- Key points

- Key points

69 Airport monitoring report 2007–08  Adelaide airport Adelaide airport 4. Key points The 2007–08 period was the second full financial year that the new terminal was in operation at • Adelaide airport. Passenger numbers, tonnes landed and aircraft movements all increased in 2007–08. • The majority of aircraft movement and facility charges at Adelaide airport increased in the most • recent period. Security charges introduced in the 2005–06 financial year for domestic passenger security and – – checked bag screening were unchanged in 2007–08. Aeronautical revenues per passenger increased by 3.54 per cent from • $11.01 per passenger in 2006–07 to $11.41 per passenger in 2007–08.

In 2007–08, total aeronautical operating revenue and expenses increased by 11.5 per cent and • 11.1 per cent respectively, which led to an increase in the operating margin of 11.9 per cent in the period.

On a per passenger basis, the operating margin for aeronautical services decreased from – – $4.96 per passenger in 2006–07 to $4.93 in 2007–08. Under the ‘line in the sand’ approach, the aeronautical operating margin per passenger – – was $5.12 in the most recent period, which is 3.9 per cent higher than that reported in the regulatory accounts. As a result of increases in the rate of return for aeronautical services, earnings before interest, tax • and amortisation (EBITA) on average tangible non-current assets for aeronautical services increased in 2007–08.

In 2007–08, overall ratings for availability and standard of airport facilities decreased.

• Since the opening of the new integrated terminal at Adelaide airport in 2005–06, overall ratings of • the combined domestic and international terminal facilities and services were satisfactory. Measures for international and domestic terminal services decreased in 2007–08. Airside services ratings increased from an overall rating of poor in 2003–04 to satisfactory – – in 2007–08.

70 Adelaide airport Airport monitoring report 2007–08 Adelaide airport price monitoring results 4.1. Activity 4.1.1. Chart 4.1.1 shows activity levels at Adelaide airport measured by passenger numbers, tonnes landed and aircraft movements from 2003–04 to 2007–08. Chart 4.1.1: Adelaide airport—volume of passengers, tonnes landed and aircraft movements Passengers Tonnes landed Aircraft movements (RHS) Number of passengers/tonnes landed ('000) Number of aircraft movements ('000) 8000 7000 6000 5000 4000 3000 2000 1000 110 100 90 80 70 60 50 40 30 2007–08 2006–07 2005–06 2004–05 2003–04 The number of passengers, tonnes landed and aircraft movements all increased at Adelaide airport in 2007–08.

Passenger numbers at Adelaide airport increased every year over the entire reporting period (2003–04 to 2007–08) from 4.97 million in 2003–04 to 6.78 million in 2007–08—a growth of 36.4 per cent. In 2007–08 alone, an additional 482 000 passengers travelled through Adelaide airport—an increase of 7.6 per cent on the previous year. The largest increase occurred in 2004–05 when passenger numbers increased by 9 per cent. Tonnes landed increased from 1.7 million in 2003–04 to 2.2 million in 2007–08—a growth of 29.2 per cent over the whole reporting period. Tonnes landed remained relatively stable in 2007–08, increasing by around 2.7 per cent or 57 600 tonnes.

Similarly to passenger numbers, the largest increase in tonnes landed occurred in 2004–05 when it increased by 10.7 per cent.

Aircraft movements increased by 10.1 per cent over the period from 2003–04 to 2007–08, with most of the increase occurring in 2004–05 (5.8 per cent) and 2006–07 (3.8 per cent).

71 Airport monitoring report 2007–08  Adelaide airport Prices 4.1.2. Table 4.1.1 shows the schedule of charges and the indexed list prices for aeronautical services at Adelaide airport from 2003–04 to 2007–08, with 2003–04 taken as the base year. Table 4.1.1: Adelaide airport—schedule of charges and indexed prices (2003–04 as base year) (including GST) Indexed list prices Charge per unit $ 2003–04 2004–05 2005–06 2006–07 2007–08 Aeronautical services Aircraft movements and facilities International passenger air transport aircraft (per passenger) 11.80 100.0 102.1 104.5 107.6 101.7 International passenger air transport aircraft diversions from other airports (per passenger)(a) 6.41 nr 100.0 102.4 105.5 126.9 Domestic passenger air transport aircraft weighing more than 20 000 kg MTOW (per passenger) 4.25 100.0 102.0 104.5 107.5 106.8 Domestic passenger air transport aircraft weighing more than 20 000 kg MTOW (per MTOW) 14.00 100.0 102.1 104.5 107.6 117.3 Domestic passenger air transport aircraft weighing more than 20,000 kg MTOW diversions from other airports (per MTOW)(a) 6.41 nr 100.0 102.3 105.4 105.1 Domestic passenger air transport aircraft weighing less than 20 000 kg MTOW (per MTOW)(b) 6.57 100.0 102.0 104.4 107.5 120.3 Freight aircraft and aircraft not operating air transport services (per MTOW)(b) 6.41 100.0 102.0 104.4 107.5 117.4 Rotary wing and unpowered aircraft (per MTOW)(b) 3.21 100.0 94.1 96.3 99.3 117.6 Aviation insurance recovery charge, aircraft weighing more than 20 000kg MTOW (per MTOW)(b) 0.51 100.0 102.0 102.0 100.0 NA Aviation insurance recovery charge, aircraft weighing more than 20 000kg MTOW (per passenger)(c) 0.15 nr nr 100.0 83.3 83.3 Aviation insurance recovery charge, aircraft weighing less than 20 000kg MTOW (per MTOW)(b) 0.15 100.0 100.0 100.0 100.0 100.0 Aviation insurance recovery charge, rotary wing and unpowered aircraft (per MTOW)(b) 0.07 100.0 100.0 100.0 100.0 100.0 Parking charge for aircraft parked longer than two hours in a designated general aviation parking area (per day or part thereof) 14.22 100.0 102.1 104.5 107.7 114.6

