Transport & development growth: Preparing Brisbane Airport for the future

Transport and Development Growth

Queensland Transport Conference

2012

Fascinating Facts

6 billion pax p.a. worldwide

55,000 pax per day at BNE

Benefits of a daily B777 – 300 aircraft at BNE:

Direct aeronautical charges: $ 6.1m p.a.

Tourism expenditure: $ 60.7 million p.a. (Access Economics)

77 million aircraft movements p.a. worldwide

486 per day at BNE

Flight time from Paris to London in 1935..1hr.30mins

Flight time from Paris to London in 2011..1hr.20mins

Return airfare New York to Paris

year 1948: US$ 407 (13.6% of Gross annual salary)

year 2011: US $800 (1.9% of Gross annual salary)

Brisbane Airport Corporation

Unlisted Public Company

Successful bidder for 99 Year Lease

Commenced 02 July 1997

Shareholders:

- Superannuation/Pension Funds (81%)

- Amsterdam Airport Schiphol (19%)

$1billion invested – further $3billion

Privately funded runway

240 Staff / 19,000 Airport Workers

Award Winning Airport

Brisbane Airport Corporation

2700 hectares of land

Two Terminals

01-19 Runway, 14-32 Runway

Curfew-free operations

12 km from the CBD

Dedicated airport railway

The best buffer zone in Australia

26 Airlines (International & Domestic)

420 businesses

NEW ZEALAND & PACIFIC

1. Aircalin

2. Air New Zealand

3. Air Niugini

4. Air Pacific

5. Air Vanuatu

6. Our Airline (Air Nauru)

7. Solomon Airlines

8. Virgin Samoa

ASIA & MIDDLE EAST

1. Cathay Pacific

2. China Airlines

3. China Southern Airlines

4. Emirates

5. Etihad

6. EVA Airways

7. Korean Air

8. Malaysia Airlines

9. Singapore Airlines

10. Thai International

26 Airlines serving Brisbane

AUSTRALIA

1. Aeropelican/Brindabella

2. Alliance Airlines

3. Jetstar

4. Qantas

5. QantasLink

6. Skytrans

7. Tiger Airways

8. Virgin Australia

Market Drivers

Growth Challenges

Sources: BAC Passenger forecasts, 2012 Property Master Plan forecastsFigure 13: Brisbane Airport Passenger and Employment Forecasts

Keeping operational costs extremely low

High passenger load factors and aircraft utilisation

non-refundable fares.

High ancillary on board and website revenues (priority boarding, extra baggage, car hire, hotel sales, insurance)

Fast turnaround times

Rapid network growth multiple bases - aircraft come ‘home’ each night

A simple fare scheme, unreserved seating

Flying to cheaper secondary airports that provide subsidies

Point-to-point flying < 3 hours

All government taxes, airport fees charges retained by the airline if pax is a ‘no show’

Employees working in multiple roles

Single aircraft type commonly the Airbus A320 or Boeing 737 – one class

Internet ticket sales 90%+

Expect airport pax charges to reduce as volume increases

Aggressive fuel hedging (sometimes)

Low Cost Carrier Typology

One major ‘home’ base serving a their network hub, e.g. Dubai for Emirates

Operational cost control can be compromised by ‘legacy’ work practices

Multi – class cabin configuration

Fly mainly to major capital city airports

Multi sector long and short haul flying

Use complex and costly Global Distribution Systems (GDS) that allow ‘interlining’ with other airlines

Frequent flyer programmes

Mixed fleet with, regional, single aisle and wide body aircraft types

Ticket distribution through travel agents, ticket offices and web. Some commission paid

Prepared to pay airport charges that reflect level of service: e.g. aerobridges, lounges.

On-board service included in fare price, food and beverages, in flight entertainment etc.

Focus on $ ‘yield’ per seat sold, not just volume.

Wide range of flexible and special fares

Heavily unionised workforce, higher staff to pax ratios

Full Service Airline Typology

Master Plan

Master Plan Purpose

The Brisbane Airport Master Plan provides the strategic

framework for planning aviation activity, airport precinct

development, environmental management, and surface

transport access in an integrated way.

It also provides Federal, State and Local government agencies,

potential investors and the community with a framework of how

the Airport intends to grow and develop over the next 20 years

and beyond.

The 2009 Master Plan

The 2014 Master Plan

More detail on property development

Includes the Airport Environment Strategy

Ground Transport Plan

Consistency with adjacent land uses

Terminal development strategies

Airspace protection principles

PMP Illustrative Plan – 50 year horizon

North

Engagement and Controls

Community/Agency Engagement

Program

Brisbane Airport Planning &

Development Control

Airport

Master

Plan

Airport

Development Strategy

Precinct Plans

Landscape Master Plan

Drainage Master Plan

Brisbane Airport Transport Model

Development Control Plans (DCP)

Ground Transport Plan

Phase 1 – Agency briefings

Engagement program;

Identify agency plans and objectives;

Develop program to meet agency plans.

