Annual Disclosures 2018 Auckland Airport

Annual Information
Disclosure
Regulatory Performance Summary
For the year ended 30 June 2018
Chief Executive’s
report
FY18 marked another year of Our 30 year vision includes major stakeholders confidence that we are
progress in Auckland Airport’s upgrades to our terminal, airfield delivering for our customers.
ambitious 30 year vision to build and ground transport infrastructure.
the airport of the future. Executing Almost every part of Auckland On 1 November 2018 the
this vision will see us continue as Airport’s precinct will be transformed. Commission released its Final Report
guardian’s of New Zealand’s gateway Our vision is influenced by our on the pricing decision for FY18 –
to the world. overarching focus on making FY22 for Auckland and Christchurch
journeys better. We provide a safe, airports. The Commission’s
Our ambition is to: secure and efficient airport for our summary of its review was that:
• operate and invest in an airport airlines and travellers, and we strive • There is still room for
that New Zealanders are proud to take care of every one of the improvement in some areas
of; 30 airlines operating here, and the
55,000 travellers passing through • Transparency has improved since
• grow travel, trade and tourism Auckland Airport on average the Input Methodologies Review
markets that generate economic every day.
growth for our regions and cities; • Targeted returns have gone down
Auckland Airport is not alone in
• be a good neighbour to our local undertaking significant infrastructure • It will review Wellington Airport’s
communities; and development. It is taking place price setting next
across the country, and evidence of • It then intends to do an overall
• operate sustainably. construction is commonplace around review of performance across
We are pleased to report that while Auckland city. Each development all airports.
the most significant construction is programme will have its own unique
due to start in 2020, we are making circumstances and challenges. In respect of Auckland the
material progress and have reached Our point of difference is the need Commission did not identify
some important milestones in our to continue operating a very busy concerns with the demand forecast,
core aeronautical and infrastructure airport throughout the construction asset valuation, treatment of the
development programme. Key phase. We are therefore conscious Moratorium and operating cost or
highlights to date include: that executing our 30 year vision capital expenditure forecasts used
requires smart planning and careful in pricing. While the Commission did
• c
ompleting our new international sequencing as we work to replace, have remaining concerns about our
Pier B extension, opening up two upgrade and build new infrastructure target return, it acknowledged the
new gates for operation; across all parts of an airport that inherent uncertainty in determining
never sleeps. the right return for Auckland Airport
• reaching 90% completion of our and that not all of the difference
multi-stage redevelopment of the We know that this journey will be between the Commission’s sector-
international terminal departure challenging, for us and for our wide benchmark midpoint WACC
zone – which will be largely customers. We are committed to estimate and Auckland Airport’s
completed by the end of the consulting and looking after our target return should be regarded as
calendar year; customers and community through excess returns. We are reviewing the
this period of significant change and Commission’s findings in detail.
• increasing remote stand capacity; potential disruption.
and
This disclosure is the first disclosure
• introduction of a wide range of relating to the price setting event that
new transport projects to improve applies from 1 July 2017 to 30 June
the flow of traffic around the 2022 (PSE3). It is an opportunity
airport precinct and to support for us to report on our performance
the growth in public transport since setting these prices and Adrian Littlewood
connectivity to the airport. provide information that gives our Chief Executive
Auckland International Airport Limited 1

Investing in sustainable
growth and trade
In the 52 years since Auckland Airport opened, development of new routes also facilitates the
the airport has evolved and grown from several movement of freight. Opening up new markets
hundred thousand travellers in 1966 to over 20 to New Zealand exporters and providing
million in 2018. By 2040 we predict traveller New Zealand consumers with more important
numbers to increase to approximately 40 choices.
million per year.
We have also continued to actively support the
Auckland Airport is also New Zealand’s second New Zealand tourism and export industries.
largest cargo port by value, handling $12 billion Each year we offer a $100,000 grant to
of imports and $7 billion of exports and a total New Zealand-based tourism operators and
of 240,000 tonnes of airfreight each year. organisations who identify strategies to
stimulate year-round visitation to New Zealand.
Our strategy is to support growth and drive In 2018 we awarded two grants of $50,000
positive travel, trade and tourism outcomes for each to Eat NZ and Haka Tours. We supported
our company, our city, and our country. the ExportNZ awards, and we organised and
We work actively with our airline customers sponsored a business-to-business seminar FY18:
and industry partners to grow travel markets to grow the New Zealand – Philippines cargo
by improving the number of destinations, market, with the support of Philippine Airlines +5.7%
frequency and price competitiveness of travel and New Zealand Trade and Enterprise. total passengers
to travellers. In FY18 we made significant Auckland Airport’s vision is to continue to (from FY17 to 20.5m
efforts to develop routes and facilitate the support initiatives that contribute towards total passengers)
movement of freight. New Zealand’s wellbeing, through our
In the 2018 financial year we announced a
number of new routes and new opportunities
direct initiatives and by supporting our wider
community to do the same. These initiatives will +6%
build on the value provided to our country and international cargo
with our airline partners, including the volumes
introduction of: community from our airport operations. For
example, the next ten years of our activity is
• a new Chicago direct route, which is estimated to result in the following:
forecast to inject $70m into the New 30
Zealand economy annually; • direct economic benefits to New Zealand international airlines
from airport activity:
• new non-stop flights between Auckland
and Taipei, with the addition of 4368 tonnes -- $31.6 billion in GDP; 46
of air cargo capacity; -- 22,750 FTEs; and international destinations
• daily direct flights to Bali and Dubai; -- $14.2 billion in household income;
• enhanced services from Auckland to • together with related business activity, total
1,000
Singapore (from two flights daily to three); new wide body
regional economic benefit:
operations into
• daily flights from Bangkok to Auckland; -- $51.8 billion in GDP; Auckland Airport in
• the first Auckland to Manila direct service; FY18 (worth $450m to
-- 40,000 FTEs; and the country annually)
and
-- $22.8 billion in household income.
• daily services between Apia and Auckland.
As well as the clear benefits to travellers, the
For further information, refer to Section 16. 75%
share of all international
arrivals to New Zealand

Planning, building and
delivering a world class
airport experience
In FY18 we made significant
progress in the delivery of Auckland Airport seeks to deliver has also been a year dominated continues to put pressure on the
our 30 year vision: an affordable and high quality by planning - the lead up toward city’s transport infrastructure,
experience for airline customers construction and delivery. Given including around Auckland Airport.
Completed and travellers. In mid-2017 the scale of investment, the scope We expect the number of trips to
• 12,755m2 addition to the airfield, we announced a circa $2 of infrastructure affected and the and from the airport to increase
a Code F Mars Remote Stand billion aeronautical investment number of stakeholders involved, from 90,000 per day in 2018 to
(Stand 75 & Stand 19) programme, to take place over the this phase is important. All parties more than 127,000 per day in
next five years. Our infrastructure are mindful of the significant 2044. Currently, the majority of
• $120m extension of the plan was the result of a 17 month legacy this development will leave these trips are in private cars. We
international terminal Pier B consultation with airlines. The for future generations. have made significant progress
programme is unprecedented for on our roading and rapid transit
• Airfield slab replacement Auckland Airport and marks the We are designing infrastructure network planning and continue to
programme beginning of a new investment era for a future where aviation work with the NZTA and AT
which will shape the legacy which journeys can be expected to on public transport options to
• New guest lift in international be fundamentally different from
terminal departures is left for future generations. the airport.
today. Through innovation some
• New 6,000m2 MPI building This next stage in the delivery existing processes will become FY18 was an important year
of our 30 year vision will unfold more streamlined (such as check for the delivery of significant
• 10 new fuel-efficient airside buses in three key phases (with in), whilst others will remain improvements to the international
some crossover): subject to continuous change and terminal experience. Key projects
• 2 new mobile aircraft ramps improvement (such as security included the completion of the
1. Design, Plan and Prepare processes). We continue to Pier B extension and opening a
• New lounge (Strata Lounge) (2014-2019): detailed design, facilitate regular consultation with significant proportion of a new
• Introduction of High Occupancy logistical planning, and airlines, and to engage with NZTA, airside departure and dwell area.
Vehicle lanes relocation of certain tenants to AT and other stakeholders, to Other key projects are reflected
clear space for the new build. understand their requirements. in the sidebar and detailed in
• “The Landing” intersection In some areas, like transport Section 6.
2. Build (2020-2022): the
most significant phase of and security, requirements have
Under construction Overall standalone projects which
construction, where new builds changed since feasibility design in are relatively independent of the
• Completed 90% of the and roading configurations are FY16. Naturally, this has caused wider system are progressing on
international departures expansion established). the direction, shape and technical
detail of our vision to shift a little. time, whilst projects that have
project, including the new interdependencies are proving
customs and security screening 3. Deliver a world class Through this consultation there are
airport experience (2023+): a range of views on what should more complex and taking longer
processing area than forecast. We (and our airline
completion of the integrated be built, but common ground
• Nixon Road / Southern bypass terminal, providing a customer exists around key requirements customers) believe that time
almost completed experience for New Zealanders including ease of access, good spent upfront will ensure that the
and visitors to enjoy and be connections, capability to meet projects we deliver are the best
Progressed design and proud of. the needs of future travellers, possible solutions, even if that
room for growth and need means that projects are
planning Now in the fourth year of delivered slightly later than
for resilience.
• Terminal development plan executing our 30-year vision, originally forecast.
we have invested $724m in Improving land transport access
• DTB rejuvenation aeronautical infrastructure to and from Auckland Airport is For further explanation of our
since 2014. one of our key priorities, as this will commitment to invest, refer to
• Second runway strongly impact our ability to invest Section 4 for commissioned
We have delivered a number of in sustainable growth. The strong assets and Section 6 for
• Surface access key projects in FY18. Yet FY18 capital expenditure.
and ongoing growth of Auckland

Implementation of our 30-year vision is well underway
Priced / commissioned by FY22 Not priced / commissioning after FY22
Altitude Road East
Cargo
terminal Freight road
Northern Runway
Terminal exit road
enabling works
Nixon Road
International stage 2
remote stands
Outer forecourt road / George Bolt Memorial Drive
pick-up & drop-off widening & intersection upgrades
Expanded MPI &

arrivals hall
Terminal entry & inner forecourt road

Contact gate Reconfigure to
expand check-in area
Domestic jet facility
International departures upgrade
Extension of taxiways Facade extension

Mike & Lima (circulation increase)
Domestic terminal
Domestic jet facility aprons building upgrade Additional stands
$522m
invested in PSE2
$215m
invested in FY18
$2b
aeronautical investment
42
projects over
>$1m
invested every working day to
planned for FY18-FY22 $1m underway build the airport of the future
in FY18
Committed to innovation
and operating efficiently
and effectively
We continue to actively drive efficiency from our increase the throughput of the existing runway to 50
assets and the broader system. Our vision is that movements per hour by 2022.
by 2044 our smart buildings and equipment will
tell us when things need attention, and we’ll have It is commonly understood across our stakeholders
smart tools at our fingertips so that we can fine-tune that, as we build the airport of the future, parallel
every part of our world class airport system. We work streams are required to design processes that
have some way to go but are starting to turn our will make travellers’ journeys more seamless and
aspirations into reality. the operation more efficient. Significant time is spent
challenging the models of today, designing those
A very important milestone this year has been hiring of the future and encouraging service providers
a new GM Operations and resetting our Operations at Auckland Airport to do the same. This year, we
Strategic plan which include: led a forum including airlines and border agencies
called Thinksmash. The group brainstormed a range
• next level customer service; of innovative ideas to explore. From this, proof of
• reliability, integrity and resilience; concepts are now being tested around increased
digitisation, the use of biometrics and opportunities Our golden metrics around
• optimise system capacity; and to work with the Australian government to efficiency and effectiveness
streamline cross-border processing.
• operational excellence. show for FY18:
We value sustainable operational, maintenance
To deliver on these strategies, we are focussed • Interruptions dropped 18% to 66
and construction practices. We partnered with
on four key pillars: people, process, partners and EECA to upgrade our lighting and heating systems • Airport related on time departure
technology. These pillars have all contributed to our as we redesigned our aeronautical infrastructure. delays dropped 27% to 43
operation in FY18. This included providing new power units to allow
aircraft to use national grid electricity, rather than • Runway capacity per hour
The service outcomes at Auckland Airport are the
jet-powered generators when on stands. In terms of increased from 40 to 45
result of a combined effort from our airport staff and
efficiency, the reduction in per-traveller energy use movements.
over 20,000 employees of partner organisations.
We are proud of the progress we have made in has produced cost savings for our airline partners,
FY18 through our existing Collaborative Operations whilst reducing our carbon footprint by 22.6%. Important initiatives in
Group (COG) forums. In FY18, COG worked to this area:
For further evidence of our commitment to
meet the milestones set around measuring service innovation and operating efficiently and effectively • Vehicle movements on domestic
levels. Collaborative decision making with this refer to Sections 6, 11, 12, 13 and 15. forecourts were reduced by 45%
group has delivered a step change in our partner through a new design.
relationships. In FY18, Auckland Airport tasked our
working groups to identify areas of concern based • Developed the Yellow U23
on metrics and indications proposed during pricing, SMART Approach for aircraft
agreed data sharing parameters between forum
participants and agreed our approach to measure • Fully Internet Protocol based
our progress and eliminate data gaps. Video Management System was
introduced to support our 800+
Auckland Airport also leads an industry forum, cameras
the Airfield Capacity Enhancement Group, which
includes representatives from Auckland Airport, • Collaborated with the EECA to
airlines, BARNZ and Airways. In FY18 this group achieve energy efficiencies
collectively agreed to target efficiency gains to • Introduction of 10 new Skybuses.

Meeting and exceeding
customer expectations
Our overall goal as a company is to make • we recruited 70 assistants to facilitate and
journeys better for our travelling guests and support the movement of travellers around the
airline customers. This year we have clarified airport; and
our commitments as a host and stepped up
our customer facing solutions. We have run a • we also ensured that our Pier B design
successful pilot for a customer contact centre and provided important features to improve traveller
will establish this as a permanent function in FY19. experience. These included:
Auckland Airport is responsible for providing an -- new lounge seating with USB and power
end-to-end service for our guests, from the time outlets at all four gates;
Our golden metrics they book flights online, to the time they step on -- a modern and open space that incorporates
to the plane. In providing a quality service, we New Zealand landscape artwork and Weta
around customer consider this journey in its entirety. We understand Workshop sculptures; and
service show for that our customer experience does not begin and
FY18: end on the airport precinct, but well before. -- new toilet areas and baby change rooms.
• Traveller satisfaction In FY18, we continued to work to enhance our We are aware that our responsibility as host
of 8/10 customers journey from beginning to end, with a extends beyond customer initiated complaints
number of initiatives: or suggestions. We actively seek feedback from
• Interruptions dropped travellers, to identify opportunities to improve our
18% to 66 • we launched Ava, Auckland Airport’s first online service and create a seamless user experience. Our
artificial intelligence customer service tool that metrics for customer service in FY18 show that,
• Asset reliability >99% can assist travellers’ journeys from the point despite the intensive development taking place in
they leave their home through to departure; terminals and elsewhere in the airport precinct, we
• Airport related on
time departure delays • acknowledging the importance of getting 20.5 have maintained strong customer satisfaction. Our
dropped 27% to 43 million guests to and from the terminals, we internationally recognised Airport Service Quality
implemented significant improvements to our customer satisfaction rating remains stable at just
Important transport networks and engaged with transport over four out of five. Our customer in-terminal kiosk
authorities to deliver a better experience to score sits at 4.1 out of 5, a 3.8% increase on FY17.
initiatives in The extent to which Auckland Airport serves its
travellers;
this area: customers is also reflected in the fact that, for the
• we reconfigured our check-in areas to provide second year running, Auckland Airport was named
• Launch of Ava, additional capacity; in Colmar Brunton’s top 10 most trusted New
our online artificial Zealand companies.
intelligence customer • we expanded the capability of our mobile
service tool. check-in kiosks, to improve the customer For the airlines asset reliability is critical. In FY18
experience and processing efficiency at check the reliability of airport- provided assets improved
• Improving the in. Our kiosks were used by more than one and impacts to airport-caused on time departure
scope, quality and million travellers in the last year; performance of airlines reduced.
performance of our
public Wi-Fi, delivering • we upgraded key stages of our new For further explanation of our commitment to
significant new international departures experience, including a delivering quality services, refer to Sections 4, 14
capacity and access new customs and security screening processing and 15.
points to accompany area; a new space for travellers to repack and
the new terminal relax after security screening; use the new toilet
facilities; or check their flight details before
• Introduced two continuing on to the new dwell and retail hub;
airside ramps for bus
operations.

Continuing to deliver for
consumers, New Zealanders,
and our shareholders
Our strategy is to be a great New Zealand business. productive member of the community and a Average charges per Pax - Domestic
Our staff care about making the lives of New considerate neighbour. We were the first major airport
Zealanders better, and contributing to a world class in New Zealand to have its safety management $8.00
aviation industry. system certified by the Civil Aviation Authority.
In FY18 we exceeded our target of doubling the
Fair pricing matters to us. We recognise that number of safety observations logged in our risk $6.00
customers benefit if we are able to grow costs slower manager system. In FY18 we saw a 49% reduction in $5.96 $5.87
than volumn growth. To the extent we can maximise passenger injury rate. As at the end of FY18, Ara, our
the utility of existing assets and keep unit prices jobs and skills hub, which connects local people with $4.00
down we endeavour to do so. In turn, these savings local jobs had invested in 1,082 training opportunities, $3.69 $3.56
are passed back to our customers. This philosophy placed 215 people into new jobs and set up 68
and outlook is consistent with our PSE3 pricing path students in work experience. We also granted $2.00
$2.27 $2.31
which enabled us to reduce prices in the first year $335,530 to community projects in South Auckland
and keep prices broadly in line with inflation over the through the Auckland Airport Community Trust. $0.00
five year pricing period. FY17 FY18
This commitment to sustainable practices is not new
We care about sustainable outcomes and we are for Auckland Airport. Our longevity and consistency Total Airfield Terminal
conscious about the impact of our charges on the in working to improve outcomes in this area is
total cost of travel and the flow on impact for New recognised by certifications from global bodies. In
Zealand’s international competitiveness. Equally, it is FY18 we:
critical that charges support our ability to deliver an
investment plan that will create material long-term • continued to be actively engaged in the Climate Average charges per Pax - International
benefits for consumers. FY18 was the first year Leaders Coalition, Sustainable Business Council
of our new aeronautical charges for the five-year and New Zealand Green Business Council; $25.00
period FY18 to FY22. In the context of a circa $2bn $24.78
investment plan, Auckland Airport was able to • maintained our CEMARS and carboNZero
$23.12
announce a very modest price path, by targeting a certifications; $20.00
7.06% return overall and 6.99% return on assets • were included in the Dow Jones Sustainability
covered by landing, passenger, check in and aircraft Index for the eighth consecutive year and in the $15.00 $16.32
parking charges. $15.10
FTSE4Good index for the eleventh consecutive
We take a longer term approach to investment and year, with a rating in the top quartile for our sector; $10.00
pricing, rather than focussing on the return for a • received the Green Airports Award for waste $8.46 $8.02
particular year. In order to provide a relatively stable minimisation, reducing our waste to landfill per $5.00
price path, we forecast returns to be relatively higher passenger by 27% over the prior five years;
at the beginning of the period and lower at the end, $0.00
with an effective target return of 7.06% for the five • became the first company in Oceania and the FY17 FY18
year period. first airport in the world to set a publicly disclosed Total Airfield Terminal
carbon reduction target based on the UN-
In FY18 operating revenues and operating cost supported Science Based Targets initiative;
were marginally higher than forecast. Depreciation
was lower than forecast due to the slight delay in a • were recognised by Enviro-Mark as one of NZ’s
commissioning of the assets which were works under top carbon reducers in the past year; and
construction as at 30 June 2017 (e.g elements of the
outbound departures project which has been a very • scored five stars from the Global Real Estate
challenging project). Adjusting for this small timing Sustainability Benchmark (GRESB) for its
difference, FY18 performance is tracking relatively environmental, social and governance practices.
well against expectations. For further information on For further information on commitments on health
aeronautical returns refer to Section 1. and safety and sustainability, refer to Section 15.
We aim to be a good employer, a strong and
Annual Disclosure
Commentaries
30 June 2018
CONTENTS
Philosophy ............................................................................................................................... 1
Introduction .............................................................................................................................. 5
Identifying and implementing innovations ................................................................................. 6
Having an appropriate incentive to invest ................................................................................. 7
Providing services of the quality and range required by consumers ......................................... 8
Generating efficiencies and sharing the benefits ...................................................................... 9
Earning a fair and reasonable return on the investments made ............................................. 11
Glossary: ................................................................................................................................ 13
Section 1: Return on investment ......................................................................................... 14
1.1 Change in methodology ................................................................................................ 14
1.2 Commentary on return on investment ........................................................................... 16
Section 2: Regulatory Profit ................................................................................................. 18
2.1 Comment on regulatory profit ........................................................................................ 18
2.2 Justification for merger and acquisition expenses ........................................................ 18
Section 3: Regulatory Tax Allowance.................................................................................. 19
3.1 Disclosure of permanent differences and temporary adjustments ................................ 19
3.2 Regulatory tax asset value of additions ........................................................................ 19
3.3 Regulatory tax asset value of assets transferred from/(to) unregulated asset base ..... 19
Section 4: Regulatory Asset Base Roll Forward ................................................................ 20
4.1 RAB value—previous disclosure year ........................................................................... 20
4.2 Lost and found assets and adjustments resulting from cost allocation ......................... 20
4.3 Calculation of revaluation rate and indexed revaluation of fixed assets ....................... 21
4.4 Assets held for future use .............................................................................................. 21
Section 5: Related Party Transactions ................................................................................ 23
5.1 Transactions with related parties................................................................................... 23
5.2 Auckland Council and its subsidiaries ........................................................................... 23
5.3 Auckland International Airport Marae Ltd ...................................................................... 23
5.4 Auckland Airport’s non-regulated business ................................................................... 23
5.5 Associate entities .......................................................................................................... 24
Section 6: Actual to Forecast Expenditure ......................................................................... 25
6.1 Operating expenditure overview.................................................................................... 25
6.2 Capital expenditure overview ........................................................................................ 27
Section 7: Segmented Information ...................................................................................... 40
Section 8: Consolidation Statement .................................................................................... 41
8.1 Depreciation .................................................................................................................. 41
8.2 Revaluations .................................................................................................................. 41
8.3 Tax expense .................................................................................................................. 41
8.4 Property, plant and equipment ...................................................................................... 42
2
3
Section 9: Asset Allocations ................................................................................................ 43

9.1 General information on asset allocations ...................................................................... 43
Section 10: Cost Allocation .................................................................................................. 44
10.1 General information on cost allocations ........................................................................ 44
10.2 Comparison of outcome of cost allocations .................................................................. 45
Section 11: Reliability Measures .......................................................................................... 46
11.1 Reliability ....................................................................................................................... 46
11.2 Interruptions................................................................................................................... 46
11.3 Runway performance .................................................................................................... 47
11.4 Taxiway performance .................................................................................................... 48
11.5 Contact stand and air-bridge performance.................................................................... 48
11.6 Baggage sortation ......................................................................................................... 49
11.7 Baggage reclaim............................................................................................................ 49
11.8 On-time departure delays .............................................................................................. 49
11.9 Fixed electrical ground power units ............................................................................... 50
Section 12: Capacity utilisation indicators for aircraft, freight and airfield activities .... 52
Section 13: Capacity utilisation indicators for specified passenger terminal facilities . 54
13.1 General comments on terminal capacity utilisation ....................................................... 54
13.2 Key insights for FY18 .................................................................................................... 54
13.3 Floor space .................................................................................................................... 55
13.4 Notional capacity of baggage units and busy hour throughput ..................................... 56
13.5 Passport control............................................................................................................. 57
13.6 Security screening ......................................................................................................... 57
13.7 Departure lounges ......................................................................................................... 58
13.8 Biosecurity screening and customs secondary inspection ............................................ 58
13.9 Total functional space ................................................................................................... 58
Section 14: Passenger satisfaction indicators ................................................................... 59
14.1 General comments ........................................................................................................ 59
14.2 Domestic terminal .......................................................................................................... 60
14.3 International terminal ..................................................................................................... 63
Section 15: Operational Improvement Processes .............................................................. 66
15.1 Capacity enhancement, asset reliability and service quality ......................................... 67
15.2 Passenger Experience .................................................................................................. 69
15.3 Improvement initiatives driving efficiency and innovation ............................................. 73
15.4 Health and safety .......................................................................................................... 77
15.5 Sustainability ................................................................................................................. 79
Section 16: Associated statistics ......................................................................................... 81
16.1 Passenger movement statistics..................................................................................... 82
16.2 Aircraft movement statistics .......................................................................................... 82
16.3 Human resource statistics ............................................................................................. 83
Auckland Airport Disclosures FY18 30 June 2018

4
Section 17: Pricing Statistics ............................................................................................... 84

17.1 International ................................................................................................................... 84
17.2 Domestic........................................................................................................................ 85
Section 25: Disclosure of initial RAB .................................................................................. 86
Appendix 1: FY18 IRR calculation ....................................................................................... 87

5
Introduction
The purpose of annual Information Disclosure (ID), under the Commerce Act 1986 (Act), is for
Auckland Airport to provide sufficient information to enable interested parties to assess
Auckland Airport’s performance in meeting the purpose of Part 4 of the Act. It also allows the
Commerce Commission (Commission) to analyse performance over time, and compare it with
Wellington International Airport Limited and Christchurch International Airport Limited.
We note that the Government does not require the Commission to regulate airport prices but
rather to thoroughly review our price-setting decisions and annual disclosures so as to promote
greater understanding of our performance. In June 2017 we set prices for the third five yearly
pricing event (PSE3) since the introduction of the ID regime. Our aim was to seek the
appropriate balance between charging reasonable prices, incentivising the most significant
investment programme we have ever contemplated and continuing to deliver high quality
customer experiences from FY18-FY22.
Auckland International Airport Limited (Auckland Airport) remains committed to the ID regime
and working with the Commission and our passengers and customers to ensure our decision-
making promotes the long term benefits of consumers. We believe the ID reporting regime
provides an effective means for explaining an airport’s performance in relation to its regulated
services, including pricing arrangements, quality of service, capacity constraints and capital
requirements. We seek to support the long-term interests of consumers by encouraging
competitive access to Auckland Airport for all transport modes (both sky and land).
We encourage interested parties to exercise caution when interpreting variances between

actual performance and the ID benchmarks, and when making comparisons between airports.
We set aeronautical prices to target a specific rate of return on the aeronautical pricing asset
base over the entire five-year period and for this reason present many of our outputs relative to
the five-year target including period to date performance. We have sought to explain material
variations between ID benchmarks and forecasts. However, we note that interrelationships
exist between capital and operational expenditure, innovation and quality and therefore it is
difficult to draw conclusions on forecast versus actual outcomes for one benchmark and over a
short time period.
This disclosure is the first disclosure relating to PSE3, which runs from 1 July 2017 to 30 June
2022 (FY18 – FY22).
The following Annual Disclosure Commentaries and the Information Disclosure Information
Templates (ID Templates) comply with the ID requirements and provide contextual analysis of
how Auckland Airport is focused on benefiting consumers through:
a) identifying and implementing innovations;
b) having an appropriate incentive to invest;
c) providing services of the quality and range required by consumers;
d) generating efficiencies and sharing the benefits; and
e) earning a fair and reasonable return on the investments made.

6
The detailed commentaries provided below support the information contained in the ID
Templates and summarise our approach towards promoting the above outcomes.1 To assist
with usability, the numbering of sections within this report is consistent with the schedule
numbers contained in the ID Templates that provide empirical data on how we have performed
against the Part 4 objectives this disclosure year.
Identifying and implementing innovations
The aviation sector has a culture of innovation, aimed at improving operational performance,
reliability performance, passenger experience, efficiency of expenditure, efficiency of
investment and the success of route development initiatives. Innovation can also lead to
reductions in operational risk that might not be obvious to the travelling public.
One of the key drivers of innovation is destination competition. To compete effectively with the
likes of Sydney, Melbourne, Brisbane and Christchurch Airports, Auckland Airport strives to
match or outperform the aeronautical operating performance of our competitor airports. This
objective helps inform the terminal design, which ultimately supports passenger satisfaction.
Auckland Airport is building the airport of the future. Conceptualising and developing an airport
that is built to exist in a context thirty years from now requires innovation in process,
technologies and delivery of infrastructure. We seek to innovate to support all of our key
purposes and principles. Innovation can direct and prioritise appropriate investment, work to
improve customer service quality, and help to generate efficiencies in the business. Auckland
Airport is continuously focused on the introduction of new processes and technologies to
improve the overall experience on the precinct. Successful initiatives can increase the
propensity to travel or trade and increase the capacity of existing infrastructure, thus optimising
capital expenditure on new infrastructure.
Innovation can also result in identifying new ways to utilise existing assets, increase capacity
and optimise capital investment, reducing the overall potential cost to consumers and airlines.
Auckland Airport is an active partner to the aviation industry, committed to the identification and
development of innovations. This is more important than ever, for an industry competing for the
international traveller and faced with a range of increased costs across the system which
present risks to the competitiveness of New Zealand’s tourism product. Auckland Airport
actively facilitates the identification and prioritisation of opportunities and works together with
the Board of Airline Representatives New Zealand (BARNZ), our major customer Air New
Zealand and government agencies to bring about change. Auckland Airport delivers airport
investments that create value for the industry (such as increasing the productivity of existing
infrastructure and providing infrastructure that leads to superior economic, social or
environmental outcomes). In such situations, the benefits of innovation can flow directly or
indirectly to consumers.
Innovation can lead to the development and delivery of new, best in class, goods or services,
and/or more efficient production techniques. However, innovation, by its very nature, involves
risk. On occasions innovation will not result in a successful or wholly successful outcome.
Please refer to the following sections for non-exhaustive examples of how Auckland Airport’s
innovation in FY18 improved:
1
For further detail refer to previous disclosures.