72 Adelaide airport Airport monitoring report 2007–08 Indexed list prices Charge per unit $ 2003–04 2004–05 2005–06 2006–07 2007–08 Passenger processing facilities and activities Passenger facilitation charge—international passengers (per passenger)(d) 8.85 nr nr 100.0 103.2 106.4 Passenger facilitation charge—domestic passengers (per passenger)(d) 6.39 nr nr 100.0 103.3 106.5 Passenger facilitation charge—regional passengers (per passenger)(d) 1.49 nr nr 100.0 103.6 106.4 Domestic and regional passenger security screening (per passenger)(e) 2.51 nr nr 100.0 116.7 116.7 Domestic and regional checked bag screening (per passenger)(e) 0.84 nr nr 100.0 76.4 76.4 Security screening of international transit passengers (per passenger) 4.40 100.0 175.8 117.0 120.5 120.5 Minimum charges(f) Minimum charge applicable to aircraft weighing less than 20 000kg MTOW inclusive of insurance charge 38.16 100.0 102.8 105.2 108.3 115.3 Minimum charge applicable to rotary wing and unpowered aircraft inclusive of insurance charge 19.08 100.0 102.8 105.2 108.3 115.4 Notes:nr Not relevant NA Not available (a) New charge introduced March 2005.

(b) Minimum charge applies. (c) New charge introduced October 2005. (d) New charge introduced in February 2006. (e) New charge introduced in December 2005. (f) Minimum charge is the minium amount charged for landing an aircraft in relation to landing charges and insurance recovery, it does not include terminal and security charges. The majority of aircraft movement and facility charges increased in 2007–08, however, this was partially attributable to aviation insurance recovery charges. These were previously charged separately, but have been incorporated into landing charges from 1 August 2007.

Charges for domestic passenger aircraft weighing more than 20 000 kg MTOW (per MTOW) increased in 2007–08 by 9.7 per cent, while charges for domestic passenger aircraft weighing less than 20 000 kg MTOW (per MTOW) increased by 12.8 per cent. Charges for international passenger air transport aircraft diversions from other airports increased by 21.4 per cent. Freight aircraft and aircraft not operating air transport services had increased by 9.9 per cent and rotary wing and un-powered aircraft increased by 18.3 per cent. Parking charges for aircraft increased from $13.36 per day (or part thereof) in 2006–07 to $14.22 in 2007–08.

There were some decreases, however, in 2007–08 with international passenger air transport aircraft movement charges decreasing by 5.9 per cent and domestic passenger air transport aircraft weighing more than 20 000kg MTOW decreasing by 0.7 per cent. Passenger facilitation charges increased by around 6.4 per cent between 2005–06 and 2007–08. These charges were introduced in 2005–06 to recover the cost of the new integrated international, domestic and regional terminal, which commenced operations in the 2005–06 financial period. Table 4.1.1: Adelaide airport—schedule of charges and indexed prices (2003–04 as base year) (including GST) continued

73 Airport monitoring report 2007–08  Adelaide airport In 2005–06, Adelaide airport introduced new security charges for the new terminal—namely for domestic and regional passenger security and checked bag screening. Since their introduction, domestic and regional passenger security screening charges increased by 16.7 per cent, while domestic and regional checked bag screening decreased by 23.6 per cent. The screening charge for international passengers increased by 20.5 per cent between 2003–04 and 2007–08. In 2007–08, security charges for international, domestic and regional passenger and checked baggage screening were unchanged.

Minimum applicable charges increased by 7 per cent in 2007–08, compared to between 2 and 3 per cent per annum increases during the periods 2003–04 to 2006–07. Revenues, costs and profits 4.1.3. Table 4.1.2 lists the revenues, operating costs and operating margins relating to aeronautical services at Adelaide airport from 2003–04 to 2007–08.

74 Adelaide airport Airport monitoring report 2007–08 Table 4.1.2: Adelaide airport—revenues, costs and margins Revenues ($’000) Costs ($’000) Margins ($’000) 2003–04 2004–05 2005–06 2006–07 2007–08 2003–04 2004–05 2005–06 2006–07 2007–08 2003–04 2004–05 2005–06 2006–07 2007–08 Aeronautical services Aircraft movement facilities and activities 20 047 22 630 24 503 26 596 28 452 10 699 10 621 8 735 10 880 13 427 9 348 12 009 15 768 15 716 15 025 Passenger processing facilities and activities 6 346 7 235 21 740 42 802 48 897 6 254 7 675 24 867 28 648 30 498 92 (440) (3 127) 14 154 18 399 Total aeronautical services 26 393 29 865 46 243 69 398 77 349 16 953 18 296 33 602 39 528 43 925 9 440 11 569 12 641 29 870 33 424 Notes: The figures presented in table 4.1.2 for 2003–04 and 2004–05 were calculated according to Australian Generally Accepted Accounting Principles and were not adjusted for Australian equivalent to the International Financial Reporting Standards (AIFRS).

The figures for 2005–06 to 2007–08 are AIFRS adjusted. Aeronautical services from 2003–04 to 2006–07 were defined under direction 27.

In 2007–08, some amendments were made to the definition of aeronautical services that were defined under direction 29. Therefore, care should be taken when comparing across the years.

75 Airport monitoring report 2007–08  Adelaide airport Table 4.1.2 shows that operating revenue, costs and margins for Adelaide airport’s aeronautical services increased in 2007–08. Revenue for aeronautical services increased by 11.5 per cent in 2007–08 following a more substantial increase in aeronautical services revenue of 50.1 per cent in 2006–07. This increase in operating revenue offset an 11.1 per cent increase in operating costs, which led to a 11.9 per cent increase in the operating margin.

Since 2005–06, when Adelaide airport opened its new integrated terminal, aeronautical operating costs increased by 30.7 per cent, while operating revenue increased by 67.3 per cent. This resulted in an approximate 164 per cent increase in operating margin from $12.6 million in 2005–06 to $33.4 million in 2007–08. Aeronautical revenues per passenger Chart 4.1.2 shows aeronautical revenue, operating expenses and operating margin per passenger at Adelaide airport from 2003–04 to 2007–08.