Phase 2 – Workshop of program plans

Information report issued;

Workshop held of programs and initiatives from agency briefings;

Report issued to agencies reflecting outcomes of workshop;

Endorsement of program and initiatives achieved.

Phase 3 – Strategy agreement

Assessment of initiatives through modelling and program actions;

5 year network assessment reflecting updated development and passenger growth;

Prepare task plans;

Presentation and final reporting.

Ground Transport Plan

Program and Initiative Plan

• Intersection and corridor improvements including performance measures

Initiative 1 – Improve the on airport road network

• Intersection and corridor improvements including performance measures

Initiative 2 – Improve the off airport road network

• Defining a strategy for future parking needs and introducing some green initiatives

Initiative 3 – Parking improvements

• Leveraging off the rail network and strategies to promote patronage growth

Initiative 4 – Rail network and service improvements

• Promoting growth in public transport and ground transport operations use as an sustainable transport mode

Initiative 5 - Improve Taxi, Bus, Coach & Shuttle Services

Program and Initiative plan (cont…)

•Maintaining freight accessibility and working with agencies to better manage freight movements

Initiative 6 - Support freight movements through the airport

•Promoting active transport as an alternative mode via measures to improve accessibility

Initiative 7 - Improve the on and off airport active transport network

•Continual improvement program for road signs and use of Intelligent Transport Systems to assist

Initiative 8 - Improve information and signage for travel to, from and within the airport

•Development of strategies to promote alternative forms of transport use for passengers

Initiative 9 - Encourage passengers to use alternative modes

•Development of strategies to promote alternative forms of transport use for employees

Initiative 10 - Encourage employees to use alternative modes

Property Master Plan – 2014 to 2019

Development Plan

Development Drivers

- Growth in airline sector- Growth in development market- Challenges in land availability- Opportunity of site

Aero Development to Support Growth

MLCP / DTAP / LTCP Projects

MLCP / DTAP Projects

International Apron Terminal Expansion

(IATE) and Taxiway B7 – B8

Taxiway B7 – B8

“Missing Link”

Taxiway C8a

Bays 72 & 73

International Apron &

Taxiway Expansion (IATE)

High strength concrete pavement for bays 72 and 73.

Code F or 2 Code 2 MARS gates on each bay.

Existing C9

Existing C10

Domestic Northern Apron Expansion

(DNAE)

New high strength pavement for 8 Code C aircraft

Qantas Satellite

Qantas Maintenance Hanger 2Due for Completion Q2 2013

Qantas CateringDue for Completion Q2 2013

Australian Air Express Logistics FacilityDue for Completion Q1 2013

Qantas Link LoungeDue for Completion Q3 2012

Domestic Terminal Strategy – Next Phase

Background to Charter Demand

Resource boom will continue, especially strong in Queensland and WA

Many of these projects will involve contract charter flying to supply the mines/projects with human resources

From early 2011, there has been a high level of inquiry regarding the options for FIFO out of Brisbane Airport

Inquiry has come from :

Airlines – scheduled domestic carriers and charter airlines

Current tenants wanting to expand their facilities

Mining companies

Private developers

Government

Requests for terminal sites, aircraft parking areas, offices and remote operations centres

There is potential for increased FIFO aviation movements to impact on peak runway capacity if allowed to develop in an uncontrolled manner

1

Domestic Terminal South & Apron

1

DTS - Terminal Concept

The NPR Project – Key Features

Construction and operation by around 2020 of

a new 3,300m runway, 2 km west and parallel to

existing main runway

Dredging of 13 Million M3 of Sand

from Middle Banks, Moreton Bay to

fill and surcharge the site.

Construction of temporary

pipeline to deliver sand to the

site

Clearing of vegetation and

preparation of site for fill.

Construction Phase

PHASE 1 (2012 – 2014):• Civil Works (Services, Access & Drainage)• Dredging & Reclamation

SETTLEMENT PHASE (2014 – 2017):• Approx. 2-4 years of ground consolidation

PHASE 2 (2017 – 2020)• Pavements and Airfield

Property Development

Aerotech Park South - Mazda New Vehicle

Distribution FacilityCompletion – Q1 2013

Aerotech Park South – Mazda New Vehicle Distribution FacilityDue for Completion Q1 2013

Australian Federal Police HQDue for Completion Q4 2012

DHL – Freight and Logistics FacilityDue for Completion Q3 2013

Shell Service StationDue for Completion Q1 2014

NIOA - Armoury Defence Office and WarehouseDue for Completion Q4 2013

Infrastructure Development

Public Transport Map

Active Transport Map

Infrastructure Development

- Lomandra Drive Upgrade

Infrastructure Development

Infrastructure Development

– Central Parking Area

Major Services - Easement

Property Development Vision

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