7
• reliability and performance - Section 11;

• capacity utilisation of terminal and airfield facilities - Sections 12 and 13; and
• operational improvement processes - Section 15.
Having an appropriate incentive to invest
Auckland Airport is committed to ongoing investment, for the benefit of our city, country,
customers and investors. We continue to take steps to increase productivity by investing in
smart airport infrastructure and air-service development. We initiate and promote programmes
to attract more tourists and trade to New Zealand, in conjunction with our key stakeholders. It
is crucial that we develop necessary infrastructure to support the predicted growth in demand
and optimise the efficiency of the airport assets. Our ability to attract the necessary capital to
do this can be affected by the regulatory environment.
In March 2014 we published a distillation of the Masterplan called Airport of the future: Our
vision for the next 30 years. Our vision is to build a world-class airport that supports airlines
and aviation-related businesses to be economically successful and to boost the economies of
Auckland and New Zealand. Our vision extends 30 years so that it can be planned and built in
stages. This is so as to ensure that it is realistic and affordable, but also so that operations can
continue without disruption, to the greatest extent possible.
In setting prices for PSE2 (FY12-FY17), both

PSE2 cummulative capital expenditure
Auckland Airport and our substantial cutomers did
not forsee the substantial increase in demand that 600
subsequently eventuated. Our track record shows,
during PSE2 we responded to this unforeseen 500
increase in aeronautical demand by accelerating

400
our core airport infrastructure programme. We
invested $522m, an 80% increase ($232m) on the
$m
300
forecast of $290m when prices were set and the
demand environment was more subdued than 200
forecast in the PSE2 plan.
100
We are New Zealand’s front door, and hosted more
than 20 million passenger movements in FY18, -
PSE2 forecast PSE2 actual
some of whom were being welcomed into New
Zealand for the first time. In mid-2017 we
announced a circa $2bn aeronautical investment program. This program is unprecedented for
Auckland Airport and marks the beginning of an investment era. We are in the midst of design
and consultation and expect to get underway with construction throughout PSE3, and into
PSE4.
Our investment philosophy is that:
• a long-term planning horizon is important as it provides transparency for stakeholders, and

clarity for Government and Auckland Council so they appropriately plan for the future;
• customers provide valuable feedback which influences the design process and timeframes.
• sustainable demand growth and resilience will be the main triggers for infrastructure
development;

8
• investments should be safe, efficient, resilient, flexible and consider environmental and
community impacts;
• a high quality experience for airlines and passengers should be planned and built in stages
to the extent possible to ensure the vision is affordable and implementable;
• trade-offs are required around constructability and delivering infrastructure in stages;
• infrastructure delivery in any sector involves substantial risk that needs to be identified. Any
frustrations or disruptions to our passengers need to be proactively mitigated;
• a reasonable long-term return as close as possible to our weighted average cost of capital
(WACC) should be earned on investment; and
Ahead of capital investment, we review the range of alternative options that exist, including
what operating process or technological solutions exist to extend the life of existing built assets.
We make the key investment decisions following extensive consultation with airlines. As in other
sectors, no one customer is the same. Airlines do not always agree, particularly on their
appetite for new capacity and/or the quality of infrastructure required and, within airlines, views
change over time. Ultimately, Auckland Airport must decide on what is in the long-term interests
of consumers. That said, over time our airline customers have provided unique insights, which
have caused us to change our views. Key principles that are applied when evaluating options
are the relative fit with demand, customer journey and experience, operational efficiency,
resilience, flexibility, future proofing, buildability, affordability, safety and security in design and
sustainability.
We acknowledge that substantial investment does not always go to plan. Our priority is to
ensure that the projects we deliver are the best possible solutions for all parties involved. We
seek to achieve this by meeting with airlines regularly to agree investment requirements and
priorities. Sometimes, this requires the design and/or timing of projects to change from what
was originally planned given then long-term nature of the investment, parties agree it is better
to take the time to get the design right.
Providing services of the quality and range required by consumers
Auckland Airport considers the quality of the service we provide to be critical to our performance
as New Zealand's international gateway and largest domestic airport. If our service is below
expectations, this negatively impacts our business and has flow-on effects for all travel, trade
and tourism businesses that rely on Auckland Airport. Desired outcomes in service delivery are
founded in high quality, broad choice, and strong reliability. Auckland Airport works actively
across all three levels, to increase the range of services and capacity on offer to passengers
and freight operators, to and from New Zealand.
We recognise that as our facility grows and quality of service is improved over time, consumers
may nevertheless experience temporary disruption when our facilities undergo major
construction. We seek to anticipate where the major points of stress might be in the system
and to proactively mitigate impacts where possible. We are investing in technology to provide
real-time feedback so that customer issues, including during periods of construction, can be
understood and resolved faster.
Auckland Airport uses a number of methods to understand and improve the quality of services
required by customers and to assess customer satisfaction. For the travelling public these
include:

9
• qualitative and quantitative market research that assists in understanding consumer needs
and preferences. These insights inform process development and terminal planning; and
• review of direct feedback on performance to identify where quality issues may be emerging.
Evidence of our efforts in this area include our:
• membership of the global airport service quality (ASQ) service rating system;
• Real time survey data via numerous in-terminal customer satisfaction kiosks; and
• placement in the Skytrax World Airport Awards.
We develop our understanding of airlines’ quality requirements through direct feedback via a
range of forums at operational and management levels including:
• collaborative operating groups at a tactical, management and CEO level; and

• consultation on terminal and airfield development and service priorities.
Through engagement with businesses and agencies located at the airport, we hear what is
important to our business customers and how facilities are performing against those priorities.
The airport is a system in which one party’s actions can affect others. Our philosophy is to
foster a strong commitment to collaboration for all stakeholders at the airport and to work
constructively together towards a common goal.
Auckland Airport is focused on working alongside our partners to continually make

improvements to the customer and passenger experience, through improved quality and choice
of services. Over time, changes in the quality and range of products and services improves
consumer choice. It also encourages supplier innovation and competition to help grow
customer choice and the size of the overall market. We see our customers every day and seek
to understand their needs and concerns intimately.
In FY18, Auckland Airport achieved an improvement in reliability measures on the prior year,
maintained our overall passenger ASQ rating and took part in a number of operational initiatives
with airlines and border agencies to identify and develop solutions to improve service quality.
Please refer to the following sections for summaries of the initiatives taken by Auckland Airport
in FY18 to improve service quality:
• Section 11 describes the reliability of services delivered to airlines and passengers. We

report against a range of metrics that describe on time performance and interruptions to
core services (if any). In addition to this, we measure ourselves against the percentage of
time the assets are available for use;
• Section 14 sets out our results for ASQ, a customer satisfaction analysis and benchmarking
programme. Within this schedule, we also describe the key service level changes within
facilities, which target the maintenance or improvement of passenger service levels; and
• Section 15 summarises operational improvement initiatives, some of which have the effect
of improving service levels.
Generating efficiencies and sharing the benefits
Efficiency is at the heart of Auckland Airport’s strategy to be fast, efficient and effective. As well
as having a strong growth focus, Auckland Airport seeks to ensure that our airline customers
and the travelling public share the benefit of higher passenger volumesover time .

10
Auckland Airport benchmarks well in international comparisons of airport operating costs. We

are unusual in the scale of both our domestic and international operations. Often airports are
predominantly characterized as either a domestic or an international airport.
Auckland Airport's performance demonstrates that it seeks to create efficiency gains in a variety
of ways. We remain committed to seeking out efficiencies year on year and sharing efficiency
gains with consumers over time, either through price or quality decisions. We actively explore
options for generating process efficiencies, prior to making any significant capital expenditure
commitments. As we approach potential diseconomies of scale, we will continue to seek to
apply technologies in new ways to achieve more with our existing infrastructure.
Auckland Airport recognises its role within the complex system of tourism and aviation.
Collaboration with partners is a critical part of operating as an efficient airport. Outcomes in
efficiency are a result of a combined effort from 500+ airport staff and ~20,000 employees of
partner organisations. In some instances, we take a leadership role to facilitate broader
opportunities for what is a fragmented system. The willingness of Auckland Airport to absorb
the cost of this, often unanticipated, investment can lead to more efficiencies for the network,
which ultimately benefit consumers. To the extent that Auckland Airport’s investment reduces
the aeronautical pricing of other partners operating at the airport, this makes the network cost
of Auckland Airport more competitive, which can only be in the long-term interests of
consumers.
Efficiencies are generated through Auckland Airport's route development activities as greater
passenger volumes enable the operating and capital costs to be spread over a broader base
when prices are reset. Within a pricing period consumers benefit from increased competition,
improved prices and greater choice. These initiatives also deliver benefits for passengers
through increased destination choice and price competition. Route development success and
unanticipated passenger and aircraft movements growth during PSE2 enabled average prices
to fall at the start of PSE3.
We want to be a good corporate citizen and a good neighbour and help build strong, vibrant
local and national communities. These communities include people working on and around our
Auckland Airport precinct, schools and tertiary education providers, iwi, community groups and
the environment. We focus our social responsibility work around three themes: education,
employment and environment. Our annual programme of activities includes community grants,
scholarships, community events, cultural activities and sponsorships. Increasingly, we are
focused on ‘shared value’ activities such as employment that creates long-term, sustained
benefits for all parties.
We also have an active environmental program, which manages the water and energy we use
and the carbon emissions and waste we generate. We take a broad approach to sustainability
and consult with our stakeholders, staff and community to develop a sustainability policy and
strategy that addresses issues that are important to them. We are transparent about our
sustainability targets and performance – each year we disclose performance in our annual
corporate social responsibility report.
Please refer to the following sections for examples of how Auckland Airport generated
efficiencies, and shared the benefits, including:
• how costs have been managed through the period versus forecast – Section 6;

11
• increased asset utilization, which means our assets are becoming more productive over
time, which will in turn help to limit prices – Sections 12 and 13;
• the quality of service delivered to airlines in terms of reliability, passengers in terms of
satisfaction levels and operational improvement processes – Sections 11, 14 and 15.
Discretionary initiatives taken throughout the period to maintain or improve service quality
at Auckland Airport, or for the aviation sector, exemplify how efficiency gains can be shared;
and
• demand growth during the period and routes which have been developed - Section 16.
Earning a fair and reasonable return on the investments made
Auckland Airport targets a reasonable aeronautical return when setting prices once every five
years. Because of the counterveiling influence of the regulatory regime and the Commission’s
strong views on target return, for PSE3 our target return is less than our estimated airport
specific WACC. Target return is determined following comprehensive consultation with airlines.
Through this process there is also careful consideration of what the regulator considers to be a
reasonable return, in the context of proposed investment over the period at Auckland Airport,
and benchmark evidence on the competiveness and reasonableness of charges.
Auckland Airport considers that our ROI should be measured over a period of time rather than
at a single point in time. This is particularly important in the context of the long-life infrastructure
assets and the corresponding long-term investment horizons that exist in the airport sector. On
an annual basis, we seek to finance our investment programme efficiently, drive volume, control
costs, and deliver on our pricing commitments. In FY18, our actual returns were consistent with
what we expected.
Auckland Airport believes it is important for regulated entities to have incentives to manage
risks, where they are best placed to manage such risk. The airport sector is highly dynamic. At
both a strategic and operational level, we are responsible for understanding aviation, tourism
and trade trends, innovation and efficiency opportunities.
Auckland Airport has a strategy of responsibly seeking to stimulate demand in air connectivity,
tourism and trade. This strategy has long lead times and comes with a significant degree of
uncertainty. When this strategy is successful, Auckland Airport may have a temporary benefit
in the pricing period - consumers and logistics operators benefit from greater choice, and/or
prices may be lowered at the next price reset.
We seek to best use the resources we have available to meet changing consumer requirements
through the operational or capital expenditure decisions we make. Auckland Airport balances
the new needs, which emerge over time from changing demand conditions and operational,
competitive, legislative and community requirements.
The growth in passenger numbers over PSE2 has led to the acceleration of our capital
programme. This acceleration is expected to result in the displacement of some existing assets
in PSE3 as we build the Airport of the Future 2. The business cases will be challenging for some
shared (i.e. aeronautical and second till) assets where there will be little if any incremental
2Auckland Airport’s 30-year vision to build a world-class, yet uniquely New Zealand airport that can accommodate 40
million passengers and 260,000 flights by 2040 to ensure it can continue to connect Auckland to New Zealand, and
New Zealand to the world

12
second till revenues from moving those existing business activities from their current locations
to new sites.
In targeting a reasonable return on investment, we recognise that our marginal investor is

unlikely to be New Zealand domiciled. This means that in order to raise and attract funding
from a wide range of sources it is critical to our future growth that we can offer the prospect of
a return comparable to airports in jurisdictions such as Australia.
As a publicly listed entity, Auckland Airport is subject to, and recognised for, high standards of
corporate governance, transparency and responsibility. Auckland Airport must make regular
and transparent financial disclosures based on NZ IFRS accounting standards, and must meet
stringent NZX and ASX obligations in relation to its governance and financial matters. These
processes all serve as a further check on the appropriateness of Auckland Airport’s approach
and decisions. Auckland Airport takes these responsibilities seriously and continues to strive to
deliver very high standards of governance.

13
Glossary:
A-CDM Airport Collaborative Decision Making
Act Commerce Act 1986
AES Airport Emergency Services
AIP Aeronautical information publication
AOS Airport Operation System
APOC Integrated Airport Operations Centre
ASQ Airport Service Quality, a global service quality certification body
ASX Australian Stock Exchange
AT Auckland Transport
ATOC Auckland Traffic Operations Centre
Auckland Airport Auckland International Airport Limited
Avsec Aviation Security Service
BARNZ Board of Airline Representatives of New Zealand
BNZ Biosecurity New Zealand
CAA Civil Aviation Authority
CCTV Closed circuit television
COG Collaborative Operations Group
Commission The Commerce Commission
CPI Consumer price index
DJF Domestic Jet Facility
DTB Domestic Terminal Building
e-gates Electronic gates
FCR Flexible contingent runway
FOD Foreign object debris
FEGP Fixed electrical ground power
FTE Full Time Equivalent
GAAP Generally accepted accounting practice
GBMD George Bolt Memorial Drive
HVAC Heating, ventilation and air conditioning
ID Information Disclosure
ID Determination Information Disclosure Determination
IM Input methodologies
IRR Internal rate of return
ITB International Terminal Building
MARS Multi aircraft ramp system
MCTOW Maximum certified take-off weight
MPI Ministry of Primary Industries
MVAU Market value alternative use
NZ IAS New Zealand international Accounting Standards
NZ IFRS New Zealand International Financial Reporting Standards
NZTA New Zealand Transport Authority
NZX New Zealand Stock Exchange
OTD On-time departure
PAX Passenger
PFAS Foam Firefighting foam containing perfluorooctane sulfonic acid
PSE2 Price setting event 2 – FY12-FY17
PSE3 Price setting event 3 – FY18-FY22
R&M Repairs and maintenance
RAB Regulatory asset base
ROI Return on investment
SMS Safety management system
TDP Terminal Development Plan
WACC Weighted Average Cost of Capital

14
Section 1: Return on investment

1.1 Context
Revaluations
The approach an airport takes to value its assets and account for revaluations can materially
impact its reported returns. For interested parties unfamiliar with the history of pricing decisions
and the technicalities of input methodologies, below we provide some further context. In 2006
(PSE1) Auckland Airport implemented a moratorium on asset revaluations for at least 10 years
for Airfield and Terminal Assets. In the most recent pricing period, it was determined to continue
that practice and the decision was supported by the airlines.
Auckland Airport carefully considered the impact of the changes made by the Commission to
the asset valuation input methodologies in the 2016 review in light of the
moratorium. Ultimately, we decided that the best way to provide transparency to interested
parties about Auckland Airport’s price setting approach was to restate our regulatory asset
values for Airfield and Terminals to exclude revaluations from the start of the information
disclosure regime – eliminating the previous mismatch between “pricing” and “regulatory” asset
values. Auckland Airport used these restated regulatory values as a starting point to determine
the asset base for determining Standard Charges. Auckland Airport also elected to make and
disclose a further downwards adjustment to remove the impact of revaluations between the
start of the moratorium in 2006 and the start of the information disclosure regime in 2010 –
using the carryforward mechanism introduced by the Commission in 2016. This adjustment will
be a continuing feature of our annual disclosures.
Commerce Commission review of Auckland Airport’s target return for PSE3
On 1 November 2018 the Commission released its Final Report on the pricing decision for FY18
– FY22 for Auckland and Christchurch Airport. The Commission’s summary of its review was
that:
• there is still room for improvement in some areas;

• transparency has improved since the Input Methodologies Review;
• targeted returns have gone down;
• it will review Wellington Airport’s price setting next; and
• it then intends to do an overall review of performance across all airports.
In respect of Auckland Aiport the Commission did not identify concerns with the demand
forecast, asset valuation, treatment of the Moratorium and operating or capital cost forecasts
used in pricing. The Commission did have remaining concerns about our target return, but
acknowledged the inherent uncertainty in determining the right return for Auckland Airport and
that not all of the difference between the Commission’s sector-wide benchmark midpoint WACC
estimate and Auckland Airport’s target return should be regarded as excess returns. We are
reviewing the Commission’s findings in detail.

15
1.2 Change in methodology
In October 2017, the Commission provided Auckland Airport with a conditional exemption from
the prescribed form of ROI disclosure as set out in Schedule 1 of the ID Determination. This is
because the annual ex-post regulatory disclosures have not yet been amended to reflect
changes already implemented for the five yearly ex-ante price setting disclosures to better
reflect actual price-setting approaches followed by different regulated airports. For example,
Auckland Airport does not upwardly revalue its aeronautical land each year as currently
prescribed by the annual ID regulations. In granting the exemption, the Commission noted that
for to comply with the current report on ROI requirements in Schedule 1 of the ID Determination,
Auckland Airport would be required to disclose information which is not useful to interested
parties.
The exemption was granted on the condition that Auckland Airport includes with its annual
disclosure of its financial position for the disclosure years ended 30 June 2018 and 30 June
2019 in accordance with clause 2.3(1) of the ID Determination:
i. an annual return on its regulatory asset base, on a post-tax basis, using an approach
consistent with the approach used for its disclosed pricing methodology;
ii. a description of how the annual return is consistent with its forecast return in its pricing
methodology;
iii. the calculation used to produce its annual return; and
iv. the assumptions used for its annual return, including:
a. cash-flow timings for revenue and expenditure;
b. any carry forward adjustments used to adjust its opening and closing regulatory
investment value.
As a result, the following should be noted in relation to Auckland Airport’s return for the
disclosure year ended 30 June 2018:
i. the FY18 return is calculated on a basis consistent with how Auckland Airport set prices
for PSE3 as contained in its price setting disclosure dated 1 August 2017;
ii. refer to Section 1.3 below for a description of how Auckland Airport’s annual return is
consistent with its forecast return in its pricing methodology;
iii. refer to Appendix 1 for a copy of the calculation used to produce Auckland Airport’s FY18
IRR;
iv. key assumptions include:
˗ cash flow timings of 30 December 2017 and 2 February 2018 for expenses and revenue
respectively;
˗ a carry-forward and closing moratorium adjustment to the regulatory investment value
which is consistent with that set out in our price setting disclosure;
˗ a carry-forward Pier B adjustment which is consistent with that set out in our price
setting disclosure; and
˗ the timing of the closing investment value for FY18 is 30 June 2018, consistent with the
closing investment value for the assessment of IRR in Schedule 18 of Pricing
Disclosure for PSE3.

16
1.3 Commentary on return on investment
Schedule 1 reports on Auckland Airport’s ROI on its regulated activities compared with the
Commerce Commission’s 50th percentile (“mid-point”) post-tax WACC estimates for the most
recent three year periods starting 30 June – namely FY16, FY17 and FY18. This is an industry
wide benchmark that is materially based on a sample of 26 global airports including one New
Zealand entity, Auckland Airport. Auckland Airport’s actual post-tax ROI under the
Commission’s ID methodology for the year to 30 June 2018 is 9.1%. This compares to the
9.3% forecast for FY18 as part of Auckland Airport’s price setting disclosure.
Auckland Airport has targeted an average post tax return (internal rate of return – IRR) of 6.99%
for the entire PSE3 on our ‘priced aeronautical activities’ (for which landing, passenger, check-
in and aircraft parking charges are levied on the airlines). Owing to the averaging approach
necessary to avoid sudden and large aeronautical price movements during any five-year price
setting period, above-target returns were forecast for the start of PSE3 followed by below-target
returns at the end of the period. Consistent with comments raised in previous years, Auckland
Airport does not believe that annual assessments of returns are informative for interested
parties. Auckland Airport considers it more appropriate to consider its returns over the five-year
period of PSE3 utilising an IRR methodology, and will disclose the cumulative IRR for PSE3 in
subsequent annual disclosures. It should be noted that any IRR calculation over such a short
period of time is inherently very sensitive to short term variances versus assumptions. These
short term variances are expected to largely average out over the entire PSE3 period.
The table to the right shows that

Year ended 30 June 2018 ROI IRR
whilst FY18 ROI was lower than
Actual return for FY18 9.1% 9.9%
the price setting forecast, the
PSE3 forecast for FY18 9.3% 9.1%
more realiable IRR measure of
9.9% was above the price setting
forecast of 9.1%.
Figure 1 below compares Auckland Airport’s FY18 IRR to that forecast in the Price Setting
Disclosure.
Figure1: Auckland Airport PSE3 IRR – Actual vs. Price Setting Disclosure

17
In comparing Auckland Airport’s FY18 IRR to that set out in the Price Setting Disclosure for
PSE3, we note the following:
(1) higher revenues of $4.0m for the year have been largely offset by higher operating
expenditure of $3.0m on that forecast;
(2) assets commissioned in FY18 totaled $284.7m, $75.5m higher than that forecast for
FY18 and the RAB at the end of FY18 was $23.7m higher than that anticipated at the
time of setting prices. However, a small delay in the timing of commissioning assets
between FY17 and FY18 and lower asset disposals in the first year of PSE3 has resulted
in a 0.6% higher IRR in FY18 than that anticipated at the time of setting prices. The
majority of this timing difference is expected to reverse over the remainder of PSE3;
(3) directly related to point (2) above (and contributing 0.4% of the 0.6% IRR variance
identified), less regulatory depreciation was incurred in FY18 compared to the PSE3
price setting forecast. Delays in the completion of the complex level 1 international
terminal departure expansion project resulted in the majority of the project being
commissioned in FY18, one year later than that anticipated at the time of setting prices.
Despite these assets indeed incurring depreciation in FY18 for statutory accounting
purposes, the ID methodology does not permit assets to be depreciated in the first year
of commissioning;
Adjusting for this temporary 0.6% effect, actual FY18 IRR would have been approximately
9.3%, i.e. almost equal to the 9.1% price setting forecast. Please refer to Section 6 for a detailed
analysis of period to date operating expenditure and capital expenditure variances versus the
original PSE3 pricing forecasts.

18
Section 2: Regulatory Profit

2.1 Comment on regulatory profit
Net operating revenues were $4.0m or 1.2% up on forecast reflecting stronger than anticipated
lease, rental and concession income, partly offset by lower airfield and passenger service
charges revenue. In FY18, actual aeronautical demand was well above forecast for lower
yielding domestic passengers, and below forecast for the higher yielding international
passengers. The above forecast domestic passenger growth in FY18 was materially higher
than the domestic airlines indicated was likely during the PSE3 Pricing consultation process.
Operating expenses were $3.0m higher than forecast reflecting higher asset management and
airport operations and asset maintenance costs, partly offset by lower corporate overheads.
Refer Section 6: Actual to Forecast Expenditure for detailed discussion on the variances
relating to operational expenditure.
Regulatory depreciation for FY18 was $5.2m (9.9%) lower than forecast as a result of a
significant value of terminal development assets commissioning slipping into FY18 compared
to FY17 assumed at the time of setting prices. These assets will begin being depreciated for
regulatory purposes from FY19 rather than FY18 as assumed for the price setting forecasts.
2.2 Justification for merger and acquisition expenses
There were no merger and acquisition expenses in the year ended 30 June 2018 for the
regulated airport business.

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Section 3: Regulatory Tax Allowance

3.1 Disclosure of permanent differences and temporary adjustments
Other permanent difference – not deductible:
This is the allocated regulatory share of incurred entertainment expenses. These expenses
cannot be deducted from profit for tax purposes.
Other temporary adjustments – current period:
These relate to accruals and provisions made at year-end for estimated expenses that are not
deductible for tax purposes including:
• employee related provisions ($3.1m) for employee leave, ACC, FBT and staff incentives
• other accruals and provisions ($5.3m) including doubtful debts and non-specific accruals
These provisions will reverse during the year and be replaced with actual incurred non-
deductible expenditure (hence the term “temporary adjustments”). These also include fixed
asset timing differences of $2.4m, related to the disposal of fixed assets and consultative costs
for acoustic treatment.
Other temporary adjustments – prior period:
The prior period adjustments consist of accruals and provisions identical in nature to those of
the current period being employee related provisions ($5.9m) and other accruals and provisions
($5.7m).
3.2 Regulatory tax asset value of additions
During FY18 $305.5m of regulatory assets were added to the tax register. This is higher than
the $284.7m of assets added to the RAB. The difference is predominantly due to $33m of
assets in the redevelopment of the International Terminal being already commissioned into the
RAB in 30 June 2017 that hadn’t yet been processed for tax purposes.
3.3 Regulatory tax asset value of assets transferred from/(to) unregulated asset base
Other adjustments to the RAB tax value relate to lost and found assets and adjustments
resulting from cost allocation as described in Section 4.2 below.

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Section 4: Regulatory Asset Base Roll Forward

4.1 RAB value—previous disclosure year
Restated asset values
Reflecting the recently revised input methodologies (IMs), Auckland Airport undertook a bottom-
up restatement process to generate restated regulatory asset values for all individual assets as
at 30 June 2016. These restated asset values were used to complete the “previous disclosure
year” information in Schedule 4, and this restated asset base has then been rolled forward from
30 June 2017 to 30 June 2018 in accordance with the IMs.
This process has resulted in restated asset values that remove the impact of all revaluations
for Airfield and Terminal assets from the start of the ID regime (FY10), consistent with the
approach that Auckland Airport has taken for pricing purposes (i.e. consistent with the
moratorium on asset revaluations for aeronautical pricing). The land value in the restated asset
base also reflects the High Court’s ruling (incorporated into the IMs by the Commission) that
the value of land in the initial RAB should be its market value alternative use (MVAU) value as
at 30 June 2010, rather than as at 30 June 2009 per the previous IMs.
The following table provides an overview of Auckland Airport’s approach to asset values and
revaluations in the RAB.
Land assets Non-land assets

Segment
Revaluations included Revaluations
Base value Base value
in RAB? included in RAB?
Airfield 2010 per No 2009 disclosed No
hectare MVAU value (or cost at
values commissioning)
Terminal 2010 per No 2009 disclosed No
hectare MVAU value (or cost at
values commissioning)
Aircraft and 2010 per Yes - 2011 MVAU 2009 disclosed Yes (CPI)
Freight hectare MVAU revaluation and indexed value (or cost at
values at CPI since 2011 commissioning)
Land held for 2009 MVAU Yes – revaluation - -
future use value included to bring land
value to 2010 MVAU
values (consistent with
RAB). No further
revaluations included.
4.2 Lost and found assets and adjustments resulting from cost allocation
A capital expenditure project typically enters the fixed assets register initially as a single item
(representing the project). Following detailed analysis, it is later split into its component assets.
This process sometimes results in aeronautical-dominated capital expenditure projects being

later split into both aeronautical assets plus a small proportion of non-aeronautical assets.
Equally, previously non-aeronautical-dominated projects can be split into non-aeronautical plus

21
a small proportion of aeronautical assets. These splits can result in assets being transferred
into or out of the Unallocated RAB as well as impacting the value of the Allocated RAB.
The logical place to record these movements in Schedule 4 is in row 28, entitled "Adjustment
resulting from cost allocation". However, because row 28 does not contain an area to input
movements in Unallocated RAB, we have shown the $7.1 million Unallocated RAB movement
due to asset splits and transfers in row 26, under the "Lost and found assets adjustment".
On an Allocated RAB basis, the adjustment resulting from cost allocation has resulted in a RAB
decrease of $2.0 million.
4.3 Calculation of revaluation rate and indexed revaluation of fixed assets
Consistent with amendments to the IMs in December 2016, and with Auckland Airport’s pricing
decision for PSE2 and PSE3, the only disclosed revaluations for FY18 are indexed revaluations
for assets directly allocated to Aircraft & Freight activities. CPI revaluations have been retained
for Aircraft and Freight assets, which is more consistent with Auckland Airport’s market-based
approach to determining the revenue associated with these assets – covered by leases
negotiated with individual customers. There are no revaluations for Airfield or Terminal assets
in FY18, consistent with Auckland Airport’s decision to continue its moratorium on asset
revaluations for pricing purposes over PSE3. For further explanation of the moratorium refer
to Section 1. Schedule 4b(iv) of the ID Determination (Calculation of Revaluation Rate and
Indexed Revaluation of Fixed Assets) currently reflects the previous IM requirement that all
assets must be revalued using CPI-indexation. This schedule, as currently specified, does not
allow Auckland Airport to disclose the value of revaluations of the RAB in a manner consistent
with our approach when setting prices – i.e. it does not allow us to apply revaluations only to a
part of the RAB (Aircraft and Freight assets).
Auckland Airport has been granted an exemption by the Commission from the requirement to
use the calculation of indexed revaluation for the RAB and the unallocated RAB as currently
specified in Schedule 4b(iv), provided that Auckland Airport disclose its indexed revaluations in
a manner most consistent with the approach used to set prices.
Auckland Airport has done so by including an additional line in Schedule 4b(iv) for the FY18
disclosure. This additional line has been labelled “Assets not subject to revaluation”. This
adjustment allows Auckland Airport to net out the value of airfield and terminal assets not
subject to revaluation from the total value of the RAB, leaving only aircraft and freight assets
that then have CPI indexation applied. Auckland Airport has also removed the automatic
formula from the “Asset disposals” line, so that this cell reflects only asset disposals from aircraft
and freight assets – i.e. the remaining part of the RAB not subject to revaluation have been
removed.
4.4 Assets held for future use

Restatement of assets held for future use – previous disclosure year
As discussed above, Auckland Airport has restated its Airfield and Terminal assets to exclude
all revaluations after the establishment of the initial RAB value as at 30 June 2010. To be as
consistent as possible with the value of airfield land included in the RAB, Auckland Airport has
restated the value of land included in assets held for future use as follows:

22
• the base value in the schedule remains the 30 June 2009 MVAU as required by the IMs;
• Auckland Airport has rolled this base value forward to align the value of assets held for
future use with the 30 June 2010 MVAU proxy value used for airfield land in the RAB –
effectively including a periodic land revaluation in 2010 for land held for future use. These
revaluations are disclosed as “tracking revaluations” in accordance with the IM
determination; and
• no further revaluations – CPI or periodic land revaluations – have been included for assets
held for future use after 30 June 2010.
The “previous disclosure year” information in Schedule 4b(viii) reflects this restated value.
Transfer of land from assets held for future use
In FY18, there was a transfer of 0.57 hectares out of land held for future aeronautical use into
a Park & Ride facility. The value of the respective land parcels, as well as the cumulative holding
costs and tracking revaluations associated with the land parcels, have been deducted at its
current disclosure carrying value ($0.5m) via the Assets held for future use – disposals line.

23
Section 5: Related Party Transactions

5.1 Transactions with related parties
All trading with related parties, including and not limited to license fees, rentals and other sundry
charges, has been made on an arms-length commercial basis, without special privileges,
except for:
• the provision of accounting and advisory services to the Auckland International Airport
Marae Ltd at no charge; and
• transfers of land held for future use to a Park & Ride facility at the regulatory carrying value
in accordance with the ID Determination.
No guarantees have been given or received.
5.2 Auckland Council and its subsidiaries
Auckland Council’s shareholding of Auckland Airport exceeds 20 percent and, as such,

accounting standard NZ IAS 24 requires transactions with Auckland Council and its subsidiaries
to be treated as related party transactions.
Costs incurred with Auckland Council and its subsidiaries in relation to the Airport Business
during the year ended 30 June 2018 were:
• rates of $2.6m (2017: $2.4m);

• compliance, consent costs and other local government regulatory obligations of $0.2m
(2017: $0.4m);
• City Park Services – grounds maintenance costs of $1.5m (2017: $1.6m); and
• Watercare – water, waste water and compliance services costs of $1.3m (2017: $1.2m).
As reported in the prior year, the conditional agreement between Auckland Council on 28
October 2010, rationalised the road network within the airport with some roads to be transferred
between the parties and some roads to be acquired by Auckland Airport. This transaction was
completed on 20 February 2017 once conditions were satisfied at a cost of $3.3m. These roads
were previously classified as unregulated activities and were excluded from the RAB. This year
the classification has been corrected and they have now been transferred into the unallocated
RAB with a partial allocation to the RAB.
5.3 Auckland International Airport Marae Ltd
Auckland International Airport Marae Ltd has two members of the Auckland Airport’s senior
management team on its board. During the year ended 30 June 2018, maintenance and
occupancy costs of $0.03m (2017: $0.07m) were incurred in relation to the marae by the airport
business.
5.4 Auckland Airport’s non-regulated business
As mentioned in Section 4.4 above, Auckland Airport transferred circa 0.57 (2017: 1.6) hectares
of land held for future aeronautical use to a Park & Ride facility at the value of $0.5m (2017:
$1.4m).

24
5.5 Associate entities
Auckland Airport’s related parties include associate entities being Tainui Auckland Airport Hotel
Limited Partnerships and Queenstown Airport Corporation. Auckland Airport’s holding in North
Queensland Airports was sold during the FY18 financial year. There were no transactions
between the associates and the airport during the year.