Chart 4.1.2: Adelaide airport—aeronautical revenue, operating expenses and operating margin per passenger $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 Per passenger 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Revenue Expenses Margin Chart 4.1.2_12.3_001 Note: 2007–08* shows the value of aeronautical revenue, operating expenses and operating margin per passenger at Adelaide airport in 2007–08 using the line in the sand approach.

Aeronautical revenue and operating expenses both increased on a per passenger basis in 2007–08, while operating margin per passenger decreased slightly.

Aeronautical revenue increased from $11.01 per passenger in 2006–07 to $11.41 in 2007–08. This represents a relatively small increase of 3.5 per cent compared to the larger increases that occurred in 2005–06 (44.1 per cent) and 2006–07 (38.6 per cent). These increases are partly attributable to the operation of the new integrated terminal and associated passenger facilitation charges, with 2006–07 being the first full year of operations at the new terminal. Aeronautical revenue per passenger increased by around 115 per cent over the whole reporting period, and 43.5 per cent since the opening of the new terminal in 2005–06.

76 Adelaide airport Airport monitoring report 2007–08 Aeronautical operating expenses increased from $6.06 per passenger in 2006–07 to $6.48 in 2007–08 (6.9 per cent). Aeronautical operating expenses per passenger increased by over 104 per cent over the whole reporting period from $3.17 in 2003–04. The largest increase occurred in 2005–06 when expenses per passenger increased by 69.3 per cent. However, aeronautical operating expenses per passenger remained relatively stable from 2005–06 onwards (when the new terminal opened). Aeronautical operating margin decreased marginally from $4.96 per passenger in 2006–07 to $4.93 in 2007–08 (-0.6 per cent).

This followed a significant increase in 2006–07 when operating margins rose from $2.17 to $4.96 per passenger (128 per cent). This increase was attributable to significant increases in operating revenue during a period when operating expenses were relatively unchanged. Line in the sand approach As discussed in chapter 1, the ACCC required airport operators to provide additional information relating to the aeronautical asset base under the ‘line in the sand’ approach for the first time in 2007–08. Under this approach the value of an airport’s aeronautical asset base for monitoring purposes is the value of tangible non-current aeronautical assets reported to the ACCC as at 30 June 2005 plus new investments less depreciation and disposals.

The starting line in the sand asset base figures are shown in table 4.1.3 below.

Table 4.1.3: Adelaide airport—starting line in the sand asset base as at 30 June 2005 ($’000) Airport Land Property, plant and equipment Total line in the sand asset base Adelaide 72 594 233 194 305 788 Under the line in the sand approach, Adelaide airport’s aeronautical operating revenue per passenger was unchanged. However, the airport’s operating expenses per passenger are lower at around $6.28 in 2007–08 (3.1 per cent) because of lower depreciation and amortisation values.45 As a result, the operating margin per passenger is 3.9 per cent higher in 2007–08 at $5.12 per passenger under the line in the sand approach.

45 It should be noted that, as a result of 2007–08 being the first year of this reporting requirement, there are no time series data available for comparison purposes in the 2007–08 monitoring report.

77 Airport monitoring report 2007–08  Adelaide airport Security services Chart 4.1.3 shows total security revenue, revenue per passenger and total security expenses at Adelaide airport from 2003–04 to 2007–08. Chart 4.1.3: Adelaide airport—security revenue and expenses $million Per passenger 2007–08 2006–07 2005–06 2004–05 2003–04 12 10 8 6 4 2 $1.80 $1.50 $1.20 $0.90 $0.60 $0.30 $0.00 Revenue per passenger (RHS) Expenses Revenue Chart 4.1.3_11.3_001 Total security revenue, revenue per passenger and total security expenses all increased in 2007–08.

Government mandated security charges are directly related to the government mandated security levels as noted in section 1.2.2. These charges are set to recover the costs of these activities. Adelaide airport advised that the expenses do not include leasing payments, return on capital on owned assets and Adelaide airport administration costs.

Total security revenue increased from $9.7 million in 2006–07 to $10.7 million in 2007–08 (10.8 per cent). Security revenue remained relatively stable from 2003–04 to 2004–05 until the commencement of operations at the new terminal in 2005–06. From 2004–05 to 2007–08, total security revenue grew by over 230 per cent. Security revenue as a proportion of total airport revenue remained stable at 7.5 per cent in 2007–08. Security revenue accounted for 14 per cent of aeronautical revenue in 2007–08 for the third consecutive year.

On a per passenger basis, revenue increased from $1.53 in 2006–07 to $1.58 in 2007–08 (2.9 per cent).

While revenues per passenger increased only slightly, total security revenue increased by over 10 per cent. This is likely due to increases in passenger numbers, which increased by 7.6 per cent in 2007–08. Security expenses increased marginally in 2007–08 (0.5 per cent). However, since 2003–04, security expenses increased by 268 per cent—with the largest increases occurring in 2005–06 (156 per cent) and 2006–07 (23.1 per cent). In 2005–06 the significant increase in security expenses resulted in security expenses ($7.4 million) exceeding security revenue ($6.3 million). Upon commencing operations at the new terminal in 2005–06, Adelaide airport took responsibility from Qantas for domestic passenger screening which is likely to have led to the significant increase in expenses in this period.

The size of the new terminal required Adelaide airport to install additional screening points, which also affected security costs.

78 Adelaide airport Airport monitoring report 2007–08 Revenue shares Chart 4.1.4 shows the total revenue shares between aeronautical and non-aeronautical services for Adelaide airport from 2003–04 to 2007–08. Chart 4.1.4: Adelaide airport—total revenue shares (aeronautical and non-aeronautical) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Aeronautical revenue Non-aeronautical revenue 2007–08 2006–07 2005–06 2004–05 2003–04 Aeronautical revenue as a proportion of total revenue decreased in 2007–08. Over the whole reporting period, aeronautical revenue as a proportion of total revenue increased from 45.3 per cent in 2003–04 to 54.3 per cent in 2007–08.

