Michael Fitzpatrick BEng (Hons), BA (Hons) Oxon
Mr Michael Fitzpatrick is the Managing Director and founder of Hastings Funds Management Limited (Hastings). Prior to establishing
Hastings in 1994, Mr Fitzpatrick was a Director of CS First Boston, and is now a member of CS First Boston Advisory Board. He is a
Director of a number of Hastings managed investments, including Pacific Hydro Limited, Utilities of Australia Pty Ltd, and Port of
Portland Holdings Pty Ltd. Mr Fitzpatrick was appointed to the Australian Football League Commission in August 2003. Mr Fitzpatrick
resigned from the WAC Board on 31 August 2005.
Mr Stuart Condie MA (Hons) Geography, Cambridge University, MBA, Finance, City University
Mr Stuart Condie is currently Planning & Surface Access Director at BAA plc as well as a Non-Executive Director of Heathrow Express
Operating Company, BAA plc’s Pension Fund and an alternate Director of Northern Territory Airports. Since joining BAA in 1985, Mr
Condie has held a variety of management posts including Corporate Treasurer, Head of International Strategy, Head of IT at Gatwick
and Director of Economics & Regulation.
Dr Allan Griffin PhD, FRMIT (Management), Grad Dip Banking and Finance, Grad Dip Applied Finance and Investment FSIA, FAICD
Dr Allan Griffin has been a Non-Executive Director since 1997 and is Chairman of WAC’s Audit Committee. Dr Griffin is the Chairman
of Radiata Plantations Ltd and a Non-Executive Director of First Samuel Ltd. He was the Director General of Conservation and
Environment in Victoria, held a number of other senior executive positions in Victoria’s public sector, was a trustee of a large
superannuation fund and has been a consultant to the World Bank.
Mr Dominic Helmsley BSc Civil Engineering Southampton University, Corporate Finance LBS
Mr Dominic Helmsley is Business Development Director for BAA International. He joined BAA International in 1996 and has worked
throughout Asia, in the United States, Latin America and the Middle East, pursuing potential opportunities for BAA International.
10

Mr Peter Taylor Mr Ron Doubikin Mr Duncan Taylor Mr Lyndon Rowe Mr Alistair Barker
Mr Peter Taylor BBus (Accty) Distinction, ICA
Peter Taylor is a Director of Infrastructure of Hastings Funds Management Limited. Mr Taylor joined Hastings in March 2000 and is
Chief Operating Officer of Utilities Trust of Australia (UTA) and Responsible Executive of the Infrastructure Fund (formerly Queensland
Infrastructure Fund). Mr Taylor was appointed as a Director of Perth Airport in July 2000. In addition he is also a Director of Queensland
Airports Limited, Mid Kent Water Limited (United Kingdom) and an Alternate Director of Interlink Roads.
Mr Ron Doubikin
Mr Ron Doubikin joined the WAC Board as a Non-Executive Director in August 2001. Mr Doubikin is the owner and Chief Executive
Officer of the Doubikin Group of Companies with interests in property, self-storage and development. He is a member of the
Australian Building Code Board and past President of the Master Builders Association Inc. He is also a Director of Utilities Trust of
Australia, Construction and Buildings Unions Superannuation, and Chairman of Koala Self Storage Pty Ltd.
Mr Duncan Taylor BA Com - ANU / MBA - Macquarie Graduate School of Management
Mr Duncan Taylor joined Colonial First State Infrastructure as a Senior Portfolio Manager in 2003. He has investment initiation, asset
management and infrastructure portfolio responsibilities within the infrastructure investment group. He was involved in the
transaction to acquire an interest in Perth Airport for Colonial First State clients.
Prior to joining the Colonial First State Infrastructure Investment team, Mr Taylor had over eight years private equity experience at
Colonial First State Private Equity. Mr Taylor is a Member of the Institute of Chartered Accountants.
Mr Lyndon Rowe BEc (Hons) - University of Adelaide
Mr Lyndon Rowe is Executive Chairman of the WA Economic Regulation Authority.
He is the former Chief Executive Office of the Chamber of Commerce and Industry of Western Australia, a position he held from
January 1992. Prior to this Mr Rowe was Executive Director of the Confederation of Western Australian Industry (CWAI). Originally
from South Australia, Mr Rowe came to Perth to teach economics at the Western Australian Institute of Technology (now Curtin
University of Technology) and then joined the CWAI as its Principal Economist in 1978.
Mr Alistair Barker BCom (Hons) Melbourne, AIAA
Appointed to the Board in August 2005, Mr Alistair Barker is an Investment Manager with Hastings Funds Management Limited.
Mr Barker is a member of the Audit Committee. Prior to joining Hastings in 2002, Mr Barker worked with National Asset Management
in the infrastructure investment team. Mr Barker is an Associate of the Institute of Actuaries of Australia.
11

CORPORATE STRUCTURE
Graham Muir Richard Gates David Price Wayne Ticehurst Neil Kidd David Raad
EXECUTIVE COMMITTEE
The company’s Executive Committee comprises:
Chief Executive Officer (CEO) - Graham Muir
General Manager Airport - Richard Gates
General Manager Corporate Services - David Price
Chief Financial Officer - Wayne Ticehurst
General Manager Property - Neil Kidd
General Manager Commercial - David Raad
The Executive Committee is responsible for the development and implementation of a Board approved business plan and risk
management strategy, to achieve the company’s corporate objectives.
Chief Executive
Officer
Corporate
Services
Finance Property Commercial Airport
Human
Resources
Corporate
Communications
Information
Technology
Design Operations
Safety Security
Engineering &
Maintenance
Environment
Planning
12

HIGHLIGHTS
HIGHLIGHTS 2004/2005
Profitability maintained
Perth Airport won Australian Airports Association Major Airport of the Year, for the second successive year
Two new airlines commenced service
Increased air services by Singapore Airlines, Cathay Pacific, Air New Zealand and Garuda Indonesia
Master Plan 2004 gained approval
Environmental Consultative Group formed
Conservation Volunteers Australia program implemented
Commencement of cross-runway reconstruction
Duty Free allowance doubled
New Quarantine facility opened
New IT business systems implemented across the organisation
First Relay and Hub Convenience store in Australasia opened at Perth Airport
Three new car parks opened
Woolworths established regional Distribution Centre on airport site
Several sites leased to non-aviation tenants.
13

PASSENGER STATISTICS 2004/2005
FIVE YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC PASSENGERS Source WAC.
8000000
7000000
6000000
5000000
04/05
03/04
02/03
01/02
00/01
International
Passengers
2000-01
2001-02
2002-03
2003-04
2004-05
1,660,275
1,651,069
1,612,508
1,766,538
1,977,262
Change
64,574 4.0%
-9,206 -0.6%
-38,561 -2.3%
154,030 9.6%
210,724 11.9%
4000000
3000000
2000000
1000000
0
International Passengers
Domestic Passengers
Total Passengers
2000-01
2001-02
2002-03
2003-04
2004-05
Domestic
Passengers
3,560,565
3,219,901
3,720,155
4,271,810
4,677,705
Change
174,740 5.2%
-340,664 -9.6%
500,254 15.5%
551,655 14.8%
405,895 9.5%
FIVE YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC MOVEMENTS Source WAC.
60000
50000
40000
04/05
03/04
02/03
01/02
00/01
International
Movements
2000-01
2001-02
2002-03
2003-04
2004-05
10,030
8,792
8,672
9,356
10,556
Change
30 0.3%
-1,238 -12.3%
-120 -1.4%
684 7.9%
1,200 12.8%
30000
Domestic
Movements
Change
20000
10000
0
International Movements
(Includes freight)
Domestic Movements
Total Movements
2000-01
2001-02
2002-03
2003-04
2004-05
47,566
39,842
42,978
43,642
45,562
-256
-7,724
3,136
664
1,920
-0.5%
-16.2%
7.9%
1.5%
4.4%
FIVE YEAR COMPARISON FOR INTERNATIONAL AND DOMESTIC TONNES LANDED Source WAC.
3000000
2500000
2000000
04/05
03/04
02/03
01/02
00/01
International
Tonnes Landed
2000-01
2001-02
2002-03
2003-04
2004-05
1,129,723
935,285
965,388
1,005,217
1,080,716
Change
-101,809 -8.3%
-194,438 -17.2%
30,103 3.2%
39,829 4.1%
75,499 7.5%
1500000
Domestic
Tonnes Landed
Change
1000000
500000
0
International Tonnes Landed
(Includes freight)
Domestic Tonnes Landed
Total Tonnes Landed
2000-01
2001-02
2002-03
2003-04
2004-05
1,419,179
1,346,131
1,418,302
1,487,576
1,597,355
53,453
-73,048
72,171
69,274
109,779
3.9%
-5.1%
5.4%
4.9%
7.4%
Definitions: International passenger: A passenger travelling between origin and destination airports with one of those airports not within Australia.
Domestic Passenger: A passenger travelling between two Australian airports on an aircraft with Maximum Take Off Weight (MTOW) of greater than 20,000
kilograms. Aircraft Movements: A landing or take off of an aircraft. Excludes general aviation. Landed Tonnes: Represents the MTOW of a landed aircraft
subject to WAC aeronautical charges. Excludes general aviation. RPT: Regular Public Transport represents passenger services operating to a published schedule.
14

TOTAL BREAK-UP IN DOMESTIC AND
INTERNATIONAL PASSENGERS FOR PERTH
AIRPORT FOR 2004/05 Source WAC.
TOTAL BREAK-UP IN INTERNATIONAL
ARRIVAL AND DEPARTURE PASSENGERS FOR
PERTH AIRPORT FOR 2004/05 Source WAC.
International Total 30%
Domestic Total 70%
International Arrivals 51%
International Departures 49%
TOTAL INTERNATIONAL PASSENGER ARRIVALS BY
AIRLINE FOR PERTH AIRPORT FOR 2004/05
Source: Department of Immigration, Multicultural and Indigenous Affairs.
Qantas Airways 25%
Singapore Airlines 23%
Malaysia Airline System 11%
Emirates 8%
Air New Zealand 5%
Garuda Indonesia 5%
South African Airways 5%
Air Paradise International 4%
Thai Airways International 4%
Cathay Pacific 4%
Royal Brunei 2%
Valuair 2%
Australian Airlines 1%
Air Mauritius 1%
TOTAL INTERNATIONAL PASSENGER ARRIVALS BY
REGION OF NATIONALITY FOR PERTH AIRPORT FOR
2004/05 Source: Department of Immigration, Multicultural and Indigenous Affairs.
Australia 41%
UK 16%
South East Asia 17%
Europe & Former USSR 7%
North East Asia 6%
New Zealand 4%
Africa 3%
North America 2%
Middle East 0.3%
South/Central America 0.1%
Other 4%
FIVE YEAR COMPARISON FOR AUSTRALIAN
NATIONALITY PASSENGER DEPARTURES FOR
PERTH AIRPORT
Source: Department of Immigration, Multicultural and Indigenous Affairs.
FIVE YEAR COMPARISON FOR TOP TEN
INTERNATIONAL PASSENGER ARRIVALS BY
NATIONALITY FOR PERTH AIRPORT
Source: Department of Immigration, Multicultural and Indigenous Affairs.
500000
170000
400000
153000
136000
119000
FY 04/05
FY 03/04
FY 02/03
FY 01/02
FY 00/01
300000
102000
85000
200000
68000
51000
100000
34000
17000
0
2000/01
2001/02
2002/03
2003/04
2004/05
0
UK
Singapore Malaysia
Japan
New
Zealand
Indonesia
South
Africa
Germany
USA
Thailand
15

AIRLINE CAPACITY REPORT INTO PERTH FROM LAST PORT - TWO YEAR COMPARISON Source WAC.
Port Airline 2004/05 2004/05 2003/04 2003/04
Flights Available Seats Flights Available Seats
Auckland Air New Zealand 282 65,830 220 51,486
Bangkok Thai Airways 207 63,566 175 54,899
Brunei Royal Brunei Airlines 157 30,098 159 30,935
Christmas Island National Jet 74 4,594 70 4,050
Cocos Island National Jet 54 3,364 47 2,708
Denpasar Air Paradise 296 56,019 260 48,630
Australian Airlines 59 15,747 - -
Garuda Indonesia 508 68,727 374 56,782
Qantas 55 7,761 103 14,117
Dubai Emirates 365 96,332 365 108,996
Hong Kong Cathay Pacific 170 52,852 157 48,833
Qantas 156 49,018 41 9,380
Jakarta Qantas 166 29,994 97 21,453
Johannesburg Qantas - - 12 5,184
South African Airways 263 63,917 258 70,784
Kuala Lumpur Malaysia Airlines 365 129,732 487 146,171
Kuching Malaysia Airlines 104 30,704 60 17,456
Mauritius Air Mauritius 52 9,535 51 11,265
Narita Qantas 157 41,175 156 35,724
Phuket Thai Airways 1 305 34 10,646
Singapore Qantas 728 219,202 731 212,402
Singapore Airlines 852 275,466 784 253,198
Valuair 211 33,080 - -
TOTAL 5,282 1,347,018 4,641 1,215,099
16

FINANCIAL STATISTICS 2004/2005
FIVE YEAR COMPARISON FOR OPERATING REVENUE BY SOURCE
Source WAC.
OPERATING REVENUES FOR 2004/05
Source WAC.
50
40
30
20
10
0
Aeronautical
Trading
Ground
Transport
Property
Capital
Land Leases
and Sale of
Building
Recharge
Other
Actual 04/05 ($m) 49.6 24.6 19.2 18.3 18 9.1 1
Actual 03/04 ($m) 43.6 21.6 15.9 16.4 9.7 7.3 1.2
Actual 02/03 ($m) 37.3 20.6 13.7 14.9 0 6.7 0.8
Actual 01/02 ($m) 19.8 19.8 12.1 16.6 0 6.8 1
Actual 00/01 ($m) 20.4 17.2 11.5 14.6 5.2 6.8 1.1
Aeronautical charges 35.5%
Commercial trading 17.6%
Ground Transport Services 13.7%
Property 13.1%
Capital land leases 12.8%
Recharge property service costs 6.5%
Other 0.7%
FIVE YEAR COMPARISON FOR EXPENSES BY SOURCE
Source WAC.
EXPENSES FOR 2004/05
Source WAC.
25
20
15
10
5
0
Labour and
Overheads
Services and
Utilities
Cost of Sale -
Capital Land
Leases and
Sale Buildings
General
Administration
Leasing and
Maintenance
Actual 04/05 ($m) 11.8 20.8 13.0 15.0 2.9
Actual 03/04 ($m) 11.1 16.7 2.9 8.3 2.6
Actual 02/03 ($m) 9.2 14.7 0 8.6 2.4
Actual 01/02 ($m) 8.2 12.8 0 6.5 2
Actual 00/01 ($m) 7.2 13.3 0 4.4 2.3
Employee expenses 8.4%
Services and utilities 14.8%
Cost of sale capital lease & sale of buildings 9.3%
General administration and other 10.7%
Leasing and maintenance 2.1%
Depreciation and amortisation 12.0%
Primary debt interest 27.5%
Secondary debt interest 14.7%
Other debt interest 0.1%
Other borrowing expenses 0.4%
17