25
Section 6: Actual to Forecast Expenditure

This note is in two parts. The first is a summary of operating expenditure and the second capital
expenditure.
6.1 Operating expenditure overview
The table in Schedule 6a requires an allocation of operating costs between three categories:
“corporate overheads”, “asset management and airport operations” and “asset maintenance”.
Auckland Airport has undertaken this allocation based on the primary activities of the business
units where costs are incurred. In FY18 we have revisited these allocations following BARNZ
advice that there were differences in Auckland Airport cost classifications and those of both
Christchurch and Wellington airports. We have made changes to some business unit
classifications to enhance comparability with other regulated airports. We have also restated
our operating expenditure forecasts for PSE3 to reflect these classification changes to support
variance analysis through PSE3.
We note that the asset maintenance cost category variance shown therefore includes not only
the ‘pure’ $0.8m Repairs and Maintenance variance explained in the next table, but also
variances for other types of operating costs that were incurred in business units whose primary
activities relate to repairs and maintenance, e.g. the Engineering Support Services business
unit where the majority of engineering support staff costs reside.
Operational expenditure – variance analysis
FY18 regulated costs were slightly up on the pricing forecasts by $3.0m (+2.6%). The following
chart summarises the differences between actual operating costs incurred and the PSE3 price
setting forecast.
Figure 2: Operational expenditure – Actual vs. Price Setting Disclosure
160
140
120
100
$M
80
60
40
20
0
Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual
2018 2019 2020 2021 2022
Underlying OPEX Route Development Necessary Unforeseen OPEX
Together with a positive variance in passenger demand, actual expenditure per passenger for
FY18 was $5.84, close to the pricing forecast at $5.85. Underlying costs came in at $5.79 per

26
PAX, however we incurred one necessary unforeseen operational expenditure in the disposal
of the firefighting PFAS foam in FY18.
Although regulated costs were slightly up on the pricing forecast, Auckland Airport was able to
deliver the forecast efficiency on a per passenger basis as shown on the following chart.
Figure 3: Operational expenditure per pax – Actual vs. Price Setting Disclosure
$5.94 $5.99 $6.03 $6.08

$5.85
Actual OPEX / Passenger
Underlying OPEX / passenger (less Necessary & New OPEX,

$5.84 $5.79
RD variance & LTI)
Forecast OPEX / Passenger
2018 2019 2020 2021 2022
The operating cost variances are described below:
FY18 PSE3
Area FY18 variance explanation
Variance Variance
Marketing, -$1.1m -$1.1m Marketing, Promotions and PR costs were $1.1m less than
Promotions & pricing forecast in FY18. This variance is primarily within the
PR Corporate Overheads cost category. The variance relates to
aeronautical business development activities associated with
attracting and supporting new air services for Auckland and
New Zealand, through proactively targeting routes and
markets. The variance is driven by lower committed airline
route marketing (payable when airlines achieve agreed
capacity targets) and business-as-usual marketing (including
airline and non-airline marketing, general route and
destination marketing, market research and company-wide
promotions).
Personnel $2.0m $2.0m Personnel costs were $2.0m more than the pricing forecast for
Costs FY18. Personnel increased in our Security and Emergency
services team to comply with regulatory requirements.
Engineering and Maintenance personnel also increased to
support the continued growth of investment in infrastructure
and equipment asset base. Increases in Health and Safety,
Human Resources and Master Planning reflect the general
uplift in activity for long term growth in construction and capital
works.
Repairs & $0.8m $0.8m Repairs & Maintenance (R&M) costs were $0.8m more than
Maintenance the pricing forecast in FY18. R&M costs are mostly within the
Asset Maintenance cost category and include contracted
services. The major area of work contributing to the variance
is the one-off unforeseen cost of $1.2m for the disposal of the
PFAS foam used in the rescue fire trucks.

27
FY18 PSE3
Area FY18 variance explanation
Variance Variance
Consultancy, $1.9m $1.9m Consultancy, Audit & Legal costs were $1.9m higher than
Audit & Legal pricing forecast in FY18. The primary drivers for variance to
pricing forecasts were:
- costs associated with a fuel feasibility study to determine
a future road map on the design and development of the
Joint User Hydrant installation for growth resilience,
commissioned with BARNZ, funded by the airport;
- airside bus consultancy for the deployment of new airside
busses and Aviramps and stand planning optimisation for
peak seasons to improve efficiency on the apron and
utilisation of new gates, studies for master planning around
light rail; and
- Business Technology transition costs associated with
development of business case and strategy behind the
decision to outsource core IT maintenance services.
Management $1.8m $1.8m Management Fees were $1.8m higher than pricing forecast in
Fees FY18. The main drivers of this variance were:
- the increased baggage handling services costs on the
western domestic system, extra resource and full year
impact of the now 24/7 support;
- higher costs to service the growing number of airlines /
passengers using the lounge; and
- transfer of the technology support function to an external
service provider incurred transition costs not forecasted.
The new technology operating model will provide
additional benefits in the form of improved network
resilience, security and IT support over the remainder of
the pricing period. This will allow Auckland Airport
management to focus on technology strategy to improve
customer experience and drive efficiency.
Utilities/Other $0.1m $0.1m Utilities costs were $0.1m higher than pricing forecast in FY18.
This variance was driven by faster growth in infrastructure.
Other -$2.5m -$2.5m Other expenses were $2.5m less than the pricing forecast for
expenses FY18. These savings were achieved across insurance, travel
& training, cleaning, rates, shareholder expenses, telco &
computing and other minor expenses.
Total
$3.0m $3.0m
variance
6.2 Capital expenditure overview
The base case forecast capital expenditure for PSE3 represented Auckland Airport's best view
of the likely range of capital expenditure required over the forthcoming pricing period. The
airlines generally agreed that the level and timing of planned investment was appropriate.
We are in a constant cycle of plan, build and project delivery. However, at a macro level our
30-year vision can be identified by three key phases (with some crossover):
1. Design, Plan and Prepare (2014-2019): detailed design, logistical planning, and relocation
of certain tenants and infrastructure to clear space for the new build);
2. Build (2020-2022): the most significant phase of construction including terminal and roading
infrastructure; and

28
3. Deliver a world class airport experience (2023+): completion of integrated domestic jet
facility, providing a customer experience for New Zealanders to enjoy and be proud of.
FY18 has involved a heavy programme of consultation with our key customers on requirements
and optioneering around major projects such as arrivals expansion, airfield expansion, surface
access network, and the new Domestic Jet Facility.
In 2018 Auckland Airport has successfully delivered the Pier B expansion, completed the
majority of the Level 1 expansion at the International Terminal, delivered an additional remote
stand, optimised international check-in space through desk reconfiguration and investment in
mobile kiosks and commenced improvements to the current Domestic Terminal to improve
service levels until the new domestic facility is commissioned.
The level of investment that Auckland Airport has committed to undertake in PSE3 is
unprecedented and involves several large distinct but interdependent developments across the
aeronautical campus. We are committed to delivering generational assets that best meet the
competing demands of all stakeholders. Regular consultation has enabled a better
understanding of the options and trade-offs that the airlines and airport consider to be best in
the long term for consumers. Through this process we have incorporated material new
information from third parties that has the potential to affect the programme (e.g. from New
Zealand Transport Authority (NZTA) and the Civil Aviation Authority (CAA)) and developed a
greater understanding of the construction pathway. Overall, projects which are relatively
independent of the wider airport system are progressing on time (e.g. the airfield), whilst
projects that have interdependencies are proving more complex and taking longer than
forecast. The airport and airlines have worked collaboratively recognising that it is better to take
slightly longer in design, given the legacy and life these major investments will have. We
continue to invest the time to ensure that the projects we deliver are the best possible solutions
for the long term.
In 2018, we undertook Project Core, a project that focused on reconfirming that the Terminal
Development Plan remained aligned to the long-term requirements of our stakeholders. We
concluded that there are no significant changes which would cause the airport or the airlines to
re-consider the key priorities of the programme, other than the aforementioned changes by
NZTA and CAA.
As we deliver the programme we are conscious of four key risks:
- Change fatigue by our customers: A key source of the complexity at Auckland Airport, is the
fact that the shallow “bean-like” shape of the terminal cannot easily be deepened as the
airfield and roads act as constraints. Therefore, in order to enable growth, existing activities
must be displaced. We are thankful to businesses which have agreed to move in order to
enable growth. We are also conscious that the travelling public will be inconvenienced
through this construction period and that we must educate them, both of the greater vision
and how to best travel through the airport during the construction cycle.
- Delivery: One of the most challenging issues we face in this development cycle concerns
how we are able to deliver large scale infrastructure projects in a live 24/7 environment
without compromising service levels and the overall experience of all our customers. There
is no easy solution to this challenge, however there have been many key learnings from the
two recent major projects undertaken being the extension of Pier B that is now complete

29
and the Level 1 Departures expansion that will complete in FY19. Lessons learned from
these projects are in the process of being incorporated into the delivery framework for future
major projects.
- Broader system risks: An airport is a system and the planning and resourcing decisions of
all parties to the system (from NZTA, to government departments and the airport) materially
affect the productivity of the system. We work actively with stakeholders to understand how
our infrastructure affects their productivity, and how their decisions affect the productivity of
the broader system.
- Shallow construction pools: We do hold concerns that changes in the external construction
market (including Fletcher Building withdrawing from bidding on any new vertical
construction projects) and significant constraints at head and sub-contractor levels has
reduced the number of suppliers which have the scale to deliver the projects that will be
undertaken in PSE3.
We will continue to consult with our stakeholders on the design and timing of the new Domestic
Jet Facility and we expect to ramp up enabling works for this project in the second half of 2019.
Similar to previous PSE periods, Schedule 18’s forecast capital priorities will be reviewed and
reprioritised regularly during PSE3. All major changes to capital expenditure plans will be
discussed with the airlines and BARNZ.
Capital expenditure – variance analysis
Due to extended periods of design consultation we have not commenced all projects as
scheduled in FY18. Consequently, capital expenditure in FY18 is 30% ($90m) below the
Schedule 18 pricing forecast, albeit the total commissioned RAB for which aeronautical charges
were levied was approximately $24 million above forecast as at 30 June 2018. The FY18
capital expenditure forecast to actual variance by programme is shown in the graph below.
Figure 4: FY18 Variance by capital investment programme
$M 350
16
1 18
300
3 2 10
15
250 20
8
200
150 305
243
100 215
50
-
Domestic
Maintenance
Priced Capex
Runway, Taxiway
Support Facilities
Airport Campus
Access Network
Domestic Jet
Aeronautical
2018 PSE3
International
Second Runway
Terminal
Airport Surface
Existing
2018 Total
2018 PSE3
Forecast
Terminal
incl. utilities
Facility
Capex
and Aprons
Asset
Facility

30
Despite the reduced capital expenditure in FY18, Auckland Airport remains confident that it will
commission the value of assets in PSE3 from which PSE3 regulated aeronautical charges were
calculated. The assets that were forecast to be commissioned are primarily the arrivals
expansion at the International Terminal, taxiways Mike and Lima extensions, additional aircraft
gates and stands and significant improvements to roading.
Projects which were not forecast to be commissioned in PSE3 include the Domestic Jet Facility
and the Second Runway including Utilities. They sit outside PSE3 prices. The projects which
do not commission in PSE3 are heavily featured in the programmes with an asterisk after the
title in the following capex variance analysis section.

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Key Capital Expenditure Projects Variance Analysis
The variance in capital expenditure for FY18 compared to pricing forecasts is primarily due to
prolonged consultation and alignment with stakeholders on the arrivals expansion, the
Domestic Jet Facility (terminal and airfield) and terminal roads. These projects are all
interrelated and given their size and complexity pose a significant risk to both the day-to-day
operation of the airport and future development pathway if the planning and design phase is
rushed and we commence construction without broad stakeholder support.
The table below briefly describes line item variances of more than 10% period to date.
Key Capital Project Commentary
International Terminal (Check-in, Outbound Baggage & Landside Dwell)
PSE3 actual to date: Project description and objectives

$5,441k The objectives of this programme are to create additional capacity through
check-in (back of house bag screening, kiosks, automated bag drops) and
FY18 variance: the reconfiguration of the existing International Terminal Building. Towards
$(6,475)k the end of PSE3, Auckland Airport is expanding the check-in area into the
current MPI arrivals area, which will be vacated through the Arrivals
PSE3 variance: programme of works.
$(6,475)k Progress in PSE3
In FY18, a new lift to level 1 of the departure hall was added to increase
capacity; procured additional check-in kiosks and mobile service desks;
reconfigured the Zone E check-in desks and continued to invest in the
baggage system to increase capacity. In addition, a project to implement
back of house regional hold baggage screening was planned following
guidance by the CAA . The CAA is yet to implement this requirement for
aircraft <90 seats and therefore implementation is on hold.
International Terminal (Arrivals)

$862k The objective of this programme is to provide a consistent journey time
through the end-to-end international arrivals process. The largest project in
FY18 variance: PSE3 within this programme is the expansion of the MPI arrivals area.
PSE3 variance: In FY18 key projects delivered or underway were the MPI Green Lane to up
$(19,301)k throughput and upgrades to toilets. Significant progress was made on
concept design for the arrivals project. The cost of design activity to date is
included in the Domestic Jet Facility (DJF) programme as the Arrivals
concept and preliminary design for both projects are being delivered by a
single delivery team to ensure alignment. At the conclusion of the
preliminary design phase the detailed design of the MPI expansion will be
delivered under this programme of works. Auckland Airport plans to
complete detailed design activity in FY19. Other projects delivered or
underway in FY18 included improvements to the configuration of the MPI
Green lane to increase throughput and upgrades to toilet facilities.

32
International Terminal (Airside Emigration & Dwell)

$85,731k The objective of this programme is to deliver airside capacity within the
International Terminal building. This programme is dominated by two major
FY18 variance: projects in PSE3, the Level 1 expansion at the International Terminal
$34,729k building scheduled for completion in FY19, and Airside enabling for the
“Wedge” which is forecast to commence in FY22 and is not priced.
PSE3 variance:
Progress in PSE3
$34,729k
Phase 3 has been underway since September 2015 and involved
refurbishing or extending 36,000m2 of the existing international terminal
building – a space larger than the new International Convention Centre being
built in Auckland city. It has been a difficult and complex project in the
operational heart of the terminal and included substantial structural work to
upgrade the international departures experience to cater for future growth. It
has also resolved legacy issues within the original building such as
misaligned floor levels, building services and asbestos remediation.
The end result is significant improvement in the passenger experience. From
security screening through to the Pier A node, the nature and quality of the
new dwell spaces will leave passengers with a memorable and lasting
impression of Auckland and New Zealand and the enhanced capacity of the
new border processing area will allow us to better accommodate thousands
of passengers each day and improve the summer peak experience. A key
lesson from this project has been that more time in the design and planning
phases can pay-off later in the process. This lesson is shaping our current
approach to the TDP programme.
International Terminal (Pier and Connections)

$54,439k The objective of this programme is to provide additional stand and bus
lounge capacity as well as improving the transit experience for transferring
FY18 variance: international services.
PSE3 variance: The Pier B expansion was completed in FY18 on time and below budget.
$(23,755)k This project involved an expansion of Pier B to the west and delivered two
new gated Code F MARS stands (17 & 18) which are now both in daily
operation. This project was relatively less complex than others as the
construction site for the majority of the build was landside, reducing security
complications, and the expansion itself was primarily a greenfields
development.
Ground Transport Centre / Plaza - Aeronautical elements*

$- The objective of this programme is to deliver passenger dwell and protected
landside transition routes in the area in front of the International Terminal
FY18 variance: Building and between the Car Parks and Hotels.
PSE3 variance: Concept design was planned in FY18 and is being delivered as part of the
DJF concept design as the same team is responsible for both. Detailed
$(1,138)k design and construction costs will be recorded against this programme once
commenced.

33
Integrated Facility (Domestic Jet Facility (Phase 5))*
PSE3 actual to date: Project Description and Objectives

$16,182k The objective of this programme is to provide a staged pathway towards an
integrated terminal facility capable of processing international and domestic
FY18 variance: passengers. The first deliverable on this pathway is to construct a new
$(19,672)k domestic facility adjacent to the current international terminal which will have
common landside functions (e.g. check-in capacity).
PSE3 variance: Progress in PSE3
$(19,672)k In FY18 Auckland Airport has focused on progressing the concept design of
the new DJF including consultation with stakeholders. This project
interfaces with all parts of the infrastructure required to deliver the
aeronautical functions of the airport and as a result is complex. Management
has elected with airline support to increase the design time to ensure that
the solution appropriately balances functionality, affordability,
constructability and seeks to minimise the disruption to airlines and the
travelling public through the transition period.
Existing Domestic Terminal (Extension of life)

$1,050k The objective of this programme is to ensure that the current Domestic
Terminal continues to meet the requirements of domestic carriers and
FY18 variance: passengers until the new DJF is commissioned.
$1,050k Progress in PSE3
PSE3 variance: Work was not forecast to commence until FY19, however based on demand
and identified capacity constraints a decision to commence activity in FY18
$1,050k was made. Projects currently underway include realignment of the DTB
forecourt to increase capacity, expansion of the western landside area of the
DTB, terminal expansion for regional carriers and upgraded public toilet
facilities.
Runway, Taxiway and Aprons (Code F taxiway, stands and aprons)*

$5,954k The objective of this programme is to meet airfield capacity requirements
through the construction of new stands, modifications to and extension of
FY18 variance: taxiway and taxilane infrastructure and the construction of new aprons
$(5,391)k capable of handling Code F aircraft.
$(5,391)k In FY18, Stand 75 (a fully serviced Code F MARS stand) was completed on
time and under budget. In addition, Auckland Airport commenced feasibility
and preliminary design works on extending Taxiways Lima and Mike to Pier
B and the development of aprons, stands and taxilanes to the north of Pier
B.

34
Runway, Taxiway and Aprons (Code B/C/E taxiway, stands and aprons (Phase 5))

$- The objective of this programme is to meet airfield capacity requirements
through the construction of new stands, modifications to and extension of
FY18 variance: taxiway and taxilane infrastructure and the construction of new aprons
$(5,481)k capable of handling Code B/C/E aircraft. The largest single project in PSE3
of this programme will be the construction of 12 fully serviced Code C jet
PSE3 variance: stands, 2 remote stands and associated apron infrastructure to service the
$(5,481)k new DJF.
Progress in PSE3
Concept design work for the new DJF stands began in FY18. The cost of
activity to date is included in the DJF programme as both concept and
preliminary designs for the new domestic terminal and associated stands
are being delivered as a single project. At the conclusion of the preliminary
design phase the detailed design of the stands will be delivered under this
programme of works.
Runway, Taxiway and Aprons (Airfield utilities)

$1,487k The objective of this programme is to deliver efficient utilities for airfield
operations including re-fuelling / energising aircraft and ground handler
FY18 variance: equipment.
PSE3 variance: In FY18, the main projects were the continued development of the fuel
$(7,188)k hydrant system to ensure compliance with Health & Safety in Employment
(Pipelines) Regulations 1999. These compliance activities were primarily
forecast to be delivered in FY18 but due to resourcing challenges are now
scheduled for completion in FY19. A multi-year project to implement electric
vehicle charging units on the aprons for use by ground-handlers at the time
PSE3 prices were set was scheduled to be delivered over FY18-19.
However this project was deferred and is now scheduled to be delivered over
FY19-20.
Runway, Taxiway and Aprons (Flexible contingent runway)

$207k The flexible contingent runway (FCR) programme aims to provide the
required infrastructure and operational systems to provide an immediate
FY18 variance: second runway option if the main runway is compromised. This project was
$207k signalled as part of PSE3 pricing disclosure but was not reflected in
aeronautical charges due to a high level of uncertainty in regard to total cost
PSE3 variance: and timing.
$207k Progress in PSE3
In FY18 work on the FCR progressed into the concept design phase and
Auckland Airport is working closely with Airways New Zealand on lighting and
navigational requirements for it.

35
Support Facilities (Business technology)

$3,865k This programme delivers the core technology infrastructure upon which the
airport operates, including but not limited to networks, servers, application
FY18 variance: monitoring, access control and end user computing.
PSE3 variance: In FY18 the main projects undertaken were the introduction of improved tools
$(1,199)k to monitor application and network performance to build resilience, upgrades
to the core network and a refresh of end-user computer assets. The FY18
variance to plan is primarily driven by timing of activity and the accounting
treatment of setup costs which were deemed to be operational expenditure
rather than capex.
Support Facilities (Acoustic mitigation)

$1,501k The objective of this project is to comply with the legal obligation under
Auckland Airport’s Designation 1100 to offer land-owners of affected
FY18 variance: properties that fall within the area qualifying for aircraft noise contour acoustic
$(124)k treatment and related ventilation to achieve an internal acoustic environment
of 45 dBALdn. In order to meet the annual obligation, Auckland Airport makes
PSE3 variance: a capital provision based on an estimate of the number of landowners that will
$(124)k accept an acoustic treatment package.
Progress in PSE3
This programme is largely running to plan.
Support Facilities (AD&D support projects)

$2,807k The objective of this programme is to provide the capability, infrastructure,
statutory planning and holistic planning studies to underpin the effective
FY18 variance: delivery of the aeronautical development plan.
PSE3 variance: In FY18, the main projects included development of the stormwater
$(2,094)k catchment, continued refinement of the TDP, upgrades to systems and
processes for major project planning and delivery, installation of 125 survey
control points across the campus and development of a tactical transport
model. The variance to plan in FY18 is related to the timing of construction
support facilities to support the efficient delivery of future major projects which
are now expected to occur in FY19-20.
Support Facilities (Airport Emergency Services)

$1,257k The objective of this programme is to ensure that the Airport Emergency
Services (AES) function has the capital resources and infrastructure
FY18 variance: required to maintain compliance with the CAA regulations.
$465k Progress in PSE3
PSE3 variance: In FY18, the main projects were replacement and upgrades of AES fire
$465k appliances, rescue and protective equipment. The variance to plan is timing
related with some projects planned for FY19 being delivered in FY18.

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Support Facilities (Marketing customer service and communications)

$157k The objective of this programme is to continue to develop and implement
communications infrastructure to measure and improve customer
FY18 variance: experience.
$(466)k Progress in PSE3
PSE3 variance: The primary project in FY18 was the implementation of a larger, improved
$(466)k digital arrivals screen.
Support Facilities (Corporate)

$1,936k The objective of this programme includes the regulated share of company-
wide projects that support the operation of the Auckland International Airport
FY18 variance: company. Examples of these types of projects include new systems for
$751k corporate service functions such as human resources, procurement and
health & safety.
PSE3 variance:
Progress in PSE3
$751k
Key activities in the year were the expansion and fit-out of office facilities for
Auckland Airport in the Quad precinct. This was required due to an increase
in size of the capital development and delivery team, the deployment of a
new contract management system and commencement of an upgrade to the
existing staff time sheeting and scheduling system.
Airport Campus Utilities (Utilities - Storm water)

$- The objective of this programme is to ensure that Auckland Airport has
sufficient capacity and resilience in the storm water system to meet demand,
FY18 variance: particularly during extreme conditions.
$(678)k Progress in PSE3
PSE3 variance: In FY18, capital works on storm water assets have focused on renewal
$(678)k projects to the existing storm water network and were instead delivered
under the Maintenance - business as usual programme.
Airport Campus Utilities (Utilities - Water and wastewater)

$1,047k The purpose of this programme is to ensure that the water and wastewater
networks have sufficient capacity to meet aeronautical requirements.
FY18 variance:
Progress in PSE3
$(1,068)k
The primary project in FY18 was the upgrade of the main watermain to the
PSE3 variance: airport campus involving the installation of a new 450mm watermain and
$(1,068)k rehabilitation of the existing 250mm watermain to provide further resilience.
In addition, an upgrade to the main airport sewer rising main was completed.
The FY18 variance is driven by demand triggers not being reached that
necessitate the next phase of work.

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Airport Campus Utilities (Utilities - Power - LV and HV Power)

$- The objective of this programme is to ensure that Auckland Airport has
sufficient capacity to meet future needs and provide resilience.
FY18 variance:
Progress in PSE3
$(305)k
In FY18, capital works on maintaining the electricity network primarily
PSE3 variance: focused on renewals and were instead delivered under the Maintenance -
$(305)k business as usual programme .
Airport Surface Access Network (Terminal roads)

$1,359k The objective of this programme is to deliver a resilient terminal roading
network which caters for growth, and allow for consistent journey times
FY18 variance: throughout the precinct.
PSE3 variance: In FY18 work was undertaken on the DTB forecourt to improve traffic flow
$(6,148)k rates, reduce volume of traffic on the Cyril Kay / George Bolt Memorial Drive
(GBMD) roundabout, reduce conflicts between commercial, Air NZ Koru
Valet and public pick-up/drop-off traffic and allow for the increased frequency
of public transport. Other projects included progressing the design of the
new terminal exit road and the central connector (pedestrian bridge over
GBMD) projects. The new terminal exit road is a key requirement for the
new DJF, arrivals expansion and forecourt works. Delays to progressing the
design of the DJF and arrivals expansion have had a negative impact on this
programme and is the primary driver of the variance.
Airport Surface Access Network (Arterial and Other Roads)

$7,293k The objective of this programme of works is to develop the broader airport
roading network to cater for growth and improve journey times.
FY18 variance:
Progress in PSE3
$(4,120)k
The main projects undertaken in FY18 were the upgrade of the GBMD /
PSE3 variance: Landing Drive Roundabout in conjunction with NZTA, developing a southern
$(4,120)k bypass using Nixon Road and installing a high occupancy vehicle lane east
bound on Tom Pearce Drive. In addition, traffic control signalisation has
been introduced on key roundabouts to better manage traffic flow at peak
times. As with the terminal exit road the design schedule was delayed to
enable additional modelling to support the design of this critical
infrastructure.

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Asset Maintenance (Slab replacement and runway works)

$11,985k Airfield slab replacement is an annual activity undertaken by Auckland
Airport to ensure the continuous service provision of the runway and to
FY18 variance: maintain safety standards. The project replaces aging, deteriorating and
$3,319k damaged slabs based on annual condition assessments.
$3,319k In FY18, Auckland Airport undertook more slab replacement than was
initially planned, however this is expected to balance out over the remainder
of PSE3. Due to operational requirements, Auckland Airport expects that
some of the activity previously planned for FY19 will be deferred to FY20.
Asset Maintenance (Airbridge refurbishment)

$115k The objective of this programme is to carryout comprehensive refurbishment
or full replacement of airbridges or ancillary equipment to maintain agreed
FY18 variance: service levels.
PSE3 variance: Activity in FY18 was limited to completing a project commenced in 2017 to
$(1,401)k replace air-conditioning duct reelers of certain airbridges. While spend is
currently below plan it is forecast to balance out over the remainder of PSE3.
Asset Maintenance (Business as usual)

$7,338k The objective of this programme of work is to ensure that property, plant and
equipment is maintained across the remainder of the aeronautical campus
FY18 variance: to meet safety and service requirements.
PSE3 variance: In FY18, projects included the continued upgrade of the CCTV network from
$(6,923)k an analogue to a digital system to improve security. The move to a digital
platform also opens up new functionality concerning more efficient and
effective monitoring of the airport campus including transport. Renewal
works also took place on airfield lighting, terminal, HVAC, HV power
systems, baggage handling systems, terminal public address system and
airside and landside roading rehabilitation.
Second Runway including utilities*

$3,262k The aim of this programme is to deliver a step change in capacity and
resilience through the development of a second runway parallel to and north
FY18 variance: of the existing one. The specific objectives in PSE3 are to complete detailed
$(8,008)k design and if the base case timing is confirmed following consutlation,
commence earthworks for the second runway.
PSE3 variance:
Progress in PSE3
$(8,008)k
Given the value and duration of this programme, Auckland Airport
recognises that it is critical to make the right design, delivery timing and
funding decisions. To this end activity on this programme in FY18 was
focused on determining if a two-stage delivery process for the second
runway, as indicated in the PSE3 pricing document is viable, or if the full
length second runway can only be delivered in a single stage.

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Other capital expenditure

$44k This programme includes aeronautical related investment not elsewhere
classified. No single project within this programme exceeds $5m. The
FY18 variance: primary projects are the development of a new Engineering Services (ES)
$(9,723)k depot, International terminal building roof replacement and replacement of
radio systems. The development of the new ES depot and subsequent
PSE3 variance: relocation from its current location will allow for the construction of new
$(9,723)k regional stands.
Progress in PSE3
Due to scheduling conflicts with other key aeronautical projects, work under
this programme has been rescheduled to be delivered in FY19-20
Total capital expenditure
PSE3 Actual to Date: $215,319k
FY18 Variance: $90,136k
PSE3 Variance: $90,136k

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Section 7: Segmented Information

Schedule 7 provides a segmental breakdown of the regulatory profit and return on investment
data for the regulated airport business contained in Schedules 1 and 2. The vanilla (pre-tax)
return on investment can be estimated for each regulated segment for the year ended 30 June
2018 by dividing regulatory profit/loss by regulatory investment value. Post-tax return on
investment can be estimated by allocating the notional interest tax shield total from Schedule 1
across the segments, (based on relative regulatory investment value in each segment).
The estimated distribution of Auckland Airport’s average annual post-tax FY18 ROI of 9.1%
across the regulated segments is as follows: Passenger Terminal 9.8%, Airfield 8.2%, Aircraft,
and Freight 13.5%.
While passenger charges are allocated entirely to the Specified Passenger Terminal segment
in these disclosure statements, a portion of those charges actually relates to costs that are
shared by airfield activities. This, in effect, spreads actual ROI more evenly between the
terminal and airfield segments than implied in the disclosure schedule.
Aircraft and freight charges are determined via arms-length transactions between Auckland
Airport and its aircraft and freight tenants. These negotiations are underpinned by market based
valuations and contractual dispute resolution procedures. The re-negotiation of leases and
licenses in this category occur regularly and on different cycles to the five yearly aeronautical
price consultation process and we recommend interested parties monitor returns in this area
over a longer period.

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Section 8: Consolidation Statement

8.1 Depreciation
A part of the difference between regulatory and GAAP depreciation is due to a requirement
under GAAP for statutory reporting purposes to depreciate assets from their commissioning
date, resulting in depreciation for part years of new assets. The IMs do not provide for new
assets to be depreciated in the year they are commissioned resulting in lower regulatory
depreciation than GAAP depreciation for those assets.
Another major factor in the difference relates to different revaluation policies for GAAP and
regulatory reporting. Assets have been revalued for financial reporting purposes, which has
increased the value of non-land assets and in turn increased the depreciation expense on those
assets for financial reporting (GAAP). For regulatory purposes, the Airport business does not
revalue non-land assets in the same way, which leads to a difference in depreciation expenses
for financial reporting and regulatory purposes. In the 2018 financial year, the difference
between the depreciation expense for regulatory and financial reporting purposes is again more
pronounced than previous years due to the large amount of terminal development assets
commissioned and depreciated in the current year GAAP accounts. These assets will only
begin being depreciated for regulatory purposes next year which has lowered the FY18
depreciation expense for regulatory purposes.
8.2 Revaluations
The revaluations for the Airport businesses consist of a CPI roll-forward for aircraft and freight
assets as at 30 June 2018 consistent with the IM determination and Auckland Airport’s pricing
approach for PSE3. There are no revaluations for airfield and terminal assets.
The valuations for the Airport Company - GAAP include the revaluation movements on
investment property ($152.2m increase) and land assets within the property, plant and
equipment portfolio ($1,189.6m increase).
Infrastructure assets within the property, plant and equipment portfolio were not revalued at 30
June 2018.
The valuation approach to determining fair value of an asset under GAAP is determined, where
possible, by reference to market based evidence, such as sales of comparable assets or
discounted cash flows. If there is market based evidence, the fair value is determined using
this information. Where fair value of the asset is not able to be reliably determined using market
based evidence, optimised depreciated replacement cost is used to determine fair value.
8.3 Tax expense
The tax expense for the Airport Company (GAAP) is reduced by deferred tax changes in the
underlying asset and liability values for financial reporting. The reduction from deferred tax
movements results from the decrease in accounting carrying values relative to tax carrying
values, which decreases the taxable temporary differences. The regulatory disclosures do not
recognise deferred tax movements as a tax payable approach is adopted per the IM
determinations.

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The tax expense for the Airport Businesses also includes a notional interest deduction as
calculated in Schedule 1(b)(i), whereas the GAAP tax expense reflects actual interest revenue
and expenses incurred.
8.4 Property, plant and equipment
As noted above, the GAAP values for property, plant and equipment are carried at fair value.
As noted above in 8.2, for regulatory purposes, only aircraft and freight assets are revalued
using a CPI roll-forward approach. There are no revaluations for airfield and terminal assets.
A difference also arises in relation to Future Use assets which are excluded from "Airport
Businesses" but included in "Airport Businesses - GAAP" column. The final differences relate
to depreciation differences noted in 8.1 above.

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Section 9: Asset Allocations

There has been no material change from prior year asset allocations, however we have
amended the allocation explanations to more clearly articulate the logic behind the asset
allocators.
9.1 General information on asset allocations
Auckland Airport’s asset allocation methodology involves the following key steps:
(1) reviewing assets initially at the business unit level and then by exception at the asset
type level. The business unit provides insight into the activities or services enabled by
the asset;
(2) identifying business units whose assets are directly attributable to Specified Airport
Activities and directly attributing their assets accordingly; and
(3) identifying business units whose assets are indirectly attributable to Specified Airport
Activities (i.e. that are common or shared) and allocating those assets to Specified Airport
Services using causal or proxy cost allocators.
The Asset Allocators table in Schedule 9a of the Disclosure statements summarises the
common assets that have been shared across two or more regulated activities, or across both
regulated and non-regulated activities.