The increase in aeronautical revenue over this period was partly a result of the introduction of the passenger facilitation charges following the opening of the new terminal, which were in effect for their first full year in 2006–07.46 46 In previous reporting periods, the measure of aeronautical revenue excluded those revenues earned from the Qantas domestic terminal lease (DTL) as Adelaide airport classified this as non-aeronautical revenue. With the commencement of operations at the new terminal at Adelaide airport, the airport introduced a passenger facilitation charge. The introduction of the passenger facilitation charge represents a break in the time series of the measure of aeronautical revenue share as it now includes aeronautical revenue previously excluded by the airport under direction 27, which was replaced by direction 29 from 1 July 2007.

Comparisons between the results of Adelaide airport with those of other airports should also recognise that the passenger facilitation charge has replaced the DTL charges that other airports typically classify as non-aeronautical.

79 Airport monitoring report 2007–08  Adelaide airport Total airport services Chart 4.1.5 shows the total airport revenue, operating expenses and operating margin for Adelaide airport from 2003–04 to 2007–08. Chart 4.1.5: Adelaide airport—total airport revenue, operating expenses and operating margin $millions 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Revenue Expenses Margin 150 120 90 60 30 Notes: 2007–08* shows the value of total airport revenue, operating expenses and operating margin at Adelaide airport in 2007–08 using the line in the sand approach.

Total revenue and operating margin exclude interest income and government grant revenue (non- aeronautical revenue items).

Government grant revenue is only applicable in 2003–04 and 2004–05. Total airport revenue, operating expenses and operating margin increased in 2007–08 at Adelaide airport. Total airport revenue increased by approximately 151 per cent over the whole reporting period, with the largest increase in 2006–07 when total airport revenue increased from $87.6 million to around $124 million—a growth of 41 per cent. In 2007–08 revenue increased by 15.2 per cent. After remaining relatively stable in 2003–04 and 2004–05, total airport operating expenses increased by around 135 per cent between 2004–05 and 2007–08.

The largest increase occurred in 2005–06 when expenses increased from $32 million to $52 million—a growth of 64.5 per cent. In 2007–08 operating expenses increased by 13 per cent.

As a result of the above, the operating margin increased significantly between 2004–05 and 2007–08 (approximately 197 per cent) despite a decrease in 2005–06. Adelaide airport suggested that this decrease was partly due to the leasing of previously unused land after infrastructure investments by Adelaide Airport Limited (AAL) and relatively low ongoing costs. The margin fell by around 18 per cent in 2005–06, which Adelaide airport advised was partly because of the delay in the opening of the new terminal causing the airport continued to incur fixed costs with minimal revenue. The operating margin was around $74.8 million in 2007–08—an increase of 17.3 per cent on the previous year.

Under the line in the sand methodology, Adelaide airport’s total operating revenue was unchanged. However, the airport’s total operating expenses were around 1.95 per cent lower (at $66.2 million in 2007–08) as a result of lower aeronautical operating expenses. The total operating margin was, therefore, 1.72 per cent higher at around $76.1 million in 2007–08.

80 Adelaide airport Airport monitoring report 2007–08 Rates of return on tangible non-current assets Chart 4.1.6 shows the return on average tangible non-current assets for both aeronautical services and total airport services for Adelaide airport from 2003–04 to 2007–08. Chart 4.1.6: Adelaide airport—EBITA on average tangible non-current assets Per cent per annum 16 14 12 10 8 6 4 2 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Aeronautical services Total services Chart 4.1.6_12.3_001 Notes: 2007–08* shows the value of EBITA on average tangible non-current assets at Adelaide airport in 2007–08 using the line in the sand approach.

Chart 4.1.6 shows EBITA on average tangible non-current assets for both aeronautical and total airport services increased in 2007–08. EBITA on average tangible non-current assets for aeronautical services increased from 7.9 per cent in 2006–07 to 8.5 per cent in 2007–08. This is the second increase following two consecutive years of falling rates of return for aeronautical services in 2004–05 and 2005–06. Since 2005–06, EBITA on average tangible non-current assets for aeronautical services increased from 3.1 per cent. This increase can largely be attributed to increases in total aeronautical revenue and a large decrease in the value of non-current receivables.

The EBITA on average tangible non-current assets for total airport services increased from 10.4 per cent in 2006–07 to 12.2 per cent in 2007–08. This increase followed consecutive decreases in 2004–05 and 2005–06. Operating margins for total airport services increased by 110 per cent between 2005–06 and 2007–08 which, in conjunction with relatively unchanged non-current assets, caused the increase. EBITA on average tangible non-current assets has now risen above the level attained in 2003–04 (11.2 per cent), despite the decreases in 2004–05 and 2005–06.

EBITA on average tangible non-current assets under the line in the sand for aeronautical services under the line in the sand approach is higher at 10.4 per cent in 2007–08 compared to the non line in the sand value.

For total airport services the value was also higher at 13.5 per cent. As explained in chapter 1, where the return is not subject to the line in the sand approach, the return on assets measure is influenced by the airport operator’s valuation of its assets recorded in its financial accounts. The following section gives details of asset values and changes in asset values over time.

81 Airport monitoring report 2007–08  Adelaide airport Asset values Aeronautical services Chart 4.1.7 shows the total value of aeronautical non-current assets at Adelaide airport from 2003–04 to 2007–08. Chart 4.1.7: Adelaide airport—aeronautical non-current assets Value of assets ($million) 600 500 400 300 200 100 Land Property, plant and equipment (excl. land) Intangibles Other non-current assets 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Chart 4.1.7_12.3_001 Note: 2007–08* shows the value of aeronautical non-current assets at Adelaide airport in 2007–08 using the line in the sand approach.

The value of aeronautical non-current assets increased from $569 million in 2006–07 to $577 million in 2007–08. In its regulatory accounts Adelaide airport noted that the 2007–08 opening balances of assets were adjusted to include corrections to the closing balances as at 30 June 2007. These adjustments resulted in a $22.5 million increase in opening asset values for property, plant and equipment and also resulted in the removal of derivative financial instruments from the aeronautical non-current asset base. Adjustments made to property, plant and equipment included corrections for the allocation of new terminal assets.47 Adelaide airport also advised in 2007–08 that the joint user hydrant installation was incorrectly allocated to non-aeronautical assets as at 30 June 2007 and should have been allocated to aeronautical assets.