FINANCIAL
FINANCIAL RESULTS SUMMARY
STATEMENT OF FINANCIAL PERFORMANCE FOR THE FINANCIAL YEAR ENDED 30 JUNE 2005
Operating Revenues
Actual Actual Actual Actual Actual
04/05 03/04 02/03 01/02 00/01
$m $m $m $m $m
Aeronautical charges 49.6 43.6 37.3 19.8 20.4
Commercial trading 24.6 21.6 20.6 19.8 17.2
Ground Transport Services 19.2 15.9 13.7 12.1 11.5
Property 18.3 16.4 14.9 16.6 14.6
Capital land leases & sale of buildings 18.0 9.7 0.0 0.0 5.2
Recharge property service costs 9.1 7.3 6.7 6.8 6.8
Other 1.0 1.3 0.8 1.0 1.1
Total Operating Revenues 139.8 115.7 94.0 76.1 76.8
Operating Expenses
Employee expenses 11.8 11.1 9.2 8.2 7.2
Services and utilities 20.8 16.7 14.7 12.8 13.3
Cost of sale - Capital land leases & sale buildings 13.0 2.9 0 0 0
General administration and other 15.1 8.3 8.6 6.5 4.4
Leasing and maintenance 2.9 2.6 2.4 2.0 2.3
Total Operating Expenses 63.6 41.7 34.9 29.5 27.2
EBITDA 76.2 74.0 59.1 46.6 49.6
Non Operating Revenues
Sale of infrastructure, plant and equipment 0.0 0.0 0.0 0.1 0.1
Interest revenue 1.0 0.7 0.6 0.4 0.5
Total Non Operating Revenues 1.0 0.7 0.6 0.5 0.6
Non Operating Expenses
Depreciation and amortisation 16.8 15.4 15.2 15.7 15.2
Interest expense
- Primary debt holders 38.7 38.0 38.4 38.8 37.8
- Secondary debt holders 20.6 18.2 13.0 0.3 17.0
- Other 0.2 0.2
- Other borrowing expenses 0.6 0.6 0.5 0.5 0.6
Total Non Operating Expenses 76.9 72.4 67.1 55.3 70.6
Operating (Loss/Profit) Before Income Tax 0.3 2.3 -7.4 -8.2 -20.4
19

CASHFLOW
CASHFLOW SUMMARY
CASHFLOW STATEMENT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2005
Cashflow From Operating Activities
Actual Actual
04/05 03/04
$m $m
Receipts from customers 137.4 120.6
Payments to suppliers and employees -68.4 -52.2
Interest received 0.8 0.7
Net Cash Inflow From Operating Activities 69.8 69.1
Cashflow From Investing Activities
Proceeds from sale of infrastructure, plant and equipment 5.8 0.1
Payments transferred (to)/from cash reserve accounts -0.8 -0.7
Payments for infrastructure, plant and equipment -45.7 -22.9
Payments for other non-current assets -2.0 -0.1
Net Cash Outflow from investing activities -42.7 -23.6
Cashflow From Financing Activites
Proceeds from borrowings 48.6 14.5
Repayment of borrowings -16.5 -7.2
Borrowing costs: Primary debt holders -38.7 -42.5
Subordinated debt holders -20.7 -14.3
Net Cash Outflow from Financing Activities -27.3 -49.5
Net Increase/(Decrease) in Cash Held -0.2 -4.0
Effect of exchange rate on cash 0.0 0.0
Cash at Beginning of Financial Year 8.8 12.9
Cash at End of Financial Year 8.6 8.9
FIVE YEAR COMPARISON FOR CAPITAL EXPENDITURE. Source WAC.
50
40
30
20
10
0
2000/01
2001/02
2002/03
2003/04
2004/05
21

BUSINESS
A WORLD CLASS AIRPORT AND
A GREAT PLACE TO DO BUSINESS
CORPORATE
PROFIT MAINTAINED
Perth Airport enjoyed growth throughout all aspects of its aviation and non-aviation activities in 2004/2005.
Reported Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) was $76.2 million, an increase of 3%.
Underlying EBITDA increased by $11.7 million to $78.8 million, up 17.4%.
PERTH WINS AUSTRALIAN MAJOR AIRPORT AGAIN
In November 2004, Perth Airport won the Australian Airports Association (AAA) Australian Major Airport of the Year Award for the
second consecutive year.
The AAA presented the award based on outstanding achievements that included:
New financial, property management and payroll systems as part of a $2.1 million Business System Upgrade
Realised revenues of $9.7 million from long-term leases to Woolworths and Fleetwood
Construction of $1.4 million driver training centre
A new Retail Precinct at the International Terminal Building
Completion of the Domestic Terminal forecourt works
An accident free year for all staff at Perth Airport
Extension of Taxi-way Sierra to provide a second taxi-way to the International Terminal
Two new stand-off 747 bays at the International Terminal
A major upgrade of Taxi-way Bravo to facilitate wide-bodied aircraft access to the Domestic Terminal Precinct.
INDUSTRY PARTICIPATION
Perth Airport continued to support a number of industry and local community activities.
Of high priority is the continued support of the development of tourism in the State. This was evidenced by the continued gold
membership of the Tourism Council WA and ongoing major sponsorship of the Western Australian Tourism Awards.
Management worked closely with Government and industry colleagues on route development - aiming to add new airlines and
encourage existing airlines to increase services to Perth.
Perth Airport continued its commitment to key stakeholders during 2004/2005 in strategic planning; and management held positions
on committees and offered support to the following groups:
AAA National Environment Committee
Pacific Asia Travel Association
AAA WA Division
Parking Association of Australia
Airline Consultative Committee
Perth Airport Municipalities Group (PAMG)
Australian Airports Association (AAA)
Perth Airport Noise Management Strategy Committee
Belmont Business Advisory Group (BBAG)
Perth Airport Taxi Industry Consultative Working Committee
Capital Cities Airport Group
Perth Convention Bureau
Chamber of Commerce and Industry (CCI)
Property Council of Australia
Environmental Consultative Group (ECG)
Southern Cross University Advisory Board
Industry Training Council - Aviation
Taxi Customers Advisory Forum
Institution of Engineers, Australia (IEA) Transport Panel
Tourism and Transport Forum
International Advisory Committee
Tourism Council WA
National Aviation Facilitation Panel
Transport Freight Network Review
National Aviation Security Industry Consultative Committee
23

COMMUNITY SUPPORT
Many community groups received assistance from WAC in 2004/2005. Projects included the purchase of an air-conditioning unit for
the local primary school, sponsorship of the Swan Districts Football Club and the Belmont Small Business Awards.
Throughout the 2004/2005 financial year, WAC maintained a high level of community support, making contributions to the following groups:
Australasian Aviation Ground Safety Council
Australian Indigenous Tourism Conference 2005
Belmont Business Enterprise Centre
Belmont Cricket Club
Busby Investments Annual Christmas Party charity raffle
Cuddles Cloverdale Child Care Centre
Garuda Indonesia Golf Classic
Leukaemia Foundation - 2005 Special Children’s Christmas Party
Local Chambers of Commerce and Industry
PATA Foundation Tsunami Recovery Fund
Perth Convention Bureau
Perth Saints Soccer Club
Police and Citizen’s Youth Clubs
Qantas Charity Golf Day
Redcliffe Primary School
Special Needs Children’s Xmas Party
Swan Districts Baseball Club
Swan Districts Football Club
Swan TAFE
Taxi Council of Western Australia
The UWA Perth International Arts Festival 2005
The Western Australian Corporate Cup
Tourism Council WA
Western Australia’s Greatest Ever Sports Stars
Western Australian Tourism Awards
Youth Focus - Ride for Youth 2005
CONSULTANCY SERVICES
In 2004/2005 Westralia Airports Corporation continued to offer a wide range of expertise in airport planning, construction, operations
and maintenance and a number of consultancy projects continued during the financial year including:
Perth tenant aircraft parking design and airport marking services
Design, recording services, Obstacle Limitation Surfaces (OLS), Security and Australian Noise Exposure Forecast (ANEF) for Broome
Produced an ANEF and Australian Noise Exposure Index (ANEI) for the Jandakot Airport Master Plan and Geraldton Airport
Reviewed Procedures for Air Navigation Services - Aircraft Operations (PANS OPS) and Obstacle Limitation Surfaces (OLS) for
Jandakot Airport and Argyle Aerodrome
Reviewed OLS for Geraldton Airport
Provided an on-site Reporting Officer for daily activities at Argyle Aerodrome
Reviewed of PANS OPS at Argyle Aerodrome.
EMPLOYEE LEVELS
Perth Airport employee levels increased to 134 this year due to the increasing operational requirements of the company.
EMPLOYEE ASSISTANCE PROGRAM
Perth Airport continued with its employee assistance program aimed at supporting staff and their families in personal and work related
matters. An on-site employee assistance provider visits the work place each week and also provides after hours services as required.
During 2004/2005, only a minimal number of employees were concerned with issues that were directly work related.
OCCUPATIONAL HEALTH AND SAFETY
A safe and healthy working environment continued to be provided for all staff through an active Occupational Safety and Health
Committee, and well developed policies and procedures.
The committee meets every two months and comprises management and representatives elected by staff, who are trained in
accordance with the occupational safety and health legislation.
During 2004/2005 there were no lost time injuries.
25

AIRPORT
PASSENGER NUMBERS RISE
Evidence that Perth continues to benefit from the strong Australian and Western Australian economy is evident in air passenger numbers.
Positive results continued unabated for the entire year as Perth Airport topped record after record, including 30 consecutive record
months of domestic growth.
Domestic and international passenger traffic grew by 9% and 12% respectively for the year; final figures confirmed a total of more
than six million passengers for 2004/2005.
NEW AIR SERVICES
Strong demand has created a raft of new air services during 2004/2005.
International travellers benefited from the introduction of Australian Airlines services to Bali;
increased flights to Bali by Garuda Airlines; daily flights to New Zealand by Air New Zealand; increased services to Jakarta by Qantas;
increased services to Singapore by Singapore Airlines and the new daily Valuair services to Singapore.
On the domestic front Qantas increased services to Perth while Virgin Blue added flights to Broome.
TERMINALS RENUMBERED
From March 2005 Perth Airport’s various terminal buildings were renamed to make life easier for passengers and business partners.
By using a simple numbering system for each terminal the airport is now consistent with the convention used by other multi-terminal
airports around the world.
The International Terminal Building was renamed Terminal 1, the Qantas Domestic Terminal, Terminal 2, and the Multi-User Domestic
Terminal, Terminal 3. To effect changes in the operational business the International Terminal Control System (ITCC) was renamed the
Airport Control Centre (ACC).
TERMINAL 3 REFURBISHMENT
Work is currently underway on an extensive upgrade of facilities in Terminal 3 - the former Ansett facility opened in the late 1980’s.
The first phase of the works, the enlargement and upgrading of the ground floor security screening facility was completed in January 2005.
The next stage will be to consolidate the departure lounge, to the first floor of Terminal 3; it is currently split over the ground and first
floors. This will involve the expansion of the existing lounge, installation of new toilet facilities and construction of three additional
departure gates on the first floor.
In September 2005, two new gates will be installed, to provide convenient undercover access to aircraft.
RELOCATION OF SECURITY SCREENING POINT - TERMINAL 1
With the growth in passenger traffic, the size of the existing security screening point proved too small to accommodate passengers
during peak periods.
By constructing a new facility in under-utilised space on the first floor of the Terminal, the new area will feature additional security
screening facilities in a significantly enlarged area.
Benefiting from extensive natural light with a more welcoming feel, the new search point is due to open in September 2005.
27

INVESTMENT IN INFRASTRUCTURE
Westralia Airports Corporation continued investment in Perth Airport infrastructure with $50 million in capital expenditure from a
program approaching $100 million across committed projects in 2004/2005 and 2005/2006.
The Terminal 1 expansion accounted for $25 million, with new checked baggage security screening and handling facilities, provision
of 14 new check-in counters, with all existing counters upgraded, relocation and expansion of the passenger screening facility and
2500 square metres of additional space. Improvements to Terminal 1 will also include the addition of an Emirates Lounge and
expansion of the Qantas Lounge.
Other capital expenditure included a major upgrade to business system technologies, buildings for new and existing commercial
tenants, reconstruction of the cross-runway to accommodate larger and heavier aircraft, expansion of car parking that has almost
doubled capacity at the Domestic Terminal and establishment of new infrastructure in Precinct 2 along Horrie Miller Drive.
A further $46 million in capital expenditure is planned for the 2005/2006 period.
CROSS-RUNWAY RECONSTRUCTION
In January 2005, work commenced on the reconstruction of the existing cross-runway at Perth Airport.
Runway 06/24 was originally constructed in the 1940’s and was overlayed and asphalted during the 1960’s. Despite infrequent use,
Runway 06/24 at 350-millimetre thickness was not able to adequately handle the weight and dimensions of today’s modern aircraft.
Use was subsequently restricted to aircraft of Boeing 737 size or lighter.
Reconstruction meant strengthening the central 30 metres and widening to full width at taxiway intersections. As part of the works,
turning nodes at the runway ends were widened to accommodate the next generation Airbus A380 and the existing A340-600 aircraft.
Final asphalting of the eastern section will be completed in July 2005, after which the runway will be grooved and marked and
returned to service on completion of the lighting installations.
Airservices Australia took the opportunity to upgrade the instrument landing system at the same time as the runway reconstruction.
QUALITY SERVICE MONITORING
As required by the Airport’s Act (1996), Perth Airport submitted the annual Quality Service Monitoring (QSM) report, which showed
continued high levels of passenger satisfaction with services and facilities.
AVIATION SECURITY
In 2004/2005 WAC worked hand in hand with the regulators to ensure that the appropriate aviation security policies are in place.
Regular feedback continues to be provided to the Federal Government on security procedures and legislation.
In June 2005, at the direction of the Federal Government, revised security measures were put in place that impacted upon airside access.
Westralia Airports Corporation is continually working on the development of infrastructure to satisfy contemporary aviation
security requirements.
AIRFIELD SAFETY
Westralia Airports Corporation continued to carefully monitor and develop airfield safety throughout the year.
The airport emergency planning committee met regularly and external agencies were used to simulate conditions and monitor
response, recovery and welfare aspects of an airport emergency.
The establishment during May 2005 of the Perth Airport Runway Incursion Group will further enhance this area of operations in the future.
29

SAFETY COMMITMENT
Westralia Airports Corporation maintained its high level of commitment to safety, completing a number of successful exercises during
the 2004/2005 financial year.
In July and August 2004, evacuation drills were conducted in Terminal 1 and 3 respectively.
On 7 September 2004, the Perth Airport Emergency Planning Committee conducted a Welfare exercise. ‘Welcare 2004’ tested the
aerodrome care of the uninjured procedures, including the registration of the walking wounded and their reunification with family
and friends.
In October 2004, Perth Airport conducted the annual field exercise, ‘Exercise Freebird’, in this instance a crash on the airport site
during take-off was simulated. The exercise tested the response of multi-agency command and control procedures including
communications systems, necessary for the overall management and resolution of a major emergency situation in real time.
More than 100 volunteers who role-played as victims, family or friends aided the success of Welcare 2004 and Exercise Freebird.
PERTH AIRPORT RUNWAY INCURSION GROUP
Westralia Airports Corporation has responded to international recommendations to develop a runway incursion strategy.
In May 2005, the Perth Airport Runway Incursion Review Group (RIRG) was formed and is chaired by WAC’s Airside Safety Manager.
The committee consists of airline representatives, ramp operators and WAC officers.
Air Services Australia has formed a national RIRG and the Perth Airport group will work closely with that national body.
AIRPORT IN A BOX
The introduction of “Airport in a Box”, one of the five new WAC business systems, means Perth Airport now has in place one of the
world’s most technically advanced airport operational flight information systems.
The arrival and departure of an aircraft may look like a simple process, but actually involves a complex interaction of many
organisations supplying and exchanging data.
Airport in a Box now streamlines many of these processes enabling tighter control on data exchange and therefore higher quality
information.
For airport visitors the most noticeable difference is the significant improvement in the clarity of flight information display systems,
which are now provided on new state-of-the-art LCD panels.
The system has worked effectively in the majority of South African airports and more than 20 other worldwide locations.
Airport in a Box is part the $2.5 million upgrade of operational and business systems conducted over the past 12 months.
WASP
The new asset life cycle system named WASP will commence on 1 July 2005 and provide a detailed breakdown of all significant airport
assets and their relationships. The system is able to collect and report actual maintenance costs against every asset within the system
to provide managers with a more accurate picture of the overall performance of assets under their control.
WASP helps fully manage maintenance of assets by recording fault occurrence and resolution procedures.
Ultimately the system is designed to reduce overall maintenance costs by scheduling preventative measures recommended as a result
of collecting and collating the new data.
31