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Section 10: Cost Allocation

There has been no material change from prior year cost allocations.
10.1 General information on cost allocations
Auckland Airport’s financial reporting system groups costs into several business units reflecting
the various aeronautical and non-aeronautical business activities undertaken by the company.
For the purposes of allocating costs in the disclosure reports, Auckland Airport has apportioned
each business unit’s operating costs across both regulated and non-regulated activities. This
was performed as follows:
(1) identified the activities undertaken by each business unit;
(2) identified business units whose costs are attributable to a single regulated aeronautical
activity and directly attributed those costs to those activities accordingly;
(3) identified business units whose costs are shared across more than one regulated activity
and/or between regulated and non-regulated activities and allocated those costs to those
activities accordingly;
(4) used causal allocators where appropriate to allocate those common costs across
regulated and/or non-regulated activities;
(5) allocated the remainder of common costs using proxy allocators;
(6) the report on cost allocations lists the costs and describes the allocators used for those
business units whose costs are either shared within regulated activities, or shared across
both regulated and non-regulated activities. A more detailed description of key cost
allocators follows:
(a) the company-wide rule is used to apportion the shared costs of business unit
activities that support both regulated and non-regulated activities. This rule
comprises the following two components. The first component uses the share of
the international terminal building space (“ITB space”) to proxy a fair share of
regulated costs and non-regulated costs. The second component splits the
regulated costs across terminal and airfield activities based on the aeronautical
revenues split rule;
(b) the aeronautical revenues split rule is used to apportion shared aeronautical costs
across the three regulated activities. This rule is calculated based on the split of
directly attributed aeronautical revenues from the three regulated activities;
(c) Airfield and Terminal revenues are used to share costs associated within regulated
activities that are common to airfield and terminal activities, but not to aircraft and
freight (for example the aeronautical pricing process);
(d) the employee time split rule is used to apportion the shared costs of business units
whose expenses are dominated by employee-related costs. The apportioning
between regulated and non-regulated activities is based on salary-weighted time
splits and it differs between business units reflecting the differing responsibilities
and activities of staff within each business unit;

45
(e) the utilities rule allocates electricity, water and gas charges that are booked to
internal business units across regulated and non-regulated activities based on
those business units' individual allocation rules. All external utilities charges are
classified commercial direct (non-regulated activities). The assets and costs of
the utilities business units are split according to the same proportions;
(f) the stormwater and wastewater rule is only used to allocate the operating cost of
the stormwater and wastewater business unit. This is necessary because
operating expenditure is not managed discretely between stormwater and
wastewater. Therefore, a weighted average combination of the underlying asset
rules is used to allocate the cost of this business unit. The key steps are as follows:
(i) the stormwater rule examines sealed (impermeable) surface area usage
between regulated and non-regulated activities;
(ii) the wastewater rule examines metered water usage between regulated and
non-regulated activities; and
(iii) the two rules are combined based on the relative book value of the
stormwater versus the wastewater assets and the underlying rules in order
to allocate the operating costs associated with this business unit.
(g) the roadways rule is used to apportion the shared costs of the roadways business
unit across regulated and non-regulated activities based on the regulatory coding
of individual roading assets. Individual roading assets comprising the roading
network (e.g. paved areas, kerbside and footpaths) have been given regulatory
codes, in most cases reflecting the location of those assets. Operating costs
associated with roads that primarily carry traffic to and from the international
terminal are allocated across a range of regulated and non-regulated activities
using the roadways rule;
(h) engineering and support services costs are allocated across regulated and non-
regulated activities based on a two-step process:
(i) first, the internal repairs and maintenance charges to business units are
summed by internal business unit; and.
(ii) secondly the allocation rule is calculated based on the product of the charge
by business unit and the default rule associated with each business unit
(e.g. direct or otherwise).
10.2 Comparison of outcome of cost allocations
Overall operating expenditure allocated to regulated categories has reduced from 68% in FY17
to 66% in FY18, and is now considerably lower than 75% in FY11. These changes are not due
to the cost allocation processes themselves that have been highly consistent across FY11 to
FY18, but instead reflects the relatively fast growing cost in the unregulated (non-aeronautical)
segment and assessments of the current use of assets.

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Section 11: Reliability Measures

11.1 Reliability
While traveller demand continued to grow in FY18, the reliabilityof Auckland Airport’s services
has remained at high levels. The interruptions to runways, taxiways, stands, airbridges,
baggage systems and ground power units have continued to be minimal in relation to the
service availability of these assets.
The tables outlined in Schedule 11 report the number and duration of material service
interruptions – discussed further in the following sections.
To provide the most appropriate context for readers, a further way to view this reliability
information is to consider the proportion of the time that the material service is available. For
the year ended 30 June 2018, the percentage of time that Auckland Airport’s material services
were available were as follows:
Services Availability
Runway 100.0%
Taxiway 100.0%
Remote stands and means of embarkation/disembarkation 100.0%
Contact stands and air-bridges 99.9%
Baggage sortation system on departures 100.0%
Baggage reclaim belts 100.0%
Auckland Airport’s assets are available 24 hours a day, 365 days per year. This means that a
0.1% interruption equates to almost 9 hours of time when assets were not available for use
across the year. Based on the table above, Auckland Airport’s assets were available throughout
the year, save for a very limited number of situations when interruptions occurred. The sections
below outline details of those interruptions.
11.2 Interruptions
Auckland Airport captures and records outages to its services through its fault management
system. Each outage that occurs is evaluated by Management to determine whether it meets
the criteria for a reportable interruption. The assessment is undertaken in accordance with
“Appendix C: Reliability Conditions for Disclosure” of the Information Disclosure (Airport
Services) Reasons Paper published by the Commission on 22 December 2010.
Auckland Airport is required to report interruptions for the following material services:
• runway;
• taxiway;
• remote stands and means of embarkation/disembarkation;
• contact stands and air-bridges;
• baggage sortation system on departures; and

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• baggage reclaim belts.
As shown in the chart below, there were 66 reportable interruptions in FY18, down 18%, or 14
from FY17. The number of interruption hours also dropped by 11%, or 20 to 164.2 hours. The
decreases in both number and duration of interruptions were largely due to the improved
reliability in both airbridge and baggage sortation services.
Figure 5: Interruption Count and Duration
Details of interruptions for each material service are discussed in the following sections.
11.3 Runway performance
In the FY18 year, there were four runway interruptions which totalled 144 minutes in length, an
increase on the three interruptions that totalled 50 minutes in FY17. Of the four interruptions in
FY18, Auckland Airport was responsible for one interruption of 25 minutes, with the remaining
three caused by airlines and other parties.
The interruption that Auckland Airport was responsible for occurred on 20 July 2017 and was
caused by foreign object debris (FOD) found on the runway. The FOD was reported by a
departed flight and a runway inspection was conducted immediately. Two large pieces of tyre
were found on the runway centreline between taxiways Alpha 9 and Alpha 7. More rubber was
found near the runway edge lights between taxiways Alpha 9 and Alpha 7. The runway was
closed between 2115hrs and 2140hrs and caused no on-time departure (OTD) delays.
The second runway interruption occurred on 17 January 2018. The suspected punctured tyre
and hydraulic issues of China Southern departing flight CZ306 caused a full emergency event
resulting in the runway being closed for 20 minutes as a result of several runway inspections
needing to be undertaken and hydraulic fluid spilt on the runway needing to be cleaned up. Two

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other departing flights were delayed by a total of two hours and twenty minutes because of the
event.
The third interruption was on 5 February 2018 and was caused by DHL flight Tasman One. The
aircraft declared a hydraulic issue before landing. A full emergency was declared. The aircraft
landed safely without incident but spilt hydraulic fluid on the runway. The runway was closed
for a total of 40 minutes before being reopened. The event caused three other departing flights
to be delayed by a total of one hour and twenty-five minutes.
The fourth interruption occurred in the early hours of 11 April 2018. The runway was closed for
four hours, three due to high winds (excluded from the interruption schedule by the definitions
contained in The Determination) and the last hour due to debris from FOD and insecure airline
ground service equipment (GSE) needing to be retrieved. No flight was scheduled to arrive or
depart during this last hour (although there were flights scheduled during the previous three
hours when the runway was closed due to weather reasons which were delayed).
11.4 Taxiway performance
There was no interruption relating to taxiways in the 2018 financial year.
Auckland Airport has continued to work on upgrading asphalt on taxiways and the apron to
improve reliability. In FY18, we completed remedial work on Taxiway Alpha between Taxiway
Lima and Alpha 10. We also finished the work on Taxiway Alpha between Alpha 8 and Alpha
9.
11.5 Contact stand and air-bridge performance
There were 59 interruptions to contact stands and air-bridges in the 2018 financial year, down
by 8, or 12% on the year before. Twenty-nine of the total 59 interruptions to contact stands and
airbridges caused 30 OTD delays. Auckland Airport was responsible for 39 of the 59 total
interruptions and 20 of the 30 OTD delays, down by 15% and 17% on last year respectively.
Airbridge interruptions totalled 157 hours, down by 10 hours or 6% on the year before. Auckland
Airport was responsible for 144 hours of those interruptions, down by 4% on the last year.
More than 60% (99 hours) of the total airbridge interruption hours were caused by four
interruptions that lasted longer than 10 hours each. Three of these interruptions were caused
by mechanical problems and one by an electrical issue.
The four long interruption events were all random in nature with no normal predictability of
failure and were complicated by the need to source the specialist skills required to complete
the repair safely.
Steps undertaken towards minimising airbridge faults included:
• resolution of the interlocking door fault recorded in the FY17 disclosure;

• installation of a further four sets of pre-conditioned air electric duct reelers on bridges
allowing easier and safer facilitation of the ducts to the aircraft; and
• purchasing of two hydraulic cylinders as critical spares for hydraulic bridges to reduce any
extended airbridge downtime. Cylinder assemblies are special builds with a lead time of up
to 3 months. Knowing the critical items are on site at Auckland Airport enables on-time-
performance to be managed.

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Auckland Airport continues to increase the use of non-destructive methods of condition

assessment in its airbridge maintenance programme. Root cause analysis of failures identified
the need for increased condition assessments to prevent air-bridge outages and to ensure that
Auckland Airport continues to deliver high quality services to its customers.
11.6 Baggage sortation
There were three interruptions to the baggage sortation system in FY18, down by seven or 70%
on year before. The interruption hours to the baggage sortation system also reduced by 69%
to 5 hours.
Auckland Airport was responsible for two interruptions totalling 4.8 hours, down by 75% and
68% on last year respectively. Both interruptions were caused by belt malfunction. One
occurred at Zone D-E in the international terminal and lasted 2.5 hours, causing six flights to
be delayed by 2.4 hours in total. Fall-back procedures were implemented to minimise the impact
on flight departures.
The third interruption was caused by a power spike in the Vector network. The interruption
lasted 22 minutes and caused two flights to be delayed by a total of 49 minutes.
The overall improvement in baggage sortation reliability was a positive outcome of Auckland
Airport’s commitment to delivering ongoing continuous improvements. Initiatives undertaken in
recent years have clearly paid dividends. The specific baggage handling system project (known
as “BHS 3000”) has continued throughout FY18 and continues into FY19 as our resiliency and
optimisation programme.
11.7 Baggage reclaim
In FY16, Auckland Airport completed a 2,500 square metre expansion of its international
baggage hall, including the addition of two extra baggage belts. The increased baggage
capacity has helped us ease the pressure of rapid passenger growth during both 2016/2017
and 2017/2018 summer peak seasons. It is pleasing to report that Auckland Airport had no
baggage reclaim related interruptions, for a second consecutive year in FY18.
11.8 On-time departure delays
The Determination defines OTD delays for the purposes of information disclosure reporting as
occurring when a scheduled service has been delayed by more than 15 minutes, primarily as
a result of an interruption to specified airport services. The on-time departure delays reported
are therefore only a subset of all on-time departure delays that occur.
As with the interruption reporting, the upgrades to the fault management system and the Airport
Operation System have improved the accuracy of on-time departure delay information, by
making it easier to determine whether a flight was on-schedule or off-schedule.

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Figure 6: OTD Delay Count and Duration
As shown in the chart above, there were a total of 43 OTD delays in FY18, down 16 or 27% on
the previous year. As a proportion of the total number of movements, this represents 0.02%. Of
these delays, 30 (70%) were due to contact stands and air-bridge outages and eight (19%)
were caused by outages to the baggage sortation system. Runway unavailability caused five
(11%) OTD delays.
Total OTD delay hours also decreased by four hours, or 14%, to 26 in the 2018 financial year.
The improvement in both OTD delays and OTD hours was largely attributed to the reduction in
baggage sortation related delays, with baggage sortation related OTD delays down by 67%
and OTD hours down by 73% on the year before.
Of the 43 OTD delays, Auckland Airport was responsible for 26 totalling 14 OTD hours in the
year, down by 47% and 41% on the previous year respectively.
11.9 Fixed electrical ground power units
Fixed electrical ground power (FEGP) interruptions have been captured by matching the outage
data from the fault management system with data on when airlines were using stands with
FEGPs. If an outage over 15 minutes coincided with a time when the FEGP was required by
an airline, it was recorded as an interruption.
The percentage of time FEGP’s were available in FY18 was 98.4%, a slight decrease from
99.1% on last year.
In FY18, Auckland Airport continued with the scissor supports (crocodile arms) installation to
assist the use of FEGPs for all aircraft. This initiative was implemented to improve the health
and safety of ground handlers and to reduce the time taken to deploy FEGPs. A further two
units were installed in FY18, taking the total number of installed units to 12.

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Auckland Airport also continued to work with the airlines to support the introduction of wide
body aircraft. Along with the new gate 17 and 18, four new AXA units capable of supporting
wide body aircraft were installed in the year, taking the total number of AXA units to 12 at both
Pier A and B.

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Section 12: Capacity utilisation indicators for aircraft, freight

and airfield activities
The reported runway description in these disclosures is consistent with the description that
Auckland Airport also reports in the Aeronautical Information Publication (AIP). The declared
capacity has been increased in FY18. This is based on reporting from Airways. The declared
runway capacity under visual meteorological conditions is now set at 45 movements per hour.
This reduces to 38 movements per hour in instrument meteorological conditions, when a
greater separation is applied, and 22 movements per hour in fog.
There are periods of the day where Airways and Auckland Airport are able to achieve greater
movements per hour than what is reported in this schedule. But movement rates exceeding the
declared capacity are not sustainable for extended periods.
In FY18, Auckland Airport’s international aircraft movements increased 1.5% and domestic
movements increased by 3.7%. Initiatives put in place to manage the additional growth
included:
• increasing the level of service for passengers on aircraft arriving on/ departing from a
remote stand by introducing ten new Cobus 2700 airside passenger busses. These buses
are purpose built for the airside environment and encourage rapid loading and unloading
of passengers;
• the conversion of two code F remote stands to two code F contact stands (or four code C
contact stands); and
• the successful trial of the Aviramp units to support safer, more consistent embarking and
disembarking of passengers from bus to aircraft on remote stands, and vice versa. The
successful trial commits to another four Aviramp units being purchased on top of the two
trial units.
The Airfield Capacity Enhancement Steering Group (ACE), was given a refresh in FY18 and
now meets bi-monthly. The group is currently focused on initiatives to increase the runway
throughput of the existing runway to 50 movements per hour by 2022. Key initiatives are:
• review, monitoring and reporting of Runway Occupancy Time;

• implementing arrival/departure flow bias;
• publishing Standard Taxi Routes; and
• reviewing opportunities to reduce separation distances on approach.
In FY18, Auckland Airport completed a concept design for the Flexible Contingent Runway
(FCR) based on a detailed safety case for night operations of the FCR. Through consultation
with Airways, airlines and CAA, the safety case has been extended to include day operations
in the case of an emergency or works continuing into daylight hours. Detailed design is
expected to continue through FY19 with the aim to have a FCR operational in FY20.
Looking further ahead, planning has begun to assess the need for a second runway which will
provide additional capacity. Current forecasts suggest this will be needed by FY28.
Airways New Zealand, Auckland Airport and BARNZ continue to introduce new satellite-based
navigation SMART Approaches, into Auckland Airport. SMART Approaches use satellite-based
navigation and enable aircraft to burn less fuel, emit less carbon dioxide and fly more quietly.

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They are aligned with the Government’s National Airspace and Air Navigation plan. There are
currently four SMART approaches that are permanently in use at Auckland Airport. A further
SMART approach from the north was trialled from 1 September 2015 to 31 August 2016. This
flight path was known as Yellow U23. A draft report on the trial was published for consultation
in October 2017 and following feedback some adjustments have been made to minimise the
impact of the flight path on local communities. The modified flight path “Yellow U23A" will
become operational in March 2019. Another Smart Approach from the south will also be trialled
from March 2019.

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Section 13: Capacity utilisation indicators for specified

passenger terminal facilities
13.1 General comments on terminal capacity utilisation
Auckland Airport’s preference is to maximise the utilisation of existing assets. In this regard,
Auckland Airport pursues innovations and strives for best practice maintenance, management
technology and operational efficiency. Auckland Airport also places value on sustainable
maintenance and construction practices. A key objective is to provide reliable assets that
ensure safe and efficient operations with an optimised lifetime value for the asset. These are
complemented by Auckland Airport’s well established practices for exploring process efficiency
options prior to capital expenditure on investments.
13.2 Key insights for FY18
International Terminal
The past few years’ capacity utilisation indicators suggested that the outbound security
screening is operating at times beyond peak capacity. As a result, Auckland Airport expanded
its international departure area. This expansion includes a significant increase in the size of
the emigration facility as well as an expanded airside passenger lounge and retail area. This
expansion has delivered a significant capacity increase for the emigration process including
significantly larger spaces for both passport control and security screening, as well as providing
a flexible footprint to manage future changes in security and technology. During this
construction period the terminal areas available to passengers have fluctuated as new areas
came on line and other areas were closed for construction. In FY18, part of the outbound
passport control and security screening floor space was delivered along with a portion of the
airside passenger lounge and retail area. The remaining portion of the passport control,
security screening, airside passenger lounge and retail areas are scheduled to be delivered in
the first half of the 2019 financial year. The floor areas included in the FY18 schedules are
based on the available floor and facilities as at 30 June 2018.
In-bound bio-security screening is at full capacity during peak hours, as indicated by the
capacity utilisation report. This area is significantly impacted by off schedule arrivals. The
pinch point for processing is at all three of the in-bound bio-security processes (risk
assessment, x-ray, and search). Auckland Airport and Biosecurity New Zealand (“BNZ”)
installed an expanded risk assessment queue area for the 2017/18 summer peak to enable
more efficient processing of low risk / nothing to declare Australian and New Zealand arrivals,
and to reduce the congestion at risk assessment during peak hours. Additionally, to help ease
the congestion at the x-ray stage, BNZ implemented an initiative for the 2017/18 summer peak
that allows all nationalities, with nothing to declare, to use the green lane, post-risk assessment.
Domestic Terminal
The domestic terminal is nearing the end of its life-span. However, in FY18, Auckland Airport
decided to further extend its life-span by kicking off another expansion project to the current
facilities to accommodate for growth until the new Domestic Jet Facility is built. The domestic
rejuvenation project was signed off in 2018, and construction activities are due to start in FY19,
and be ready for use in the 2019/20 summer peak. The domestic rejuvenation project is

55
expected to deliver a better customer experience through increased floor space for seating,
circulation, bathroom facilities, check-in, security screening, and arrival baggage collection, as
well as increased forecourt capacity. Nevertheless, in FY18, the domestic security screening
queue area was extended slightly to accommodate increasing jet aircraft passengers travelling
on the main national trunk (Wellington, Christchurch, Queenstown, and Dunedin).
13.3 Floor space
In 2010, international aviation consultant Airbiz was engaged to compile estimates of capacity
and utilisation measures as required by the new information disclosure regime. As part of this
work, Airbiz completed estimates of the floor spaces. The reported floor spaces in Airbiz’ work
formed the base floor areas and have subsequently been reviewed and adjusted on an annual
basis for any changes.
Significant changes to floor spaces from the previous disclosure year are:
International Terminal - Outbound
• Passport Control (Outbound) – decrease of 179 sqm due to transferring passport control
from the old area to the new area, with a smaller footprint due to hoardings that were put
in place for the construction of the new departure preparation area.
• Security Screening (Excluding Transit and Transfer) – 1,712 sqm increase due to the near
completion of the new floor space for the new Aviation Security smart lanes (x-ray
machines), as well as the new re-composing / re-packing area post-security screening.
• Airside Circulation (Outbound) – increase of 4,152 sqm on levels 1 and 2 due to:
- partial delivery of new footprint from international departures expansion (Phase 3)
project for customer dwell and seating area on level 1; and
- full completion of the Pier B expansion project that saw two more new contact gates
(lounges and circulation areas) added onto the western end of the pier on level 2.
• Departure Lounge – increase of 875 sqm due to the full completion of Pier B expansion
project as described above.
International Terminal – Inbound
• Airside Circulation (Inbound) – increase of 2,612 sqm due to:

- Level 1 – full completion of Pier B expansion project as described above;
- Ground floor – reclassification from unallocated to allocated airside circulation
(inbound) usage for projects completed in FY17 and prior:
i. Arrivals bus operations door number 13 area; and
ii. Arrivals baggage reclaim hall female and disabled bathrooms, and parents room
facilities.
• Baggage Reclaim – 199 sqm decrease owing to baggage belt 7 being hoarded off for
construction works more than offsetting the return to operation of baggage belt 6.
Domestic Terminal
There were no significant changes to floor space in the Domestic Terminal.

56
13.4 Notional capacity of baggage units and busy hour throughput
In 2010, Airbiz was also engaged to estimate the notional capacity of the outbound baggage
facilities and the inbound baggage reclaim units for both the international and domestic
terminals. Airbiz defined the notional capacity to be the sustainable practical capacity of the
baggage system.
The notional capacity of the international outbound baggage facilities has been assessed by
using a practical capacity of 17 bags per minute through each x-ray unit.
The notional capacity of the domestic terminal outbound baggage system was assessed by
ascribing a practical capacity of 1,000 bags per hour for each of the two units. One of the units
is owned and maintained by Auckland Airport, and the other by Air New Zealand.
Auckland Airport has seven international baggage reclaim belts, made up of five belts capable
of handling up to Code F aircraft and two belts capable of handling up to Code E aircraft. The
number of baggage belts operational at 30 June 2018 was reduced to six due to the closure of
baggage belt 7 to complete the level 1 capital works. All seven belts are expected to be returned
to service in FY19.
The notional capacity of the international baggage reclaim facilities as at 30 June 2018 is based
on one reclaim unit being occupied by code E or smaller aircraft and five reclaim units being
occupied by a code F aircraft. The code categorisation of an aircraft relates to wing-span.
Code A aircraft have the narrowest wing-span and code F aircraft have the widest. The
calculation assumes that a typical code E or lower aircraft has 330 seats and a typical code F
aircraft has 491 seats. A load factor of 80% is assumed for all aircraft. Code E or lower aircraft
are assumed to occupy a reclaim unit for 40 minutes and a code F aircraft is assumed to occupy
a reclaim unit for 45 minutes. This capacity is then scaled by a utilisation factor of 75% to
account for the fact that not every aircraft arrives on schedule. After the utilisation factor is
applied, the notional capacity measured in passengers per hour is 2,253. To convert this to a
notional capacity in bags per hour, this needs to be multiplied by the average number of bags
carried by each passenger (1.06 bags per passenger). Multiplying the number of passengers
per hour by Auckland Airport’s calculated bags per passenger gives the notional capacity in
bags per hour (2,379 bags per hour). Auckland Airport’s calculation of bags per passenger is
explained in more detail below. Note that at any single point in time the reclaim capacity can
be higher if larger planes than assumed arrive during the hour.
Airbiz used a similar methodology to estimate the notional capacity of the baggage reclaim units
in the domestic terminal. Airbiz’ notional capacity calculation assumes that a mix of narrow
body aircraft and smaller turbo props land in a typical busy hour. Airbiz assume that a narrow
body aircraft requires 20 minutes per claim unit and a turboprop aircraft requires 6 minutes per
claim unit. The assumed load factor for both aircraft is 80%. A utilisation factor of 75% is then
applied. This gives a notional capacity in passengers per hour of 1,218. Airbiz advised that
approximately 70% of domestic passengers travel with checked in baggage and carry an
average of 1.1 bags (0.77 bags per passenger). Multiplying this by the notional capacity in
passengers per hour gives a notional capacity in bags per hour of 938.
The number of bags processed during the busy hour for both outbound and inbound
passengers using the international and domestic terminals was calculated by multiplying the
number of passengers in the busy hour by the estimated number of bags per passenger. The

57
number of bags per passenger processed during the busy hour for passengers using the
domestic terminal was calculated using 0.77 bags per passenger, consistent with Airbiz’ advice
used to determine notional capacity. The number of bags per passenger processed during the
busy hour for passengers using the international terminal was calculated using figures provided
by Auckland Airport’s baggage operator, Glidepath. Because outbound bags are scanned, a
record of the number of outbound bags processed during the year is available. Dividing the
number of outbound bags by the number of outbound passengers (excluding transit and
transfer passengers) gave an average of 1.06 bags per passenger.
Auckland Airport does not capture the number of inbound bags processed through the baggage
reclaim facilities. Auckland Airport has therefore calculated the number of bags processed
during the busy hour for inbound passengers using the international terminal by assuming that
the number of inbound bags per passenger was the same as the number of outbound bags per
passenger.
13.5 Passport control
Customs New Zealand operates a mix of electronic gates (e-gates) and traditional manned
desks for both the emigration and immigration passport control processes at Auckland Airport.
The notional capacity during the passenger busy hour for outbound and inbound passport
control has been calculated by considering the number of e-gates, the number of emigration
and immigration desks, the transaction time per e-gate and the transaction time per emigration
/ immigration desk.
The average transaction time for an e-gate is estimated at 20 seconds. In FY18, there were 15
e-gates at immigration passport control process, and nine e-gates at emigration passport
control process. As at 30 June 2018, e-gates can be used by New Zealand, Australia, United
States, United Kingdom, Canada, China, France, Germany, Netherlands, and Ireland passport
holders who are over 12 years of age. However, the number of nationalities eligible to use the
facility is expected to be significantly increased by New Zealand Customs Service in the next
few years.
The transaction time per passenger at an emigration counter was estimated to be 30 seconds
and the transaction time per passenger at an immigration counter was estimated to be 55
seconds. The transaction time at emigration and immigration counters was adjusted by an
efficiency factor of 80% to allow for considerations such as the time to walk from the queue to
the counter. It should be noted that the notional capacity will not be achievable in all
circumstances. If an aircraft has relatively fewer passengers able to use the e-gates, the
practical capacity will be lower.
13.6 Security screening
In FY18, Aviation Security Service (Avsec) moved from the old outbound security screening
(excluding transit and transfer) to the newly built footprint as part of the international departures
expansion (phase 3) project. As part of the move, Avsec upgraded their conventional security
screening machines to the new Smart Lanes (x-ray machines) technology increasing notional
capacity by 27% to 340 passengers per hour 3. However, in FY18, there has been no increase
in the total notional capacity from FY17 due to the reduction in smart lanes to six from the seven
3 Avsec

58
conventional security screen machines when Avsec was in the old outbound security screening
area.
The notional capacity for the international transit and transfer, and also the domestic terminal
security screening during passenger busy hour remain unchanged from Airbiz’ 2016 estimate
in FY18. Airbiz estimated that each security screening unit can process 270 passengers per
hour. The notional capacity was calculated by multiplying the number of units by 270.
The busy hour that is identified for outbound security screening is not necessarily the same
busy hour for transit and transfer passengers. The number of transit and transfer passengers
varies significantly for different air routes. During the identified busy hour for outbound security
screening, there were no passengers estimated to have been processed through international
transit and transfer screening. The percentage of notional capacity used at this busy hour is
therefore 0%. The 30th busiest hour of the year when looking at transit passengers only, shows
486 passengers processed during that hour, this represents 90% of the notional capacity of the
facility.
13.7 Departure lounges
The number of reported seats in both the international and domestic terminals was based on a
physical count in October 2018.
13.8 Biosecurity screening and customs secondary inspection
The notional capacity of bio-security screening capacity during the passenger busy hour was
estimated with reference to an international capacity review completed by Airbiz in 2016. This
work was undertaken when reviewing the international slot parameters for the Northern Winter
2016 season. This work identified that, consistent with previous capacity studies, that the key
pinch point for processing is at the risk assessment stage. The per hour capacity identified for
risk assessment screening was identified as 2,145 passengers per hour. This capacity
assessment took into account the modifications to the bio-security areas that were completed
for the 2016/17 summer peak including the expansion of the green lane for low risk New
Zealand and Australian passport holders. Please note that this throughput capacity is based
on current bio-security risks, if the bio-security risk was raised due to a bio-security event (e.g.
fruit fly infestation), this throughput could be significantly reduced.
13.9 Total functional space
The total terminal functional area floor space for the domestic terminal is slightly less than the
sum of the individual floor space areas. This is because airside circulation space is required
for both outbound and inbound passengers, there is an area that is “double counted” as it falls
into the calculation of both of these categories of floor space. The area that has been double
counted was subtracted from the total.
The number of working trolleys represents the number of trolleys that Auckland Airport’s trolley
provider, Smarte Carte, had in use as at 30 June 2018.

59
Section 14: Passenger satisfaction indicators

14.1 General comments
Auckland Airport’s facilities and operations responded well to the record traveller numbers
across the international and domestic terminals during FY18, even in the midst of ongoing
development works, with strong ASQ survey ratings across all key service indicators. An
average score of 4.1 out of 5.0 was achieved at both international and domestic terminals.
ASQ is a survey programme developed and implemented by Airports Council International that
measures travellers’ satisfaction whilst they are travelling through an airport. Auckland Airport
has been part of the ASQ programme for over ten years now.
The ASQ Survey is the airport industry’s standard for measuring traveller satisfaction. ASQ
surveys are currently conducted at around 320 airports in 41 languages in 84 countries. Over
75% of the world’s top 100 airports are currently ASQ survey members. Each year, some
550,000 travellers worldwide are interviewed as part of ASQ Surveys.
The ASQ Survey measures 34 key service areas and includes eight major categories, such as
access, check-in, security, airport facilities and food and beverage providers. All participating
airports use the same survey questions. This creates an industry standard set of responses
that allows Auckland Airport to track and analyse its performance, and compare its performance
against peers.
Through the use of ASQ benchmarking, Auckland Airport is able to:
• get an independent perspective on performance;

• identify areas of opportunity;
• understand travellers’ needs, priorities and expectations;
• prioritise improvement opportunities;
• set and monitor performance expectations; and
• manage change effectively.
The survey is conducted quarterly with a minimum sample size of 500 travellers per quarter.
The ASQ sample plan specifies quotas by airline and destination so that the total sample is
representative of Auckland Airport’s actual traffic mix. Interviews are undertaken with both
domestic and international travellers. All interviews take place in the boarding gate area while
travellers are waiting to board their flights. Each questionnaire is completed by one traveller
only.
To ensure that the survey results are as accurate as possible, ASQ publishes field work
guidelines on an annual basis. These guidelines outline the procedures to be followed when
implementing the sample plan and conducting traveller interviews. A copy of the field work
requirements can be found on Auckland Airport’s website 4.
Traveller responses to each question are gathered according to a five-point scale: 1 = poor,
2 = fair, 3 = good, 4 = very good, 5 = excellent.
The quarterly score disclosed for each question is the weighted average of the responses.
While the tables in Schedule 14 state the scores for each quarter, Auckland Airport monitors
4 https://corporate.aucklandairport.co.nz/news/publications/regulatory-disclosures

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responses using a four quarter rolling average, as the annual sample size gives a statistically
significant result (by contrast the quarterly sample does not). Overall, the surveys have a margin
of error, therefore, as general principle, year on year changes in the scores of less than 5% are
deemed statistically insignificant.
Auckland Airport has also chosen a group of airports with comparable features from the ASQ
survey programme as a panel and uses the average score of this panel to benchmark our
performance. Most of these peer airports are key destinations from Auckland and are subject
to capital disciplines and of a similar size of 10-25 million travellers.
Each quarter Auckland Airport undertakes a detailed review of the survey scores. The results
are fed into business activities and process improvement initiatives.
14.2 Domestic terminal
In FY18 our domestic passenger volumes rose by 7.7% from the previous year, to 9.3 million.
Despite the sizeable growth, the average score of all regulated factors of 4.1 indicated that the
quality of service to customers was not compromised.
As shown in the chart below, we maintained or improved the scores on 12 out of the 14 key
indicators in 2018.