Therefore, adjustments were made to the opening asset values to include the joint user hydrant Installation.48 There were further increases in 2007–08 in the value of property, plant and equipment ($13 million) as well as land ($3 million). However, the cumulative value of these increases was substantially offset by decreases in the values of receivables and, as discussed above, the removal of derivative financial instruments from the aeronautical non-current asset base. As a result, the value of aeronautical non-current assets only increased slightly in 2007–08 by 1.3 per cent.

47 The new terminal assets were allocated to agree with quantity surveyors certificate of the proportion of the cost of aeronautical assets. 48 Direction 29 adopts the definition of aeronautical services and facilities in Part 7 of the Airports Regulations, which include facilities and services for aircraft refuelling.

82 Adelaide airport Airport monitoring report 2007–08 During 2004–05, as a result of both the construction of the new integrated terminal and the application of AIFRS by Adelaide airport, there were large changes to the value of the aeronautical non-current assets.

In this period, values of aeronautical non-current assets increased from $294 million to $591 million— which represents an increase of around 100 per cent. This increase also accounts for the significant change in tangible aeronautical non-current assets in 2004–05.

Under the line in the sand methodology, the value of aeronautical non-current assets was around 10.9 per cent lower at $514 million in 2007–08. The value of land under this approach was 34 per cent lower at $83 million (from $126 million), as was the value of property, plant and equipment which was valued at $246 million (from around $267 million). Chart 4.1.8 further illustrates the change in value of tangible aeronautical non-current assets (for land and property, plant and equipment) at Adelaide airport from 2003–04 to 2007–08. Chart 4.1.8: Adelaide airport—change in tangible non-current assets (aeronautical services) 4.1.8_11.3_001 Additions Disposals AIFRS Revaluations Transfers/re-allocations Depreciation 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Change in asset value ($million) 220 200 180 160 140 120 100 80 60 40 20 –20 Note: 2007–08* shows the values change in tangible aeronautical non-current assets at Adelaide airport in 2007–08 using the line in the sand approach.

In 2007–08 the values of tangible non-current assets for aeronautical services increased by 2 per cent from $389 million (2006–07) to $397 million (2007–08). The slight increase in 2007–08 was mainly attributable to additions, valued at $3.8 million) to plant and machinery and work in progress, as well as the adjustments made by Adelaide airport to the opening values as discussed above. However, it was more than offset by depreciation of $15.8 million on the prepaid operating lease, buildings, land improvement and plant and machinery. The substantive increase in 2005–06 was attributable to construction of the new integrated terminal and application of AIFRS.

Under the line in the sand methodology the value of additions and revaluations were no different to the non line in the sand values in 2007–08. Disposals were 13.3 per cent higher while the value of transfers/ re-allocations and depreciation were around 73.6 per cent and 8.3 per cent lower, respectively.

83 Airport monitoring report 2007–08  Adelaide airport Total airport services Chart 4.1.9 shows the value of total non-current assets for Adelaide airport from 2003–04 to 2007–08. Chart 4.1.9: Adelaide airport—total airport non-current assets Chart 4.1.9_12.3_001 825 750 675 600 525 450 375 300 225 150 75 Value of assets ($million) Land Property, plant and equipment (excl.

land) Intangibles Investment property Other non-current assets 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 Note: 2007–08* shows the values of total airport non-current assets at Adelaide airport in 2007–08 using the line in the sand approach.

The total value of non-current assets at Adelaide airport decreased from $798 million in 2006–07 to $789 million in 2007–08. The total value of this decrease was $8.81 million, which was brought about by decreases in the value of property, plant and equipment ($12.4 million), receivables ($6.6 million) and the removal of financial derivative instruments, valued at $3.6 million, from the opening asset values (as discussed in relation to chart 4.1.7). The decrease in property, plant and equipment was a result of significant depreciation in 2007–08 valued at $16.5 million.

The decreases in 2007–08 were partly offset by increases in the value of investment property and Adelaide airport’s prepaid operating lease.

No changes were made to the value of intangible assets in 2007–08. Under the line in the sand methodology, the total value of non-current assets was lower at around $727 million (7.9 per cent) in 2007–08. This is a result of lower aeronautical non-current asset values under the line in the sand methodology as discussed above. Chart 4.1.10 further shows changes to the value of tangible non-current assets (for land, property, plant and equipment) at Adelaide airport from 2003–04 to 2007–08.

84 Adelaide airport Airport monitoring report 2007–08 Chart 4.1.10: Adelaide airport—change in tangible non-current assets (total airport) Additions Disposals AIFRS Transfers/ re-allocations Revaluations Depreciation Change in asset value ($million) 2007–08* 2007–08 2006–07 2005–06 2004–05 2003–04 320 280 240 200 160 120 80 40 –40 Note: 2007–08* shows the values of changes in tangible non-current assets for the total airport at Adelaide airport in 2007–08 using the line in the sand approach.

The total value of tangible non-current assets at Adelaide airport decreased from $619 million in 2006–07 to $610 million in 2007–08.

The gains in total airport tangible non-current assets as a result of additions, transfers/re-allocations and revaluations to the value of $20 million were wholly offset by depreciation to the value of $17.8 million and a $10.1 million decrease in receivables (not reflected in chart 4.1.10). In 2004–05 there was a significant adjustment of assets as a result of the transition to AIFRS. There were also significant increases in assets as a result of new investments from 2003–04 to 2005–06. The change in total airport tangible non-current assets under line in the sand methodology follows the same trend as discussed for the change in aeronautical tangible non-current assets above.

Non-aeronautical tangible non-current assets are not subject to the line in the sand approach. Rates of return on equity Adelaide airport’s return on equity is negative for the third year in a row at approximately -39.4 per cent for 2007–08, compared to -44 per cent in 2006–07.

Adelaide airport’s post-tax return on equity is influenced by its capital structure. The airport has adopted a capital structure whereby it issued a $99 redeemable preference share stapled to each $1 ordinary share. These redeemable preference shares are classified in Adelaide airport’s financial reports as a non-current liability. The holder of the redeemable preference share is entitled to a non-cumulative dividend. Payment of a dividend is subject to availability of funds.49 Adelaide airport’s regulatory accounts are attached at appendix A1. 49 Adelaide Airport Limited, Annual report 2007–08, p.