RETAIL & GROUND TRANSPORT
REVENUE GROWTH
The surge in international and domestic passenger traffic through Perth Airport has resulted in a significant increase in retail revenue.
A variety of additional shops and services at the expanded Terminals 1 and 3 and the doubling of the duty free allowance have also
combined to boost sales. The 2005/2006 financial year will see further retail development with the creation of new duty free and food
and beverage outlets. Retail revenue rose 13.9% in 2004/2005 compared with the previous financial year.
With the increase in passenger numbers, demand for ground transport services increased in 2004/2005. This resulted in revenue from
ground transport operations showing growth of 20.8% compared with the previous financial year.
RELAY AND HUB CONVENIENCE STORE OPENED
In May 2005, the first ever Relay and Hub Convenience store in Australasia opened at Perth Airport. Products available in the store
include toiletries, groceries, newspapers, magazines, stationery and books. The exciting new retail concept offers a convenience store
within a newsagent and caters for people returning from their trip who can purchase essential items before returning home.
Relay and Hub Convenience is located in Terminal 3, where Virgin Blue and Skywest operate. The store is opposite the domestic taxi
rank for the convenience of all domestic passengers. There are currently over 1,100 Relay stores across Europe and North America.
DUTY FREE ALLOWANCES DOUBLED
The Federal Government changed Australia’s duty free concession scheme in February 2005, effectively doubling the previous limits.
The changes mean that the adult allowance increased from A$400 to A$900 and the allowance for under 18s rose from A$200 to A$450.
The liquor allowance increased from 1.125 litres per adult to 2.25 litres of alcoholic spirits without declaration, while tobacco products
remained the same.
Perth Airport has five duty free outlets operated by Downtown Duty Free servicing all departing and arriving international flights.
Departing passengers can also take advantage of the convenient service that allows them to pre-order their duty free goods at the
airport, for pick up on their return.
DOME CAFE
The construction of a Dome Cafe will be completed in the first quarter of the next financial year. The 350 square metre Dome Cafe will be
one of the largest in WA and will feature boutique beers on tap, an extensive wine and food menu and the opportunity to dine alfresco.
The Dome Cafe, which is a Western Australian icon in the coffee trade, is located on the forecourt of Terminal 3 opposite the arrival
gates. It will attract a range of airport stakeholders including passengers, friends, airport staff, tenant staff, and flight crews.
PUBLIC CAR PARKING
Westralia Airports Corporation substantially increased its car parking facilities in the past year.
The long-term parking car park was doubled in size in line with demand. This was largely due to its competitive price policy, which proved
very popular with travellers. There are further plans to expand long-term parking spaces from 650 to 950 by the end of 2005/2006.
The boom in regional travel has resulted in plans to increase the recently completed regional car park from 150 bays to 470 bays next year.
A customer satisfaction program was conducted throughout the year in conjunction with BAA and showed positive retail and ground
transport satisfaction levels.
STAFF PARKING
A staff car park for 500 vehicles, with 24-hour security, has been completed.
33

PLANNING
2004 MASTER PLAN APPROVED
On 10 August 2004, after extensive public consultation, the 2004 Draft Master Plan was approved by the Minister for Transport and
Regional Services, John Anderson.
Perth Airport’s Master Plan 2004 is reviewed at five-year intervals in line with the Airports Act (1996). It is an evolving document
impacted by change in the world climate, new technology, market forces and operating conditions.
The 2004 Master Plan retains the fundamental concepts of the 1999 Master Plan while incorporating updates in keeping with forecast
growth over the next 20 years.
The 2004 Master Plan confirms that the airport has the capacity to accommodate more than three times the current levels of
passenger and aircraft movements, through the expansion of terminal and runway capacity.
35

ENVIRONMENT
ENVIRONMENT STRATEGY
On 15 July 2004 the Minister for Transport and Regional Services, John Anderson, approved the 2004 Environment Strategy.
The document outlines site responsive management actions and is the guiding environmental document for Perth Airport. The
Environment Strategy is reviewed every five years.
ENVIRONMENTAL CONSULTATIVE GROUP
In November 2004, WAC established the Perth Airport Environmental Consultation Group (ECG). It provides a forum for WAC to meet with
external stakeholders, including the Airport Environment Officer, State and Local Government officers, and representatives from conservation
and catchment groups. Three meetings were held during 2004/2005. Topics of discussion included strategies for preventing illegal vehicular
access, feral animal and bird control, bushfire prevention, bird strike and bird control, rehabilitation, and current projects at Perth Airport.
CONSERVATION VOLUNTEERS AUSTRALIA
In November 2004, WAC initiated collaboration with Conservation Volunteers Australia (CVA). Conservation Volunteers Australia is
Australia’s largest practical conservation organisation managing more than 1500 conservation projects across Australia each year.
Conservation Volunteers Australia recruit volunteers from both the Perth and international communities.
Westralia Airports Corporation provided funding for 40 project days from November 2004 to November 2005, and CVA volunteers
were utilised to undertake a range of on-the-ground conservation activities to deliver management strategy outcomes. Activities
undertaken by the volunteers include; track rehabilitation, weed management, seed collection, planting and litter collection.
COMMUNITY PROJECTS
In conjunction with CVA and the City of Belmont, WAC modified an engineered stormwater detention basin into an environmental asset.
This project involved revegetation of a compensating basin on Fauntleroy Avenue, near the Domestic Terminal. Work undertaken included
revegetating the basin banks-a total area of approximately 4,500 square metres. Weed control and soil cultivation were undertaken to
prepare the area for planting. CVA members planted a total of 2,180 native seedlings, grown by Men of the Trees, on the banks.
DISCOURAGING TRESPASSERS
Trespassing on Perth Airport land is an on-going problem, particularly within the conservation and rehabilitation areas. During
2004/2005, WAC continued efforts to prevent illegal vehicular access in the constructed wetland and
Conservation Precincts in general. A number of tracks around the wetland and Precinct 5 were closed
with logs and brushing. Members from CVA distributed additional brushing around the wetland by
hand to protect the emerging seedlings. In addition, Precinct 5 was fenced and heavy-duty gates
were installed at access points. In conjunction with the fencing, new signage was installed,
identifying the area as a conservation zone (see illustration).
Signage installed on the boundary of Conservation Precinct 5 during 2004/2005
PEST CONTROL AND FAUNA MANAGEMENT
Introduced pests such as rabbits, foxes and feral cats continue to pose a threat to the native flora and fauna within the Conservation
Precincts. Westralia Airports Corporation has adopted a ‘target and control’ approach to manage vertebrate pests at Perth Airport.
The objective of the program is to enhance the survivorship of the native fauna through reduced competition and predation.
During 2004/2005, a successful rabbit and fox control program was undertaken using 1080 poison. As no cats were detected on the
site, no control measures were implemented. Westralia Airports Corporation will double rabbit control efforts during the next
reporting period to improve outcomes for both native plants and animals.
In 2003/2004, WAC initiated a long-term monitoring program to assess whether the number of Southern Brown Bandicoots (Isoodon
obeslus) present at the airport had increased. While there has been a net increase in total bandicoot track numbers, monitoring
indicates that the number of bandicoot tracks had fluctuated throughout the reporting period. Westralia Airports Corporation will
continue to monitor bandicoot numbers during 2005/2006 to better understand the dynamics of the bandicoot population.
37

PROPERTY
PERTH AIRPORT PROPERTY TRUST
Perth Airport Property Trust (PAPT) was finalised in 2004/2005 to facilitate funding and development of non-aviation property within
the Perth Airport estate.
The property division continues to consolidate its position as a fast growing developer and lessor of industrial property.
DEVELOPMENTS
During the year a number of significant projects were commenced and/or completed. These included:
Woolworths Distribution Centre
Atlas Copco - State office and servicing centre
Driver Training and Education Centre (DTEC) - driver training facility
Major leasing contracts with Paramon Holdings, Devereaux Corporation and Fleetwood
Construction of a 25-hectare subdivision adjacent to Woolworths
BGC sub-lease agreement for 31 hectares of land at Hazelmere
Completion of 3,300 square metre Australian Quarantine and Inspection Service (AQIS) Facility
Lease of 9 hectares to Taliska
Commencement of negotiations with Coles Myer over a long-term lease for a proposed distribution centre.
The Woolworths Distribution Centre represents one of the most significant individual non-aviation projects within the 44-hectare
warehouse and distribution park at Perth Airport.
Located at the entrance to the International Terminal of Perth Airport, it comprises approximately 65,000 square metres and is the
anchor tenant of the Distribution Park Precinct.
Westralia Airports Corporation will be targeting other businesses in the food distribution chain to facilitate the park’s development.
MAJOR TENANCIES
Westralia Airports Corporation completed major upgrades and developed new facilities for a variety of major tenants during the year.
These included Woolworths, Australian Quarantine and Inspection Services (AQIS), the AHG Driving Centre, DHL, Exel and Danzas.
The location of Perth Airport and the nature of its core business mean that it is an exceptional environment for a wide range of
businesses. This is confirmed in the State Government’s Freight Network Strategy, which identifies Perth Airport as a “Strategic Land
Use Node” and as having “an opportunity for an internodal facility”.
In 2005/2006, Major Development Plans (MDP’s) are expected to commence for two new major tenants - a proposed brickworks for
BGC and a Coles Myer Distribution Centre in Perth Airport’s commercial Precincts.
Major Development Plans are subject to approval by the Federal Government.
The former Federal Minister for Agriculture, Fisheries and Forestry, the Honourable Warren Truss officially opened the new Australian
Quarantine and Inspection Service (AQIS) facility at Perth Airport on 22 February 2005.
This new 3,380 square metre AQIS building is located in a prominent position on Horrie Miller Drive. As the main access road to the
International Terminal, this location allows AQIS to be more effective in border protection.
The decision by AQIS to consolidate their activities at the airport delivers a unique service to other businesses already operating in
Perth Airport’s Freight Precinct and enhances the strategic mix of tenants wanting to be part of the evolving estate.
39

PERTH AIRPORT 2004/2005 FINANCIAL REPORT
Westralia Airports Corporation Pty Ltd
ABN 24 077 153 130

CONTENTS
CONTENTS
Directors’ Report 2
Corporate Governance Statement 6
Statement of Financial Performance 8
Statement of Financial Position 9
Statement of Cash Flows 10
Notes to the Financial Statements 11
Directors’ Declaration 37
Independent Audit Report 38
Review of Operations 40
Corporate Directory 41
1

REPORT
DIRECTORS’ REPORT
Your directors present their report on the financial report for the year ended 30 June 2005.
DIRECTORS
The following persons held office as directors during the financial year and up to the date of this report:
Mr David Crawford (Chairman)
Mr Michael Fitzpatrick (resigned 31 August 2005)
Mr Peter Taylor
Mr Alistair Barker (appointed 31 August 2005)
Dr Allan Griffin
Mr Ronald Doubikin
Mr Dominic Helmsley
Mr Stuart Condie
Mr Duncan Taylor
Mr Lyndon Rowe (appointed 25 August 2004)
Mr Stephen Vineburg (appointed 16 September 2004 as alternate director to Mr Duncan Taylor)
Mr Hamish De Run (alternate director to Mr Michael Fitzpatrick & Mr Peter Taylor; resigned 27 August 2004)
Mr Graham Matthews (resigned 25 August 2004; appointed alternate director to Mr Lyndon Rowe 25 August 2004)
Mr Alexander Austin (alternate director to Mr Graham Matthews; resigned 25 August 2004)
Mr Alexander Wheeler (appointed 24 November 2004 as alternate director to Mr Michael Fitzpatrick & Mr Peter Taylor)
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
The principal activities of Westralia Airports Corporation Pty Ltd (WAC) during the financial year consisted of the management of Perth Airport
and associated retail and property interests.
CORPORATE STRUCTURE
WAC is a proprietary company limited by shares that is incorporated and domiciled in Australia. WAC has prepared a consolidated financial
report incorporating the entity that it controlled during the financial year being:
• WAC Investments Pty Ltd.
WAC’s registered address and principal place of business being Baker Road (Opposite Domestic Terminal), Perth Airport, WA, 6105.
REVIEW OF OPERATIONS
Details regarding the review of operations are contained on page 40.
EMPLOYEES
The consolidated entity employed 134 employees as at 30 June 2005 (2004 - 132 employees). The full-time equivalent employees for the year
ended 30 June 2005 for the consolidated entity was 132.6 (2004 – 127.3 full-time equivalent employees).
DIVIDENDS
WAC has not paid or declared any dividends during the financial year and the directors have not recommended any dividends be paid or declared.
2

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Other than reported below, there were no significant changes in the nature of the consolidated entity’s activities during the year.
Perth Airport Property Trust
During the year, WAC secured the necessary Senior Lender, Shareholder and Board approvals for the creation of the Perth Airport Property Trust
(PAPT). PAPT has been created as an alternative structure to facilitate the development and funding of WAC’s extensive non-aeronautical land.
While such funding is on a non-recourse basis to WAC, the structure enables WAC and its shareholders to continue to benefit financially from
property development activities.
The Perth Airport Property Trust (PAPT) was established on 5 April 2005.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in
this report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity.
ENVIRONMENTAL REGULATION
WAC is subject to environmental legislation for its land development and operations. This legislation includes:
• Airports Act 1996;
• Airports (Environmental Protection) Regulations 1997;
• Environmental Protection and Biodiversity Conservation Act 1999 (EPBC).
1. Environment Strategy and Reporting
WAC’s Environment Strategy has been reviewed based on input received during the public comment period. The Draft Environmental Strategy
was submitted to the Minister for Transport and Regional Services and formally approved on 15 July 2004.
An Annual Environmental Report was submitted to the Department of Transport and Regional Services in October 2004 in fulfilment of the
requirements under the Airports (Environmental Protection) Regulations 1997. Part of this report covered incidents which may put at risk the quality
of air, water, land and vegetation in the airport precinct.
National Pollutant Inventory (NPI) reporting was also undertaken under the requirements of the National Environmental Protection Measures
(Implementation) Act 1998. A report was submitted to the Western Australian Department of Environmental Protection in September 2004.
2. Land Development Approvals
All development approvals initiated in the 2004/05 year complied with the Airports Act 1996, the Airports (Environmental Protection)
Regulations 1997 and the Environmental Protection and Biodiversity Conservation Act 1999.
3. Environmental Protection
During the year there were no known breaches of the requirements of the Airports (Environmental Protection) Regulations 1997, the EPBC
Act 1999.
4. Dangerous Goods
Dangerous Goods Licences are required under the Western Australian Dangerous Goods Regulations 1992 for the fuel storage facilities
operated by WAC at the airport. All WAC owned facilities are currently licensed in accordance with these Regulations.
Additionally all leased facilities developed during the 2004/05 year have been approved in accordance with the requirements of the
Western Australian Department of Minerals and Energy.
5. Incidents
WAC recorded a number of incidents during the 2004/2005 year, none of which were assessed as having serious consequences and/or long
term impact on the environment. Details may be found in the Annual Environmental Report.
6. Non-Compliance Notices/Prosecutions
No injunctions, notices or prosecutions were issued by any State or Commonwealth Environmental Protection Agency in respect of any activity
or operation conducted at the airport over the past year.
The board receives regular reports on compliance with environmental requirements.
3

SECURITY MANAGEMENT
The company is responsible for ensuring that the prescribed minimum regulatory standards, as laid down in the Aviation Transport Security
Act 2004 and Aviation Transport Security Regulations 2005 are met. In particular this is with respect to airport security, including physical
security, access control and counter terrorist first response functions. In order to facilitate this requirement, the company is responsible for the
development of the Airport Security Programme which details security systems, measures and procedures as appropriate.
The board receives regular reports on compliance with security management requirements.
OCCUPATIONAL, HEALTH AND SAFETY MANAGEMENT
The company recognises the importance of occupational health and safety issues (OH&S) and is committed to the highest levels of
performance. To help meet these objectives it has developed an environmental policy and an occupational health and safety policy to facilitate
the systematic identification of OH&S issues and to ensure they are managed in a structured manner. The policies have been operating for a
number of years and allow the company to:
• Monitor its compliance with all relevant legislation;
• Encourage employees to actively participate in the management of environmental and OH&S issues; and
• Encourage the adoption of similar standards by the company’s principal suppliers, contractors and distributors.
The board receives regular reports on compliance with occupational health and safety requirements.
DIRECTORS AND AUDITORS INDEMNIFICATION
The consolidated entity has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of the
consolidated entity or a related body corporate:
• Indemnified or made any relevant agreement for indemnifying against a liability incurred as an officer, including costs and expenses in
successfully defending legal proceedings; or
• Paid or agreed to pay a premium in respect of a contract insuring against a liability incurred as an officer for the costs or expenses to defend
legal proceedings, except for a premium of $44,250 paid to insure directors and officers for any loss, including any costs of legal
proceedings, which is not indemnified by WAC and for which the person becomes obligated to pay on account for claims made for wrongful
acts committed, attempted or allegedly committed during the period of insurance, to the extent permitted by section 199B of the
Corporations Act 2001. Directors covered under this insurance policy are outlined in note 29 to the financial statements. The officers of
WAC covered by the insurance include the directors, executive officers and employees.
SHARE OPTIONS
No options over shares in WAC have been granted during the financial year and there were no options outstanding at the end of the financial year.
AUDITOR’S INDEPENDENCE DECLARATION
The Auditor’s Independence Declaration which has been received by the Directors from the auditor of Westralia Airports Corporation Pty Ltd is on
page 5 and forms part of the Directors’ Report for the year ended 30 June 2005.
ROUNDING OF AMOUNTS TO NEAREST THOUSAND DOLLARS
The company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities and Investments Commission, about the
“rounding off” of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report are rounded to
the nearest thousand dollars in accordance with that Class Order.
This report is made in accordance with a resolution of the directors.
D Crawford
Chairman
Perth, Western Australia
28 September 2005
4