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Figure 7: Domestic Terminal Scores

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The high score on airport staff can be largely attributed to the extra Passenger Experience
Assistants that we recruited during the busy summer peak months, and the additional Customer
Service Agents employed throughout the year. The score indicates that their role of assisting
guests in need and facilitating journeys was well received over the year by customers.
“Availability of washrooms” and “Ease of making connections with other flights” were the two
categories which slightly declined on the previous year. They were likely impacted by the rapid
growth in traveller numbers and the significant terminal development and construction activities
across the airport campus.
The domestic terminal also performed well against our international custom benchmarks in
FY18. The graph below compares Auckland Airport’s ASQ scores in the domestic terminal to
the score average of our 28-airport peer group. The graph shows that Auckland Airport matched
or outperformed the panel on almost all factors except the noticeable gap at “Ease of making
connections with other flights” category.
Figure 8: FY18 Benchmarking – Domestic Terminal
In addition to the ASQ surveys, Auckland Airport also monitors customer experience using
customer feedback kiosks.
Four kiosks were installed in the domestic terminal since FY17 with two in the arrival baggage
area and two in departure bathrooms. Guests are now able to use these devices to rate their
experience in real time and select the reasons for dissatisfaction if they rate a service poorly.
These four kiosks have in total collected over 107,000 individual responses in FY18, with each
kiosk collecting over 500 responses per week on average. The results are fed back in a timely
manner, allowing any issues to be remedied as quickly as possible.

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14.3 International terminal
In FY18, international traveller numbers increased by 4.1% from the previous year, to 11.2
million. Meanwhile, the international terminal also experienced a number of important
milestones in the core infrastructure development programme. Key projects include the
completion of the Pier B extension, opening a substantial proportion of Phase 3 (the new area
on the departures level of the ITB) and our multi-stage redevelopment of the airside departure
and dwell area.
The increasing traveller demand and massive construction activities have inevitably put
pressure on day-to-day operations and customer experience. However, Auckland Airport’s
commitment to guest satisfaction was maintained, particularly through the use of additional staff
to assist travellers. For instance, the maintenance of scores in relation to check-in queue waiting
time indicates that the work undertaken by Auckland Airport in conjunction with airlines and
ground handlers regarding increasing the number of counters and self-service kiosks resulted
in processing capacity increases and efficiency in line with traveller growth.
At the end of the year the average score of the 15 key ASQ indicators in the international
terminal remained high at 4.1, which only represented a 0.1 slip from previous years.
As shown in the chart below, out of the 15 indicators, 10 matched or outperformed the previous
year. The only noticeable setbacks lay in “Ease of finding your way through the airport” and
“Walking distance inside the terminal” categories, highly likely attributable to the construction
work currently underway in the terminal.

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Figure 9: International Terminal Scores

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As the chart below highlights, Auckland Airport matched or exceeded the average scores of its
benchmark panel in almost all areas with noticeable setbacks only in “Ease of finding your way
through the airport” and “Flight information screens”.
Figure 10: FY18 Benchmarking – International Terminal
Apart from quarterly ASQ surveys, the international terminal also has 19 customer feedback
kiosks installed across both landside and airside covering key bathrooms, baggage hall,
departure gates and dwell areas. These kiosks have in total collected over 455,000 individual
responses in FY18, with each kiosk collecting over 460 responses per week on average.
Major projects and initiatives undertaken in the international terminal in the 2018 financial year
that supported an improved customer experience included:
• Pier B extension, including 2 new gate lounges (Gate 17 and 18) with new toilet areas,
baby changing rooms, retail stores, and food and beverage outlets;
• refurbishing Gate 15 and 16 at Pier B with new carpet and lounge seating that incorporate
USB and power outlets as that of Gate 17 and 18;
• installing further 15 mobile international self-service check-in kiosks (with total of 60 now)
• reconfiguring the international check-in area (Zone E) to provide 7 more serviced counters;
• installed a new passenger lift (Lift 8A) beside escalators and Lift 8 in the international
Check-in area to provide additional capacity;
• reaching 90% completion of our multi-stage redevelopment of the international terminal
departure zone, including a new Customs and security screening processing area with new
toilet facilities;
• recruiting 70 Passenger Experience Assistants to help guests at the airport during the busy
December and January months; and
• installing 8 WiFi access points to improve WiFi coverage and spread load.
Details of above projects and initiatives can be found in Schedule 15.

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Section 15: Operational Improvement Processes

The 2018 financial year saw another strong year of growth for Auckland Airport. We continued
to invest in operational improvement processes to provide quality services to our customers,
and to help accommodate the ongoing increases in passengers and aircraft.
With dozens of active aeronautical investment projects underway across the airport, operational
improvement processes are important to help minimise the impact of construction activities on
passengers and our airport partners.
Auckland Airport has remained focused on working collaboratively and constructively with all of
our stakeholders to maintain and improve service quality for both passengers and airlines.
As outlined below, in FY18 Auckland Airport:
• led a forum called Thinksmash. The group (which includes airlines and border agencies)
brainstormed a range of innovative ideas to explore around the future of travel. From this,
proof of concepts are now being tested around increased digitisation, the use of biometrics,
and opportunities to work with the Australian government to streamline processing;
• took over the leadership of the Airfield Capacity Enhancement Group which is focussed on
initiatives to maximising the efficiency and throughput of the existing runway;
• continued to foster a collaborative approach to operational improvement. Through forums
such as the various Collaborative Operation Groups (COG), we worked alongside
stakeholders to improve operational performance across the end-to-end journey. These
forums provide stakeholders operating at the airport with an opportunity to input into short,
medium and long term planning with their quality preferences. Key COG targets set in FY18
included 95% of passengers processed within 12 minutes at departure and 85% of
passengers processed within 35 minutes on arrival.
• participated in a number of specific forums to facilitate operational improvement in targeted
areas, such as the weekly baggage control meeting and the monthly airbridge meeting;
• identified a number of operational projects to improve passenger flows, improve customer
satisfaction, manage peak volumes and enhance capacity through process improvements;
• continued to bed in the Airport Collaborative Decision Making (A-CDM) system, which has
now been in place at Auckland Airport for three years. A-CDM provides a single source of
real-time data that stakeholders across the airport can both access and use. This has
facilitated a collaborative approach to manage activities on the airfield and in the terminals
– helping us to accommodate growth in passenger and aircraft numbers, and improving the
passenger experience;
• worked closely with airlines and border agencies to provide operational and/or capital
solutions to accommodate stakeholder requirements; and
• invested in improved health and safety processes and outcomes.

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Capacity enhancement, asset reliability and service quality

Pier B extension
Pier B is a key construction milestone for the development of the "airport of the future”. We
completed the first stage of the Pier B extension ahead of the 2017/18 summer peak travel
period (which created Gate 17) and fully completed the project in March 2018 with the opening
of Gate 18.
The $120 million, 12,240m2 Pier B extension is 190m long, the area of two rugby fields. It is a
modern open space incorporating New Zealand landscape artwork and Weta Workshop
sculptures. It also includes new toilet areas, baby changing rooms, retail stores, and food and
beverage outlets. The pier provides two additional gate lounges (Gate 17 and Gate 18) and
four air bridges enabling Pier B to handle four wide body aircraft or eight smaller aircraft at the
same time, adding critical new aircraft stand and pier capacity.
In addition, the seating at Gate 15 was also increased to cater for a Code F aircraft. Gate 16
was also modified to improve the efficiency of boarding passengers at the gate. We have also
refurbished both gates with new carpet and lounge seating that incorporate USB and power
outlets for passengers and airline staff. Lounge seating with USB and power outlets are now
available at all four gates on Pier B.
We also doubled the size of the bussing lounge below gate 15, catering for four Code C aircraft
or two Code E aircraft. Following the introduction of the new gates 17 and 18, a year on year
comparison in the month of April indicates that bussing of passengers on international flights
has reduced from 10 per cent in April 2017 to 3 per cent in April 2018.
Airfield expansion and taxiway upgrades
To decrease congestion on the airfield and better service international aircraft during the busiest
months, we have expanded airfield infrastructure over the last few years.
In the 2018 financial year we built an additional remote, fully serviced Code F Multiple Access
Ramp System (MARS) stand (Stand 75). The stand supports the peak flow of Code C aircraft
as well as the increase in the projected number of 787-900 aircraft. The new stand can
accommodate an A380 or B787, or two smaller aircraft.
Auckland Airport has also continued to upgrade asphalt on taxiways and the apron to improve
reliability. Over the year, we completed remedial work on Taxiway Alpha between Taxiway Lima
and Alpha 10 as well as between Alpha 8 and Alpha 9.
FEGP upgrade
During the year, Auckland Airport has continued to work with Air New Zealand to support the
introduction of the new 787-900 series of aircraft. The existing fixed electrical ground power
units were not able to meet the increased electrical demands of the 787-900s, therefore
Auckland Airport has sourced new “AXA” units that can support the electrical requirements of
these aircraft.
Four new AXA units were installed at the Pier B extension in the 2018 financial year, with a total
of twelve complete AXA units installed on contact stands so far. The remaining units will be

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progressively upgraded, giving Auckland Airport the flexibility to manage 787-900 aircraft as
more are brought into service.
Runway performance, planning and resilience
As part of the Airfield Capacity Enhancement Group, and with the support of Airways, Auckland
Airport has lifted the maximum runway throughput in FY18 to 45 movements per hour in suitable
meteorological conditions. This rate is often achieved during peak hours when traffic mix and
weather condition align.
We also completed a concept design for the flexible contingent runway based on a detailed
safety case for night operations of the FCR. Through consultation with Airways, Airlines and
CAA, the safety case has been extended to include day operations in the case of an emergency
or works continuing into daylight hours. Detailed design is expected to continue through FY19
with the aim to have a FCR in FY20.
Looking further ahead, planning has begun to assess the need for a second runway which will
provide additional capacity. Current forecasts suggest this will be needed by FY28. The Airfield
Capacity Enhancement Group continues to explore opportunities to maximise the capacity of
the existing runway.
Baggage system enhancements
Auckland Airport is committed to providing a robust and reliable baggage system and is
investing to improve both capacity and resilience. Auckland Airport has established a specific
“BHS 3000” project, which has delivered significant enhancements to the reliability and
resilience of the baggage system through the 2018 financial year in conjunction with aligned
capital expenditure projects. The improvements that have been delivered include:
• replacing metering conveyor at TC1;

• replacing merge conveyor at TC3 and TC5;
• replacing vertimerge conveyor and modifying transport conveyor at TC0;
• replacing power curve conveyors at AS1 and RC1;
• retuning conveyor TC0 and TC1;
• upgrading MIS database onto AIAL servers;
• upgrading communications to curves; and
• implementing SCADA on OOG2.
In addition to the capital initiatives underway, Auckland Airport has worked with its baggage
system contractor, Glidepath, to monitor service levels and invest in continuous improvement
initiatives, including through enhancements to the Operations and Maintenance agreement
such as:
• increasing support from 22/7 to 24/7;

• additional staffing levels of both trades teams and manual encode operators as requested
by airlines;
• enhanced software support as the automation of the system becomes more complex; and
• enhanced KPI’s and monitoring.

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Improvements to bus operations
Bus operations are commonplace in airports across the world, facilitating the transfer of
passengers between lounges in the terminals and aircraft parked on remote airfield stands.
Bussing is an efficient means of providing peak capacity, and will continue to be an important
part of Auckland Airport’s operational model over the medium term as we seek to cater for
existing peak services and growth in peak periods at the same time as managing an intensive
construction period.
Ten new airfield buses have been delivered by SkyBus and have been fully operational since
early 2018. They have been specifically designed for the comfort of passengers being
transferred between the terminals and aircraft parked on remote airfield stands.
The new fleet has offered a significant uplift in service quality and provides a cost-effective,
quality service for passengers and airlines. All buses provide real-time arrivals and departures
information, comfortable air conditioning, and Wi-Fi capability that connects seamlessly to WiFi
provided in the terminals.
The new bussing contract has also delivered service improvements for the benefit of airlines
and passengers, including a consistent method of loading and unloading all buses, and
increased monitoring, reporting and resolution of service performance matters.
Auckland Airport has also purchased two Aviramp mobile jet bridges to further improve the
quality of service for bussed operations. Aviramps are covered ramps that provide an airbridge-
like experience for aircraft parked on remote stands, improving the passenger experience,
safety and the on-boarding and off-boarding process for aircraft.
The mobile jet bridges protect passengers from bad weather, are fully lit and allow passengers
to enter or exit their aircraft without having to negotiate stairs. Aviramps significantly improve
the travel experience for passengers with reduced mobility or using a wheelchair by eliminating
the need for a separate lift vehicle.
The two Aviramps purchased in November 2017 were acquired as a trial to ascertain whether
the Aviramp product would offer a safe, secure and consistent approach to boarding or
disembarking an aircraft onto a bus at a remote stand in the environment at Auckland Airport.
Two different Aviramp models were purchased - one a Continental model to accommodate
smaller aircraft (from B737 up to B767) and one an International model to accommodate larger
aircraft (From A320 up to the lower door of the A380).
The trial proved successful by meeting all success measures and improving the service level
for remote stand usage. It also identified a number of modifications and improvements to future
models in order to meet our requirements. Following the trial, four more Aviramp units are being
procured to enable Aviramps to become the standard service level supporting bus operations
from remote stands at forecast demand levels. Three will be of the International model and one
will be of the Continental model.
15.2 Passenger Experience
Auckland Airport remains focused on our customers and ensuring they have safe and enjoyable
journeys. In addition to investments in new infrastructure and capacity during the 2018 financial

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year, we have continued to rollout other improvements as described below to support a quality
customer experience.
Improved public address announcements
Our automated public address system (SimpleVox) was fully completed in FY18 for customer
service and airline announcements. This system generates announcements in 15 different
languages. It is accessible from the communications position in the airport’s operations centre
for customer service announcements, as well as gate lounges for airline staff to make
announcements.
This platform provides ease of access for airline customers to make terminal wide
announcements from the gate, without having to call the communications operator.
Following the introduction of the initiative, call volumes to the communications operator are
expected to decrease by 50%, allowing the operator to focus more on flight information
management.
New guest lift in international departure area
In FY18, we installed a new guest lift (Lift 8A) beside escalators and the main central lift (Lift 8)
in the international check-in area to provide additional capacity. The existing lift was under
capacity for current customer volumes, especially during peak periods. The long queues for the
lift often exacerbated congestion in the adjacent check-in concourse. Also, travellers often
transport wheelchairs and trollies on the lift, which reduces the number of people that the lift
can hold. The new lift can take maximum 2000kg or 26 persons per load with up to 180 starts
per hour.
New international departure zone
At the end of June 2017, the first stage of the international departures passenger security
processing zone was opened. This represented the first significant change to the departure
experience for guests as part of the staged upgrade of the international terminal.
One year later, we reached 90% completion of the multi-stage redevelopment of the
international terminal departure zone – which will be largely completed by the end of the 2018
calendar year.
The upgraded international departures experience now has a new Customs and security
screening processing area. It includes a new space for people to repack and relax after security
screening, use the new toilet facilities or check their flight details before continuing on to the
new lounge and retail hub. This development had provided the opportunity to fundamentally lift
the standard of service provided to passengers on their outbound departure.
New resources
Extra employees, including more than 70 Passenger Experience Assistants (up 17% from 60
of last year) were recruited to help customers at the airport during the busy December and
January months, plus additional Customer Service Agents to proactively assist guests in need
throughout the year.

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Post the summer peak, a smaller pool of Passenger Experience Assistants was retained to
assist in the terminal during a period of significant terminal development and construction
activity. Their role was to support customers during peak periods, as well as helping guests to
navigate their way through scaffolding and hoardings.
The services of our customer facing staff have been well received by travellers over the year.
Our annual ASQ survey score for “courtesy and helpfulness of airport staff” continued to
improve and reached a new high in FY18.
Details of ASQ survey and Auckland Airport’s scores can be found in Schedule 14.
Smarter, more resilient transport networks
Improving transport flows to and around the airport precinct was a major priority for Auckland
Airport in the past year. We are focused on solutions that work for staff, travellers and freight
operators, that are sensibly integrated with the wider Auckland network. We are planning for a
resilient, high capacity network that prioritises terminal and airport precinct traffic, and which
provides mass rapid transit/public transport corridors. We have reworked our future network
plans to reflect what we understand about the Government’s intentions for light rail, and we are
working closely with NZTA and Auckland Transport (AT) on options for future public transport
to the airport. We are working hard to unlock new capacity, and to manage demand more
efficiently in the interim. This year we continued to invest in systems, infrastructure and planning
to provide ongoing improvements to access and travel times throughout the airport transport
network.
During FY18 Auckland Airport completed or started a wide range of transport infrastructure
projects including improving access to the domestic forecourt for travellers and buses. In
addition, we installed a T2 vehicle lane on Tom Pearce Drive, which supports the increased
frequency of the 380 Airporter public bus service during peak periods. To ensure sufficient car
parks for guests, 1,000 additional car parks were created across the precinct.
Tactical responses to traffic management, incorporating a number of demand management

measures, were adopted in response to the significant demand on airport roads during the
NW17 summer peak. These included the positioning of variable message information boards
on airport roads to inform drivers of road conditions, adjustment of lane layouts, monitoring and
enforcement.
Ten Auckland Airport staff were trained and deployed as liaisons to the Auckland Traffic
Operations Centre (ATOC) in relation to the airport road network. These staff worked directly
with an ATOC SCATS engineer to adjust signal timing. They were on a rotational roster based
at ATOC Smales Farm between 12-7pm on Thursdays, Fridays and other designated peak
days.
Temporary signalisation of John Goulter Dr was introduced to give priority for northbound
vehicle movements on George Bolt Memorial Dr. This was a tactical deployment on Thursdays
and Fridays during peak periods and enabled the airport to continuously flush the network to
prevent significant congestion.
We negotiated a voluntary accord with the National Road Carriers to reduce the number of
heavy vehicle movements during peak, resulting in increased network capacity for other road

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users by requiring trucks accessing SH20 – Southbound from Airport Oaks and Ascot Industrial
Park to use Coronation Road.
A signalised pedestrian crossing was installed on Lawrence Stephens Drive configured to

increase priority for traffic leaving the domestic forecourt during periods of increased demand.
We also commenced work on the new Southern Bypass, which will provide a direct north
(SH20A) to south (SH20B) link through Nixon Road. This will help to improve traffic times and
flows on the airport precinct by directing through-traffic away from the primary airport terminal
roads.
In addition, Auckland Airport worked closely with transport partners NZTA and AT on the
Southwest Gateway programme to deliver some key projects including:
• 20Connect, to improve access to and from the airport;

• Airport to Botany Rapid Transit, to deliver a fast, frequent and reliable mass transit system;
and
• completion of the Landing Drive roundabout upgrade transforming it into an eight-lane
intersection with traffic lights.
Plans for further investment in transport infrastructure included significant progress on our
programme of over $100 million of projects between now and 2022 to upgrade Auckland
Airport’s internal transport network. To ensure our investment programme aligns with the new
government’s plans for AT, we also completed a thorough review of our own internal transport
masterplan.
During the financial year we also launched a new traffic monitoring system to measure traffic
movement across Auckland Airport’s precinct. This system utilises radar and WiFi sensors to
gather real-time information and enables dynamic traffic system management by early
detection of congestion allowing early and real-time operational intervention.
Wi-Fi improvements
Auckland Airport has continued to invest in Wi-Fi as both an operations platform and a key
customer experience tool. We understand that Wi-Fi is a service that is valued by guests
through the airport and have been exploring how we can improve the service in this area. We
are conscious that it is important that as we increase availability, the system needs investment
to ensure reliability of the service. Initiatives this year include:
• complete replacement of the Wi-Fi operating system. This investment enhanced the
flexibility of the system, upgraded security and provided more customer options;
• at the time of the operating system replacement, the data pipelines were upgraded to
significantly enhance security, improve speed and capacity and provide sufficient
headroom for future growth;
• the free time allocation to customers was doubled from 45 minutes to 90 minutes for Strata
Club – a free mobile-based programme designed to recognise travel choices with
personalised service and benefits for customers; and
• in FY18, a full audit was undertaken in the terminals to test Wi-Fi coverage and
performance. Ten additional WiFi access points (8 in the international terminal and 2 in the
domestic terminal) were installed to improve the coverage and spread load.

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15.3 Improvement initiatives driving efficiency and innovation

More mobile self-service check-in kiosks
In FY18, Auckland Airport invested in a further 15 mobile and fully-customisable check-in kiosks
in the international terminal to improve customer experience and guest processing efficiency.
The introduction of these kiosks has enabled more efficient and dynamic use of the check-in
area, as the kiosks can be placed anywhere and used quickly and easily by guests travelling
with participating airlines to check in themselves, print boarding passes and bag tags. The 60
mobile kiosks provided by Auckland Airport were used by more than one million guests in the
last year.
International check-in counter reconfiguration (Zone E)
Check-in reconfiguration works continued in the international terminal check-in hall with existing
check-in counters replaced with more compact counters. The previous works in FY17 involved
the compression of existing counters in zones B-D to allow for a deployment of an additional
13 service counters. We continued these works in Zone E in FY18, the largest of the non-Air
New Zealand check-in zones and delivered seven additional counters with 30% more
processing capacity. The increase unlocks capacity from the same footprint and will enable
another one to two flights to be checked-in during peak periods. Along with the new counters,
we also replaced all above-counter screens with 55-inch, high-definition screens for greater
visibility from a distance.
Launching Ava
In December 2017, in partnership with Microsoft and Datacom, Auckland Airport launched Ava,
an artificial intelligence online assistant that sits on our digital platforms to improve the
experience for our customers and reduce the number of simple queries coming to our call
centre.
Ava learns based on conversations with customers - how they phrase queries, tone of voice
used, abbreviations etc, so the more interactions the smarter it will get. Auckland Airport is
actively updating Ava with answers to new and varied queries all to provide more accurate and
useful answers to customer queries.
At the moment, Ava receives over 200 questions per day from customers to help them with
Strata Club, Strata Lounge and Auckland Airport Parking queries. Ava enables customers to
support themselves and get answers to their common queries, while our call services team
provide more value-add support or handles more complex questions.
Additional nationalities on eGates
Working with NZ Customs and Immigration, five additional nations were introduced in early
December 2017 onto eGates for both arrivals and departures self-processing. These nations
were China, France, Netherlands, Ireland and Germany. This has doubled the total number of
nations whose passport holders are eligible to self-process from five to ten. Processing rates

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have improved both through immigration and emigration by 16% and 8% respectively on
comparable periods.
Avsec smart lane implementation at the International screening point
Avsec rolled out six new smart lanes at the International outbound security screening processor
– making Auckland Airport the first airport in NZ able to implement Avsec’s new technology.
The new technology replaced the seven conventional machines previously operating and were
installed in pairs whilst maintaining business as usual operations. The first four lanes were
installed in September-October 2017 with the final pair installed in February 2018. The lanes
include automated tray return systems, an automated search belt diverter and four divest bays
to enable parallel divestment. The new lanes have a notional capacity of 340 travellers per
hour5 compared with the throughput of the previous lanes of approximately 240 passengers per
hour.
Improved biosecurity experience
In FY17, working with MPI, Auckland Airport funded and constructed the Green Lane for use
by New Zealand and Australian passport holders who arrive in the country and do not have any
food or other biosecurity risk items to declare. The initiative reduced congestion as it allowed
New Zealand and Australian travellers with nothing to declare to go straight to risk assessment
via a dedicated queue line, rather than waiting for travellers with declared goods to be checked.
In December 2017, Auckland Airport expanded the Green Lane entrance, effectively doubling
its width. This further reduced queueing and MPI and NZ Customs processing times. It also
enabled the provision of a dedicated Trusted Traveller lane.
The peak season during FY18 saw an increase in green lane usage by 5% or 900 travellers
per day, which alleviated the potential for high congestion during the afternoon peak.
Domestic Terminal Building screening queue expansion and improvements
In September 2017 Auckland Airport expanded the queue capacity at the Domestic screening
point by approximately 30% or approximately 100 travellers per hour. As well as reducing
congestion in the landside circulation space, this meant that domestic jet customers had better
visibility of the screening process and predicted queue time displays.
Integrated Airport Operations Centre
To help drive ongoing operational and service performance over the peak summer season, a
trial of integrated airport operations centre (APOC) was undertaken in February 2018 to
accommodate airport operations staff, border agencies and other stakeholders together in a
single location so that operational challenges can be quickly identified and mitigated before
they impact airlines or travellers.
The trial was successful and demonstrated that:
5 Avsec

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• joint planning, common situational awareness in real time and early information flow within
an APOC improves system wide operations;
• early actionable intelligence coming from an APOC improves disruption mitigation and
recovery response times; and
• collaboratively steering, monitoring and managing the customer journey (including
travellers, bags and aircraft) offers improvements above the current operating model.
In March 2018, the CEO COG group endorsed further developing APOC in three stages,
namely APOC Lite (embed benefits of APOC into business-as-usual activities), Interim APOC
facility (expected late 2019) and Final APOC (full facility in final location).
Closed Circuit Television (CCTV) system upgrade
In FY18, Auckland Airport replaced the existing aging analogue CCTV system that had
components that were 16 plus years old and implemented a fully Internet Protocol (IP) based
Video Management System (VMS). The new and modern system not only significantly reduced
the core security and operational risks through improved system reliability and quality, going
forward it will also drive significant operational efficiencies and costs savings through systems
integration and easier systems management.
Some of the key outcomes from the upgrade are:
• better quality images and reduced time to manage historical footage;

• automatic alerting of security and operational events that staff cannot detect manually;
• Simplified distribution of CCTV video images to permitted users using IP and PC desktop
technology instead of analogue cabling and bespoke monitors;
• ensuring that the new VMS solution can support the existing 800+ cameras and can be
scaled up to meet foreseeable future challenges; and
• providing a platform that will support the anticipated growth of cameras resulting from both
expansion of the airport and the benefits of new technology.
Airport Operation System (AOS) enhancements

Enhancements were made to the AOS system over the year as follows:
• dashboard modifications - This provided additional information and detail to staff in the
Operations Centre using AOS dashboards to provide both improved information
presentation and a reduction in the manual work required to utilise the dashboard
information (i.e. exporting numbers to spreadsheets for analysis);
• variable duration calculations - an automated export and import capability of the variable
durations used in CDM and FIDS for first bag was added to the system to allow for quicker
analysis of previous actual data to keep the variable durations used within the system
current and reflective of actual times; and
• CDM portal - An additional view of the portal was created to give a view specific to Air NZ
regional operations to make it easier for operators to refer to their flights in the portal. This
was done concurrently with Air New Zealand regional operations commencing using the
CDM portal.

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Trial of customer care centre
In FY18, Auckland Airport completed the trial of a dedicated customer care centre to improve
the management and resolution of customer queries and reduce the volume of customer calls
received by the operations centre. The trial included consolidating all customer contact
channels (phone, email, and social media) and utilising new technology to improve our
responsiveness to consumer issues. The trial resulted in a 15% improvement in responsiveness
(measured by the percentage of calls answered in under 20 seconds). Permanent
implementation of this initiative is set for early FY19.
COG
Auckland Airport’s operations team has continued to work collaboratively with airlines and
border agencies through the COG structure. A commitment was made during the PSE3 pricing
consultation to review the service level priorities at the airport. As a first step towards this,
parties agreed to a refresh of the COG targets. A review was undertaken in FY18 with the aim
of both stimulating the next level of performance and breaking down key performance elements
in the system.
This led to the CEO COG endorsing the new COG 2.0 targets that were set on a 12-month
baseline performance for agencies with a year on year increase to lift performance standards.
At the same time, an Airport Performance dashboard was implemented that holds relevant KPIs
/ metrics that show overall airport performance in terms of runway utilisation, terminal
performance, ground handler performance as well as asset integrity and utilisation.
Auckland Airport has also led summer peak planning under Project Capricorn. Examples of
initiatives delivered by Project Capricorn include the new slim-line check-in counters, expansion
of the MPI Green Lane and a new lift in the international terminal. The benefits of these projects
are explained elsewhere in this schedule.
Customer experience measure system
In FY17, 23 built-in or freestanding touchscreen customer feedback kiosks were installed at key
touch points in the customer journey, including in washrooms, bag claim arrivals and gate
lounge areas. Guests are able to use the devices to rate their experience on the relevant
service, e.g. rate their washroom experience on the kiosk located in the washroom and select
the reasons for dissatisfaction if they rate a service poorly.
The real time customer experience measurement system has continued being well received in
FY18. Over the year, we received more than 562,000 individual satisfaction ratings via the 23
kiosks in the international and domestic terminals with more than 65% (364,000 ratings) from
bathrooms alone (our priority zones for measuring satisfaction). An average score of 4 out of 5
was achieved for our bathrooms and baggage claim halls at both terminals.
Real time feedback on customer experience enables Auckland Airport to monitor the service
level in a timely manner and to respond quickly on issues that may affect the customer journey.

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New capacity-planning tool – Beontra
In FY18, we introduced a new capacity-planning tool (Beontra) as a key tool for capacity
planning. Beontra, in concert with real-time flow tracking (introduced in FY17) and airport
collaborative decision making platforms, have combined together to deliver a step-change in
the data driven operational planning approach that is now used to optimise flow, assign
resource and identify pinch points.
Beontra was agreed with stakeholders to be the single-source of the truth for NW17 (e.g.
November 2017 to March 2018) traveller forecasting and was used to produce weekly traveller
forecasts for stakeholders during the peak weeks in December 2017 and January 2018. This
information is a powerful tool for ongoing conversations with border agencies around how to
best schedule resources to meet forecast demand.
15.4 Health and safety

Corporate health and safety
The health and safety of employees, contractors, customers and visitors remained a top priority
for Auckland Airport.
FY18 was a milestone in Auckland Airport’s work to improve aviation and workplace safety and
health. We integrated and improved our safety system approaches to create a new Safety
Management System (SMS) which meets both Worksafe NZ and CAA requirements. We were
the first major airport in New Zealand to have its safety management system certified by the
Civil Aviation Authority in December 2017.
We achieved our target to double the number of Safety Observations. We were aiming for at
least 1,200 high quality Safety Observations. In fact, across the company we made 1,431
Safety Observations. While we also count and report on incidents and injuries, seeing and
reporting what could go wrong or what almost went wrong is one of the most significant steps
towards achieving our safety goal of zero harm.
A further reduction in recordable injuries (lost time, medical treatment and restricted work)
among employees and contractors was achieved in the last 12 months, despite the volume of
construction work occurring in confined operating spaces. The employee recordable injury rate
declined by 17.5% in FY18.
AES equipment upgrades

The following upgrades were carried out in FY18:
• purchase of a new medical response vehicle to replace the aging R33 vehicle;
• purchase of a stand-alone training vehicle to allow comprehensive training, and
redundancy as a stand in vehicle for when R1 is being serviced;
• recruitment of additional staff to allow R1 to operate with a 4-person crew as per
international best practise;
• procurement of a proven training recording system – to streamline process and efficiently
capture compliance requirements;
• training of selected staff as peer fitness trainers, to maintain compliance with the regulatory
physical training compliance in the safest and most structured manner possible;

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• AES driving instructors trained to international diploma level, certified by RoSPA, to train
AES staff in Emergency Response Driving;
• commenced a formalised After Action Review process for all aircraft incidents, to capture
internal departmental learnings and areas for improvement; and
• conducted staff training at multiple facilities including FENZ National Training Centre, and
Air Services Australia training centre.
Airport safety initiatives
The 2018 financial year has also seen some significant safety enhancements at both our
terminal roads and airfield area.
The following initiatives were undertaken airside:
• redesign of the road outside the Menzies/Swissport Baggage Make-up area to ensure safe
input of vehicles onto the red and white airfield road;
• an area on the apron has been fenced-off to allow for Ground Handlers to park their ULD
cans safely so they should not be moved due to high winds posing a risk to aircraft;
• lighting improvements were made to the breezeway area under Pier A ensuring better
visibility during night and to improve biosecurity risk assessments;
• refreshed pedestrian areas with better signage and road markings so as to ensure the safe
movement of people through these areas;
• provided training to stakeholders for Stage 1 and Stage 2 Airside Driving;
• developed processes to meet the new MPI Air Container System, which requires all arriving
air containers to be checked for biosecurity contaminants by the importer and appropriately
treated if these are found;
• increased the number of Airside audits;
• airfield Safety Observation Cards were created to capture any risks/hazards on the airfield
by Airfield Safety Officers who do not have access to Risk Manager;
• required seat belts at any speed above 0 km) rather than the previous 15km per hour;
• purchased 2 new Stalker Speed guns, of the same standard as police issue; and
• undertook Operation Tug in cooperation with Police to ensure compliance with Airside
Rules.
The following initiatives were undertaken landside:
• a focus on improving pedestrian safety through means such as use of anti-slip paint on
crossings, kerbs and carparks to reduce risk of falling where applicable, increasing lighting
on key pedestrian crossings such as the ITB to Novotel and improvements to the green line
walkway;
• acquired Banana style wet floor signs and trialled them at the help desk. Larger versions
acquired to be trialled by our cleaning contractor outside Terminal bathrooms to raise
awareness of wet floors;
• terminal Audits established and carried out weekly at both terminals;
• provided safety reporting training to bluecoats and terminal staff, including introducing a
new Incident/near miss/safety observation reporting card;
• introduced SAHM, a SMS Mascot strategically positioned around our terminal and wider
business, spreading the safety word and raising awareness of hazards like escalators and
baggage trolleys, including through the use of safety stickers for children; and

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• introduced PA terminal messaging for parents of unsupervised children in regards to safety

of children on escalators/check-in and lifts.
15.5 Sustainability
As a major New Zealand company, Auckland Airport is committed to operating in an

environmentally sustainable way and have achieved our 2020 goal of reducing our
environmental footprint by 20% per traveller and are on track towards our 2030 target.
Over the last year, Auckland Airport has continued to focus on reducing the impact of our
business on the environment through energy waste and carbon reduction. We value
sustainable operational, maintenance and construction practices. This year we partnered with
EECA to upgrade our lighting and heating systems as we redesigned our aeronautical
infrastructure. This included providing new power units to allow aircraft to use electricity from
the national grid, rather than jet-powered generators when on stands. The reduction in per-
passenger energy use (indicated in the chart below) has produced cost savings for our airline
partners, whilst reducing our carbon footprint by 22%.
Figure 11: Energy used per passenger for airport operations
Auckland Airport has reported carbon emissions to the Carbon Disclosure Project since 2008
and in November 2017 we became the first company in Oceania and the first airport in the world
to set a publicly disclosed carbon reduction target based on the UN-supported Science Based
Targets initiative. Auckland Airport was also recognised by Enviro-Mark as one of New
Zealand’s top carbon reducers in the past year.
Since 2013, we have managed to reduce greenhouse gas emissions by over 2,000 tonnes, or
35% per passenger. This was achieved through our comprehensive energy management
upgrade programme.

