SUPPORTING DOCUMENT FROM WELLINGTON AIRPORT
for
Tauranga-Wellington Domestic Opportunity
Wellington’s International Connectivity/Market is Growing AKL, WLG, CHC Intl Pax Growth
160%
Index Year Oct-04=100%
140%
•
WLG is the fastest growing of NZ’s main international airports
•
Current FY International pax +16% and could pass 900k by year-end
•
Qantas Group expanding strongly in market • QF/EK partnership opened up WLG to Asia/Europe • New JQ services to OOL/MEL • New FJ service to NAN
120%
100%
80%
AKL
CHC
Jan-16
Aug-15
Mar-15
Oct-14
May-14
Dec-13
Jul-13
Feb-13
Sep-12
Apr-12
Nov-11
Jun-11
Jan-11
Aug-10
Mar-10
Oct-09
May-09
Dec-08
Jul-08
Feb-08
Sep-07
Apr-07
Nov-06
Jun-06
Jan-06
Aug-05
Mar-05
Oct-04
60%
WLG
Source: Stats NZ, WIAL Data
Linking QF Group’s expanding offering with a JQ’s regional service via an integrated terminal makes sense
The Wellington Network Vision Current OOL
Future OOL AKL
AKL HLZ
SYD
SYD
NPL
NAN MEL
MEL
MEL CHC
NPE NAN
NSN
MEL
ROT/TRG
CHC ZQN DUD IVC
Jetstar – A320 Jetstar – Q300 Qantas Fiji Page 4
Wellington provides a strong operating position
Q300 Block Times
Via WLG with connecting Jet service
AKL WLG CHC ZQN DUD
AKL CHC ZQN DUD
HLZ
0:26
1:01
1:41
2:15
2:18
HLZ
2:06
2:36
2:36
TRG
0:35
1:11
1:47
2:23
2:25
TRG
2:16
2:46
2:46
ROT
0:35
1:04
1:40
2:18
2:20
ROT
2:09
2:39
2:39
NPE
0:58
0:49
1:30
2:08
2:07
NPE
1:54
2:24
2:24
NPL
0:42
0:48
1:20
1:55
1:58
NPL
1:53
2:23
2:23
NSN
1:14
0:30
0:45
1:22
1:24
NSN
1:50
1:35
2:05
2:05
IVC
2:45
1:51
1:12
0:32
0:32
IVC
3:11
Assumes Min Connect Time of 30 minutes
WLG provides sector lengths that are long enough to support a strong aviation market, but short enough to maximise frequency with a small fleet – North-South Island connecting times via Jets is comparable with direct Q300 times meaning a well developed hub could serve a number of connecting markets
WLG<>TRG Capacity
WLG<>TRG Capacity 180,000 160,000 140,000
Anuual Seats
120,000 100,000 80,000 60,000
40,000 20,000 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Source: Sabre ADI
Capacity grew strongly prior to the GFC but has reduced since 2007
WLG<>TRG Exogenous Growth
Population & Economic Growth 190 180 170
Index (Y2000=100)
160 150 140 130 120
110 100 90 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TRG Population (Bay of Plenty)
WLG Population (Wellington)
TRG GDP/Capita (Bay of Plenty)
WLG GDP/Capita (Wellington)
Source: Stats NZ
Capacity has continued to reduce at a time when population and economic activity continues to grow
Jun 2015
Apr 2015
Feb 2015
Dec 2014
Oct 2014
Aug 2014
Jun 2014
Apr 2014
Feb 2014
Dec 2013
Oct 2013
Aug 2013
Jun 2013
Apr 2013
Feb 2013
Dec 2012
Oct 2012
Aug 2012
Jun 2012
Apr 2012
Feb 2012
Dec 2011
Oct 2011
Aug 2011
Jun 2011
Apr 2011
Feb 2011
Dec 2010
Oct 2010
Aug 2010
Jun 2010
Apr 2010
Cheapest Fares 12-Month Moving Average
WLG<>TRG Airfares WLG-TRG 1-Week Out Cheapest Fares
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
Source: WIAL Data
1-week out Cheapest airfares on the sector have grown by +34% due to constrained capacity
TRG’s Largest Markets TRG's Largest OD Markets 35%
30%
Proportion of Demand
25%
20%
15%
10%
5%
0%
Source: Sabre ADI
Current markets linked by WLG service
Possible future markets linked
Wellington is Tauranga’s largest OD market – a service operating TRG-WLG linking with existing WLG-CHC jet services would connect TRG to its first and third largest markets
WLG<>TRG Sector Traffic
TRG-WLG Sector Traffic 90% 80% 70%
50%
WLG-TRG Sector Traffic
40%
90%
30%
80%
20%
70%
10%
60%
0% TRG- -WLG (LOCAL)
TRG-WLG-CHC (BEYOND)
TRG-WLG-NSN (BEYOND)
TRG-WLG-DUD (BEYOND)
TRG-WLG-TIU (BEYOND)
TRG-WLG-PMR (BEYOND)
TRG-WLG-BHE (BEYOND)
Anuual Seats
Anuual Seats
60%
50%
40% 30%
Source: Sabre ADI
20% 10% 0% WLG- -TRG (LOCAL)
CHC-WLG-TRG (BEHIND)
NSN-WLG-TRG (BEHIND)
DUD-WLG-TRG (BEHIND)
IVC-WLG-TRG (BEHIND)
TIU-WLG-TRG (BEHIND)
BHE-WLG-TRG (BEHIND)
Passengers of Air NZ’s existing service use WLG as a hub connecting to mainly South Island airports
WLG<>TRG Sector Traffic
TRG-WLG Sector Traffic 90% 80% 70%
Anuual Seats
60% 50%
40%
WLG-TRG Sector Traffic
30%
90% 20%
80% 10%
70% 0% TRG-WLG-CHC (BEYOND)
TRG-WLG-NSN (BEYOND)
TRG-WLG-DUD (BEYOND)
TRG-WLG-TIU (BEYOND)
TRG-WLG-PMR (BEYOND)
TRG-WLG-BHE (BEYOND)
Source: Sabre ADI
60% Anuual Seats
TRG- -WLG (LOCAL)
50%
40% 30% 20% 10% 0% WLG- -TRG (LOCAL)
CHC-WLG-TRG (BEHIND)
NSN-WLG-TRG (BEHIND)
DUD-WLG-TRG (BEHIND)
IVC-WLG-TRG (BEHIND)
TIU-WLG-TRG (BEHIND)
BHE-WLG-TRG (BEHIND)
Passengers of Air NZ’s existing service use WLG as a hub connecting to mainly South Island airports