AUDITOR’S INDEPENDENCE DECLARATION
The Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000
Australia
Tel 61 8 9429 2222
Fax 61 8 9429 2436
GPO Box M939
Perth WA 6843
Auditor’s Independence Declaration to the Directors of Westralia Airports Corporation Pty Ltd
In relation to our audit of the financial report of Westralia Airports Corporation Pty Ltd for the year ended
30 June 2005, to the best of my knowledge and belief, there have been no contraventions of the auditor
independence requirements of the Corporations Act 2001 or any applicable code of professional conduct.
Ernst & Young
G H Meyerowitz
Partner
Perth
28 September 2005
Liability limited by the Accountants Scheme, approved
under the Professional Standards Act 1994 (NSW).
5

CORPORATE GOVERNANCE STATEMENT
The directors are responsible to the shareholders for the performance of the company in both the short and the longer term and seek
to balance these sometimes competing objectives in the best interests of the company as a whole. Their focus is to enhance the
interests of shareholders and other key stakeholders and to ensure the company and its controlled entities are properly managed. The
board draws on relevant corporate governance principles to assist it to contribute to the performance of the company.
Day to day management of the company’s affairs and implementation of the corporate strategy and policy initiatives are delegated by the
board to the Chief Executive Officer and senior executive team.
The functions of the board are to:
• review and approve a strategic plan, which encompasses the company’s objectives, goals and strategy statements, designed to meet
stakeholders’ needs and manage business risk;
• oversee and monitor organisational performance and the achievement of the company’s strategic goals and objectives;
• approve the annual operating plans and budgets prepared by management, including the establishment of key financial and nonfinancial
performance targets for all significant business activities;
• monitor financial performance including approval of the annual financial reports and liaison with the company’s auditors;
• appoint the Chief Executive Officer, and assess the performance and remuneration of the Chief Executive Officer and the members of the
senior executive team;
• ensure there are effective management processes in place and approve major corporate initiatives;
• enhance and protect the reputation of the organisation;
• ensure the significant risks facing the company and its controlled entities have been identified and appropriate and adequate control,
monitoring and reporting mechanisms are in place; and
• report to shareholders through the annual report and the annual general meeting.
A description of the company’s main corporate governance practices is set out below. All these practices, unless otherwise stated, were in
place for the entire year.
THE BOARD OF DIRECTORS
To ensure the board is well equipped to discharge its responsibilities it has established guidelines for the nomination and selection of directors
and for the operation of the board.
Composition of the board
The composition of the board is determined in accordance with the following principles and guidelines:
• the board should be comprised of a majority of non-executive directors;
• in recognition of the importance of independent views and the board’s role in supervising the activities of management the Chairman should
be a non-executive director;
• the board should comprise directors with an appropriate range of qualifications and expertise; and
• the board shall meet in accordance with the terms of the shareholders agreement and follow meeting guidelines set down to ensure all
directors are made aware of, and have available all necessary information, to participate in an informed discussion of all agenda items.
AUDIT COMMITTEE
The audit committee consists of the following non-executive directors:
Dr Allan Griffin (Chairman)
Mr Peter Taylor
Mr Dominic Helmsley
Mr Stuart Condie (Alternate to Dominic Helmsley)
6

The main responsibilities of the audit committee are to:
• review and report to the board on the annual financial report and all other financial information published by the company or released to
the market;
• assist the board in reviewing the effectiveness of the organisation’s internal control environment covering:
- effectiveness and efficiency of operations
- reliability of financial reporting
- compliance with applicable laws and regulations
• approve the risk management framework, monitor its effective operation including the purchase of insurance contracts for certain risks;
• recommend to the board the appointment, removal and remuneration of the external auditors, and review the terms of their engagement,
the scope and quality of the audit and the auditor’s independence; and
• review the level of non-audit services provided by the external auditors and ensure it does not adversely impact on auditor independence.
In fulfilling its responsibilities, the audit committee receives regular reports from management and also meets with the external auditors at
least three times a year. The external auditors have a clear line of direct communication at any time to the Chairman of the audit committee.
They are invited to attend committee meetings and receive copies of the relevant papers and minutes.
The audit committee has authority, within the scope of its responsibilities, to seek any information it requires from any employee or external
party. It reviews the annual representation letter from the management on the adequacy, integrity and completeness of the financial systems
and financial statements the Board receives.
RISK ASSESSMENT AND MANAGEMENT
The company’s focus on risk management recognises that it is, prima facie, an issue for senior executives. The corporate risk management
framework supports this focus and provides a structured context for personnel to undertake an annual review of the past performance of,
and to profile the current and future risks facing, their area of responsibility.
This risk information is consolidated and used as key input to the annual corporate strategy workshop attended by senior executives and
operational management. This is held each year away from the day to day pressure of operational activities and provides specific focus on the
identification of the key business and financial risks which could prevent the company from achieving its objectives. Each key risk area is
assigned to a relevant senior officer. That person is responsible to ensure that appropriate strategies and controls are in place to effectively
manage that risk. The overall performance of each year’s risk management plan is monitored by the audit committee on an ongoing basis.
CAPITAL MANAGEMENT POLICY
The board has adopted a prudent approach to treasury management through the development of a Capital Management Policy. This policy
is aimed at promoting greater financial discipline in areas of shareholders distributions, leverage, hedging, liquidity, funding of capital
expenditure and compliance with senior debt covenants.
REMUNERATION
It is the company’s objective to provide maximum stakeholder benefit from the retention of a high quality Board and executive team by
remunerating directors and key executives fairly and appropriately with reference to relevant employment market conditions.
During the year, the parent company’s (ADG’s) shareholders unanimously approved the payment of $1m pa of Directors Fees to Directors of
WAC. The shareholders directed WAC to enter into a Directors Remuneration Scheme (DRS).
The WAC Board have approved the implementation of the DRS, which provides for payment of directors fees to directors appointed by
shareholders in proportion to the respective shareholding of each shareholder in the parent entity (ADG).
Where shareholders have elected, their representative director receives the proportionate directors fee. If shareholders elect for their
representative director not to receive any remuneration, the shareholder receives the proportionate director fee as consideration for the
procurement of the representative director.
7

STATEMENT OF FINANCIAL PERFORMANCE
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2005
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Revenues from ordinary operating activities 2(a) 139,779 115,709 139,779 115,169
Expenses from ordinary activities before depreciation,
amortisation and book value of assets sold 2(b) (63,612) (41,719) (63,612) (41,719)
EBITDA * 76,167 73,990 76,167 73,450
Revenue from ordinary non-operating activities 2(a) 1,037 783 1,037 1,159
Borrowing cost expenses 2(c) (60,013) (57,001) (60,013) (57,001)
Depreciation 2(d) (10,116) (7,769) (10,116) (7,605)
Amortisation 2(e) (6,703) (7,598) (6,703) (7,598)
Book value of assets sold (27) (68) (27) (68)
Profit from ordinary activities before income tax 345 2,337 345 2,337
Income tax expense relating to ordinary activities 3 - - - -
Net profit 22 345 2,337 345 2,337
Total revenues, expenses and valuation adjustments
attributable to members of Westralia Airports
10(b)
Corporation Pty Ltd and recognised directly in equity 21 8,414 164,922 8,414 164,922
Total changes in equity other than those resulting
from transactions with owners as owners 8,759 167,259 8,759 167,259
The above statement of financial performance should be read in conjunction with the accompanying notes.
* EBITDA represents Earnings before Interest, Tax, Depreciation and Amortisation.
8

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2005
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Current Assets
Cash assets 4 8,566 8,822 8,566 8,822
Receivables 5 18,675 16,085 18,675 16,085
Inventories 6 66 74 66 74
Assets held for sale at cost 7 12,652 9,625 12,652 9,625
Other 8 11,361 5,704 11,361 5,704
Total Current Assets 51,320 40,310 51,320 40,310
Non-Current Assets
Infrastructure, plant and equipment 10 413,347 383,719 413,347 383,719
Lease franchise fee 11 395,821 400,171 395,821 400,171
Other 12 31,311 30,291 31,311 30,291
Total Non-Current Assets 840,479 814,181 840,479 814,181
Total Assets 891,799 854,491 891,799 854,491
Current Liabilities
Payables 13 22,249 25,864 22,249 25,864
Interest bearing liabilities 14 2,050 1,000 2,050 1,000
Provisions 15 3,874 2,497 3,874 2,497
Other 16 2,112 761 2,112 761
Total Current Liabilities 30,285 30,122 30,285 30,122
Non-Current Liabilities
Interest bearing liabilities 17 607,796 609,705 607,796 609,705
Provisions 18 5,010 211 5,010 211
Other 19 41,035 15,539 41,035 15,539
Total Non-Current Liabilities 653,841 625,455 653,841 625,455
Total Liabilities 684,126 655,577 684,126 655,577
Net Assets 207,673 198,914 207,673 198,914
Equity
Contributed equity 20 144,565 144,565 144,565 144,565
Reserves 21 173,336 164,922 173,336 164,922
Accumulated losses 22 (110,228) (110,573) (110,228) (110,573)
Total Equity 207,673 198,914 207,673 198,914
The above statement of financial position should be read in conjunction with the accompanying notes.
9

STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2005
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Cash Flows from Operating Activities
Receipts from customers 137,372 120,619 137,372 108,550
Payments to suppliers and employees (68,378) (52,245) (68,378) (40,716)
Interest received 798 704 798 704
Net cash inflow from operating activities 30 69,792 69,078 69,792 68,538
Cash Flows from Investing Activities
Proceeds from sale of infrastructure, plant and equipment 5,811 79 5,811 79
Payments transferred (to)/from cash reserve accounts (806) (702) (806) (702)
Payments for infrastructure, plant and equipment (45,681) (22,906) (45,681) (22,906)
Payments for other non-current assets (2,064) (91) (2,064) (91)
Net cash outflow from investing activities (42,740) (23,620) (42,740) (23,620)
Cash Flows from Financing Activities
Proceeds from borrowings: Primary debt holders 27,296 14,534 27,296 14,534
Subordinated debt holders 21,320 - 21,320 -
Repayment of borrowings: Primary debt holders (1,525) (500) (1,525) (500)
Subordinated debt holders (15,000) (6,700) (15,000) (6,700)
Borrowing costs: Primary debt holders (38,744) (42,501) (38,744) (42,125)
Subordinated debt holders (20,626) (14,340) (20,626) (14,340)
Loans (to) / from wholly-owned subsidiary - - - 164
Net cash outflow from financing activities (27,279) (49,507) (27,279) (48,967)
Net increase/(decrease) in cash held (227) (4,049) (227) (4,049)
Effect of exchange rate on cash (29) 17 (29) 17
Cash at the beginning of the financial year 8,822 12,854 8,822 12,854
Cash at the end of the financial year 4 8,566 8,822 8,566 8,822
The above statement of cash flows should be read in conjunction with the accompanying notes.
10

NOTES
NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This general purpose financial report has been prepared in accordance with Accounting Standards, other authoritative pronouncements of the
Australian Accounting Standards Board, Urgent Issues Group Consensus Views and the Corporations Act 2001. It is prepared in accordance
with the historical cost convention, except for certain assets which, as noted, are at valuation.
Unless otherwise stated, the accounting policies adopted are consistent with those of the previous period. Comparative information is
reclassified where appropriate to enhance comparability.
(a) Principles of Consolidation
The consolidated accounts comprise the accounts of WAC and all of its controlled entities. A controlled entity is any entity controlled by
WAC. Control exists where WAC has the capacity to dominate the decision making in relation to the financial and operating policies of
another entity so that the other entity operates with WAC to achieve common objectives. Details of the controlled entity are contained in
note 9 to the accounts.
All inter-company balances and transactions between the entities in the consolidated entity, including any unrealised profit or losses, have
been eliminated on consolidation.
(b) Changes in accounting policies
The accounting policies adopted are consistent with those of the previous year.
(c) Taxes
(i) Income taxes
Tax effect accounting procedures using the liability method are followed whereby the income tax expense is matched with the
accounting profit after allowing for permanent differences. The future income tax benefit relating to tax losses is not carried forward
as an asset unless the benefit is virtually certain of realisation. Income tax on cumulative timing differences is set aside to the deferred
income tax or the future income tax benefit accounts at the rates which are expected to apply when those timing differences reverse.
(ii) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST
is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
Statement of Financial Position.
Cash flows are included in the Statement of Cash Flows on a gross basis and the GST component of cash flows arising from investing
and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(iii) Tax consolidation legislation
WAC’s parent, Airstralia Development Group Pty Ltd elected to form a tax consolidation group for income tax purposes with effect
from 1 July 2003. The Australian Taxation Office has been formally notified of this decision.
As a consequence, Airstralia Development Group, as the head entity in the tax consolidated group, recognises current and deferred
tax amounts relating to transactions, events and balances of the wholly- owned controlled entities in the group as if those transactions,
events and balances were its own, in addition to the current and deferred amounts arising in relation to its own transactions, events
and balances. Amounts receivable or payable under an accounting tax sharing agreement with the tax consolidated entities are
recognised separately as tax-related amounts receivable from or payable to other entities in the group. Expenses and revenues arising
under the tax sharing agreement are recognised as a component of income tax expense or income tax revenue.
11

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Foreign Currency Translation
(i) Transactions
Transactions in foreign currencies of entities within the consolidated entity are converted to local currency at the rate of exchange ruling
at the date of the transaction.
Foreign currency monetary items that are outstanding at the reporting date (other than monetary items arising under foreign currency
contracts where the exchange rate for that monetary item is fixed in the contract) are translated using the spot rate at the end of the
financial year.
A monetary item arising under a foreign currency contract outstanding at the reporting date where the exchange rate for the monetary
item is fixed in the contract is translated at the exchange rate fixed in the contract.
Except for certain specific hedges, all resulting exchange differences arising on settlement or re-statement are recognised as revenues
and expenses for the financial year. Any gains or costs on entering a hedge are deferred and amortised over the life of the contract.
(ii) Specific Hedges
Where a purchase or sale is specifically hedged, exchange gains or losses on the hedging transaction arising up to the date of purchase
or sale and costs, premiums and discounts relative to the hedging transaction are deferred and included in the measurement of the
purchase or sale. Exchange gains and losses arising on the hedge transaction after that date are taken to the net profit.
(e) Revenue Recognition
(i) Aeronautical charges comprises Landing Fees and Terminal charges, based on the maximum take-off weight of aircraft or passenger
numbers on aircraft, and a security charge for the recovery of charges imposed by Australian Protective Services and other government
mandated security requirements.
(ii) Trading comprises concessionaire rent and other charges received.
(iii) Ground Transport Services comprises operation of public and leased car parks, car rental concessions, ground transport services and
traffic management.
(iv) Property Revenue comprises income from owned terminals, buildings, and long-term leases of land and other leased assets.
(v) Recharge Property Service costs comprises recharged service and utility expenditure.
(vi) Interest Revenue comprises earnings on funds deposited with financial institutions.
(vii)Asset Sales comprise revenue on disposal of assets brought to account at the transaction date.
Gross revenue is raised when there is an unconditional right to receive that revenue and it can be measured reliably.
(f) Receivables
All trade debtors are recognised and carried at original invoiced amount receivable, and are due for settlement no more than 30 days from
the date of recognition.
Recoverability of trade debtors is reviewed on an ongoing basis. Debts, which are known to be unrecoverable, are written off. A specific
provision has been raised for debts where recoverability is deemed to be doubtful.
(g) Inventories
Inventories have been stated at the lower of cost and net realisable value. The basis of accounting for inventories is on a first-in first-out basis.
(h) Acquisition of Assets
The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost is
determined as the fair value of the assets given up at the date of acquisition plus costs incidental to the acquisition. Where shares are
issued on acquisition, the value of the shares is determined by reference to the fair value of the assets acquired, including goodwill and
other intangible assets where applicable.
12