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We have also supported our airline partners to reduce their carbon emissions through
introducing fuel-saving flight paths and shorter taxiways.
Our focus on waste reduction and our special waste facility – the first in Australasia – now
diverts almost 50% of non-quarantined aircraft cabin waste away from landfill and in March
2018 we won a Green Airports award for waste minimisation from Airport Council International
(ACI) Asia-Pacific.

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Section 16: Associated statistics

Sustainably growing Auckland Airport’s air connectivity supports New Zealand’s tourism and
trade ambitions. This year we continued to promote New Zealand as a destination and shared,
with existing and new carriers, insights on new routes we consider to be economically viable.
We have continued to actively support the New Zealand tourism and export industry more
broadly. Each year we offer a $100,000 grant to New Zealand-based tourism operators and
organisations who identify strategies to stimulate year-round visitation to New Zealand. In 2018
we awarded two grants of $50,000 each to Eat NZ and Haka Tours. We supported the ExportNZ
awards, and we organised and sponsored a B2B seminar to grow the New Zealand –
Philippines cargo market, with the support of Philippine Airlines and New Zealand Trade and
Enterprise.
Overall growth for FY18 was broadly in line with forecast with international passenger volumes
weaker than forecast and domestic passenger volumes stronger than forecast.
In June 2018, Immigration New Zealand refined its international transit passenger reporting
process. The refinement was to eliminate a filtering error of passengers, which had previously
understated transit data. This resulted in Auckland Airport restating international transit
passenger data for FY18 and prior periods.
The chart below summarises the actual passenger (PAX) volumes for FY18 compared to that
forecast for the period.
Figure 12: FY18 PAX - Actual vs. Price Setting Disclosure Forecast
The number of international airlines serving Auckland stayed consistent during the 2018
financial year at 30. Samoa Airways launched services from November 2017, while Norfolk
Island Airlines withdrew services from January 2018.
The 2018 financial year saw the following growth in air connectivity for our established markets:
• Philippine Airlines launched a new direct Manila-Auckland service in December 2017,

replacing its indirect service via Cairns. The airline also changed its aircraft from an A320
to and A330; and

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• in November 2017, Thai Airways increased Bangkok to Auckland to a daily service, up from
5 per week.
In the 2018 financial year, the total number of passenger movements was up 5.7% to 20.5
million. A further breakdown is provided below:
16.1 Passenger movement statistics
2018 2017 Change

International arrivals 5,116,341 4,906,383 4.3%
International departures 5,086,185 4,836,896 5.2%
International passengers excluding transits 10,202,526 9,743,279 4.7%
Transit passengers* 1,063,856 1,077,256 (1.2)%
Total international passengers 11,266,382 10,820,535 4.1%
Domestic passengers 9,263,666 8,601,841 7.7%
Total passenger movements 20,530,048 19,422,376 5.7%
*Transit passengers adjusted as per note above
Domestic
Domestic passenger numbers grew strongly in the 2018 financial year, increasing by 7.7% or
661,825 passengers. This growth was delivered by increased frequencies on Air New Zealand
main trunk jet services, particularly on the Auckland-Queenstown route and regional passenger
growth of 8.0% following Air New Zealand adding another 164,000 regional seats over the year
to regional services.
International
International passenger numbers (excluding transits) increased by 4.7% in the year to 30 June
2018 reflecting a solid outcome across a broad range of routes and markets.
International passenger growth has been strongest across the Asia, Middle East and Pacific
Island regions this year at 10.4%, driven by capacity growth arising from both new services and
larger aircraft introduced on existing routes. Asian markets have particularly benefited from
increased capacity with passengers to and from China up 10.5%, Hong Kong up 14.1%, Japan
up 11.7% and Thailand up 26.8%. The Middle East saw a 42% increase in capacity
predominately as a result of the Doha Auckland service operating for a full year and upgauging
by Emirates on its direct service. There was a 7% increase in capacity to the Pacific Islands as
a result of increased frequency and use of larger aircraft. The Australian market saw a capacity
decrease of 3.5% following the withdrawal of Emirates Auckland-Tasman routes from March
2018.
16.2 Aircraft movement statistics
Total aircraft movements in the year were 174,276, an increase of 3.0% from the 2017 financial
year, while total maximum certified take-off weight (MCTOW) increased by 3.7% to 8,139,717.

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The slightly higher MCTOW growth versus aircraft movements reflects the continuing trend of
larger aircraft, particularly international, using Auckland Airport.
The table below outlines aircraft movements and MCTOW in FY18 compared to FY17.
2018 2017 Change
Aircraft movements
International aircraft movements 55,693 54,879 1.5%
Domestic aircraft movements 118,583 114,366 3.7%
Total aircraft movements 174,276 169,245 3.0%
MCTOW (tonnes)
International MCTOW 5,798,018 5,609,244 3.4%
Domestic MCTOW 2,341,699 2,238,853 4.6%
Total MCTOW 8,139,717 7,848,097 3.7%
16.3 Human resource statistics
The total full time equivalent employees (FTE) of the regulated aeronautical business was 341
for the year ended 30 June 2018, which is 7 more than the year ended 30 June 2017. Personnel
was increased in our Security and Emergency Services teams (+9) for increased compliance.
Engineering and Maintenance FTEs were also increased (+2), reflecting additional resourcing
required to support the continued growth of investment in infrastructure and equipment asset
base over recent years. These FTEs continue to ensure airfield, terminal and utility assets are
maintained to a high service level to deliver a high quality experience for airlines and
passengers. The transition of technology support services to an external IT service provider
resulted in a decrease in FTE (-5).
Support Services include teams which enable and support the efficient operation of the airport.
In the 12 months ended 30 June 2018 support services FTE was flat on the prior
year. Increases in Health and Safety, Human Resources and Master Planning were to reflect a
general uplift in activity for long term growth in construction activity and a significant programme
of capital works. However, the combined increase in FTEs from these areas was offset by
efficiencies gained by organizational re-design of the Technology team.
The human resource costs include all employee related costs including wages and salaries,
superannuation, Kiwisaver contributions, ACC levies, safety equipment, health and safety
programmes and training and travel costs associated with employee development.

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Section 17: Pricing Statistics

The current five-year pricing schedule at Auckland Airport was introduced on 1 July 2017 and
is effective to 30 June 2022. The schedule of standard charges are available on our website
(www.aucklandairport.co.nz). Price setting followed a comprehensive consultation process.
Importantly Auckland Airport remains one of the most affordable domestic ports in the region.
The aircraft and terminal charges were priced to remain broadly flat in real terms over the pricing
period and reduce in the first year. All airport charges are collected from airlines and form part
of their cost of operations (i.e. there are no charges directly payable by passengers). Average
charges per passenger can vary due to the mix of passengers travelling and the type of aircraft
flown.
Consumers can be confident that the charges set by Auckland Airport have been subject to
thorough review. Consumers might be interested in comparing the charges of the airport to
other costs in the system to form their own view on what represents value for money. For
example:
• Avsec is proposing domestic charges of $6.28 per PAX from FY19, which are more
expensive than our domestic airport charges;
• border clearance levy - $15.79 for arrivals (covers MPI and Customs border activity) is
about the same as our average international arrival charges; and
• the new tourist levy (will be $35 per passenger) is approximately $12 more expensive than
our average international PAX charge.
Together with the industry, which relies on tourism, we have a strong interest in ensuring the
total cost of travel including airport costs, border agencies and taxes does not affect the
competitiveness of New Zealand’s offer on the international stage. At the same time, we have
an interest in ensuring that users pay for the services that they value and that the incentives
exist for us to confidently invest in infrastructure that our customers request of us.
17.1 International
Auckland Airport’s average international per passenger charges are in the middle of the pack
of international airports that our main customer, Air New Zealand, flies to and were $24.78 in
FY17 and forecast to decrease by $1.28 by FY22 to $23.50.
Average airfield activity charges per international passenger decreased from $8.46 in the year
ended 30 June 2017 to $8.02 for the year ended 30 June 2018. Average passenger terminal
charges per international passenger have decreased 7.5% from $16.32 in the year ended 30
June 2017 to $15.10 for the year ended 30 June 2018. Average charges from both airfield and
passenger terminal activities per international passenger have decreased from $24.78 in the
year ended 30 June 2017 to $23.12 in the year ended 30 June 2018. This equates to an 8.3%
decrease, which is reflective of the reduction in first year prices for the PSE3 pricing period.

85
Figure 13: Average Charges per Passenger - International

$25.00
$24.78
$20.00 $23.12
$15.00
$16.32
$15.10
$10.00
$8.46 $8.02
$5.00
$0.00
FY17 FY18
Total International Int - Airfield Int - Terminal
17.2 Domestic
Our domestic charges are amongst the lowest in Australasia due to the low book value of the
domestic terminal owing to it being close to the end of its life. Average per passenger charges
in 2017 were $5.96 and are forecast to increase by 61c to $6.57 by FY22. A step up in charges
has been signalled once the new domestic jet facility is commissioned and the quality of the
facility improves. A differential charge for domestic passengers travelling on regional routes
was also introduced.
The average charges from airfield activities for domestic passengers decreased by 3.5% from
$3.69 in the year ended 30 June 2017 to $3.56. The average charge from specified passenger
terminal activities for domestic increased 1.7%, from $2.27 in the year ended 30 June 2017 to
$2.31 for the year ended 30 June 2018.
Overall, the average domestic charge per passenger relating to both airfield and passenger
terminal activities decreased 1.5% from $5.96 in the year ended 30 June 2017 to $5.87 in the
year ended 30 June 2018.
Figure 14: Average Charges per Passenger - Domestic

$8.00
$6.00
$5.96 $5.87
$4.00
$3.69 $3.56
$2.00
$2.27 $2.31
$0.00
FY17 FY18
Total Domestic Dom - Airfield Dom - Terminal

86
Section 25: Disclosure of initial RAB

As reported in Auckland Airport's price setting disclosure on 1 August 2017, Auckland Airport
prepared its opening regulated asset base using an alternative methodology with equivalent
effect. The above base values are equivalent to the values used in the preparation of that
opening regulated asset base.
Some of Auckland Airport’s land assets have changed in size or allocation since information
disclosure came into force (i.e. since the date of the initial RAB). At the overall portfolio level,
these changes have a very minor impact. Therefore, rather than taking the restated initial RAB
value as at 30 June 2010 as per the IM Determination and going through an exercise of rolling-
forward land assets each year based on minor changes in parcel size and allocation, Auckland
Airport used an alternative methodology with equivalent effect to determine a rolled-forward
land asset value and based the transition calculations on the land areas as at 30 June 2016.
To generate the above initial RAB value for aeronautical land assets, Auckland Airport has:
• used the 2009 and 2011 MVAU land valuation reports (undertaken by Colliers) to identify
the per-hectare value of the relevant land assets in 2009 and 2010;
• multiplied those per-hectare rates by the area of each land asset (as at the end of FY16).
• averaged those values to generate the 2010 land value for each asset.

87
Appendix 1: FY18 IRR calculation

The below sets out the calculation used to produce Auckland Airport’s FY18 annual return
IRR. It is consistent with the calculation in Schedule 18 of our PSE3 Pricing Disclosure with
the following updates:
• updated the components for FY18 actuals including opening RAB, assets commissioned,
operational expenditure, unlevered tax and revenue requirement
• removed any data for years outside the current disclosure year;
• set the Last Day of Pricing Period to 30 June 2018; and
• amortised the Pier B adjustment by one year out of five for the closing carry forward
adjustment
The resulting FY18 IRR is 9.9%.
Note: Cashflows have been discounted in a manner consistent with the input methodoliges
which have different discount rates for revenues and expenses.
For further information on the carry forward adjustments refer to the PSE3 Price Setting
Disclosure, available on the website.

Commerce Commission Information Disclosure Template
Airport Services Information Disclosure Requirements

Information Templates
for
Schedules 1–17, 25
Company Name Auckland International Airport Limited

Disclosure Date 30 November 2018
Disclosure Year (year ended) 30 June 2018
Pricing period starting year (year ended) ¹ 30 June 2018
¹ Pricing period starting year of the pricing period in place at the end of the disclosure year. Is used in clause b schedule 6.
Templates for schedules 1–17, 25 (Annual Disclosure)
Version 4.0. Prepared 21 December 2017
Airport-services-ID-determination-annual-templates-2018 - Working Document Annual CoverSheet

Table of Contents
Schedule Description
1 REPORT ON RETURN ON INVESTMENT
2 REPORT ON THE REGULATORY PROFIT
3 REPORT ON THE REGULATORY TAX ALLOWANCE
4 REPORT ON REGULATORY ASSET BASE ROLL FORWARD
5 REPORT ON RELATED PARTY TRANSACTIONS
6 REPORT ON ACTUAL TO FORECAST PERFORMANCE
7 REPORT ON SEGMENTED INFORMATION
8 CONSOLIDATION STATEMENT
9 REPORT ON ASSET ALLOCATIONS
9 REPORT ON ASSET ALLOCATIONS (2010)
9 REPORT ON ASSET ALLOCATIONS (2009)
10 REPORT ON COST ALLOCATIONS
11 REPORT ON RELIABILITY MEASURES
12 REPORT ON CAPACITY UTILISATION INDICATORS FOR AIRCRAFT AND FREIGHT ACTIVITIES AND AIRFIELD ACTIVITIES
13 REPORT ON CAPACITY UTILISATION INDICATORS FOR SPECIFIED PASSENGER TERMINAL ACTIVITIES
14 REPORT ON PASSENGER SATISFACTION INDICATORS
15 REPORT ON OPERATIONAL IMPROVEMENT PROCESSES
16 REPORT ON ASSOCIATED STATISTICS
17 REPORT ON PRICING STATISTICS
Airport-services-ID-determination-annual-templates-2018 - Working Document TOC

Disclosure Template Guidelines for Information Entry
Internal consistency check OK
Templates
The templates contained in this workbook are intended to reflect the specified airport disclosure requirements set out in Schedules 1–17 inclusive and Schedule 23 of
Commerce Commission decision 715 (Commerce Act (Specified Airport Services Information Disclosure) Determination 2010).
Data entry cells and calculated cells
Data entered into this workbook may be entered only into the data entry cells. Data entry cells are the bordered, unshaded areas in each template. Under no
circumstances should data be entered into the workbook outside a data entry cell.
In some cases, where the information for disclosure is able to be ascertained from disclosures elsewhere in the workbook, such information is disclosed in a calculated
cell. Under no circumstances should the formulas in a calculated cell be overwritten. All cells that are not data entry cells may be locked using worksheet protection to
ensure they are not overwritten.
Validation settings on data entry cells
To maintain a consistency of format and to guard against errors in data entry, some data entry cells test entries for validity and accept only a limited range of values. For
example, entries may be limited to a list of category names or to values between 0% and 100%.
Data entry cells for text entries

Data input cells that display the data validation input message "Short text entry cell" have a maximum text length of 253 characters. Because of page layout constraints,
this text length is unlikely to be approached . The amount of text that may be entered in the comment boxes is restricted only by the capacity of the spreadsheet program
and page layout constraints. Should a comment box within a template be inadequate to fully present the disclosed comments, comments may be continued outside the
template. The comment box must then contain a reference to identify where in the disclosure the comment is continued.
Row widths can be adjusted to increase the viewable size of text entries.
A paragraph feed may be inserted in an entry cell by holding down both the {alt} and the {shift} keys.
Data entry cells that contain conditional formatting
A limited number of data entry cells may change colour or disappear from view in response to data entries (including date entries) made in the workbook. This feature has
been implemented to highlight data being entered that is not internally consistent with other data currently entered, and to hide data entry cells for conditionally disclosed
information when the determination does not require the data be disclosed.
a) Internal consistency checks
To assist with data entry, the shading of the following data entry cells will change if the cell content becomes inconsistent with data elsewhere in the template:
Schedule 4, cells N110:N118, J30;
Schedule 7, cells K8:K14, K16:K18, K20, K22, K24, K26, K28, K30, K32.
Should such inconsistency be identified, the shading of the internal consistency check cell C4 at the top of the Guidelines worksheet will also change and the check cell
will show "Error" instead of "OK".
b) Conditionally disclosed information
The determination allows in some circumstances that data do not need to be disclosed. Accordingly, the following cells are conditionally formatted to disappear from view
(the borders are removed and the interior of the cells takes on the colour of the template background) in some circumstances:
Schedule 1, cells F9:F12, F14:F15, F17:F18, G9:G12, G14:G15, G17:G18;
In schedule 1, the column F cells listed above disappear if the determination does not require Part 4 disclosure in respect of year CY – 2 (CY is the current disclosure
year). Similarly, the column G cells disappear if disclosure in not required in respect of year CY – 1.
Schedule 6 comparison of actual and forecast expenditures

Clause 6a of schedule 6 compares actual expenditures with expenditures forecast in respect of the most recent price setting event.
The calculated cells G10:G11, G14:G16, G19:G28 determine, from clause 6b, the forecast expenditure for the current disclosure year.
The calculated cells M10:M11, M14:M16, M19:M28 determine, from clause 6b, the forecast expenditure to date.
The formulas in the calculated cells assume that the current disclosure falls within the five year pricing period. Cell C65 notes which of the pricing period years disclosed
in clause 6b coincides with the current disclosure year.
Airport-services-ID-determination-annual-templates-2018 - Working Document Guidelines

Regulated Airport Auckland International Airport Limited

For Year Ended 30 June 2018
SCHEDULE 1: REPORT ON RETURN ON INVESTMENT
ref Version 4.0
($000 unless otherwise specified)
6 1a: Return on Investment
7 CY-2 * CY-1 * Current Year CY

8 Return on Investment (ROI) for year ended 30 Jun 16 30 Jun 17 30 Jun 18
9 Regulatory profit / (loss) 102,012 126,794 122,598
10 less Notional interest tax shield 2,537 2,008 2,526
11 Adjusted regulatory profit 99,475 124,786 120,071
12 Regulatory investment value 1,197,998 1,151,026 1,313,898
13
14 ROI—comparable to a post tax WACC (%) 8.30% 10.84% 9.14%
15 Post tax WACC (%) 6.68% 5.94% 6.19%
16
17 ROI—comparable to a vanilla WACC (%) 8.52% 11.02% 9.33%
18 Vanilla WACC (%) 6.90% 6.12% 6.41%
19 Commentary on Return on Investment

20 Refer to Disclosure Commentary Note 1 for discussion of the return for FY18.
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47 * Return on Investment disclosure is not required for years ended prior to 2011.
48 Page 1
Airport-services-ID-determination-annual-templates-2018 - Working Document S1.ROI Disclosure


SCHEDULE 1: REPORT ON RETURN ON INVESTMENT (cont)
ref Version 4.0
55 1b: Notes to the Report
56 1b(i): Deductible Interest and Interest Tax Shield

57 RAB value - previous year 1,187,257
58 Debt leverage assumption (%) 19%
59 Cost of debt assumption (%) 4.00%
60 Notional deductible interest 9,023
61 Tax rate (%) 28.0%
62 Notional interest tax shield 2,526
63 1b(ii): Regulatory Investment Value

64 Regulatory asset base value - previous year 1,187,257
Assets
Commissioned— Proportion of
RAB Value Year Available Proportionate
65 Commissioned Projects ($000) (%) Regulatory Value
66 International Terminal (Pier and Connections) 112,536 46% 52,218
67 International Terminal (Airside Emigration & Dwell) 104,191 48% 50,061
68 Asset Maintenance (Slab Replacement and Runway Works) 12,858 15% 1,902
69 Runway, Taxiway and Aprons (Code F Taxiway, Stands and Aprons) 8,935 71% 6,335
70 Asset Maintenance (Business as Usual) 20,289 53% 10,799
71 Runway, Taxiway and Aprons (Airfield Utilities) 4,024 66% 2,668
72 Support Facilities (Acoustic Mitigation) 2,285 – –
73 International Terminal (Check in, Outbound Baggage & Landside Dwell)
4,018 21% 824
74 Support Facilities (Corporate) 3,310 53% 1,766
75 Support Facilities (Business Technology) 3,692 60% 2,199
76 Airport Surface Access Network (Arterial and Other Roads) 748 86% 645
77 Airport Campus Utilities (Utilities - Water & Wastewater) 1,015 62% 634
78 Support Facilities (Airport Emergency Services) 1,681 38% 640
79 Airport Surface Access Network (Terminal Roads) 1,122 41% 460
80 International Terminal (Arrivals) 936 21% 193
81 Asset Maintenance (Airbridge Refurbishment) 950 32% 307
82 Support Facilities (Marketing Customer Service and Communications) 731 75% 546
83 Support Facilities (AD&D Support Projects) 992 19% 185
84 Existing Domestic Terminal (Extension of Life) 333 38% 127
85 Other Capital Expenditure 23 28% 6
86 plus Other assets commissioned 50% –
87 plus Adjustment for merger, acquisition or sale activity –
88 less Asset disposals 11,745 50% 5,873
89 RAB investment 272,926
90 RAB proportionate investment 126,641
91
92 Regulatory investment value 1,313,898
93 Page 2
Airport-services-ID-determination-annual-templates-2018 - Working Document S1.ROI Disclosure


SCHEDULE 2: REPORT ON THE REGULATORY PROFIT
ref Version 4.0
6 2a: Regulatory Profit

7 Income ($000)
8 Airfield 122,100
9 Passenger Service Charge 179,068
10
11
12 Lease, rental and concession income 34,111
13 Other operating revenue 3,080
14 Net operating revenue 338,359
15
16 Gains / (losses) on sale of assets (11,745)
17 Other income
18 Total regulatory income 326,614
19 Expenses
20 Operational expenditure:
21 Corporate overheads 23,516
22 Asset management and airport operations 77,852
23 Asset maintenance 15,334
24 Total operational expenditure 116,701
25
26 Operating surplus / (deficit) 209,913
27
28 Regulatory depreciation 47,124
29
30 plus Indexed revaluation 857
31 plus Periodic land revaluations –
32 Total revaluations 857
33
34 Regulatory Profit / (Loss) before tax 163,646
35
36 less Regulatory tax allowance 41,048
37
38 Regulatory Profit / (Loss) 122,598
39 Commentary on Regulatory Profit

40 Refer to Disclosure Commentary Note 2
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61 Page 3
Airport-services-ID-determination-annual-templates-2018 - Working Document S2.Regulatory Profit Statement


SCHEDULE 2: REPORT ON THE REGULATORY PROFIT (cont)
ref Version 4.0
69 2b(i): Financial Incentives

70 ($000)
71 Pricing incentives 240
72 Other incentives 4,450
73 Total financial incentives 4,691
74 2b(ii): Rates and Levy Costs

75 ($000)
76 Rates and levy costs 3,467
77 2b(iii): Merger and Acquisition Expenses

78 ($000)
79 Merger and acquisition expenses –
80 Justification for Merger and Acquisition Expenses

82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102 Page 4
Airport-services-ID-determination-annual-templates-2018 - Working Document S2.Regulatory Profit Statement


SCHEDULE 3: REPORT ON THE REGULATORY TAX ALLOWANCE
ref Version 4.0
6 3a: Regulatory Tax Allowance ($000)

7 Regulatory profit / (loss) before tax 163,646
8
9 plus Regulatory depreciation 47,124
10 Other permanent differences—not deductible 210 *
11 Other temporary adjustments—current period 10,839 *
12 58,173
13
14 less Total revaluations 857
15 Tax depreciation 53,741
16 Notional deductible interest 9,023
17 Other permanent differences—non taxable – *
18 Other temporary adjustments—prior period 11,598 *
19 75,219
20
21 Regulatory taxable income (loss) 146,600
22
23 less Tax losses used –
24 Net taxable income 146,600
25
26 Statutory tax rate (%) 28.0%
27 Regulatory tax allowance 41,048
* Workings to be provided
28
30 3b(i): Disclosure of Permanent Differences and Temporary Adjustments

31 The Airport Business is to provide descriptions and workings of items recorded in the four "other" categories above (explanatory notes can be provided in a
32 separate note if necessary).
33 Refer to disclosure Commentary Note 3

34
35
36
37
38
39
40
41
42
43 3b(ii): Tax Depreciation Roll-Forward

44 ($000)
45 Opening RAB (Tax Value) 676,063
46 plus Regulatory tax asset value of additions 305,765
47 less Regulatory tax asset value of disposals 1,302
48 plus Regulatory tax asset value of assets transferred from/(to) unregulated asset base –
49 less Tax depreciation 53,741
50 plus Other adjustments to the RAB tax value 2,463
51 Closing RAB (tax value) 929,247
52 3b(iii): Reconciliation of Tax Losses (Airport Business)

53 ($000)
54 Tax losses (regulated business)—prior period
55 plus Current year tax losses –
56 less Tax losses used –
57
58 Tax losses (regulated business) –
59 Page 5
Airport-services-ID-determination-annual-templates-2018 - Working Document S3.Tax Allowance


SCHEDULE 4: REPORT ON REGULATORY ASSET BASE ROLL FORWARD
ref Version 4.0
6 Unallocated RAB * RAB
7 ($000) ($000) ($000) ($000)
8 RAB value—previous disclosure year 1,391,642 1,187,257
9 less
10 Regulatory depreciation 57,707 47,124
11 plus
12 Indexed revaluations 857 857
13 Periodic land revaluations – –
14 Total revaluations 857 857
15 plus
16 Assets commissioned (other than below) 342,998 284,672
17 Assets acquired from a regulated supplier – –
18 Assets acquired from a related party – –
19 Assets commissioned 342,998 284,672
20 less
21 Asset disposals (other) 22,434 11,745
22 Asset disposals to a regulated supplier – –
23 Asset disposals to a related party – –
24 Asset disposals 22,434 11,745
25
26 plus Lost and found assets adjustment 7,119 –
27
28 Adjustment resulting from cost allocation (2,029) T
29
†
30 RAB value 1,662,475 1,411,886
31 Commentary
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
* The 'unallocated RAB' is the total value of those assets used wholly or partially to provide specified services without any allowance being made for the allocation of costs to non-specified services. The
50 RAB value represents the value of these assets after applying this cost allocation. Neither value includes land held for future use or works under construction.
†
51 RAB to correspond with the total assets value disclosed in schedule 9 Asset Allocations.
53 4b(i): Regulatory Depreciation
54 Unallocated RAB RAB

55 ($000) ($000)
56 Standard depreciation 57,707 47,124
57 Non-standard depreciation – –
58 Regulatory depreciation 57,707 47,124
59 Page 6
Airport-services-ID-determination-annual-templates-2018 - Working Document S4.RAB Roll-Forward


SCHEDULE 4: REPORT ON REGULATORY ASSET BASE ROLL FORWARD (cont)
ref Version 4.0
66 4b(ii): Non-Standard Depreciation Disclosure
RAB value RAB value
Depreciation Year change under 'non- under
charge for the made standard' 'standard'
67 Non-standard Depreciation Methodology period (RAB) (year ended) depreciation depreciation
68
69
70
71
72
73 4b(iii): Non-Standard Depreciation Disclosure for Year of Change

Extent of customer disagreement
Justification for change in and
74 Summary of Change depreciation methodology supplier response
75
76
77 4b(iv): Calculation of Revaluation Rate and Indexed Revaluation of Fixed Assets

78
79 CPI at CPI reference date—previous year (index value) 1,000
80 CPI at CPI reference date—current year (index value) 1,015
81 Revaluation rate (%) 1.50%

83 RAB value—previous disclosure year 1,391,642 1,187,257
84 less Revalued land – –
NL less Assets not subject to revaluation 1,334,515 1,130,130
86 less Assets with nil physical asset life 21 21
FC less Asset disposals – –
88 less Lost asset adjustment – –
FC Indexed revaluation 857 857
90 4b(v): Works Under Construction

Unallocated works under Allocated works under
91 construction construction
92 Works under construction—previous disclosure year 240,410 207,838
93 plus Capital expenditure 266,795 215,319
94 less Asset commissioned 342,998 284,672
95 less Offsetting revenue – –
96 plus Adjustment resulting from cost allocation (3,071)
97 Works under construction 164,206 135,415
98 Page 7


SCHEDULE 4: REPORT ON REGULATORY ASSET BASE ROLL FORWARD (cont)
ref Version 4.0
105 4b(vi): Capital Expenditure by Primary Purpose

106 Capacity growth 186,734
107 plus Asset replacement and renewal 28,585
108 Total capital expenditure 215,319
109 4b(vii): Asset Classes Test

Infrastructure & Vehicles, Plant
110 Land Sealed Surfaces Buildings & Equipment Total *
111 RAB value—previous disclosure year 334,883 252,519 566,623 33,232 1,187,257
112 less Regulatory depreciation 4 9,639 26,964 10,516 47,124
113 plus Indexed revaluations 389 – 466 2 857
114 plus Periodic land revaluations – –
115 plus Assets commissioned (0) 22,521 244,756 17,395 284,672
116 less Asset disposals – 736 10,831 178 11,745
117 plus Lost and found assets adjustment – – – – –
118 plus Adjustment resulting from cost allocation 1,722 (12,717) 6,593 2,372 (2,029)
119 RAB value 336,989 251,947 780,642 42,307 1,411,886
* Corresponds to values in RAB roll forward calculation.
120 4b(viii): Assets Held for Future Use

Tracking
121 Base Value Holding Costs Net Revenues Revaluations Total
122 Assets held for future use—previous disclosure year 156,855 148,047 (8,861) (13,312) 300,451
123 plus Assets held for future use—additions¹ 4,711 21,212 (971) – 26,894
124 less Transfer to works under construction – – – – –
125 less Assets held for future use—disposals 245 254 – (21) 479
126 Assets held for future use² 161,321 169,004 (9,832) (13,291) 326,866
¹ Holding Costs, Net Revenues, and Tracking Revaluations entries in the 'Assets held for future use—additions' line relate to the value incurred during the disclosure year.
127 ² Each category value shown in the 'Assets held for future use' line (Base Value, Holding Costs, Net Revenues, and Tracking Revaluations) is carried forward into the following year's disclosure as
'Assets held for future use—previous disclosure year' .
128 Highest rate of finance applied (%) 7.060%

