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It’s about a 1400 kilometre flight from Sydney to Auckland, so Australian investors can be forgiven for not realising that Auckland Airport (ASX:AIA) is an ASX-listed investment option.
Today it set out its ‘Master Plan’ looking forward to a time (2047) when double the number of passengers – some 38 million a year – use the facility, and air cargo is tipped to increase by 40%.
But it also admitted plans for a second runway – previously due to be operational by 2028 – would be pushed out by at least a decade.
Trigger point revised
Auckland Airport’s chief strategic planning officer Mary-Liz Tuck said the ‘trigger point’ had been revised thanks to operational and airfield efficiency measures.
“Building another runway at AKL is part of our planning roadmap and our current airfield investments, including a major airfield expansion to the north of the international terminal and a consolidated cargo precinct alongside, are being built with this in mind,” she said.
“Construction of a second runway is a big commitment and one that we will only consider if it is in the best interests of New Zealand.
“First, we will fully explore all the ways we can ensure our current airfield operates as efficiently as possible.
“If the existing runway cannot provide the capacity New Zealand requires, then we will commence consultation with airlines on the second runway.”
Changes since 2014
The Master Plan was last updated in 2014 and Ms Tuck says a lot has changed since then.
“When you’re considering how to plan a well-functioning airport across several decades you need to look beyond the short-term cycles, by using projected passenger volumes over the long run – this is a fundamental part of long-term airport planning,” she said.
The Master Plan explores terminal integration, that second runway and what a future mass rapid transport corridor looks like. It also goes into sustainability, innovation and community wellbeing.
“It is an evolution, building on previous plans, while ensuring we are responding to what New Zealand needs from its main international gateway not just for today, but well into the future,” Ms Tuck said.
“While the Master Plan guides our investment decisions, it is not a detailed construction or capital plan.
“It is about making sure we’re building appropriately today with the future of the airport in mind.
“At its heart, it is a blueprint that makes sure we are building the right thing at the right time in the right place.
“It is not a commitment to build certain assets, nor does it set out the business case for constructing infrastructure, but lays out the direction of development for the airport.”
Ms Tuck said the plan laid out ‘important discussions we need to have ahead of making investment decisions’.
AIA last traded at $7.51 and has a market cap around $12.7 million.
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