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value
as at the date of acquisition. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing
could be obtained from an independent financier under comparable terms and conditions.
The lease franchise fee, arising from the acquisition of the Perth Airport lease, is brought to account on the basis described in note 1(k)(i).
(i)
Recoverable Amounts
The recoverable amount of an asset is the net amount expected to be recovered through the net cash inflows arising from its continued
use and subsequent disposal.
Where the carrying amount of a non-current asset is greater than its recoverable amount the asset is revalued to its recoverable amount.
The expected net cash flows included in determining recoverable amounts of non-current assets are discounted to their present values
using a market determined, risk adjusted discount rate.
(j)
Infrastructure, Plant and Equipment
(i) Cost and Valuation
The fair value basis is used to attribute value to land, buildings, infrastructure, plant and equipment. At each reporting date, the value
of each asset in these classes is reviewed to ensure that it does not differ materially from the asset’s fair value at that date. Where
necessary, the asset is revalued to reflect its fair value.
Where assets have been revalued, the potential effect of the capital gains tax on disposal has not been taken into account in the
determination of the revalued carrying amount unless it is expected that a liability for such tax will crystallise.
(ii) Depreciation and Amortisation
Infrastructure, plant and equipment (including infrastructure assets under lease) have been depreciated using the straight-line method
based upon the estimated useful life of the assets. Depreciation rates for the 2004/2005 financial year have been amended to reflect
the remaining useful life of assets as assessed by independent valuers as part of their valuation of assets as at 30 June 2004.
Depreciation and amortisation rates used are as follows:
2005 2004
Operational Land 1.09% 1.01%
Investment Land 0.00% 0.00%
Plant and Equipment 5.00 – 33.00% 15.00%
Buildings 2.50 – 15.00% 6.25 – 15.00%
Fixed Plant and Equipment 5.00 – 15.00% 5.00 – 15.00%
Runways, Taxiways and Aprons 1.01 – 6.67% 1.01 – 6.67%
Other Infrastructure Assets 2.50 – 20.00% 6.25 – 20.00%
(iii) Leasehold Improvements
Leasehold improvements have been amortised over the shorter of the unexpired period of the lease and estimated useful life of the
improvements.
(iv) Major Repairs and Maintenance
Major asset maintenance costs incurred on runways, taxiways and aprons are capitalised and are written off over the period between
major asset maintenance projects. This recognises that the benefit is to future periods and also apportions the cost over the period of
the related benefit.
(v) Non-Current Assets under Construction
The cost of non-current assets constructed by the consolidated entity includes the cost of materials used in construction, direct labour
on the project and consultancy and professional fees associated with the project.
13

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Lease Franchise Fee and Expenditure Carried Forward
(i) Lease Franchise Fee
The franchise fee paid on acquisition of the Perth Airport lease, which represents the difference between the Perth Airport purchase
price and the fair value of the net tangible assets acquired, is amortised on a straight line basis over the life of the lease, being 99 years
from 2 July 1997.
(ii) Capitalised Bid Costs
The costs incurred in relation to the Perth Airport bid and acquisition have been capitalised and are amortised on a straight-line basis
over the life of the lease, being 99 years from 2 July 1997.
(iii) Capitalised Finance Costs and Capitalised US Note Issue Finance Costs
All fees and costs incurred in establishing the funding facilities for the acquisition of the Perth Airport lease and in refinancing the debt
structure have been capitalised and are amortised on a straight line basis according to the term to maturity of the relevant debt.
(iv) Capitalised Masterplan Costs
All fees and costs incurred in the development of the masterplan have been capitalised and are amortised on a straight-line basis over
5 years. This represents the statutory period over which the masterplan is required to be prepared.
(v) Aviation Development Programme
Costs incurred relate to feasibility analysis and runway upgrades and are currently being amortised over a period of 3 years.
(l)
Payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the reporting date and which are
unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
(m) Borrowing Costs
Borrowing costs are recognised as expenses in the period in which they are incurred, except as noted in note 1(k)(iii). Borrowing costs include:
• interest on bank overdraft and long term borrowings
• interest on long term subordinated debt
• interest on bonds payable (including capitalised interest component)
• ancillary costs incurred in connection with the ongoing conduct of borrowings.
(n) Derivative Financial Instruments
(i) Forward exchange contracts
The consolidated entity enters into forward exchange contracts where it agrees to sell specified amounts of foreign currencies in the future
at a predetermined exchange rate. The objective is to match the contract with anticipated future cash flows from payments and receipts
in foreign currencies, to reduce the impact on the consolidated entity against the possibility of loss from future exchange rate fluctuations.
The accounting policy for currency swaps is detailed in note 1(d).
(ii) Interest rate swaps
The consolidated entity enters into interest rate swap agreements that are used to convert the floating interest rates payable on a
portion of its debt to fixed interest rates. The swaps are entered into with the objective of reducing impact on the consolidated entity
from future interest rate fluctuations.
It is the company’s policy not to recognise interest rate swaps in the financial statements. Net receipts and payments are recognised as
an adjustment to interest expense.
14

(o) Maintenance and Repairs
Maintenance, repair costs and minor renewals, excluding maintenance on runways, taxiways and aprons, are charged as expenses as incurred.
Maintenance on runways, taxiways and aprons is treated in accordance with note 1(j)(iv).
(p) Employee Benefits
Provision has been made for long service leave and annual leave payable to employees on the basis of statutory and contractual
requirements. Vested entitlements are classified as current liabilities.
Liabilities arising in respect of wages and salaries, annual leave and other employee benefits expected to be settled within twelve months of the
reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled.
A liability for long service leave is measured as the present value of expected future payments to be made in respect of services provided
by employees up to the reporting date. When assessing the adequacy of the provision, consideration is given to the present value of these
payments after assessing expected future wage and salary levels, experience of employee departure and period of service.
The company meets its superannuation guarantee and enterprise bargaining obligations for employer’s superannuation through
contributions to resident complying accumulation superannuation funds selected by employees. If an employee makes no choice, then
those contributions are sent monthly to the resident complying superannuation scheme operated by Westscheme Pty Ltd. Company
contributions to superannuation funds are charged against profits.
(q) Cash
For the purposes of the statement of cashflows, cash includes deposits at call which are readily convertible to cash on hand and are subject
to an insignificant risk of change in value, net of outstanding bank overdrafts.
(r) Rounding of Amounts
The company is of a kind referred to in Class Order 98/0100, issued by the Australian Securities & Investments Commission, relating to
the “rounding off” of amounts in the financial report. Amounts in the financial report have been rounded off in accordance with that
Class Order to the nearest thousand dollars.
15

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
NOTE 2. REVENUES AND EXPENSES
(a) Revenue From Ordinary Activities
Revenue From Ordinary Operating Activities
Aeronautical Charges 49,594 43,555 49,594 43,555
Trading 24,620 21,606 24,620 21,606
Ground Transport Services 19,209 15,902 19,209 15,902
Property 18,333 16,411 18,333 15,871
Proceeds Capital Leases of Investment Land
and Sale of Buildings (i) 17,961 9,695 17,961 9,695
Recharge Property Service Costs 9,058 7,281 9,058 7,281
Other Revenue 1,004 1,259 1,004 1,259
139,779 115,709 139,779 115,169
Revenue from Ordinary Non-Operating Activities
Interest revenue – other persons/corporations 1,000 704 1,000 1,080
Proceeds on sale of infrastructure, plant and equipment 37 79 37 79
1,037 783 1,037 1,159
Total Revenue From Ordinary Activities 140,816 116,492 140,816 116,328
Profit from sale of infrastructure, plant and equipment 10 11 10 11
(b) Other Expenses From Ordinary Activities
Employee Expenses 11,800 11,111 11,800 11,111
Services and Utilities 20,843 16,743 20,843 16,743
Cost of Sale – Capital Leases Investment Land
and Sale of Buildings (i) 13,028 2,908 13,028 2,908
General Administration and Other 9,122 7,528 9,122 7,528
Provision – Onerous Contract 6,025 - 6,025 -
Work in Progress Written Off 26 767 26 767
Bad Debts Written Off 30 41 30 41
Provision for Doubtful Debts (182) 11 (182) 11
Lease Expenses 121 145 121 145
Maintenance Expenses 2,799 2,465 2,799 2,465
63,612 41,719 63,612 41,719
(i) Profit on Capital Leases of Investment Land and Sale of Buildings
Proceeds on sale (Note 2(a)) 17,961 9,695 17,961 9,695
Cost on sale (Note 2(b)) (13,028) (2,908) (13,028) (2,908)
Net profit on sale 4,933 6,787 4,933 6,787
Sale of investment land under finance leases sold on
back to back terms with head lease.
16

Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
(c) Borrowing Cost Expenses
Interest Expense:
- Primary debt holders 38,661 37,951 38,661 37,951
- Subordinated debt holders 20,599 18,247 20,599 18,247
- Other 203 223 203 223
Other borrowing expenses 550 580 550 580
Total borrowing cost expenses 60,013 57,001 60,013 57,001
(d) Depreciation
Plant and equipment 1,130 579 1,130 567
Leased: Buildings 4,047 3,733 4,047 3,616
Fixed Plant and equipment 1,446 835 1,446 800
Runways, taxiways and aprons 1,939 1,591 1,939 1,591
Other infrastructure 1,554 1,031 1,554 1,031
Total Depreciation 10,116 7,769 10,116 7,605
(e) Amortisation
Operational land 640 188 640 188
Lease franchise fee 4,350 4,350 4,350 4,350
Capitalised bid costs 151 151 151 151
Capitalised finance costs AUD bonds - 1,479 - 1,479
Capitalised finance costs USD notes 794 796 794 796
Capitalised finance costs other 414 450 414 450
Capitalised masterplan costs 212 88 212 88
Capitalised aviation development costs 142 96 142 96
Total Amortisation 6,703 7,598 6,703 7,598
NOTE 3. INCOME TAX
Operating profit before income tax 345 2,337 345 2,337
Prima facie income tax expense calculated at 30% (2004: 30%) 104 701 104 701
Tax effect of permanent differences:
Entertainment 13 11 13 11
Amortisation of operational land 192 57 192 57
Amortisation of lease franchise fee 1,305 1,305 1,305 1,305
Amortisation of capitalised bid costs 45 45 45 45
Non-allowable depreciation 1,562 1,225 1,562 1,225
Future income tax benefit not brought to account (3,221) (3,344) (3,221) (3,344)
Income tax expense adjusted for permanent differences - - - -
17

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 3. INCOME TAX (CONTINUED)
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
The directors estimate that the potential future income
tax benefit at 30 June 2005 not brought to account is:
Tax losses - operating 9,848 15,745 9,848 15,745
Timing differences (6,340) 9,667 (6,340) 9,667
3,508 25,412 3,508 25,412
Tax Losses
All tax losses of WAC are now held by ADG, however due to the entry into tax sharing arrangements the future benefit of tax losses will
be recognised by WAC when and if ADG is able to recognise this benefit.
This benefit for tax losses will only be obtained if:
(i) future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised
is derived;
(ii) the conditions for deductibility imposed by tax legislation continued to be complied with; and
(iii) no changes in tax legislation adversely affect the consolidated entity in realising the benefit from the deductions for the losses.
Tax Consolidation Legislation
WAC’s parent, Airstralia Development Group Pty Ltd elected to form a tax consolidation group for income tax purposes with effect from
1 July 2003. The Australian Taxation Office has been formally notified of this decision. Members of the group will enter into a tax sharing
arrangement in order to allocate income tax expense to the wholly-owned subsidiaries on a stand alone basis.
As a consequence of using the stand-alone basis, timing differences arise due to items being brought to account in different periods for
tax funding and accounting purposes. These are carried in the Statement of Financial Position as tax funding assets and liabilities that are
expected to affect future payments to the head entity under the tax funding agreement.
Tax funding assets are not brought to account unless realisation of the asset is assured beyond reasonable doubt. Tax funding assets
referable to tax losses are only carried forward when realisation of the benefits is virtually certain.
Revenue and expenses arising under the tax funding agreement are disclosed as income tax expense in the Statement of Financial
Performance. Income tax expense is calculated on the accounting profit after allowing for permanent differences.
NOTE 4. CASH ASSETS
Cash at bank and on hand 8,566 8,822 8,566 8,822
NOTE 5. CURRENT RECEIVABLES
Trade debtors (a) 9,768 8,971 9,768 8,971
Less: Provision for doubtful debts (75) (257) (75) (257)
9,693 8,714 9,693 8,714
Other debtors (a) 8,982 7,371 8,982 7,371
18,675 16,085 18,675 16,085
(a) Terms and conditions
Trade debtors are non-interest bearing and generally on 30 day terms.
Other debtors generally arise from transactions outside the usual operating activities of the consolidated entity and are non-interest bearing.
18

Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
NOTE 6. CURRENT INVENTORIES
Raw materials – at cost 66 74 66 74
NOTE 7. ASSETS HELD FOR SALE – AT COST
Land held for sale – at cost (a) 6,750 - 6,750 -
Buildings held for sale – at cost (a) 5,902 9,625 5,902 9,625
12,652 9,625 12,652 9,625
(a) Reconciliations
A reconciliation of the carrying amount for property, plant and equipment
at the beginning and end of the current financial year is set out below.
Land
Carrying amount at beginning - -
Transfers 6,750 6,750
6,750 6,750
Buildings
Carrying amount at beginning 9,625 9,625
Transfers 5,902 5,902
Disposals (9,625) (9,625)
5,902 5,902
NOTE 8. CURRENT ASSETS OTHER
Prepayments 107 1,058 107 1,058
Major O&M Reserve Account (a) - 752 - 752
Capex Reserve Account (a) - 1,867 - 1,867
Maintenance Reserve Account (a) 6,923 - 6,923 -
Security Trustee Indemnification Reserve (a) 129 123 129 123
GST Clearing Accounts 928 450 928 450
Security Bonds and Retentions 1,162 693 1,162 693
Deferred loss on cross currency swaps 2,112 761 2,112 761
11,361 5,704 11,361 5,704
(a) Terms and conditions
Pursuant to its Financing Arrangements, WAC is required to establish, fund and maintain the following reserve accounts:
Maintenance Reserve Account:
The Maintenance Reserve account replaces both of the previously established Major Maintenance and Capex Reserve accounts (current
and non-current). Major maintenance consists of maintenance of a non-recurring nature on runways, taxiways, aprons, roads and
terminals. The balance of the reserve account is required to be maintained at a minimum level of $6,700,000.
Security Trustee Indemnification Reserve:
Established for the purpose of paying or reimbursing the Security Trustee or any Receiver for any loss or damages sustained in connection
with the Tripartite Agreement.
19

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 9. NON-CURRENT INVESTMENTS
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Shares in controlled entity at cost - - - -
Country of Inc. Class of Percentage Cost of Parent Entity’s
Share Ownership Investment $’000
2005 2004 2005 2004
Controlled Entity:
WAC Investments Pty Ltd Aust. Ordinary 100% 100% - -
NOTE 10. INFRASTRUCTURE, PLANT AND EQUIPMENT
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Plant and Equipment
Plant and equipment – at valuation 3,539 3,582 3,539 3,582
Plant and equipment – at cost 1,672 - 1,672 -
Less: accumulated depreciation (1,117) - (1,117) -
Total Plant and Equipment (a) 4,094 3,582 4,094 3,582
Infrastructure Assets under Lease
Land – at valuation
Operational land 59,327 42,022 59,327 42,022
Less: accumulated amortisation (640) - (640) -
58,687 42,022 58,687 42,022
Investment land – at valuation 107,595 126,808 107,595 126,808
(a) 166,282 168,830 166,282 168,830
Investment Buildings – at valuation 14,515 13,295 14,515 13,295
Investment Buildings – at cost 9,752 - 9,752 -
Less: accumulated depreciation (85) - (85) -
(a) 24,182 13,295 24,182 13,295
Operational Buildings – at valuation 65,537 65,536 65,537 65,536
Operational Buildings – at cost 739 - 739 -
Less: accumulated depreciation (3,419) - (3,419) -
(a) 62,857 65,536 62,857 65,536
Fixed plant and equipment – at valuation 12,334 13,141 12,334 13,141
Fixed plant and equipment – at cost 4,373 - 4,373 -
Less: accumulated depreciation (1,401) - (1,401) -
(a) 15,306 13,141 15,306 13,141
Runways, taxiways & aprons – at valuation 49,368 49,368 49,368 49,368
Runways, taxiways & aprons – at cost 214 - 214 -
Less: accumulated depreciation (1,939) - (1,939) -
(a) 47,643 49,368 47,643 49,368
20

Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Other infrastructure – at valuation 50,060 50,114 50,060 50,114
Other infrastructure – at cost 4,679 - 4,679 -
Less: accumulated depreciation (1,551) - (1,551) -
(a) 53,188 50,114 53,188 50,114
Assets under construction – at cost 39,795 19,853 39,795 19,853
Total Infrastructure Assets under Lease 409,253 380,137 409,253 380,137
Total Infrastructure, Plant and Equipment 413,347 383,719 413,347 383,719
(a) Valuation of Land, Buildings and Civil Works
In the 2003/2004 financial year, the company engaged Knight Frank and Opus NZ (licensed valuers) to provide an independent valuation for
leased land, buildings, runways, taxiways, aprons, other infrastructure, plant & equipment as at 30 June 2004. An Optimised Depreciated
Replacement Cost (ODRC) method was adopted to value the various assets given the specialised nature of assets held and therefore the limited
market for re-sale. WAC adopted the valuation for all classes of assets as at 30 June 2004.
This approach has also been adopted in the 2004/2005 financial year, whereby the company has again engaged Knight Frank and Opus to
provide an independent valuation for leased land, buildings, runways, taxiways, aprons and other infrastructure as at 30 June 2005. This
valuation has only been adopted for Investment Land and Buildings. WAC assessed the valuation increment for all other classes of assets to
be immaterial on a class by class basis as compared to the current carrying value.
The value of these increments not booked is as follows:
Operational Land 2,745
Operational Buildings 8,634
Runways, Taxiways & Aprons 3,087
Other Infrastructure 4,115
18,581
(b) Reconciliations
Reconciliations of the carrying amounts of each class of infrastructure, plant and equipment at the beginning and end of the current financial
year are set out below.
Plant and Equipment
Carrying amount at beginning 3,582 3,582
Transfers – Capitalised WIP 1,672 1,672
Transfers – Asset Class (3) (3)
Disposals (27) (27)
Depreciation expense (1,130) (1,130)
4,094 4,094
21

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
Consolidated
Parent
Notes 2005 2005
$’000 $’000
NOTE 10. INFRASTRUCTURE, PLANT AND EQUIPMENT (CONTINUED)
Infrastructure Assets under Lease
Operating Land
Carrying amount at beginning 42,022 42,022
Transfer – Asset Class 17,305 17,305
Depreciation expense (640) (640)
58,687 58,687
Investment Land
Carrying amount at beginning 126,808 126,808
Transfer – Asset Class (24,055) (24,055)
Revaluations 6,712 6,712
Disposals (1,870) (1,870)
107,595 107,595
Investment Buildings
Carrying amount at beginning 13,295 13,295
Transfers – Capitalised WIP 14,899 14,899
Transfers – Asset Class (5,086) (5,086)
Revaluations 1,702 1,702
Depreciation expense (628) (628)
24,182 24,182
Operational Buildings
Carrying amount at beginning 65,536 65,536
Transfers – Capitalised WIP 740 740
Depreciation expense (3,419) (3,419)
62,857 62,857
Fixed plant and equipment
Carrying amount at beginning 13,141 13,141
Transfers – Capitalised WIP 4,373 4,373
Transfers – Asset Class (762) (762)
Depreciation expense (1,446) (1,446)
15,306 15,306
Runways, taxiways and aprons
Carrying amount at beginning 49,368 49,368
Transfers – Capitalised WIP 214 214
Depreciation expense (1,939) (1,939)
47,643 47,643
Other infrastructure
Carrying amount at beginning 50,114 50,114
Transfers – Capitalised WIP 4,679 4,679
Transfers – Asset Class (51) (51)
Depreciation expense (1,554) (1,554)
53,188 53,188
Assets under construction
Carrying amount at beginning 19,853 19,853
Additions 46,545 46,545
Write-offs (26) (26)
Transfers to buildings, fixed plant and other infrastructure (26,577) (26,577)
39,795 39,795
Information relating to security over assets is set out in note 17 (c).
22

Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
NOTE 11. LEASE FRANCHISE FEE
Lease franchise fee 430,599 430,599 430,599 430,599
Less: accumulated amortisation (34,778) (30,428) (34,778) (30,428)
NOTE 12. NON-CURRENT ASSETS OTHER
395,821 400,171 395,821 400,171
Capex Reserve Account (a) - 3,973 - 3,973
Capitalised bid costs 14,949 14,949 14,949 14,949
Less: accumulated amortisation (1,208) (1,057) (1,208) (1,057)
13,741 13,892 13,741 13,892
Capitalised financing costs 4,138 3,805 4,138 3,805
Less: accumulated amortisation (981) (567) (981) (567)
3,157 3,238 3,157 3,238
Capitalised US Note issue finance costs 11,208 11,208 11,208 11,208
Less: accumulated amortisation (7,432) (6,639) (7,432) (6,639)
3,776 4,569 3,776 4,569
Capitalised masterplan costs 2,460 877 2,460 877
Less: accumulated amortisation (476) (263) (476) (263)
1,984 614 1,984 614
Aviation development programme – at cost 606 458 606 458
Less: accumulated amortisation (400) (258) (400) (258)
206 200 206 200
Deferred loss on cross currency swaps 8,447 3,805 8,447 3,805
31,311 30,291 31,311 30,291
(a) Further information relating to reserve accounts is set out in note 8(a).
NOTE 13. CURRENT PAYABLES
Trade creditors (a) 3,821 2,001 3,821 2,001
Bank debt interest payable (a) 182 57 182 57
Bond (AUD) interest payable (a) 1,966 1,857 1,966 1,857
Bond (USD) interest payable (a) 4,808 5,125 4,808 5,125
Subordinated debt interest payable (a) 4,551 4,126 4,551 4,126
Deferred consideration payables (a) - 4,146 - 4,146
Payable to related parties (a) 1,680 1,301 1,680 1,301
Other creditors 4,257 6,006 4,257 6,006
GST clearing accounts 984 1,245 984 1,245
(a) Terms and conditions
Trade creditors are non-interest bearing and are normally settled on 30 day terms.
Further information relating to bank debt interest is set out in note 17 (a).
Further information relating to AUD and USD bond interest is set out in note 17 (b) and (c).
Further information relating to subordinated debt interest is set out in note 29.
Deferred consideration payables are generally settled within the next 12 months.
Further information relating to amounts payable to related parties is set out in note 29.
22,249 25,864 22,249 25,864
23

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
NOTE 14. CURRENT INTEREST BEARING LIABILITIES
Secured
Bank loans (a) 2,050 1,000 2,050 1,000
(a) Further information relating to bank loans is set out in note 17 (a).
NOTE 15. CURRENT PROVISIONS
Onerous contracts (a) 1,184 - 1,184 -
Annual leave 1,115 1,003 1,115 1,003
Long service leave 1,575 1,494 1,575 1,494
(a) Further information relating to onerous contracts is set out in note 18 (a).
3,874 2,497 3,874 2,497
NOTE 16. CURRENT OTHER LIABILITIES
Foreign currency hedge liability 2,112 761 2,112 761
NOTE 17. NON-CURRENT INTEREST
BEARING LIABILITIES
Secured
Bank loans (a) 19,425 5,800 19,425 5,800
AUD Bonds (b) 199,486 188,390 199,486 188,390
USD Bonds (c) 196,412 217,265 196,412 217,265
415,323 411,455 415,323 411,455
Unsecured
Subordinated shareholder loans (d) 192,473 198,250 192,473 198,250
192,473 198,250 192,473 198,250
607,796 609,705 607,796 609,705
Terms and conditions
(a) Bank loans represent drawings on the Standby Letter of Credit Facility and the Capital Expenditure Facility. The Capital Expenditure Facility
is an interest only facility with the principal payable on maturity on 4 March 2008. Interest on the letter of credit facility is payable quarterly,
with quarterly fixed principal repayments over a term of 4 years from drawdown.
(b) Fixed/floating AUD bonds have a period to maturity of 20 years ending 1 July 2017. Over the course of the first 11 years a fixed coupon
of 4% per annum is payable to the bondholders. A separate capitalising component currently set at 5.78% per annum applies during this
period. A floating interest component applies from the 11th year replacing the fixed/floating structure. The cumulative outstanding
principal of the bond is repayable in full at maturity.
(c) USD Bonds have a period to maturity of 12 years ending 1 April 2010. The bonds pay a fixed coupon of 6.48% per annum, payable semiannually.
Primary issue of the bonds raised US$150 million. At issue of the bonds, the consolidated entity entered into a cross-currency
foreign currency swap effectively hedging all USD foreign exchange and interest rate risks associated with the bond’s coupon payments
and principal repayment at maturity.
The bank debt and both bond facilities are fully secured over all the assets of WAC, including a mortgage over the consolidated entity’s
interest under the Perth Airport lease. In addition, Airstralia Development Group Pty Ltd (ADG) has guaranteed repayment of the
outstanding indebtedness by providing a charge over its shares in WAC.
24

(d) On 7 March 2003 the parent entity ADG issued $45,000,000 of convertible notes. In September 2004 ADG issued an additional
20,000,000 convertible notes on a pro-rata basis to existing noteholders. The notes have a face value of $1.00 each, but were issued at
a price of $1.066, yielding net proceeds of $21.32 million. The notes are convertible to equity securities at any time after a public
announcement of the listing of equity securities of the company or the parent entity. The conversion number of shares will be determined
by dividing the amount owing with respect to the notes by the conversion price. The conversion price is 95% of the volume weighted
average price of the securities under an initial public offer or the trading price over a period of 20 business days. ADG advanced the
proceeds of these notes to WAC on the same date as a subordinated shareholder loan on the same terms.
The terms and conditions of the consolidated entity’s financing arrangements provide for the subordination of payment obligations to the
unsecured debt holders for such time as any secured money remains owing to the banks and bondholders. Further details with respect to
the provider of subordinated debt are set out in note 29.
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Financing Arrangements
Total facilities available
Stand-by Letter of Credit 16,200 16,200 16,200 16,200
Bank overdrafts 10,000 10,000 10,000 10,000
Capital expenditure facility 50,000 50,000 50,000 50,000
76,200 76,200 76,200 76,200
Used at balance date
Stand-by Letter of Credit 8,200 4,000 8,200 4,000
Bank overdrafts - - - -
Capital expenditure facility 15,300 3,300 15,300 3,300
23,500 7,300 23,500 7,300
Unused at balance date
Stand-by Letter of Credit 8,000 12,200 8,000 12,200
Bank overdrafts 10,000 10,000 10,000 10,000
Capital expenditure facility 34,700 46,700 34,700 46,700
52,700 68,900 52,700 68,900
The unused Stand-by Letter of Credit provides standby debt service liquidity for the quarterly debt service obligations under the financing
documents, and standby funding for the deferred settlement payments. The part of the facility which relates to the deferred settlement
payments expires from the last drawdown date of 15 September 2004. The component of the facility which relates to the quarterly debt
service obligations expires on 7 March 2008.
The unused bank overdraft provides assistance in the day to day management of working capital requirements. The availability of the
facility is reviewed on an annual basis.
The capital expenditure facility is available for the purpose of funding approved capital expenditure subject to certain approvals. The facility
expires on 7 March 2008.
NOTE 18. NON-CURRENT PROVISIONS
Onerous Contracts (a) 4,841 - 4,841 -
Long service leave 169 211 169 211
5,010 211 5,010 211
(a) At 30 June 2005 WAC recognised an onerous contract for the present value of the future payments required under the technical services
agreement to the Port of Portland (note 29). A pre-tax, nominal weighted average cost of capital was used to determine the discount rate
in calculation of the present value.
25

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 19. NON-CURRENT OTHER LIABILITIES
Consolidated
Parent
Notes 2005 2004 2005 2004
$’000 $’000 $’000 $’000
Foreign currency hedge liability 41,035 15,539 41,035 15,539
NOTE 20. CONTRIBUTED EQUITY
Issued and Paid up capital:
144,564,774 Ordinary shares fully paid 144,565 144,565 144,565 144,565
NOTE 21. RESERVES
Asset Revaluation Reserve (a) 173,336 164,922 173,336 164,922
(a) Movement in Asset Revaluation Reserve
Balance at beginning of the year 164,922 - 164,922 -
Increment on plant & equipment - 1,034 - 1,034
Increment on land 6,712 74,815 6,712 74,815
Increment on buildings 1,702 39,030 1,702 39,030
Increment on fixed plant & equipment - 4,146 - 4,146
Increment on runways, taxiways & aprons - 1,878 - 1,878
Increment on infrastructure - 44,019 - 44,019
Balance at end of the year 173,336 164,922 173,336 164,922
NOTE 22. ACCUMULATED LOSSES
Accumulated losses (a) (110,228) (110,573) (110,228) (110,573)
(a) Accumulated Losses
Balance at beginning of the year (110,573) (112,910) (110,573) (112,910)
Net profit/(loss) attributable to members
of the consolidated entity 345 2,337 345 2,337
Balance at end of the year (110,228) (110,573) (110,228) (110,573)
26

NOTE 23. FINANCIAL INSTRUMENTS
(a) Interest Rate Risk Exposures
The consolidated entity’s exposure to interest rate risk for each class of financial asset and financial liability is set out below.
30 June 2005 Floating Fixed interest Fixed interest Non-interest
interest rate over1 to 5 years over 5 years Bearing Total
$’000 $’000 $’000 $’000 $’000
Financial Assets
Cash and deposits 8,566 - - - 8,566
Other cash reserves 7,052 - - - 7,052
Receivables - - - 18,675 18,675
GST clearing accounts - - - 928 928
Security bonds and retentions - - - 1,162 1,162
15,618 - - 20,765 36,383
Weighted Average Interest Rate 5.12%
Financial Liabilities
Bank Loans 21,475 - - - 21,475
AUD Bonds* - - 199,486 - 199,486
USD Notes - - 196,412 - 196,412
Other loans 192,473 - - - 192,473
Trade and other creditors - - - 28,274 28,274
Foreign currency hedge liability - - - 43,147 43,147
213,948 - 395,898 71,421 681,267
Weighted Average Interest Rate: 9.95% 9.50%
Net financial liabilities 198,330 - 395,898 50,656 644,884
* Note: Australian Dollars bonds mature 1 July 2017, however become floating 1 July 2008 (note 17(b)).
30 June 2004 Floating Fixed interest Fixed interest Non-interest
interest rate over1 to 5 years over 5 years Bearing Total
$’000 $’000 $’000 $’000 $’000
Financial Assets
Cash and deposits 8,822 - - - 8,822
Other cash reserves 6,715 - - - 6,715
Receivables - - - 16,085 16,085
GST clearing accounts - - - 450 450
Security bonds and retentions - - - 693 693
Weighted Average Interest Rate 4.00%
15,537 - - 17,228 32,765
27