129 Page 8


SCHEDULE 5: REPORT ON RELATED PARTY TRANSACTIONS
ref Version 4.0
6 5(i): Related Party Transactions ($000)

7
8 Net operating revenue –
9 Operational expenditure 5,415
10 Related party capital expenditure 182
11 Market value of asset disposals 6,684
12 Other related party transactions 6,716
13 5(ii): Entities Involved in Related Party Transactions

14 Entity Name Related Party Relationship
Auckland Council Auckland Council’s shareholding of Auckland International Airport exceeds 20 percent
and as such accounting standard NZ IAS 24 requires the transactions with Auckland
Council to be treated as related party transactions. All transactions were on an arms-
length commercial basis, without special privileges.
15
City Park Services Auckland Airport also has a grounds maintenance contract with City Park Services, a
commercial business of Auckland Council. All transactions were on an arms-length
commercial basis, without special privileges.
16
Watercare Auckland Airport also receives water, waste water and compliance services from
Watercare, a 100% subsidiary of Auckland Council. All transactions were on an arms-
17
length commercial basis, without special privileges.
Auckland Airport (non-regulated The part of Auckland Airport that does not supply specified airport services subject to
18
business) this information disclosure regime.
19 Other - key management personnel Key management personnel
Other - Auckland International Two members of Auckland Airport's senior management team are on the board of
Airport Marae Ltd Auckland International Airport Marae Ltd. No fees were paid in relation to these
20
appointments.
21 5(iii): Related Party Transactions

Entity Name Description of Transaction Average Unit Price Value
22 ($) ($000)
Auckland Council Rates paid by Auckland Airport to
Auckland Council for the regulated
business
23 N/A 2,630
Auckland Council Compliance, consent fees and other
government regulatory obligations
24 N/A 191
City Park Services Grounds maintenance for the
regulated business
25 N/A 1,453
Watercare Water, wastewater and compliance
26
services for the regulated business N/A 1,324
Auckland Council and Auckland Transfer of 55,338 sqm of roading
Airport (non-regulated business) land, including a section of George
Bolt Memorial Drive and Nixon
Roads to the "unallocated" regulated
asset base, that was previously
purchased from Auckland Council.
The purchase was completed in
2017 but was not immediately
recorded in the "unallocated'
regulated asset base. The transfer
was made per clauses 3.9(1)(e) and
3.9 (4) of the Input Methodologies,
and per the price negotiated with
Auckland Council (then Manukau
City Council) on 28 October 2010.
27 51 2,813
Airport-services-ID-determination-annual-templates-2018 - Working Document

S5.Related Party Transactions
Auckland Airport (non-regulated Transfer of 10,480 sqm of

business) investment property land recently
vacated by Ministry of Primary
Industries to assets held for future
use that was identified to be
necessary for aeronautical use as
per the Master Plan. The land was
transferred to AHFU per clauses
3.9(1)(e) and 3.9 (4) of the Input
Methodologies. In 2019 this site will
be utilised for the Airport's
engineering services.
28 450 4,716
Auckland Airport (non-regulated Transfer of 3,467.90 sqm of land in
business) the regulated asset base previously
used by Airways for parking, to the
non regulated business for use as
public carparking at the DTB. This
land has been transferred in
accordance with clause 1.4(3) of the
Information Disclosure
Determination for assets disposed of
to a related party.
29 (68) (234)
Auckland Airport (non-regulated Transfer of 5,708.33 sqm of land
business) held for future use to the non
regulated business for use as
carparking at Park and Ride. This
land has been transferred in
accordance with clause 1.4(3) of the
Information Disclosure
Determination for assets disposed of
to a related party.
30 (84) (479)
Auckland Airport (non-regulated Transfer of 1,096.97 sqm of land
business) held in the regulated asset base as
infrastructure, being land
surrounding a pumpstation, to the
non regulated business for use as
Investment Property. This land has
been transferred in accordance with
clause 1.4(3) of the Information
Disclosure Determination for assets
disposed of to a related party.
31 (68) (74)
Auckland Airport (non-regulated Transfer of 734.4 sqm of land held in
business) the regulated asset base as
infrastructure, being a section of the
air cargo access road, to the non
regulated business for use as
Investment Property. This land has
been transferred in accordance with
clause 1.4(3) of the Information
Disclosure Determination for assets
disposed of to a related party.
32 (77) (57)
33 Key management personnel Remuneration of directors N/A 1,104
34 Key management personnel Remuneration of the senior N/A 5,581
35 Auckland International Airport Marae management
Maintenance andteamoccupancy costs N/A 31
36
Ltd for the regulated business
37
38 Commentary on Related Party Transactions

40
41
42 Page 9
Airport-services-ID-determination-annual-templates-2018 - Working Document

S5.Related Party Transactions

SCHEDULE 6: REPORT ON ACTUAL TO FORECAST PERFORMANCE
ref Version 4.0
6 6a: Actual to Forecast Expenditure

7 ($000)
Actual for Forecast for
Current Current Actual for Forecast for
Disclosure Disclosure Period to Period to
8 Year Year* % Variance Date Date* % Variance
9 Expenditure by Category (a) (b) (a)/(b)-1 (a) (b) (a)/(b)-1
10 Capacity growth 186,734 247,551 (24.6%) 186,734 247,551 (24.6%)
11 Asset replacement and renewal 28,585 57,904 (50.6%) 28,585 57,904 (50.6%)
12 Total capital expenditure 215,319 305,455 (29.5%) 215,319 305,455 (29.5%)
13
14 Corporate overheads 23,516 27,204 (13.6%) 23,516 27,204 (13.6%)
15 Asset management and airport operations 77,852 73,027 6.6% 77,852 73,027 6.6%
16 Asset maintenance 15,334 13,492 13.7% 15,334 13,492 13.7%
17 Total operational expenditure 116,701 113,722 2.6% 116,701 113,722 2.6%
18 Key Capital Expenditure Projects

19 International Terminal (Check in, Outbound Baggage & Landside Dwell)
5,441 11,915 (54.3%) 5,441 11,915 (54.3%)
20 International Terminal (Airside Emigration & Dwell) 85,731 51,002 68.1% 85,731 51,002 68.1%
21 International Terminal (Pier and Connections) 54,439 78,194 (30.4%) 54,439 78,194 (30.4%)
22 International Terminal (Arrivals) 862 20,163 (95.7%) 862 20,163 (95.7%)
23 Ground Transport Centre / Plaza - Aeronautical elements (Ground Transport
(0) Centre1,138
/ Plaza - Aeronautical
(100.0%) elements) (0) 1,138 (100.0%)
24 Integrated Facility (Domestic Jet Facility (Phase 5)) 16,182 35,854 (54.9%) 16,182 35,854 (54.9%)
25 Existing Domestic Terminal (Extension of Life) 1,050 – Not defined 1,050 – Not defined
26 Runway, Taxiway and Aprons (Code F Taxiway, Stands and Aprons) 5,954 11,345 (47.5%) 5,954 11,345 (47.5%)
27 Runway, Taxiway and Aprons (Code B/C/E taxiway, stands and aprons – (Phase 5)) 5,481 (100.0%) – 5,481 (100.0%)
28 Runway, Taxiway and Aprons (Airfield Utilities) 1,487 8,675 (82.9%) 1,487 8,675 (82.9%)
29 Runway, Taxiway and Aprons (Flexible contingent runway) 207 – Not defined 207 – Not defined
30 Support Facilities (Business Technology) 3,865 5,064 (23.7%) 3,865 5,064 (23.7%)
31 Support Facilities (Acoustic Mitigation) 1,501 1,625 (7.6%) 1,501 1,625 (7.6%)
32 Support Facilities (AD&D Support Projects) 2,807 4,901 (42.7%) 2,807 4,901 (42.7%)
33 Support Facilities (Airport Emergency Services) 1,257 793 58.6% 1,257 793 58.6%
34 Support Facilities (Marketing Customer Service and Communications)157 623 (74.8%) 157 623 (74.8%)
35 Support Facilities (Corporate) 1,936 1,184 63.4% 1,936 1,184 63.4%
36 Airport Campus Utilities (Utilities - Stormwater) – 678 (100.0%) – 678 (100.0%)
37 Airport Campus Utilities (Utilities - Water & Wastewater) 1,047 2,115 (50.5%) 1,047 2,115 (50.5%)
38 Airport Campus Utilities (Utilities - Power - LV and HV Power) – 305 (100.0%) – 305 (100.0%)
39 Airport Surface Access Network (Terminal Roads) 1,359 7,507 (81.9%) 1,359 7,507 (81.9%)
40 Airport Surface Access Network (Arterial and Other Roads) 7,293 11,413 (36.1%) 7,293 11,413 (36.1%)
41 Asset Maintenance (Slab Replacement and Runway Works) 11,985 8,666 38.3% 11,985 8,666 38.3%
42 Asset Maintenance (Airbridge Refurbishment) 115 1,517 (92.4%) 115 1,517 (92.4%)
43 Asset Maintenance (Business as Usual) 7,338 14,262 (48.5%) 7,338 14,262 (48.5%)
44 Second Runway incl Utilities (Second Runway incl Utilities) 3,262 11,270 (71.1%) 3,262 11,270 (71.1%)
45 – Not defined – Not defined
46 Other capital expenditure 44 9,767 (99.5%) 44 9,767 (99.5%)
47 Total capital expenditure 215,319 305,455 (29.5%) 215,319 305,455 (29.5%)
48 Explanation of Variances
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82 Airport Companies must provide a brief explanation for any line item variance of more than 10%
83 * Disclosure year coincides with Pricing Period Starting Year + 0.
84 Page 10
Airport-services-ID-determination-annual-templates-2018 - Working Document S6.Actual to Forecast


SCHEDULE 6: REPORT ON ACTUAL TO FORECAST PERFORMANCE (cont)
ref Version 4.0
91 6b: Forecast Expenditure

92 From most recent disclosure following a price setting event
Starting year of current pricing period (year ended) 30 June 2018
Pricing Pricing Pricing Pricing
Pricing Period Period Period Period
Period Starting Year Starting Year Starting Year Starting Year
94 Expenditure by Category Starting Year +1 +2 +3 +4
95 for year ended 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 30 Jun 22
96 Capacity growth 247,551 409,728 423,834 501,327 547,757
97 Asset replacement and renewal 57,904 47,069 36,408 38,125 42,894
98 Total forecast capital expenditure 305,455 456,797 460,242 539,452 590,652
99
100 Corporate overheads 27,204 29,295 30,447 31,587 32,868
101 Asset management and airport operations 73,027 78,641 81,733 84,793 88,230
102 Asset maintenance 13,492 14,529 15,100 15,665 16,300
103 Total forecast operational expenditure 113,722 122,465 127,281 132,045 137,398
Pricing Pricing Pricing Pricing

Pricing Period Period Period Period
Period Starting Year Starting Year Starting Year Starting Year
104 Key Capital Expenditure Projects Starting Year +1 +2 +3 +4
105 for year ended 30 Jun 18 30 Jun 19 30 Jun 20 30 Jun 21 30 Jun 22
106 International Terminal (Check in, Outbound Baggage & Landside Dwell) 11,915 1,129 6,414 36,321 109,960
107 International Terminal (Airside Emigration & Dwell) 51,002 20,848 708 – 0
108 International Terminal (Pier and Connections) 78,194 55,066 43,089 0 0
109 International Terminal (Arrivals) 20,163 40,248 41,942 120 15,666
110 Ground Transport Centre / Plaza - Aeronautical elements (Ground Transport Centre1,138 / Plaza - Aeronautical
535 elements) 592 15,878 29,317
111 Integrated Facility (Domestic Jet Facility (Phase 5)) 35,854 135,708 139,159 177,837 141,625
112 Existing Domestic Terminal (Extension of Life) – 11,295 11,814 – –
113 Runway, Taxiway and Aprons (Code F Taxiway, Stands and Aprons) 11,345 6,130 3,040 61,372 120,408
114 Runway, Taxiway and Aprons (Code B/C/E taxiway, stands and aprons (Phase 5)) 5,481 64,100 83,189 94,618 –
115 Runway, Taxiway and Aprons (Airfield Utilities) 8,675 18,656 4,718 1,172 1,223
116 Runway, Taxiway and Aprons (Flexible contingent runway) – – – – –
117 Support Facilities (Business Technology) 5,064 3,577 3,741 3,906 6,017
118 Support Facilities (Acoustic Mitigation) 1,625 1,694 1,772 1,850 1,931
119 Support Facilities (AD&D Support Projects) 4,901 6,813 7,126 7,441 7,764
120 Support Facilities (Airport Emergency Services) 793 10,447 – – –
121 Support Facilities (Marketing Customer Service and Communications) 623 565 591 617 644
122 Support Facilities (Corporate) 1,184 1,150 1,203 1,256 1,310
123 Airport Campus Utilities (Utilities - Stormwater) 678 2,434 2,300 1,544 716
124 Airport Campus Utilities (Utilities - Water & Wastewater) 2,115 6,230 5,980 1,688 1,283
125 Airport Campus Utilities (Utilities - Power - LV and HV Power) 305 1,449 1,373 3,010 –
126 Airport Surface Access Network (Terminal Roads) 7,507 7,617 9,331 7,336 1,964
127 Airport Surface Access Network (Arterial and Other Roads) 11,413 18,198 11,017 12,371 27,274
128 Asset Maintenance (Slab Replacement and Runway Works) 8,666 9,036 9,451 9,869 10,297
129 Asset Maintenance (Airbridge Refurbishment) 1,517 1,581 1,654 1,727 1,802
130 Asset Maintenance (Business as Usual) 14,262 11,157 12,120 12,027 11,767
131 Second Runway incl Utilities (Second Runway incl Utilities) 11,270 18,377 57,398 86,256 96,441
132
133 Other capital expenditure 9,767 2,757 519 1,236 3,246
134 Total forecast capital expenditure 305,455 456,797 460,242 539,452 590,652
135 Page 11


SCHEDULE 6: REPORT ON ACTUAL TO FORECAST PERFORMANCE (cont)
ref Version 4.0
142 6c: Actual to Forecast Adjustments - Items Identified in Price Setting Events
143
Estimated
present
value of the
proposed
Actual for Forecast for risk
Current Current Actual for Forecast for allocation
Disclosure Disclosure Period to Period to adjustment
144 Units used Year Year* % Variance Date Date* % Variance ($000)
145 Proposed risk allocation adjustment (a) (b) (a)/(b)-1 (a) (b) (a)/(b)-1
146
147 [Proposed adjustment 1] Not defined Not defined
156 *include additional rows if needed
157 Total proposed risk allocation adjustments –
158 Explanation of how the airport produced the estimated present value of each proposed risk allocation adjustment
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192 Airport Companies must provide a brief explanation of how the airport produced its estimated present value for each risk allocation adjustment specified in rows 111-119.
193 * Disclosure year Pricing Period Starting Year .
194 Page 12


SCHEDULE 7: REPORT ON SEGMENTED INFORMATION
ref Version 4.0
6 ($000)
Specified
Passenger Aircraft and
Terminal Airfield Freight Airport
7 Activities Activities Activities Business*
8 Airfield – 122,100 – 122,100
9 Passenger Service Charge 179,068 – – 179,068
10 0 –
11 0 –
12 Lease, rental and concession income 17,913 431 15,766 34,111
13 Other operating revenue 1,050 749 1,281 3,080
14 Net operating revenue 198,031 123,281 17,047 338,359
15
16 Gains / (losses) on asset sales (10,936) (784) (25) (11,745)
17 Other income –
18 Total regulatory income 187,095 122,497 17,022 326,614
19
20 Total operational expenditure 82,227 29,908 4,566 116,701
21
22 Regulatory depreciation 27,886 17,613 1,625 47,124
23
24 Total revaluations – – 857 857
25
26 Regulatory tax allowance 19,451 18,892 2,705 41,048
27
28 Regulatory profit/ loss 57,531 56,083 8,983 122,598
29
30 Regulatory investment value 576,558 672,117 65,223 1,313,898
31 * Corresponds to values reported in the Report on Regulatory Profit and the Report on Return on Investment.
32 Commentary on Segmented Information

34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54 Page 13
Airport-services-ID-determination-annual-templates-2018 - Working Document S7.Segmented Information


SCHEDULE 8: CONSOLIDATION STATEMENT
ref Version 4.0
6 8a: CONSOLIDATION STATEMENT ($000)

Regulatory/ Airport Unregulated Airport
Airport GAAP Business– Activities– Company–
7 Businesses Adjustments GAAP GAAP GAAP
8
9 Net income 326,614 11,735 338,349 343,039 681,388
10
11 Total operational expenditure 116,701 – 116,701 60,877 177,578
12 Operating surplus / (deficit) before interest,
13 depreciation, revaluations and tax 209,913 11,735 221,648 282,162 503,810
14
15 Depreciation 47,124 21,527 68,651 20,256 88,907
16 Revaluations 857 (832) 25 152,213 152,238
17 Tax expense 41,048 1,857 42,905 85,260 128,166
18
19 Net operating surplus / (deficit) before interest 122,598 (12,481) 110,117 328,859 438,975
20
21 Property plant and equipment 1,411,886 1,515,867 2,927,753 3,450,247 6,378,000
22
23 8b: NOTES TO CONSOLIDATION STATEMENT
24 8b(i): REGULATORY / GAAP ADJUSTMENTS

25 ($000)
Regulatory /
Affected Line GAAP
26 Description of Regulatory / GAAP Adjustment Item Adjustments *
The depreciation is $21.527m higher under GAAP due to:

1) Depreciation starting immediately under GAAP, but the year following
commissioning for ID.
2) Differing valuation methodologies between regulatory and GAAP reporting.
Further information is in the accompanying commentary document.

27 Depreciation 21,527
The difference in revaluations between regulatory and GAAP is due to the

different valuation approaches used as described in the accompanying
commentary document.
28 Revaluations (832)
The regulatory/GAAP adjustment of $1.857m relates to deferred tax "expense" of
$0.669m that is recognised in Airport Business GAAP, offset by the tax effect of
$2.526m in relation to the notional interest deduction, which is not claimed in the
the GAAP tax calculation and the tax effect $0.277m due to differences between
the GAAP gain on disposal of assets and the regulatory loss on disposal of
29
assets. Tax expense 1,857
The Airport Business - GAAP PP&E is $1,515,867m higher because:
1) the GAAP asset valuations have resulted in higher values than the regulatory
valuations. Further information on valuations is in the accompanying commentary
document. Note - PPE Land was revalued in FY18.
2) Future Use assets are excluded from "Airport Businesses" but included in
"Airport Businesses - GAAP".
30 Property plant & equipment 1,515,867
31 [Select one]
32 [Select one]
33 [Select one]
34 * To correspond with the clause 8a column Regulatory/GAAP adjustments
35 Commentary on the Consolidation Statement

37
38
39
40 Page 14
Airport-services-ID-determination-annual-templates-2018 - Working Document S8.Consolidation Statement


SCHEDULE 9: REPORT ON ASSET ALLOCATIONS
ref Version 4.0
6 9a: Asset Allocations ($000)
Specified Aircraft and

Terminal Airfield Freight Airport Unregulated
7 Activities Activities Activities Business Component Total
8 Land
9 Directly attributable assets 136 284,384 26,234 310,754 310,754
10 Assets not directly attributable 21,125 4,627 483 26,236 10,548 36,783
11 Total value land 336,989
12 Sealed Surfaces
13 Directly attributable assets – 251,947 – 251,947 251,947
14 Assets not directly attributable – – – – – –
15 Total value sealed surfaces 251,947
16 Infrastructure and Buildings
17 Directly attributable assets 87,590 61,413 40,370 189,372 189,372
18 Assets not directly attributable 540,859 45,833 4,579 591,270 231,081 822,352
19 Total value infrastructure and buildings 780,642
20 Vehicles, Plant and Equipment

21 Directly attributable assets 6,863 7,617 113 14,594 14,594
22 Assets not directly attributable 17,617 9,264 832 27,714 8,960 36,673
23 Total value vehicles, plant and equipment 42,307
24
25 Total directly attributable assets 94,589 605,361 66,717 766,667 766,667
26 Total assets not directly attributable 579,601 59,725 5,894 645,220 250,589 895,808
27 Total assets 674,190 665,085 72,611 1,411,886 250,589 1,662,475
28 Asset Allocators
Allocator
29 Asset Category Allocator* Type Rationale Asset Line Items
Assets that service the ITB are allocated

based on relevant terminal areas. Relevant
spaces include overall space, forecourt, Pier B, Primarily Buildings within the
expanded arrivals, 1st floor redevelopment terminals.
Proxy Cost (fixed) and the residual 'core' which includes
30 Buildings ITB (sub)spaces Allocator Pier A.
Primarily Buildings within the

Assets that service the DTB are allocated terminals.
Proxy Cost based on relevant terminal areas. DTB spaces
31 Buildings DTB (sub)spaces Allocator include overall space and forecourt.
Utility distribution networks

(Notional) Charged Usage are based on meter (end point assets allocated
readings which directly relate to utilisation of based on end point user)
the assets. In the case of internal usage, a including electricity, potable &
Causal notional charge is calculated based on tariff waste water outside buildings
32 Infrastructure Charged Usage Relationship rates and measured usage. and gas.
Rain water not absorbed into the ground enters

the storm water network. An assessment of
land covered by sealed surfaces by the land's Stormwater distribution
usage reasonably estimates utilisation of the network (end point assets
storm water assets. Roading allocation is done allocated based on end point
where roads cannot be directly attributed they user), roadng and adjacent
are considered to be shared across the Infrastructure, lightning,
business. Lightning, pavement, signage outside pavement - mainly for parking
buildings are allocated based on the respective other than roading and
Causal analysis associated with the business unit or footpaths, signage outside the
33 Infrastructure Space Relationship use. buildings including traffic lights.
Airport-services-ID-determination-annual-templates-2018 - Working Document S9.Asset Allocation

The communications network provides benefit

Proxy Cost to the broader business. No specific Communications network
34 Infrastructure Company-wide rule Allocator usage/billing analysis available. outside buildings
Land under the terminal is allocated to

regulated and non-regulated activities on the
Causal same basis as building structure – i.e. based on
35 Land Space Relationship the share of terminal space. Land under terminals
Staff time directly impacts the utilisation of the

asset. The use is identified by the indication
Causal done by staff in the operating cost business Motor Vehicles used by
36 Vehicles, Plant & Equipment FTE Analysis Relationship analysis. Aeronautical management
Assets allocated based on corresponding Assets (motor vehicles and

allocated opex. Allocation of (repairs and plant) relating to Engineering
maintenance) opex is determined at a business Support Services who are
Causal unit level (directly or using the above responsible for repairs and
37 Vehicles, Plant & Equipment Internal R&M Analysis Relationship allocators). maintenance
Plant and equipment which is not directly

attributed is allocated on the same basis as
Proxy Cost buildign structure - based on the share of
38 Vehicles, Plant & Equipment Space Allocator terminal space. Plant
Where Plant and Equipment cannot be directly

attributed and provides benefit to the broader
Proxy Cost business the company-wide rule is used to Plant and equipment primarily
39 Vehicles, Plant & Equipment Company-wide rule Allocator allocate these assets. IT related
40 [Select one]
41 Page 15


SCHEDULE 9: REPORT ON ASSET ALLOCATIONS (cont)

ref Version 4.0
48 Asset Allocators (cont)
Allocator
49 Asset Category Allocator* Type Rationale Asset Line Items
50 [Select one]
51 [Select one]
52 [Select one]
53 [Select one]
54 [Select one]
55 [Select one]
56 [Select one]
57 [Select one]
58 [Select one]
59 [Select one]
60 [Select one]
61 [Select one]
62 [Select one]
63 [Select one]
64 [Select one]
65 [Select one]
66 [Select one]
67 [Select one]
68 [Select one]
69 [Select one]
70 [Select one]
71 [Select one]
72 [Select one]
73 [Select one]
74 [Select one]
75 [Select one]
76 [Select one]
77 [Select one]
78 [Select one]
79 [Select one]
80 [Select one]
81 [Select one]
82 [Select one]
83 [Select one]
84 [Select one]
85 [Select one]
86 [Select one]
87 [Select one]
88 [Select one]
89 [Select one]
90 [Select one]
91 [Select one]
92 [Select one]
93 [Select one]
94 [Select one]
95 [Select one]
96 [Select one]
97 [Select one]
98 [Select one]
99 [Select one]
100 [Select one]
101 [Select one]
102 [Select one]
103 [Select one]
104 [Select one]
105 [Select one]
106 [Select one]
107 [Select one]
108 [Select one]
109 [Select one]
110 [Select one]
111 [Select one]
112 [Select one]
113 [Select one]
114 [Select one]
115 * A description of the metric used for allocation, e.g. floor space.
116 Page 16


SCHEDULE 9: REPORT ON ASSET ALLOCATIONS (cont)

ref Version 4.0
124 9b(i): Changes in Asset Allocators

125 ($000)
126 Effect of Change
Current Year
127 CY-1 (CY) CY+1
128 Asset category 30 Jun 17 30 Jun 18 30 Jun 19
129 Original allocator or components Original
130 New allocator or components New
131 Rationale Difference – – –
132
133 Asset category
137
138 Asset category
142
143 Asset category
147
148 Asset category
152
153 Asset category
157
158 Asset category
162 Commentary on Asset Allocations

164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189 Page 17


SCHEDULE 10: REPORT ON COST ALLOCATIONS
ref Version 4.0
6 10a: Cost Allocations ($000)

Terminal Airfield Freight Airport Unregulated
7 Activities Activities Activities Business Component Total
8 Corporate Overheads
9 Directly attributable operating costs 1 – – 1 1
10 Costs not directly attributable 14,230 8,540 745 23,514 12,256 35,770
11 Asset Management and Airport Operations
12 Directly attributable operating costs 37,225 3,991 1,288 42,504 42,504
13 Costs not directly attributable 20,829 12,574 1,945 35,348 42,067 77,415
14 Asset Maintenance
15 Directly attributable operating costs 6,857 3,382 460 10,699 10,699
16 Costs not directly attributable 3,086 1,422 128 4,635 6,554 11,189
17
18 Total directly attributable costs 44,083 7,373 1,748 53,204 53,204
19 Total costs not directly attributable 38,144 22,535 2,818 63,497 60,877 124,374
20 Total operating costs 82,227 29,908 4,566 116,701 60,877 177,578
21 Cost Allocators
Allocator
22 Operating Cost Category Allocator* Type Rationale Operating Cost Line Items
Predominately employee costs associated with

All costs lines within the
maintenance of airport assets. The allocation of
MAINTENANCE SERVICES,
Split by R&M charges to these costs are estimated by management
Proxy Cost BUILDING AND TERMINAL
Asset Maintenance internal BUs & then by BU based on time spent on activities in each
Allocator SERVICES and ELECTRONIC
allocation rules segment. It would be inefficient and immaterial
SYSTEMS business units
to systemise the monitoring of time spent
except specific object codes
across each segment.
carved out as per cost
23 allocation process.
All cost lines within the

Internal charges weighted Electricity business unit except
Metered usage deemed to be the causal factor
Asset Management & Airport by internal BU rules & Causal electricity internal charges and
for generating the associated revenues and
Operations external charges coded Relationship other specific object codes
costs
commercial direct carved out as per cost
allocation process
24
All cost lines within the Water

Internal charges weighted business unit except water
Asset Management & Airport by internal BU rules & Causal internal charges and other
Operations external charges coded Relationship specific object codes carved
costs
commercial direct out as per cost allocation
process
25
All cost lines within the Gas

Internal charges weighted
Metered usage deemed to be the causal factor business unit except internal
Asset Management & Airport by internal BU rules & Causal
for generating the associated revenues and gas charges and other specific
Operations external charges coded Relationship
costs object codes carved out as per
commercial direct
cost allocation process
26
Weighted average of
stormwater and wastewater
rules based on NBV of
STORMWATER &
assets: Stormwater = Impermeable area and metered usage deemed
Asset Management & Airport Causal WASTEWATER business unit
weighted average of rules to be causal factors for generating the
Operations Relationship except other specific object
applied to sealed areas. associated revenues and costs
codes carved out as per cost
Wastewater = weighted
allocation process
average of rules applied to
meters
27
Internal electricity charges

Asset Management & Airport Internal charges weighted Causal within the ELECTRICITY (INCL
Operations by internal BU rules Relationship RETICULATION & POWER
costs
CTRS) business unit
28
Airport-services-ID-determination-annual-templates-2018 - Working Document S10.Cost Allocation

Internal water charges within

Metered usage deemed to be the causal factor the WATER (INCL
Asset Management & Airport Internal charges weighted Causal
for generating the associated revenues and RETICULATION,
Operations by internal BU rules Relationship
costs RESERVOIRS & PUMP
STATION) business unit
29
Metered usage deemed to be the causal factor Internal gas charges within the
Asset Management & Airport Internal charges weighted Causal
for generating the associated revenues and GAS (INCL RETICULATION)
Operations by internal BU rules Relationship
costs business unit
30
business units listed below
These functions support all segments and the
Company-wide (terminal proxy rule efficiently captures the relative scale
Asset Management & Airport Proxy Cost allocation process
space & aeronautical of each segment. It is inefficient and immaterial
Operations Allocator GROUND CARE
revenue splits) to systemise the monitoring and recording of
SKYGATE SECURITY
time spent across each segment
MASTER PLANNING
MASTER PLANNING -
31 TRANSPORT
Predominately employee related costs which All costs lines within the
are estimated by management based on time (AERO) COMMERICAL
spent on activities in each segment. It would be MANAGEMENT and
Asset Management & Airport Proxy Cost
Employee time split inefficient and immaterial to systemise the TRANSPORT MANAGEMENT
Operations Allocator
monitoring of time spent across each segment. business units except specific
The proxy rule efficiently captures the relative object codes carved out as per
scale of each segment cost allocation process
32
All costs lines within the AERO

These functions support all aeronautical
MANAGEMENT and FUEL
segments and it is inefficient and immaterial to
Asset Management & Airport Proxy Cost RECOVERY business units
Employee time split systemise the monitoring of time spent across
Operations Allocator except specific object codes
each segment. The proxy rule efficiently
captures the relative scale of each segment
allocation process
33

These managerial functions support both
AIRSIDE OPERATIONS
Airfield and Passenger Terminal operations
MANAGEMENT and SLOTS
Asset Management & Airport Proxy Cost management and it is inefficient and immaterial
COORDINATION business
Operations Allocator to monitor time spent across each segment.
units except specific object
Aeronautical The proxy rule efficiently captures the relative
codes carved out as per cost
revenues/costs split scale of each segment
allocation process
excluding aircraft and
34 freight revenues/expenses

RESCUE FIRE ADMIN, AERO
These managerial functions support all
PERFORMANCE &
aeronautical segments and it is inefficient and
Asset Management & Airport Aeronautical revenues Proxy Cost PLANNING and OPERATION
immaterial to monitor time spent across each
Operations split Allocator CAPRICORN business units
segment. The proxy rule efficiently captures the
relative scale of each segment
allocation process
35
Costs associated with maintaining roads in the All costs lines within the
airport district. AIAL management are in the ROADWAYS business unit
process of gathering vehcile movement and except specific object codes
roading network usage data to refine the carved out as per cost
allocation of costs to maintain roading assets allocation process
Rules applying to
individual assets within this
36 BU weighted by NBV
Property is used for both aeronautical and All costs lines within the
administrative purposes. It would be inefficient INTERNATIONAL JETBASE
and immaterial to monitor costs incurred by business unit except specific
each segment. The proxy rule efficiently object codes carved out as per
captures the relative scale of each segment cost allocation process
Share of area between
aeronautical and non-
37 aeronautical activities