19.

85 Airport monitoring report 2007–08  Adelaide airport Adelaide airport quality of service results 4.2. Adelaide airport opened a new airport terminal in the 2005–06 financial year; this new terminal combines international, domestic and regional airline services. Previously, Adelaide airport operated separate international and domestic terminals. The new terminal, for example, has shared outbound check-in, baggage handling and security screening facilities for international and domestic passengers. As such, quality of service measures from 2005–06 onwards relate to the new terminal and the results may differ significantly from those presented for the 2003–04 and 2004–05 periods.

Where available, separate information for domestic and international services was used in the results presented below. However, as separate data were not available in many cases, quantitative measures generally combine both domestic and international results. For these measures, data for 2003–04 and 2004–05 also combine domestic and international results to ensure comparability over the whole reporting period (2003–04 to 2007–08).

In this section, quality of service results are presented for overall ratings, international and domestic services, and other airport services. Overall ratings 4.2.1. Chart 4.2.1: Adelaide airport—overall quality of service ratings for international and domestic terminal services, and airside services Average rating Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 International terminal Domestic terminal Airside From 2005–06 to 2007–08, Adelaide airport’s overall ratings of terminal facilities and services were around 3.82 on average, though measures for international and domestic terminal services decreased in the most recent period (chart 4.2.1).

Airside services ratings increased from an overall rating of poor in 2003–04 (2.73) to satisfactory in 2007–08 (3.53).

86 Adelaide airport Airport monitoring report 2007–08 Chart 4.2.2: Adelaide airport—overall quality of service ratings for availability and standard of airport facilities Average rating 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor Availability Standard In 2007–08 overall ratings for availability and standard of airport facilities decreased, though both measures remained higher than ratings achieved from 2003–04 to 2004–05 (chart 4.2.2). International services 4.2.2.

Chart 4.2.3: Adelaide airport—check-in facilities (international services) Airline surveys– check-in availability (LHS) Airline surveys– check-in standard (LHS) Passenger surveys– check-in waiting time (LHS) Percentage of hours with more than 80 per cent of check-in desks in use (RHS) Average rating Percentage of hours utilised over 80% 2007–08 2006–07 2005–06 2004–05 2003–04 30% 28% 26% 24% 22% 20% Excellent Good Satisfactory Poor Very poor Chart 4.2.3_12.3_001 From 2004–05 to 2007–08, airline ratings of the availability of check-in desks increased from very poor in 2004–05 to satisfactory in 2007–08 (chart 4.2.3).

Over the same period, airline ratings of the standard of check-in desks also improved significantly from poor in 2004–05 to good in 2007–08. Passenger ratings of the waiting time associated with check-in desks were satisfactory over the whole reporting period, though ratings fell slightly in 2007–08. Information was not available on the percentage of hours with more than 80 per cent of check-in desks in use for international terminal services from 2005–06 onwards. The new terminal shares international and domestic check-in facilities, and separate international data are not available.

87 Airport monitoring report 2007–08 

Adelaide airport Chart 4.2.4: Adelaide airport—inbound government inspection facilities (international services) ACS whole-of- government survey–inbound Immigration facilities availability (LHS) ACS whole-of- government survey–inbound Immigration facilities standard (LHS) Passenger surveys– Immigration area (inbound) waiting time (LHS) Number of arriving passengers per inbound Immigration desk (during peak hour) (RHS) Excellent Good Satisfactory Poor Very poor 110 100 90 80 70 60 50 40 30 20 10 2007–08 2006–07 2005–06 2004–05 2003–04 Average rating Number of passengers per desk The Australian Customs Service (ACS) ‘whole-of-government’ survey ratings for both the availability and standard of inbound Immigration facilities remained excellent in 2007–08 (chart 4.2.4).50 Both measures increased significantly from poor in 2003–04 to excellent in 2007–08.

Passenger ratings of the waiting time associated with the inbound Immigration area improved from satisfactory in 2005–06 to just below good in 2007–08. The number of arriving passengers per inbound Immigration desk during peak hour fluctuated between around 60 and 100 passengers over the whole reporting period. This was mainly attributable to changing passenger numbers. Chart 4.2.5: Adelaide airport—outbound government inspection facilities (international services) Average rating Number of passengers per desk Excellent Good Satisfactory Poor Very poor 200 180 160 140 120 100 80 60 40 20 2007–08 2006–07 2005–06 2004–05 2003–04 ACS whole-of- government survey– outbound Immigration facilities availability (LHS) ACS whole-of- government survey– outbound Immigration facilities standard (LHS) Passenger surveys– government inspection (outbound) waiting time (LHS) Number of departing passengers per outbound Immigration desk (during peak hour) (RHS) The ACS whole-of-government survey ratings for the availability of outbound Immigration facilities increased from satisfactory in 2006–07 to good in 2007–08 (chart 4.2.5).

The ratings for the standard of outbound Immigration facilities fell from excellent in 2006–07 to good in 2007–08. In commentary to the 50 Prior to 2007–08, the ACS survey reflected the views of the ACS only. From 2007–08, the ACS ‘whole-of-government’ survey encompasses the views of the ACS, the Department of Immigration and Citizenship and the Australian Quarantine Inspection Service. The results were collated by the ACS. The Department of Immigration and Citizenship operates the inbound (immigration) and outbound (emigration) government inspection facilities, which is referred to as ‘Immigration facilities’ in this report.

88 Adelaide airport Airport monitoring report 2007–08 survey, it was noted that there is adequate space within the outbound Immigration facilities for the current flight schedule and passenger numbers. However, if additional flights were to depart at the same time, these facilities would become congested. Passenger ratings of waiting times at outbound government inspection facilities increased from satisfactory to good over the whole reporting period. The number of departing passengers per outbound Immigration desk during peak hour fluctuated between around 130 and 190 passengers over the whole reporting period.