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 23. FINANCIAL INSTRUMENTS (CONTINUED)
(a) Interest Rate Risk Exposures (continued)
30 June 2004 Floating Fixed interest Fixed interest Non-interest
interest rate over1 to 5 years over 5 years Bearing Total
$’000 $’000 $’000 $’000 $’000
Financial Liabilities
Bank Loans 6,800 - - - 6,800
AUD Bonds - - 188,390 - 188,390
USD Notes - - 217,265 - 217,265
Other loans 198,250 - - - 198,250
Trade and other creditors - - - 25,864 25,864
Foreign currency hedge liability - - - 16,300 16,300
205,050 - 405,655 42,164 652,869
Weighted Average Interest Rate: 8.92% - 9.32%
Net financial liabilities 189,513 - 405,655 24,936 620,104
Reconciliation of Net Financial Assets to Net Assets
Notes 2005 2004
$’000 $’000
Net financial liabilities as above (644,884) (620,104)
Non-financial assets and liabilities
Inventories 6 66 74
Prepayments 8 107 1,058
Infrastructure, plant and equipment 7,10 425,999 393,344
Lease franchise fee 11 395,821 400,171
Other assets 8,12 33,423 27,079
Provisions 15,18 (2,859) (2,708)
Net assets per statement of financial position 207,673 198,914
(b) Credit Risk Exposures
The credit risk on financial assets of the consolidated entity which have been recognised on the statement of financial position is
generally the carrying amount net of any provisions for doubtful debts.
For unrecognised financial instruments, including derivatives, credit risk also arises from the potential failure of counterparties to meet
their obligations under the respective contracts or arrangements. The consolidated entity’s credit risk exposures in relation to
unrecognised financial instruments is the notional principal amount of the instruments.
(c) Unrecognised Financial Instruments
In the normal course of business, the consolidated entity is party to unrecognised financial instruments in order to hedge exposures to
fluctuations in interest rates and foreign exchange rates.
Interest Rate Swap and Cross Currency Foreign Exchange Swap Contracts
It is a requirement of the consolidated entity’s funding arrangements and the consolidated entity’s risk management process that a
portion of its debt be hedged against movements in interest rates and foreign exchange. Accordingly, the consolidated entity has
entered into a series of interest rate and cross currency foreign exchange swap contracts.
The consolidated entity’s exposure to interest rate risk for each class of unrecognised financial asset and financial liability is set out
below. The balance represents the notional principal amount of the contract.
Notional Principal Note 2005 2006-2011
$’000 $’000
Interest rate swaps (i) 229,000 229,000
Cross currency swaps (ii) 229,000 229,000
28

(i) Interest rate swaps
The consolidated entity has entered into interest rate swap contracts under which it is obliged to receive interest at floating rates and
to pay interest at fixed rates. The contracts are settled on a net basis.
The notional principal amounts of swaps currently in place of $229 million are designated against the floating rate interest payments
under the USD notes of $229 million.
(ii) Cross currency interest rate swaps
The cross currency interest rate swap agreement is denominated in US dollars, amounting to US$150 million and interest commitments,
at a fixed exchange rate of A$1:US$0.655 under which it is obliged to receive interest at fixed rates and pay interest at floating rates.
The contracts are settled on a net basis.
(d) Net Fair Value of Financial Assets and Liabilities
(i) Recognised Financial Instruments
The carrying value of all financial assets and liabilities approximates fair value.
(ii)Unrecognised Financial Instruments
Total carrying amount as per the Aggregate net
statement of financial position fair value
2005 2004 2005 2004
$’000 $’000 $’000 $’000
Interest rate swaps # # (23,331) (17,159)
# not applicable since financial instruments are not recognised in the financial statements.
NOTE 24. REMUNERATION OF DIRECTORS
Directors of the
Directors of the
Consolidated Entity
Parent Entity
2005 2004 2005 2004
$ $ $ $
Income paid or payable to all directors of each entity in the
consolidated entity by the entities of which they are directors
and any related parties 132,000 79,282
Income paid or payable to all directors of the parent entity by
the parent entity and any related parties 132,000 79,282
The number of directors whose remuneration from entities in the consolidated entity and related parties was within the specified bands as follows:
$0 - $9,999 6 8 6 8
$10,000 - $19,999 1 0 1 0
$20,000 - $49,999 1 0 1 0
$50,000 - $59,999 0 0 0 0
$60,000 - $69,999 0 0 0 0
$70,000 - $79,999 1 1 1 1
WAC has effected insurance policies to insure certain officers of the consolidated entity as outlined in the directors’ report.
29

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 25. REMUNERATION OF AUDITORS
Consolidated
Parent
2005 2004 2005 2004
$ $ $ $
Remuneration of the auditors of the consolidated entity for:
Audit and review of the financial reports 57,080 52,315 57,080 52,315
Other services
- taxation 117,779 68,122 117,779 68,122
- advisory services 118,049 207,326 118,049 207,326
292,908 327,763 292,908 327,763
NOTE 26. CONTINGENT LIABILITIES
No specific native title claims exist over Perth Airport. The Directors are aware of general claims for native title over large tracts of metropolitan
Perth, which might include the airport, but the directors believe that these claims will not have any adverse impact on the operation or growth
of the airport.
Parts of Perth Airport (the Munday Swamp Bushland and Forrestfield Bushland) are listed on the Register of the National Estate. The Minister
for Transport and Regional Services may approve development of land on the Register if he or she is satisfied that there is no prudent or feasible
alternative to the development. As a result of changes that came into place from 1 January 2004, the Australian Heritage Council compiles
and maintains the Register of the National Estate (RNE). In addition to the RNE, two other lists have been created. These are the National
Heritage List (NHL) and the Commonwealth Heritage List (CHL). The NHL contains places of exceptional national heritage value. No areas on
WAC land have been uplifted from the RNE to NHL. The CHL contains areas of heritage value that are owned or controlled by the
Commonwealth. Two areas (Forrestfield Bushland and Munday Swamp and Surrounding Bushland) have been listed as indicative places.
Consolidated
Parent
NOTE 27. COMMITMENTS FOR EXPENDITURE
Capital Commitments
2005 2004 2005 2004
$’000 $’000 $’000 $’000
Commitments for the acquisition of plant and equipment
contracted for at the reporting date but not recognised as liabilities:
Not later than one year 8,033 27,726 8,033 27,726
Capital Expenditure Commitments
As part of its tender for the acquisition of the Perth Airport lease, WAC committed to the Commonwealth Government to fund capital
expenditure for aeronautical infrastructure and other improvements totalling a minimum of $54,600,000 during the 5 fiscal years 1997
to 2002 inclusive and additional sums totalling $33,300,000 during the 5 fiscal years 2003 to 2007. WAC renegotiated these
commitments with the Commonwealth Government to extend the timeframe in respect of the first 5 year commitment for a further 4
years, to 30 June 2006. To date WAC has funded a cumulative total of $111,283,044 in capital expenditure towards this commitment to
30 June 2005. The Commonwealth Government has yet to approve WAC’s capital expenditure statement.
Technical Service Agreement
A technical service agreement (TSA) exists between WAC and Port of Portland Holdings Pty Ltd (POPH) for the provision of technical advice
to WAC about its management, operation and maintenance of the Perth Airport. Under the terms of the TSA, WAC is committed to pay
an annual fee for each financial year being the greater of the Base Fee or an Incentive Fee which is linked to earnings for that financial
year. The agreement is for a period of 15 years expiring on 5 May 2012. The TSA is considered to be an onerous contract & accordingly
a provision for the future cashflows has been raised as at 30 June 2005 (see note 18a).
Consulting Agreement
A consulting agreement exists between WAC and BAA International Limited (BAA) for the provision of consultancy services to WAC in
connection with the planning, operation, management and development of the airport businesses carried on at the Perth Airport. Under
the terms of the agreement, WAC is committed to pay an annual fee for each financial year comprising a Base Fee and a Bonus Fee which
is linked to earnings for that financial year. The agreement is for a period of 10 years expiring on 30 June 2011.
30

Directors Remuneration Scheme
During the year the WAC Board approved the implementation of a Directors Remuneration Scheme (DRS), which provides for payment of
directors fees to directors appointed by shareholders in proportion to the respective shareholding of each shareholder in the parent entity (ADG).
Where shareholders have elected, their representative director receives the proportionate directors fee. If shareholders elect for their
representative director not to receive any remuneration, the shareholder receives the proportionate director fee as consideration for the
procurement of the representative director. At 30 June 2005 accounts payable included $961,042 of fees payable to the shareholders as
per the election made by the individual shareholders.
Consolidated
Parent
2005 2004 2005 2004
$’000 $’000 $’000 $’000
NOTE 28. EMPLOYEE BENEFITS
The aggregate employee benefit liability is comprised of:
Accrued wages, salaries and on-costs 781 733 781 733
Provisions (current) 2,690 2,497 2,690 2,497
Provisions (non-current) 169 211 169 211
3,640 3,441 3,640 3,441
NOTE 29. RELATED PARTIES
Directors
The names of persons who were directors of WAC at any time
between 1 July 2004 and 30 June 2005 are as follows:
Appointed By
Mr David Crawford
Mr Michael Fitzpatrick
Mr Peter Taylor
Dr Allan Griffin
Mr Ronald Doubikin
Mr Dominic Helmsley
Mr Stuart Condie
Mr Duncan Taylor
Mr Lyndon Rowe (appointed 25 August 2004)
Mr Alexander Wheeler (appointed 24 November 2004
as alternate to Michael Fitzpatrick & Peter Taylor)
Mr Hamish De Run (alternate to Michael Fitzpatrick &
Peter Taylor; resigned 27 August 2004)
Mr Graham Matthews (resigned 25 August 2004;
appointed alternate to Lyndon Rowe 25 August 2004)
Mr Alexander Austin (alternate director to Graham Matthews;
resigned 25 August 2004)
Mr Stephen Vineburg (appointed alternate to Duncan Taylor
Hastings Funds Management Ltd
Hastings Funds Management Ltd
Utilities of Australia Pty Ltd
Utilities of Australia Pty Ltd
BAA Australia Pty Ltd
BAA Australia Pty Ltd
Colonial First State Private Capital Ltd and National Nominees Ltd
Westscheme Pty Ltd
Hasting Funds Management Ltd
Hastings Funds Management Ltd
Westscheme Pty Ltd
Westscheme Pty Ltd
Colonial First State Private Capital
16 September 2004) Ltd and National Nominees Ltd
Remuneration
Information on remuneration of directors is disclosed in note 24.
31

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 29. RELATED PARTIES (CONTINUED)
Wholly-owned Group
The wholly owned group consists of WAC and its wholly owned controlled entity, WAC Investments Pty Ltd.
The ultimate controlling entity in the group is Airstralia Development Group Pty Ltd (ADG) which controls 100% of the issued capital of WAC.
Transactions between ADG and WAC between 1 July 2004 and 30 June 2005 consisted of loans advanced by ADG. Aggregate amounts
payable to ADG by WAC at balance date were as follows:
Notes 2005 2004
$’000 $’000
Current accounts payable 13 4,551 4,126
Non- current interest bearing liability 17 192,473 198,250
197,024 202,376
Short Term Shareholder Loans
A short term subordinated loan was advanced by the shareholders to ADG on 1 July 1997. ADG advanced this amount to WAC on the same
date. These loans were repaid in full on 23 March 2004. A total of $260,749 interest was charged during the 2003/2004 financial year.
Subordinated Shareholder Loans
Purchase of the Perth Airport lease was partly funded by way of shareholder sponsored subordinated debt. Interest is payable on the debt at
the National Australia Bank’s Indicator Lending Rate (or equivalent indicative rate) for 1 year commercial bills exceeding $1,000,000 as at the
first day of the financial year plus a 4% margin. $5,000,000 of principal was repaid on 24 June 2004 with additional amounts of $12,000,000
paid on 4 April 2005 and $15,000,000 paid on 23 June 2005. At 30 June 2005, accounts payable included $4,551,241 (2004: $4,126,232)
of accrued interest on subordinated debt. A total of $20,599,276 (2004: $17,985,954) interest was charged during the year.
Where at the end of any period interest on the debt is not paid by WAC because such a payment would be in breach of the bank finance
agreement provisions then;
• interest for that period will be capitalised; and
• shall be paid in full on the repayment date of the loan.
Other Related Parties
A technical service agreement exists between WAC and Port of Portland Holdings Pty Ltd (POPH, previously known as Infratil Australia Pty Ltd
(IAPL), an entity jointly owned by the Australian Infrastructure Fund and the Utilities Trust of Australia), which engages POPH for the purpose
of providing technical advice about management, operations and maintenance of the airport. The contract was based on normal commercial
terms and conditions. A total of $1,165,167 (2004: $1,137,000) was paid to POPH during the financial year. At 30 June 2005, accounts
payable included $366,997 (2004: $366,989) of accrued technical service fees.
A consulting agreement exists between WAC and BAA International Limited (BAA), under which BAA provides advice and assistance in
connection with the planning, operation, management and development of the airport businesses carried on at Perth Airport. The contract is
based upon normal commercial terms and conditions. A total of $2,072,480 (2004: $1,928,584) was paid to BAA during the financial year.
At 30 June 2005, accounts payable included $323,467 (2004: $934,492) of accrued technical service fees.
Westscheme Pty Ltd is the fund manager of the Westscheme superannuation fund. Westscheme is the default superannuation fund for
employees of Westralia Airports Corporation.
Colonial First State Private Capital Ltd (CFI) and the Officers Superannuation Fund’s (NNL) interests in ADG are managed under an Investment
Mandate Agreement by Colonial First State Investments Limited (CFSIL). CFSIL is wholly owned by Commonwealth Bank Ltd (CBA). CBA
provides financial services and debt facilities to the consolidated entity on normal commercial terms and conditions.
In April 2005 the Perth Airport Property Trust (PAPT) was established with common shareholders to ADG. The establishment of the trust
involved the transfer of properties held by WAC to PAPT for consideration of $12,000,000 based on normal commercial terms and conditions
and included costs of sale totalling $10,947,580. WAC holds a property management agreement with PAPT, whereby WAC receives a fee paid
quarterly in arrears. The fee is calculated at 5% pa of the gross revenue from properties held by PAPT. At 30 June 2005 WAC has accrued
$18,583 in management fees and $32,539 in other recharge expenses.
32

WAC established the Property Development Advisory Committee (PDAC) in August 2003.The committee was established to assist the property
development team and provide advice to the board of directors on property specific transactions. At 30 June 2005 accounts payable included
$28,657 in fees to members of the committee.
During the year the WAC Board approved the implementation of a Directors Remuneration Scheme (DRS), which provides for payment of directors
fees to directors appointed by shareholders in proportion to the respective shareholding of each shareholder in the parent entity (ADG). At
30 June 2005 accounts payable included $961,042 of fees payable to the shareholders as per the election made by the individual shareholders.
Debt Defeasance
As part of the sale of two investment properties to PAPT, WAC entered into an in-substance defeasance arrangement whereby a finance lease
receivable of $12,000,000 from PAPT to WAC offsets a security deposit of $12,000,000 provided by WAC to PAPT which would otherwise be
recognised as a non-current interest bearing liability of WAC. WAC has legal right of set-off with PAPT to offset the finance lease receivable
against the security deposit. The debt has been treated as having been extinguished. There was no net gain or loss recognised in the statement
of financial performance as a result of the in substance defeasance.
Ownership Interests
The ultimate Australian parent entity is ADG, which at 30 June 2005 owns 100% of the issued ordinary shares of WAC.
ADG is owned by the following shareholders:
Notes 2005 2004
HFM (a) 24.9% 24.9%
HFM (b) 3.6% 3.6%
UOA (c) 32.0% 32.0%
UOA (d) 14.5% 14.5%
BAAA (e) 15.0% 15.0%
WES (f) 5.0% 5.0%
NNL (g) 3.1% 3.1%
CFI (h) 1.9% 1.9%
100.0% 100.0%
(a) Hastings Funds Management Ltd (HFM) is the single responsible entity for the Australian Infrastructure Fund.
(b) HFM is also the trustee for The Infrastructure Fund.
(c) Utilities of Australia Pty Ltd (UOA) is the trustee for the Utilities Trust of Australia.
(d) Utilities of Australia Pty Ltd (UOA) is the trustee for the Perth Airport Property Fund.
(e) BAA Australia Pty Ltd (BAAA).
(f) Westscheme Pty Ltd (WES) is the trustee for Westscheme.
(g) National Nominees Limited (NNL) is the nominee for the Officers Superannuation Fund.
(h) Colonial First State Private Capital Ltd (CFI).
33