BU dominated by rental revenue so costs are All costs lines within the ITB
split by rental revenue associated with each TENANCIES-
Share of rental revenues
Asset Management & Airport Proxy Cost segment. It would be inefficient and immaterial ADMINISTRATIVE and DHL
between aeronautical and
Operations Allocator to monitor costs incurred by each segment. The business units except specific
non-aeronautical revenues
proxy rule efficiently captures the relative scale object codes carved out as per
of each segment cost allocation process
38
Costs related to the Quad 5 Building including

the AIAL Management Offices. It would be
QUAD 5 business unit except
Asset Management & Airport Proxy Cost inefficient and immaterial to monitor costs
specific object codes carved
Operations Allocator incurred by each segment. The proxy rule
out as per cost allocation
Space based split based efficiently captures the relative scale of each
process
on area of building segment
occupied by AIAL and
39 external tenants

maintenance of airport assets. The allocation of All costs lines within the
Split by R&M charges to these costs are estimated by management ASSET DATA SERVICES
internal BUs & then by BU based on time spent on activities in each business unit except specific
allocation rules segment. It would be inefficient and immaterial object codes carved out as per
to systemise the monitoring of time spent cost allocation process.
40

maintenance of airport assets. The allocation of
ENGINEERING SUPPORT
Split by R&M charges to these costs are estimated by management
Proxy Cost SERVICES business unit
Corporate Overheads internal BUs & then by BU based on time spent on activities in each
Allocator except specific object codes
allocation rules segment. It would be inefficient and immaterial
to systemise the monitoring of time spent
allocation process.
41

The split of aeronautical revenues fairly AERONAUTICAL PRICING
distributes between aeronautical activities. This and ECONOMIC
Aeronautical revenues Proxy Cost
Corporate Overheads is used to attribute airline consultation cost REGULATION business units
split Allocator
between airfield and terminal which efficiently except specific object codes
captures the relative scale of each segment carved out as per cost
allocation process
42
Marketing incentive costs are associated with All costs lines within the
Mix of aeronautical aeronautical activities (airfield and passenger CHINA PLAN business units
Proxy Cost
Corporate Overheads revenues split and terminal), all other costs support the entire except specific object codes
Allocator
company-wide rule company. The proxy rule efficiently captures carved out as per cost
the relative scale of each segment allocation process
43

These functions support all aeronautical INTEGRATED TERMINAL
segments and it is inefficient and immaterial to FACILITY and POLICY
Proxy Cost
Corporate Overheads Employee time split systemise the monitoring of time spent across MANAGEMENT business
Allocator
each segment. The proxy rule efficiently units except specific object
captures the relative scale of each segment codes carved out as per cost
allocation process
44
Predominately employee related costs which All costs lines within the
are estimated by management based on time RETAIL MANAGEMENT,
spent on activities in each segment. It would be MARKETING AND
Proxy Cost
Corporate Overheads Employee time split inefficient and immaterial to systemise the BRANDING and INSIGHT
Allocator
monitoring of time spent across each segment. business units except specific
The proxy rule efficiently captures the relative object codes carved out as per
scale of each segment cost allocation process
45


business units listed below
allocation process
GENERAL COUNSEL & CO
SECRETARY
CORPORATE RELATIONS
These functions support all segments and the
COMMUNITY RELATIONS
Company-wide (terminal proxy rule efficiently captures the relative scale
Proxy Cost MARAE
Corporate Overheads space & aeronautical of each segment. It is inefficient and immaterial
Allocator ACCOUNTING
revenue splits) to systemise the monitoring and recording of
BUSINESS INTELLIGENCE
time spent across each segment
CEO
HUMAN RESOURCES
CORPORATE OFFICE
PROCUREMENT
HEALTH AND SAFETY
DIGITAL MARKETING
BUSINESS ARCHITECTURE
BT OUTSOURCED
46
Marketing incentive costs are associated with All costs lines within the
Mix of aeronautical aeronautical activities (airfield and passenger ROUTE DEVELOPMENT
revenues split and terminal), all other costs support the entire business units except specific
company-wide rule company. The proxy rule efficiently captures object codes carved out as per
the relative scale of each segment cost allocation process
47
These functions support all segments and the business units listed below
Company-wide (terminal proxy rule efficiently captures the relative scale except specific object codes
space & aeronautical of each segment. It is inefficient and immaterial carved out as per cost
revenue splits) to systemise the monitoring and recording of allocation process
time spent across each segment IT SYSTEMS
48 BUSINESS SOLUTIONS
49
50
51
52
53 * A description of the metric used for allocation, e.g. floor space.
54 Page 25


SCHEDULE 10: REPORT ON COST ALLOCATIONS (cont)

ref Version 4.0
62 10b(i): Changes in Cost Allocators

63 ($000)
64 Effect of Change
Current Year
65 CY-1 (CY) CY+1
66 Operating cost category 30 Jun 17 30 Jun 18 30 Jun 19
70
71 Operating cost category
75
80
85
90
95
100 Commentary on Cost Allocations

102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127 Page 26


SCHEDULE 11: REPORT ON RELIABILITY MEASURES
ref Version 4.0
6 Runway Number Total Duration

The number and duration of interruptions to runway(s) during disclosure year by Hours Minutes
7 party primarily responsible
8 Airports 1 – 25
9 Airlines/Other 3 2 –
10 Undetermined reasons – – –
11 Total 4 2 : 25
12 Taxiway
The number and duration of interruptions to taxiway(s) during disclosure year by
14 Airports
15 Airlines/Other
16 Undetermined reasons
17 Total – – : –
18 Remote stands and means of embarkation/disembarkation

The number and duration of interruptions to remote stands and means of
19 embarkation/disembarkation during disclosure year by party primarily responsible
20 Airports
21 Airlines/Other
23 Total – – : –
24 Contact stands and airbridges

The number and duration of interruptions to contact stands during disclosure year by
26 Airports 39 144 13
27 Airlines/Other 20 12 29
29 Total 59 156 : 42
30 Baggage sortation system on departures

The number and duration of interruptions to baggage sortation system on departures
31 during disclosure year by party primarily responsible
32 Airports 2 4 46
33 Airlines/Other 1 – 22
35 Total 3 5 : 08
36 Baggage reclaim belts

The number and duration of interruptions to baggage reclaim belts during disclosure
37 year by party primarily responsible
38 Airports
39 Airlines/Other
41 Total – – : –
42 On-time departure delay

The total number of flights affected by on time departure delay and the total duration
43 of the delay during disclosure year by party primarily responsible
44 Airports 26 13 46
45 Airlines/Other 17 11 47
47 Total 43 25 : 33
48 Page 27
Airport-services-ID-determination-annual-templates-2018 - Working Document S11.Reliability


SCHEDULE 11: REPORT ON RELIABILITY MEASURES (cont)
ref Version 4.0
55 Fixed electrical ground power availability (if applicable)

56 The percentage of time that FEGP is unavailable due to interruptions* 1.65%
* Disclosure of FEGP information applies only to airports where fixed electrical ground power is available.
57
58 Commentary concerning reliability measures

60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
Must include information on how the responsibility for interruptions is determined and the processes the Airport has put in place for undertaking any operational improvement in respect
79 of reliability. If interruptions are categorised as “occurring for undetermined reasons”, the reasons for inclusion in this category must be disclosed.
80 Page 28
Airport-services-ID-determination-annual-templates-2018 - Working Document S11.Reliability


SCHEDULE 12: REPORT ON CAPACITY UTILISATION INDICATORS FOR AIRCRAFT AND FREIGHT ACTIVITIES AND AIRFIELD
ACTIVITIES
ref Version 4.0
6 Runway
7 Runway #1 Runway #2 Runway #3
8 Description of runway(s) Designations 23L/05R N/A N/A
9 Length of pavement (m) 3,635 N/A N/A
10 Width (m) 45 N/A N/A
11 Shoulder width (m) 30 N/A N/A
12 Runway code 4F N/A N/A
13
14 ILS category Category III B N/A N/A
15 Declared runway capacity VMC (movements per hour) 45 N/A N/A
16
for specified meteorological IMC (movements per hour) 38 N/A N/A
17
condition
18 Taxiway
19 Taxiway #1 Taxiway #2 Taxiway #3 Taxiway #4
20 Description of main Name Alpha Bravo Delta Lima
21
taxiway(s) Length (m) 3,220 2,587 370 673
22 Width (m) 45 24 23 25
23 Status Full length Part length Part length Part length
24 Number of links 11 10 4 4
25 Aircraft parking stands

26 Number of apron stands available during the runway busy day categorised by stand description and primary flight category
27 Contact stand–airbridge Contact stand–walking Remote stand–bus
28 Air passenger services International 18 4 27
29 Domestic jet 9 2 –
30 Domestic turboprop – 13 6
31 Total parking stands 27 19 33
32 Busy periods for runway movements

33 Date
34 Runway busy day 17 November 2017
35 Runway busy hour start time
36 (day/month/year hour) 31 May 2018 4 PM
37 Aircraft movements
38 Number of aircraft runway movements during the runway busy day with air passenger service flights categorised by stand description and flight category
39 Contact stand–airbridge Contact stand–walking Remote stand—bus Total
40 Air passenger services International 146 – 8 154
41 Domestic jet 139 6 – 145
42 Domestic turboprop – 221 18 239
43
44
Total 285 227 26 538
45
46 Other (including General Aviation) 10
47 Total aircraft movements during the runway busy day 548
48
49 Number of aircraft runway movements during the runway busy

50 hour 41
51 Commentary concerning capacity utilisation indicators for aircraft and freight activities and airfield activities
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72 Page 29
Airport-services-ID-determination-annual-templates-2018 - Working Document S12.Airfield Cap & Utilisation


SCHEDULE 13: REPORT ON CAPACITY UTILISATION INDICATORS FOR SPECIFIED PASSENGER TERMINAL ACTIVITIES
ref Version 4.0
International Common
6 Outbound (Departing) Passengers terminal Domestic terminal area †
7 Landside circulation (outbound)

8 Passenger busy hour for landside circulation (outbound)—start time
9 (day/month/year hour) 14-04-2018 - 9:00 08-12-2017 - 19:00 N/A
10 Floor space (m2) 3,842 1,652
11 Passenger throughput during the passenger busy hour (passengers/hour) 1,957 1,601
12 Utilisation (busy hour passengers per 100m2) 51 97 Not defined
13 Check-in
14 Passenger busy hour for check-in—start time (day/month/year hour) 14-04-2018 - 9:00 08-12-2017 - 19:00 N/A
15 Floor space (m2) 4,132 841
18 Baggage (outbound)
19 Passenger busy hour for baggage (outbound)—start time (day/month/year hour) 14-04-2018 - 9:00 08-12-2017 - 19:00 N/A
20 Make-up area floor space (m2) 8,443 3,260
21 Notional capacity during the passenger busy hour (bags/hour)* 3,060 2,000
22 Bags processed during the passenger busy hour (bags/hour)* 2,041 1,233
24 Utilisation (% of processing capacity) 67% 62% Not defined
25 * Please describe in the capacity utilisation indicators commentary box how notional capacity and bags throughput have been assessed.
26 Passport control (outbound)

27 Passenger busy hour for passport control (outbound)—start time
28 (day/month/year hour) 14-04-2018 - 9:00
29 Floor space (m2) 712
30 Number of emigration booths and kiosks 16
31 Notional capacity during the passenger busy hour (passengers/hour) * 2,292
32 Passenger throughput during the passenger busy hour (passengers/hour) 1,957
33 Utilisation (busy hour passengers per 100m2) 275
34 Utilisation (% of processing capacity) 85%
35 * Please describe in the capacity utilisation indicators commentary box how the notional capacity has been assessed.
36 Security screening
37 Passenger busy hour for security screening—start time (day/month/year hour) 14-04-2018 - 9:00 10-12-2017 - 12:00
38 Facilities for passengers excluding international transit & transfer
39 Floor space (m2) 2,074 592
40 Number of screening points 6 5
41 Notional capacity during the passenger busy hour (passengers/hour) * 2,040 1,350
43 Utilisation (busy hour passengers per 100m2) 94 215
44 Utilisation (% of processing capacity) 96% 94%
45 Facilities for international transit & transfer passengers
46 Floor space (m2) 204
47 Number of screening points 2
48 Notional capacity during the passenger busy hour (passengers/hour)* 540
49 Estimated passenger throughput during the passenger busy hour
50 (passengers/hour) –
51 Utilisation (busy hour passengers per 100m2) –
52 Utilisation (% of processing capacity) –
54 Page 30
Airport-services-ID-determination-annual-templates-2018 - Working Document S13.Terminal Cap & Utilisation


SCHEDULE 13: REPORT ON CAPACITY UTILISATION INDICATORS FOR SPECIFIED PASSENGER TERMINAL ACTIVITIES (cont 1)
ref Version 4.0
61 terminal Domestic terminal area †
62 Airside circulation (outbound)
63 Passenger busy hour for airside circulation (outbound)—start time
64 (day/month/year hour) 14-04-2018 - 9:00 08-12-2017 - 19:00
65 Floor space (m2) 11,859 2,273
68 Departure lounges
69 Passenger busy hour for departure lounges—start time (day/month/year hour) 14-04-2018 - 9:00 08-12-2017 - 19:00
70 Floor space (m2) 8,125 2,922
71 Number of seats 3,724 1,075
74 Utilisation (passengers per seat) 0.5 1.5
75 Inbound (Arriving) Passengers
76 Airside circulation (inbound)

77 Passenger busy hour for airside circulation (inbound)—start time
79 Floor space (m2) 12,531 2,298
82 Passport control (inbound)

83 Passenger busy hour for passport control (inbound)—start time
84 (day/month/year hour) 01-04-2018 - 17:00
85 Floor space (m2) 1,656
86 Number of immigration booths and kiosks 35
87 Notional capacity during the passenger busy hour (passengers/hour) * 3,980
92 Landside circulation (inbound)

93 Passenger busy hour for landside circulation (inbound)—start time
95 Floor space (m2) 1,513 1,652
98 Baggage reclaim
99 Passenger busy hour for baggage reclaim—start time (day/month/year hour) 01-04-2018 - 17:00 12-11-2017 - 18:00
100 Floor space (m2) 5,945 1,081
101 Number of reclaim units 6 2
102 Notional reclaim unit capacity during the passenger busy hour (bags/hour)* 2,379 938
103 Bags processed during the passenger busy hour (bags/hour)* 2,076 1,200
105 Utilisation (% of processing capacity) 87% 128%
107 * Please describe in the capacity utilisation indicators commentary box how notional capacity and bags throughput have been assessed.
108 Bio-security screening and inspection and customs secondary inspection

109 Passenger busy hour for bio-security screening and inspection and
110 customs secondary inspection—start time (day/month/year hour) 01-04-2018 - 17:00
111 Floor space (m2) 2,634
112 Notional MAF secondary screening capacity during the passenger busy hour 2,145
113 (passengers/hour)*
118 Arrivals concourse

119 Passenger busy hour for arrivals concourse—start time (day/month/year hour) 01-04-2018 - 17:00 12-11-2017 - 18:00 N/A
120 Floor space (m2) 1,676 260
123 Page 31


SCHEDULE 13: REPORT ON CAPACITY UTILISATION INDICATORS FOR SPECIFIED PASSENGER TERMINAL ACTIVITIES (cont 2)
ref Version 4.0
130 terminal Domestic terminal area †
131 Total terminal functional areas providing facilities and service directly for passengers
132 Floor space (m2) 65,347 14,558 N/A
133 Number of working baggage trolleys available for passenger use
134 at end of disclosure year 3,600 400 N/A
135 Commentary concerning capacity utilisation indicators for Passenger Terminal Activities
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 Commentary must include an assessment of the accuracy of the passenger data used to prepare the utilisation indicators.
†
169 For functional components which are normally shared by passengers on international and domestic aircraft.
170 Page 32


SCHEDULE 14: REPORT ON PASSENGER SATISFACTION INDICATORS
ref Version 4.0
6 Survey organisation
7 Survey organisation used ACI
8 If "Other", please specify
9
10 Passenger satisfaction survey score
11 (average quarterly rating by service item)
12 Domestic terminal Quarter 1 2 3 4 Annual

13 for year ended 30 Sep 17 31 Dec 17 31 Mar 18 30 Jun 18 average
14 Ease of finding your way through an airport 4.2 4.0 4.2 4.1 4.1
15 Ease of making connections with other flights 3.9 3.7 4.0 3.8 3.8
16 Flight information display screens 4.2 4.2 4.2 4.2 4.2
17 Walking distance within and/or between terminals 4.1 4.0 4.2 4.0 4.1
18 Availability of baggage carts/trolleys 4.1 4.1 4.3 4.0 4.2
19 Courtesy, helpfulness of airport staff (excluding check-in and security) 4.2 4.2 4.4 4.3 4.3
20 Availability of washrooms/toilets 4.1 4.0 4.2 3.9 4.0
21 Cleanliness of washrooms/toilets 3.9 3.8 4.0 3.7 3.9
22 Comfort of waiting/gate areas 3.6 3.6 3.8 3.6 3.6
23 Cleanliness of airport terminal 4.1 4.0 4.2 4.0 4.1
24 Ambience of the airport 3.8 3.8 3.9 3.7 3.8
25 Security inspection waiting time 4.3 4.1 4.3 4.2 4.2
26 Check-in waiting time 4.2 4.2 4.3 4.3 4.3
27 Feeling of being safe and secure 4.4 4.4 4.6 4.4 4.4
28 Average survey score 4.1 4.0 4.2 4.0 4.1
29 International terminal Quarter 1 2 3 4 Annual

30 for year ended 30 Sep 17 31 Dec 17 31 Mar 18 30 Jun 18 average
31 Ease of finding your way through an airport 4.0 4.0 4.1 4.0 4.0
32 Ease of making connections with other flights 3.9 4.0 4.0 4.0 4.0
33 Flight information display screens 4.1 4.0 4.1 4.1 4.1
34 Walking distance within and/or between terminals 3.9 3.8 3.8 3.8 3.8
35 Availability of baggage carts/trolleys 4.1 4.2 4.2 4.1 4.2
36 Courtesy, helpfulness of airport staff (excluding check-in and security) 4.3 4.2 4.3 4.4 4.3
37 Availability of washrooms/toilets 4.1 4.1 4.2 4.3 4.2
38 Cleanliness of washrooms/toilets 4.0 3.9 4.1 4.2 4.1
39 Comfort of waiting/gate areas 3.9 3.9 4.0 4.0 3.9
40 Cleanliness of airport terminal 4.2 4.2 4.4 4.4 4.3
41 Ambience of the airport 3.9 4.0 4.1 4.0 4.0
42 Passport and visa inspection waiting time 4.4 4.3 4.4 4.4 4.4
43 Security inspection waiting time 4.3 4.1 4.4 4.3 4.3
44 Check-in waiting time 4.3 4.0 4.0 4.1 4.1
45 Feeling of being safe and secure 4.5 4.3 4.5 4.4 4.4
46 Average survey score 4.1 4.1 4.2 4.2 4.1
The margin of error requirement specified in clause 2.4(3)(c) of the determination applies only to the combined quarterly survey results for the disclosure year. Quarterly results may not
47 conform to the margina of error requirement.
48 Commentary concerning report on passenger satisfaction indicators

50
51
52
53
54
55
56
57
58
59
60
61
62
63
64 Commentary must include an assessment of the accuracy of the passenger data used to prepare the utilisation indicators and the internet location of fieldwork documentation .
65 Page 33
Airport-services-ID-determination-annual-templates-2018 - Working Document S14.Passenger Surveys


SCHEDULE 15: REPORT ON OPERATIONAL IMPROVEMENT PROCESSES
ref Version 4.0
6 Disclosure of the operational improvement process

8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
The process put in place by the Airport for it to meet regularly with airlines to improve the reliability and passenger satisfaction performance consistent with
39 that reflected in the indicators.
40 Page 34
Airport-services-ID-determination-annual-templates-2018 - Working Document S15.Forum


SCHEDULE 16: REPORT ON ASSOCIATED STATISTICS
ref Version 4.0
6 16a: Aircraft statistics

7 Disclosures are categorised by core aircraft types such as Boeing 737-400 or Airbus A320. Sub variants within these types need not be disclosed.
(i) International air passenger services—total number and MCTOW of landings by aircraft type during disclosure year
8
Total number of Total MCTOW
9 Aircraft type landings (tonnes)
10 Boeing - B787-9 Dreamliner 4,296 1,077,579
11 Boeing - B777-200 3,030 915,321
12 Airbus Industrie - A-330-300 3,700 867,112
13 Boeing - B777-300ER 2,358 826,113
14 Airbus Industrie - A-380-800 1,057 604,727
15 Boeing - B737-800 5,960 470,052
16 Airbus Industrie - A-320 4,648 354,749
17 Airbus Industrie - A-340-300 523 144,382
18 Boeing - B777-300 383 131,353
20 Boeing - B747-800 90 40,293
21 Boeing - B737-200 250 17,594
22 Boeing - B747-400 11 4,460
23 Boeing - B737-300 23 1,985
24 Airbus Industrie - A-321 11 1,029
25 Bombardier - BD-700 Global Express 6 251
26 Boeing - B787-8 Dreamliner 1 228
27 Airbus Industrie - A-319 2 151
28 Dassault - Falcon 7X 5 145
29 Gulfstream Aerospace - G-4 4 135
30 Boeing - B757-27B 1 113
31 Fokker - F-70 2 83
33 De Havilland Canada - Dash 8 Q300 4 78
34 Embraer - ERJ-135 4 74
35 Dassault - Falcon 900 3 62
36 Gulfstream Aerospace - G650 1 45
37 Beechcraft - 350 Super King Air 4 42
38 Canadair - CL-600 Challenger 600 2 39
39 Dassault - Falcon 50 2 36
40 Bombardier - Learjet 60 3 32
41 Bombardier - Learjet 45 3 27
42 Convair - CV-580 Convair 1 24
43 Fokker - F27 1 19
44 Hawker - Raytheon 850XP 1 13
45 Cessna - 650 Citation VII 1 10
46 Cessna - 525 Citation CJ4 1 8
47 Partenavia - P-68 Observer 1 5
48 Piper - PA-46-350P 1 2
49
50
51
52
53 Total 26,865 5,587,913
54 Page 35
Airport-services-ID-determination-annual-templates-2018 - Working Document S16.Statistics


SCHEDULE 16: REPORT ON ASSOCIATED STATISTICS (cont)
ref Version 4.0
(ii) Domestic air passenger services—the total number and MCTOW of landings of flights by aircraft type during disclosure
61 year
62 (1). Domestic air passenger services—aircraft 30 tonnes MCTOW or more
64 Airbus Industrie - A-320 22,462 1,609,322
65 Boeing - B737-400 484 31,285
66 Boeing - B737-300 446 28,803
67 Boeing - B787-9 Dreamliner 57 14,394
68 Boeing - B777-300ER 29 10,167
69 Boeing - B777-200 24 7,141
70 Boeing - B737-800 28 2,211
71 Rockwell - Aero Commander 500 29 1,875
73 Boeing - B777-300 2 703
74 Boeing - B737-200 2 140
75 Boeing - B737-400 2 129
76 Bombardier - BD-700 Global Express 3 126
77 Fokker - F-70 2 83
80
81
82
83
84
85
86
87
88 Total 23,579 1,708,087
89 (2). Domestic air passenger services—aircraft 3 tonnes or more but less than 30 tonnes MCTOW
91 De Havilland Canada - Dash 8 Q300 17,538 342,066
92 Aerospatiale/Alenia - ATR-72-500 10,156 232,075
93 Convair - CV-580 Convair 450 11,198
94 SAAB - Saab 340 730 9,280
95 Fairchild - SW-4B 1,092 7,934
96 Cessna - 208 Grand Caravan 1,950 7,740
97 Beechcraft - 300 Super King Air 345 2,347
98 Fokker - F-27 65 1,209
100 British Aerospace - Jetstream 32 68 500
101 Beechcraft - 90 King Air 106 496
102 Cessna - 510 Citation Mustang 61 239
104 British Aerospace - Jetstream 32 21 153
105 Cessna - 421 Golden Eagle 36 124
106 Cessna - 441 Conquest 2 12 54
107 Fairchild - SW-4A 7 51
108 Piper - PA-42-1000 10 51
109 McDonnell Douglas - DC-3 Dakota 3 37
110 Pilatus - PC-12 Eagle 8 36
111 Piper - PA-31 Navajo 10 33
112 Aero Commander - Turbo Commander 690 6 28
113 Canadair - CL-600 Challenger 600 1 20
114 Embraer - ERJ-135 1 19
116 Aerospatiale - AS-350B 1 3
117 Total 32,871 616,862
118 Page 36


SCHEDULE 16: REPORT ON ASSOCIATED STATISTICS (cont 2)
ref Version 4.0
125 (iii) The total number and MCTOW of landings of aircraft not included in (i) and (ii) above during disclosure year
126 landings (tonnes)
127 Air passenger service aircraft less than 3 tonnes MCTOW 2,196 6,573
128 Freight aircraft 849 200,723
129 Military and diplomatic aircraft 24 3,918
130 Other aircraft (including General Aviation) 932 15,641
131 (iv) The total number and MCTOW of landings during the disclosure year
132 landings (tonnes)
133 Total 87,316 8,139,717
134 16b: Terminal access

Number of domestic jet and international air passenger service aircraft movements* during disclosure year categorised by the main
135 form of passenger access to and from terminal
Contact Contact Remote

136 stand–airbridge stand–walking stand—bus Total
137 International air passenger service movements 52,533 – 2,886 55,419
138 Domestic jet air passenger service movements 45,985 1,901 – 47,886
139 * NB. The terminal access disclosure figures do not include non-jet aircraft domestic air passenger service flights.
140 16c: Passenger statistics

141 Domestic International Total
142 The total number of passengers during disclosure year

143 Inbound passengers† 4,682,541 5,648,269 10,330,810
144 Outbound passengers† 4,581,125 5,618,113 10,199,238
145
146 Total (gross figure) 9,263,666 11,266,382 20,530,048
147
148 less estimated number of transfer and transit passengers 1,063,856 1,063,856
149 Total (net figure) 19,466,192
† Inbound and outbound passenger numbers include the number of transit and transfer passengers on the flight. The number of transit and transfer passengers can
150 be subtracted from the total to estimate numbers that pass through the passenger terminal.
151 16d: Airline statistics

152 Name of each commercial carrier providing a regular air transport passenger service through the airport during disclosure year
153 Domestic International

154 Air New Zealand Air New Zealand
155 Jetstar Airways Air Caledonie International
156 Air Nelson Air Tahiti Nui
157 Mount Cook Airlines Air Vanuatu
158 Barrier Air Cathay Pacific Airways
159 Air Chathams China Airlines
160 Fly My Sky China Southern Airlines
161 Emirates Airlines
162 Fiji Airways
163 Hawaiian Airlines
164 Jetstar Airways
165 Korean Air
166 LATAM
167 Malaysia Airlines
168 Qantas Airways
169 Singapore Airlines
170 Thai Airways International
171 Virgin Australia Airlines
172 China Eastern Airlines
173 Philippine Airlines
174 Page 37


SCHEDULE 16: REPORT ON ASSOCIATED STATISTICS (cont 3)
ref Version 4.0
181 Airline statistics (cont)
182 Domestic International
183 Air China
184 AirAsia X
185 American Airlines
186 United Airlines
187 Hong Kong Airlines
188 Tianjin Airlines
189 Hainan Airlines
190 Qatar Airways
191 Sichuan Airlines
192 Samoa Airways
193 Norfolk Island Airlines
194 16e: Human Resource Statistics

Terminal Airfield Freight
195 Activities Activities Activities Total
196 Number of full-time equivalent employees 225.1 113.2 5.9 344.2
197 Human resource costs ($000) 45,399
198 Commentary concerning the report on associated statistics

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SCHEDULE 17: REPORT ON PRICING STATISTICS
ref Version 4.0
6 17a: Components of Pricing Statistics

7 Net operating charges from airfield activities relating to domestic flights of 3 tonnes or more but ($000)
8 less than 30 tonnes MCTOW 6,062
9 Net operating charges from airfield activities relating to domestic flights of 30 tonnes MCTOW or more 26,859
10 Net operating charges from airfield activities relating to international flights 90,359
11 Net operating charges from specified passenger terminal activities relating to domestic passengers 21,338
12 Net operating charges from specified passenger terminal activities relating to international passengers 170,079
13
14 Number of passengers
15 Number of domestic passengers on flights of 3 tonnes or more but less than 30 tonnes MCTOW 2,663,082
16 Number of domestic passengers on flights of 30 tonnes MCTOW or more 6,581,930
17 Number of international passengers 11,266,382
18
19 Total MCTOW (tonnes)
20 Total MCTOW of domestic flights of 3 tonnes or more but less than 30 tonnes MCTOW 621,887
21 Total MCTOW of domestic flights of 30 tonnes MCTOW or more 1,713,040
22 Total MCTOW of international flights 5,798,018
23 17b: Pricing Statistics

Average charge Average charge
24 Average charge from airfield activities relating to domestic flights of 3 tonnes or more but less than ($ per passenger) ($ per tonne MCTOW)
25 30 tonnes MCTOW 2.28 9.75
26 Average charge from airfield activities relating to domestic flights of 30 tonnes MCTOW or more 4.08 15.68
27 Average charge from airfield activities relating to international flights 8.02 15.58

($ per domestic ($ per international
28 passenger) passenger)
29 Average charge from specified passenger terminal activities 2.31 15.10

($ per domestic ($ per international
30 passenger) passenger)
31 Average charge from airfield activities and specified passenger terminal activities 5.87 23.12
32 Commentary on Pricing Statistics

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Airport-services-ID-determination-annual-templates-2018 - Working Document S17.Pricing Stats

For Year Ended
SCHEDULE 25: TRANSITIONAL REPORT ON REGULATORY ASSET BASE VALUE FOR LAND
ref Version 4.0
6 25: Regulatory Asset Base Value for Land
8 ($000) ($000)
9
10 Estimated value of land assets for the 2009 year 308,513
11 Capital expenditure on land for disclosure year 2010 –
12 Value of disposed assets on land for disclosure year 2010 (negative amount) –
13 Estimated value of land assets for the 2011 year 363,310
14 Capital expenditure on land for disclosure year 2011 –
15 Value of disposed assets on land for disclosure year 2011 (negative amount) –
16
17 Initial RAB value 335,912 325,928
18 Commentary
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38 Page 40

Annual Disclosures 2018 Auckland Airport

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Auckland International Airport Limited 1

Auckland International Airport Limited 2

Auckland International Airport Limited 3

Altitude Road East

Expanded MPI &

Terminal entry & inner forecourt road

Domestic jet facility

International departures upgrade

Extension of taxiways Facade extension

Auckland International Airport Limited 5

Auckland International Airport Limited 6

Section 9: Asset Allocations ................................................................................................ 43

Auckland Airport Disclosures FY18 30 June 2018

Section 17: Pricing Statistics ............................................................................................... 84

Auckland Airport Disclosures FY18 30 June 2018

We encourage interested parties to exercise caution when interpreting variances between

a) identifying and implementing innovations;

b) having an appropriate incentive to invest;

c) providing services of the quality and range required by consumers;

d) generating efficiencies and sharing the benefits; and

e) earning a fair and reasonable return on the investments made.

Auckland Airport Disclosures FY18 30 June 2018

Identifying and implementing innovations

Auckland Airport Disclosures FY18 30 June 2018

• reliability and performance - Section 11;

Having an appropriate incentive to invest

In setting prices for PSE2 (FY12-FY17), both

increase in aeronautical demand by accelerating

Our investment philosophy is that:

• a long-term planning horizon is important as it provides transparency for stakeholders, and

Auckland Airport Disclosures FY18 30 June 2018

Providing services of the quality and range required by consumers

Auckland Airport Disclosures FY18 30 June 2018

Evidence of our efforts in this area include our:

• collaborative operating groups at a tactical, management and CEO level; and

Auckland Airport is focused on working alongside our partners to continually make

• Section 11 describes the reliability of services delivered to airlines and passengers. We

Generating efficiencies and sharing the benefits

Auckland Airport Disclosures FY18 30 June 2018

Auckland Airport benchmarks well in international comparisons of airport operating costs. We

Auckland Airport Disclosures FY18 30 June 2018

Earning a fair and reasonable return on the investments made

Auckland Airport Disclosures FY18 30 June 2018

In targeting a reasonable return on investment, we recognise that our marginal investor is

Auckland Airport Disclosures FY18 30 June 2018

Auckland Airport Disclosures FY18 30 June 2018

Section 1: Return on investment

• there is still room for improvement in some areas;

Auckland Airport Disclosures FY18 30 June 2018

1.2 Change in methodology

Auckland Airport Disclosures FY18 30 June 2018

1.3 Commentary on return on investment

The table to the right shows that

Auckland Airport Disclosures FY18 30 June 2018

Auckland Airport Disclosures FY18 30 June 2018

Section 2: Regulatory Profit

2.2 Justification for merger and acquisition expenses

Auckland Airport Disclosures FY18 30 June 2018