Variation in this measure was largely because of changing passenger numbers. Chart 4.2.6: Adelaide airport—baggage inspection facilities (international services) 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor 100 90 80 70 60 50 40 30 20 10 Average rating Number of passengers per desk ACS whole-of- government survey–inbound baggage inspection facilities availability (LHS) ACS whole-of- government survey– inbound baggage inspection facilities standard (LHS) Passenger surveys– baggage inspection (inbound) waiting time (LHS) Number of arriving passengers per baggage inspection desk (during peak hour) (RHS) The ACS whole-of-government survey ratings for the availability of baggage inspection facilities fell from excellent in 2006–07 to satisfactory in 2007–08 (chart 4.2.6).

The ratings for the standard of the baggage inspection facilities decreased from excellent in 2006–07 to good in 2007–08. In commentary to the survey, it was noted that the Australian Quarantine Inspection Service (AQIS) was concerned about the availability of space for inspection facilities, which contributes to passenger congestion. Further, it was noted that AQIS continues to work with airport owners to plan for the most efficient use of available space, including infrastructure upgrades planned at a number of airports.

Passenger ratings of the waiting time associated with baggage inspection facilities were not available for Adelaide airport in 2007–08. The number of arriving passengers per baggage inspection desk during peak hour varied significantly over the whole reporting period from around 50 to 90 passengers. Fluctuations in this measure were largely because of changing passenger numbers.

89 Airport monitoring report 2007–08  Adelaide airport Chart 4.2.7: Adelaide airport—gate lounge facilities (international services) 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor 1.8 1.5 1.2 0.9 0.6 0.3 Passenger surveys–gate lounges quality and availability of seating (LHS) Passenger surveys–gate lounges crowding (LHS) Number of departing passengers per seat in gate lounges (during peak hour) (RHS) Number of departing passengers per square metre of lounge area (during peak hour) (RHS) Average rating Number of passengers per seat/per square metre Passenger ratings of the gate lounge quality and availability of seats increased from satisfactory in 2006–07 to good in 2007–08 (chart 4.2.7).

Passengers rated the crowding at gate lounges as good from 2005–06 onwards.

In 2007–08 the number of departing passengers per seat in gate lounges during peak hour decreased from 0.9 passengers in 2006–07 to 0.7 in 2007–08. This measure fell significantly from 1.6 passengers in 2004–05 to 0.6 in 2005–06. The number of departing passengers per square metre of lounge area decreased from 0.2 passengers in 2006–07 to 0.1 in 2007–08. Notably, the new terminal that opened in 2005–06 provided significantly more gate lounge seats and area.

Chart 4.2.8: Adelaide airport—aerobridge facilities (international services) Average rating Percentage of passengers using an aerobridge Excellent Good Satisfactory Poor Very poor 100% 90% 80% 70% 60% 50% 2007–08 2006–07 2005–06 2004–05 2003–04 Airline surveys– aerobridges availability (LHS) Airline surveys– aerobridges standard (LHS) Percentage of passengers arriving using an aerobridge (RHS) Percentage of passengers departing using an aerobridge (RHS) Airline ratings of aerobridge facility availability were satisfactory from 2005–06 onwards.

The standard of aerobridges decreased from good in 2006–07 to satisfactory in 2007–08 (chart 4.2.8). Prior to 2005–06, ratings for aerobridge standard and availability were very poor. Notably, domestic, international and regional operations transferred to the new integrated terminal in 2005–06.

90 Adelaide airport Airport monitoring report 2007–08 In 2006–07 and 2007–08, 100 per cent of passengers arriving or departing used an aerobridge. Notably, the percentage of passengers that used an aerobridge increased significantly from 69 per cent (arriving) and 72 per cent (departing) in 2005–06. Information regarding the use of aerobridges by international passengers was not available for 2004–05 (though this measure was available for 2003–04) as aerobridges were removed to make way for the new terminal development.

Chart 4.2.9: Adelaide airport—security facilities (international services) Passenger surveys–security clearance quality of search process (LHS) Number of departing passengers per security clearance system (during peak hour) (RHS) Average rating Number of passengers per security clearance system 1200 1000 800 600 400 200 Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 In 2007–08 passenger ratings of the quality of the security clearance search process increased slightly to good (chart 4.2.9).

Ratings were between satisfactory and good over the whole reporting period. The number of departing passengers per international security clearance system (during peak hour) decreased from around 1030 passengers per peak hour period in 2005–06 to 553 passengers per peak hour period in 2007–08. This fall was largely because Adelaide airport increased the number of security clearance systems from one in 2005–06 to two from 2006–07 onwards. It is important to note that the number of security clearance systems relates to those used for international services only. The number of departing passengers relates to combined departing international and domestic passenger numbers because separate information for passenger numbers was not available.

91 Airport monitoring report 2007–08  Adelaide airport Chart 4.2.10: Adelaide airport—baggage facilities (international services) Airline surveys– baggage facilities availability (LHS) Airline surveys– baggage facilities standard (LHS) Passenger surveys– baggage reclaim waiting time (LHS) Passenger surveys– baggage reclaim information display (LHS) Passenger surveys– baggage reclaim circulation space (LHS) Average throughput of outbound baggage system (during peak hour) (RHS) Average rating Number of bags per hour 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor 120 100 80 60 40 20 Airline ratings of the availability of baggage facilities fell slightly in 2007–08, though ratings remained at satisfactory (chart 4.2.10).

Airline ratings of the standard of baggage facilities increased slightly in 2007–08, but also remained satisfactory. In commentary to the airline survey it was noted that there was only one belt for international baggage arrivals, which resulted in congestion if more than two international aircraft arrived within 15 minutes.

Passenger ratings of baggage reclaim waiting time were consistently satisfactory over the whole reporting period. Passenger ratings for the baggage reclaim information display were not available at Adelaide airport in 2007–08. Passengers rated circulation space as good from 2005–06 onwards. Information on the average throughput of outbound baggage system was not available for Adelaide airport from 2005–06 onwards because of the new integrated terminal.