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 30. RECONCILIATION OF OPERATING LOSS AFTER INCOME
TAX TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Consolidated
Parent
2005 2004 2005 2004
$’000 $’000 $’000 $’000
Profit from operating activities after income tax expense 345 2,337 345 2,337
Depreciation and amortisation 16,819 15,367 16,819 15,203
Borrowing costs: Primary debt holders 38,744 42,501 38,744 42,125
Subordinated debt holders 20,626 14,340 20,626 14,340
Profit on sale of property, plant and equipment (10) (11) (10) (11)
Bad debts written off 30 41 30 41
Work in progress written-off 26 767 26 767
Change in operating assets and liabilities, net of effects from
purchase of business
Increase in trade debtors (2,590) (6,660) (2,590) (6,660)
Decrease in inventories 7 (5) 7 (5)
Increase in other operating assets (1,934) (1,236) (1,934) (1,236)
Decrease in creditors & accruals (3,615) 1,306 (3,615) 1,306
Increase in other provisions 1,315 348 1,315 348
Gain on exchange rate 29 (17) 29 (17)
Net cash inflow from operating activities 69,792 69,078 69,792 68,538
NOTE 31. RECONCILIATION OF NON-CASH FINANCING & INVESTING ACTIVITIES
Proceeds from sale of infrastructure, plant and equipment 12,000 - 12,000 -
Repayment of borrowings – subordinated debt holders (12,000) - (12,000) -
NOTE 32. SEGMENT NOTE
The company has one business segment that provides and operates airport facilities at Perth, WA, Australia.
- - - -
NOTE 33. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS
WAC is in the process of transitioning its accounting policies and financial reporting from current Australian Accounting Standards (AGAAP)
to Australian equivalents of International Financial Reporting Standards (AIFRS) which will be applicable for the financial year ended 30 June
2006. In 2004, the company allocated internal resources and engaged expert consultants to conduct impact assessments to identify key areas
that would be impacted by the transition to AIFRS. As a result of these procedures, WAC established a project team to address each of the
areas in order of priority. Priority has been given to the preparation of an opening balance sheet in accordance with AIFRS as at 1 July 2004,
WAC’s transition date to AIFRS. This will form the basis of accounting for AIFRS in the future, and is required when WAC prepares its first fully
AIFRS compliant financial report for the year ended 30 June 2006.
Set out below are the key areas where accounting policies are expected to change on adoption of AIFRS and our best estimate of the
quantitative impact of the changes on total equity as at the date of transition and 30 June 2005 and on net profit for the year ended 30 June
2005.
The figures disclosed are management’s best estimates of the quantitative impact of the changes as at the date of preparing the 30 June 2005
financial report. The actual effects of transition to AIFRS may differ from the estimates disclosed due to (a) ongoing work being undertaken
by the AIFRS project team; (b) potential amendments to AIFRSs and Interpretations thereof being issued by the standard-setters and IFRIC; and
(c) emerging accepted practice in the interpretation and application of AIFRS and UIG Interpretations.
34

(a) Reconciliation of equity as presented under AGAAP to that under AIFRS
Consolidated
Parent
Notes 30 June 05 ** 1 July 04 * 30 June 05 ** 1 July 04*
$’000 $’000 $’000 $’000
Total equity under AGAAP 207,673 198,914 207,673 198,914
Adjustments to land & buildings (i) (32,482) (32,482) (32,482) (32,482)
Adjustments to intangibles (ii) 48,658 44,640 48,658 44,640
Write-off costs previously capitalised (iii) (348) (200) (348) (200)
Adjustment to income taxes (iv) (74,638) (69,833) (74,638) (69,833)
Total equity under IFRS 148,863 141,039 148,863 141,039
* This column represents the adjustments as at date of transition to AIFRS.
** This column represents the cumulative adjustment as at the date of transition to AIFRS and those for the year ended 30 June 2005.
(i) Under AASB 117 Leases, WAC is required to record land under lease as an operating lease and up front payments as a prepayment of
rent, unless the land qualifies as an investment property under AASB 140 Investment Property. As a result, the revaluation of land
booked in June 2004 which does not relate to investment property under AGAAP is required to be reversed.
It is the opinion of WAC’s directors, that the treatment of Operating Land as a prepayment of rent (and the subsequent inability to
revalue) under AIFRS, is not based on sound business principles. As a result the adjustment to derecognise the value of operating land
may not be made in the regulatory accounts presented to the ACCC as at 30 June 2006.
(ii) Under AASB 3 Business Combinations, WAC has elected to reopen the original acquisition of Perth Airport on 2 July 1997. As a result,
the intangible assets have been restated in accordance with AASB 138 Intangible Assets. This has resulted in a number of changes to
the intangible assets as previously measured under AGAAP, including the recognition of several new intangible assets.
(iii) Costs relating to the Aviation Development Programme were previously carried forward as an intangible asset. Under AASB 138
Intangible Assets, these costs do not meet the criteria to be carried forward as an intangible asset and are written off accordingly.
(iv) Under AGAAP, WAC had not recognised any deferred income tax assets or liabilities. Under AASB 112 Income Taxes, WAC is required to
use the balance sheet liability method, rather than the current income statement method which recognises deferred tax balances where
there is a difference between carrying value of an asset or liability and its tax base. This results in the recognition of a deferred tax liability.
Additionally under AGAAP the future income tax benefit associated with tax losses carried forward was not recognised under AIFRS.
This asset has been recognised and netted with the liability.
(b) Reconciliation of net profit under AGAAP to that under AIFRS
Year Ended 30 June 2005 Note Consolidated Parent
$’000 $’000
Net profit as reported under AGAAP 345 345
Amortisation of intangibles derecognised (i) 4,643 4,643
Write-off costs previously capitalised (ii) (148) (148)
Amortisation/depreciation land & buildings (iii) 976 976
Amortisation contract intangibles (iv) (1,119) (1,119)
Revaluation of investment properties (v) 7,932 7,932
Adjustment to income tax expense (vi) (4,805) (4,805)
Net profit under AIFRS 7,824 7,824
(i) Under AASB 3 Business Combinations, WAC has elected to reopen the original acquisition of Perth Airport on 2 July 1997. As a result,
the intangible assets have been restated in accordance with AASB 138 Intangible Assets. This has resulted in several intangible assets
recognised under AGAAP being derecognised, therefore amortisation expense recorded during the year has been reversed.
(ii) Costs relating to the Aviation Development Programme were previously carried forward as an intangible asset. Under AASB 138
Intangible Assets, these costs do not meet the criteria to be carried forward as an intangible asset and are written off accordingly.
Therefore costs capitalised during the year under AGAAP are required to be expensed under AIFRS.
35

NOTES TO THE FINANCIAL STATEMENTS
30 JUNE 2005 (CONTINUED)
NOTE 33. IMPACT OF ADOPTING AUSTRALIAN EQUIVALENTS TO IFRS (CONTINUED)
(iii) Under AASB 140 Investment Property is required to be held at fair value and revalued on a regular basis. On this basis land and
buildings held as investment property under AIFRS are not depreciated, but revalued on a regular basis. Therefore depreciation expense
recorded during the year has been reversed.
(iv) The reopening of the original acquisition of Perth Airport under AASB 3 Business Combinations resulted in a number of contract based
intangibles being required to be recognised and subsequently amortised over their useful lives. As a result, additional amortisation
expense is required to be recognised in the current year.
(v) Under AASB 140 Investment Properties, all gains or losses resulting from the change in value of investment properties are required to
be recognised in the statement of profit and loss in the period in which they occur.
(vi) Under AASB 112 Income Taxes, WAC is required to use the balance sheet liability method, rather than the current income statement
method which recognises deferred tax balances where there is a difference between carrying value of an asset or liability and its tax
base. This results in the recognition of a deferred tax expense in the current year.
(c) Restated AIFRS Statement of Cash Flows for the year ended 30 June 2005
No material impacts are expected to the cash flows presented under AGAAP on adoption of AIFRS.
36

DIRECTORS’ DECLARATION
In accordance with a resolution of directors of Westralia Airports Corporation Pty Ltd, I state that:
In the opinion of the directors
(a) the financial statements and notes of the company and of the consolidated entity are in accordance with the Corporations Act 2001,
including:
(i) giving a true and fair view of the company’s and consolidated entity’s financial position as at 30 June 2005 and of their performance
for the year ended on that date; and
(ii) complying with Accounting Standards and Corporations Regulations 2001; and
(b) there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
On behalf of the Board
D Crawford
Chairman
Perth, Western Australia
28 September 2005
37

INDEPENDENT AUDIT REPORT TO MEMBERS OF
WESTRALIA AIRPORTS CORPORATION PTY LTD
The Ernst & Young Building
11 Mounts Bay Road
Perth WA 6000
Australia
Tel 61 8 9429 2222
Fax 61 8 9429 2436
GPO Box M939
Perth WA 6843
Independent audit report to members of Westralia Airports Corporation Pty Ltd
Scope
The financial report and directors’ responsibility
The financial report comprises the statement of financial position, statement of financial performance,
statement of cash flows, accompanying notes to the financial statements, and the directors’ declaration for
Westralia Airports Corporation Pty Ltd (the company) and the consolidated entity, for the year ended 30
June 2005. The consolidated entity comprises both the company and the entity it controlled during that year.
The directors of the company are responsible for preparing a financial report that gives a true and fair view
of the financial position and performance of the company and the consolidated entity, and that complies
with Accounting Standards in Australia, in accordance with the Corporations Act 2001. This includes
responsibility for the maintenance of adequate accounting records and internal controls that are designed to
prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the
financial report.
Audit approach
We conducted an independent audit of the financial report in order to express an opinion on it to the
members of the company. Our audit was conducted in accordance with Australian Auditing Standards in
order to provide reasonable assurance as to whether the financial report is free of material misstatement.
The nature of an audit is influenced by factors such as the use of professional judgement, selective testing,
the inherent limitations of internal control, and the availability of persuasive rather than conclusive
evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected.
We performed procedures to assess whether in all material respects the financial report presents fairly, in
accordance with the Corporations Act 2001, including compliance with Accounting Standards in Australia,
and other mandatory financial reporting requirements in Australia, a view which is consistent with our
understanding of the company’s and the consolidated entity’s financial position, and of their performance as
represented by the results of their operations and cash flows.
We formed our audit opinion on the basis of these procedures, which included:
∞ examining, on a test basis, information to provide evidence supporting the amounts and disclosures
in the financial report; and
∞ assessing the appropriateness of the accounting policies and disclosures used and the reasonableness
of significant accounting estimates made by the directors.
While we considered the effectiveness of management’s internal controls over financial reporting when
determining the nature and extent of our procedures, our audit was not designed to provide assurance on
internal controls.
We performed procedures to assess whether the substance of business transactions was accurately reflected
in the financial report. These and our other procedures did not include consideration or judgment of the
appropriateness or reasonableness of the business plans or strategies adopted by the directors and
management of the company.
Liability limited by the Accountants Scheme, approved
under the Professional Standards Act 1994 (NSW).
38

2
Independence
We are independent of the company, and have met the independence requirements of Australian
professional ethical pronouncements and the Corporations Act 2001. We have given to the directors of the
company a written Auditor’s Independence Declaration, a copy of which is included in the directors’ report.
In addition to our audit of the financial report, we were engaged to undertake the services disclosed in the
notes to the financial statements. The provision of these services has not impaired our independence.
Audit opinion
In our opinion, the financial report of Westralia Airports Corporation Pty Ltd is in accordance with:
(a) the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of Westralia Airports Corporation Pty
Ltd and the consolidated entity at 30 June 2005 and of their performance for the year ended
on that date; and
(ii) complying with Accounting Standards in Australia and the Corporations Regulations 2001;
and
(b) other mandatory financial reporting requirements in Australia.
Ernst & Young
G H Meyerowitz
Partner
Perth
28 September 2005
39

REVIEW
REVIEW OF OPERATIONS
For the financial year ending 30 June 2005, Westralia Airports Corporation recorded its second operating profit before tax in the eight years
since privatisation. The $0.35m result was down $1.99m from the profit of $2.34m recorded in the previous financial year.
Underpinning the operating profit, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of $76.17m was $2.18m, or 2.9%
above the previous year. Total revenue from ordinary operating activities of $139.78m was $24.07m or 20.80% above the previous year, while
total expenses of $63.61m were $21.89m or 52.47% above the previous year.
The strong growth in revenues and expenses has been influenced by the recognition of revenues of $17.96m and associated cost of sales of
$13.03m relating to capital leases of non-aeronautical land and sale of buildings during the year.
Revenue from aeronautical activities of $49.59m was $6.03m, or 13.84% above the previous year, due to strong growth in both domestic
and international passengers.
Revenue from trading activities of $24.62m increased by $3.01m, or 13.93% over the previous year. This growth was largely in line with
growth in international passengers for the year.
Ground transport revenue of $19.21m increased by $3.31m or 20.82% over the previous year, reflecting the strong growth in domestic
passengers in particular.
Excluding capital leases, property income of $18.33m increased by $1.92m, or 11.70% compared to the previous year. The increase is
attributable to CPI and market reviews of existing leases and additional revenues from new tenancies during the year.
Income from recharged property services of $9.06m increased by $1.78m, or 24.45% compared to the previous year, with new tenancies.
The increase in total expenses was contributed to from all major categories. Employee expenses of $11.8m increased by $0.69m, or 6.2%
over the previous year. This increase is the result of the employment of additional staff in security, multi-user domestic terminal and retail areas
and the conversion of IT contractors to full time employment.
Services and utilities expenses and recharges of $20.84m increased by $4.1m, or 20.5% over the previous year. This increase was due to an
increase in security costs arising from greater security requirements in general as well as increased electricity and cleaning costs resulting from
the ownership of the multi-user domestic terminal for the full year.
General administration expenses of $9.12m increased by $1.59m, or 21.12% over the previous year. Increases in staff recruitment costs,
corporate communications and technical services incentive payments to one of the company’s shareholders contributed to the increase.
Additionally expenses have increased due to the payment of fees under the Directors Remuneration Scheme (DRS) which was approved during
the year.
During the year the company recognised an onerous contract, $6.03m, being the present value of future payments under the technical services
agreement to Port of Portland.
Leasing and Maintenance expenses of $2.92m increased by $0.31m, or 11.88% over the previous year, attributable to a general increase in
maintenance activity on the airport during the year.
Provision for doubtful debts of ($0.18m) was significantly reduced in comparison to the previous year provision of $0.01m, due to a review
of the carrying amount of the doubtful debts provision.
During the year, the company commissioned an independent valuation of all land, building and infrastructure assets. The Directors approved
to adopt the independent valuation as the basis for measuring the value of investment land and building assets. When compared to the current
carrying value of these assets, the valuation resulted in an increment of $8.41m. The increment has been recognised as an Asset Revaluation
Reserve in the Equity section of the Balance Sheet.
Graham Muir
CHIEF EXECUTIVE OFFICER
40

CORPORATE DIRECTORY
Westralia Airports Corporation Pty Ltd
ABN 24 077 153 130
ACN 077 153 130
REGISTERED OFFICE
LOCATION
Westralia Airports Corporation Pty Ltd
Baker Road, Perth Airport
Western Australia 6105
MAIL
Westralia Airports Corporation Pty Ltd
PO Box 6 Cloverdale 6985 Western Australia
CONTACT DETAILS
TELEPHONE +61 8 9478 8888
FACSIMILE +61 8 9277 7537
EMAIL perthairport@wac.com.au
WEB SITE www.perthairport.com
CHIEF EXECUTIVE OFFICER
Mr Graham Muir
COMPANY SECRETARY
Mr David Price
EXECUTIVES
General Manager Airport - Mr Richard Gates
General Manager Corporate Services - Mr David Price
Chief Financial Officer - Mr Wayne Ticehurst
General Manager Property - Mr Neil Kidd
General Manager Commercial - Mr David Raad
AUDITORS
Ernst & Young
11 Mounts Bay Road
Perth Western Australia 6000
DIRECTORS
Mr David Crawford - Chairman
Dr Allan Griffin
Mr Peter Taylor
Mr Dominic Helmsley
Mr Ron Doubikin
Mr Stuart Condie
Mr Duncan Taylor
Mr Lyndon Rowe
Mr Alistair Barker

Westralia Airports Corporation Pty Ltd
ABN 24 077 153 130
Postal Address:
Westralia Airports Corporation
PO Box 6
Cloverdale WA 6985
Street Address:
Baker Road
Perth Airport WA 6105
Telephone: + 61 8 9478 8888
Fax: + 61 8 9277 7537
Email: perthairport@wac.com.au
Web: www.perthairport.com