92 Adelaide airport Airport monitoring report 2007–08 Chart 4.2.11: Adelaide airport—baggage trolleys (international services) Average rating Number of passengers per trolley Passenger surveys– baggage trolleys findability (LHS) Number of passengers per baggage trolley (during peak hour) (RHS) Excellent Good Satisfactory Poor Very poor 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2007–08 2006–07 2005–06 2004–05 2003–04 Passengers rated the findability of baggage trolleys as good from 2004–05 onwards, though ratings fell slightly in 2007–08 (chart 4.2.11).

In the most recent period, the number of passengers per baggage trolley during peak hour decreased from 3.9 passengers in 2006–07 to 3.0 passengers in 2007–08. This measure fell significantly from 5.6 in 2004–05 to 1.4 in 2005–06 largely because the number of trolleys increased from 350 in 2004–05 to 800 in 2005–06. The number of passengers per baggage trolley during peak hour then increased from 1.4 passengers in 2005–06 to 3.9 passengers in 2006–07 mainly due to an increase in peak hour passenger numbers. In commentary to the airport survey, Adelaide airport noted that baggage trolleys are made available to all passengers at no charge.

Chart 4.2.12: Adelaide airport—flight information display screens (international services) Average rating Excellent Good Satisfactory Poor Very poor 1000 900 800 700 600 500 400 300 200 100 2007–08 2006–07 2005–06 2004–05 2003–04 Passenger surveys–flight information display screens (LHS) Number of passengers per flight information display screen (during peak hour) (RHS) Number of passengers per information point (during peak hour) (RHS) Number of passengers per flight information display screen/information point Chart 4.2.12_12.3_001 Passengers rated flight information display screens as satisfactory over the whole reporting period (char 4.2.12).

Information was not collected on signage and wayfinding as part of the passenger survey for Adelaide airport.

In 2007–08 the number of passengers per flight information display screen during peak hour decreased from around 29 passengers in 2006–07 to 21 in 2007–08. The number of passengers per information point during peak hour decreased significantly from around 913 passengers in 2006–07 to 672 in 2007–08 because of a large fall in peak hour passenger numbers.

93 Airport monitoring report 2007–08  Adelaide airport Chart 4.2.13: Adelaide airport—washroom facilities (international services) Average rating 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor Passenger surveys– washrooms standard Passenger ratings of the standard of washroom facilities fell slightly in 2007–08, though ratings remained at satisfactory (chart 4.2.13).

Domestic services 4.2.3. Chart 4.2.14: Adelaide airport—check-in facilities (domestic services) Average rating Percentage of hours utilised over 80% Airline surveys– check-in availability (LHS) Airline surveys– check-in standard (LHS) Passenger surveys– check-in waiting time (LHS) Percentage of hours with more than 80 per cent of check-in desks in use (RHS) 80% 70% 60% 50% 40% 30% 20% Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 Airline ratings of the availability and standard of check-in facilities decreased from good in 2006–07 to satisfactory in 2007–08 (chart 4.2.14).

Both measures, however, improved significantly from 2003–04 when availability and standard were rated as poor.

Passenger ratings of the waiting time associated with check-in facilities increased from satisfactory in 2004–05 to good in 2007–08. The percentage of hours with more than 80 per cent of check-in desks in use fell significantly in 2005–06, though was stable from 2005–06 to 2007–08.

94 Adelaide airport Airport monitoring report 2007–08 Chart 4.2.15: Adelaide airport—gate lounge facilities (domestic services) Average rating Number of passengers per seat/per square metre Passenger surveys–gate lounges quality and availability of seating (LHS) Passenger surveys–gate lounges crowding (LHS) Number of departing passengers per seat in gate lounges (during peak hour) (RHS) Number of departing passengers per square metre of lounge area (during peak hour) (RHS) Excellent Good Satisfactory Poor Very poor 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2007–08 2006–07 2005–06 2004–05 2003–04 Passenger ratings of gate lounge quality and availability of seating increased from satisfactory in 2006–07 to good in 2007–08 (chart 4.2.15).

Passenger ratings of gate lounge crowding were good from 2005–06 onwards.

In 2007–08 the number of departing passengers per seat in gate lounges during peak hour decreased from 0.9 passengers in 2006–07 to 0.7 in 2007–08. This measure fell significantly from 1.6 passengers in 2004–05 to 0.6 passengers in 2005–06 largely because the new terminal provides significantly more gate lounge seats (580 in 2004–05 to 1600 in 2005–06). The number of departing passengers per square metre of lounge area was relatively stable from 2005–06 onwards. This measure fell from 0.5 passengers in 2004–05 to 0.1 in 2005–06, which was mainly attributable to the larger lounge area in the new terminal.

Chart 4.2.16: Adelaide airport—aerobridge facilities (domestic services) Airline surveys– aerobridges availability (LHS) Airline surveys– aerobridges standard (LHS) Number of arriving passengers per aerobridge (during peak hour) (RHS) Number of departing passengers per aerobridge (during peak hour) (RHS) Average rating Number of passengers per aerobridge Excellent Good Satisfactory Poor Very poor 100 90 80 70 60 50 40 2007–08 2006–07 2005–06 2004–05 2003–04 Aerobridges were not used by domestic passengers at Adelaide airport before the opening of the new terminal in 2005–06. Airline ratings of the availability of aerobridge facilities increased from satisfactory in 2005–06 to good in 2007–08 (chart 4.2.16).

Airline ratings of the standard of aerobridge facilities fell from good in 2006–07 to satisfactory in 2007–08.

From 2005–06 to 2007–08, there was an increase in the number of arriving passengers per aerobridge

95 Airport monitoring report 2007–08  Adelaide airport during peak hour from 44 passengers to 65.51 The number of departing passengers per aerobridge during peak hour increased from 60 in 2005–06 to 79 in 2007–08. Chart 4.2.17: Adelaide airport—security facilities (domestic services) Average rating Number of passengers per security clearance system Number of departing passengers per security clearance system (during peak hour) (RHS) Passenger surveys– security clearance quality of search process (LHS) 2007–08 2006–07 2005–06 2004–05 2003–04 600 500 400 300 200 100 Excellent Good Satisfactory Poor Very poor Chart 4.2.17_11.3_001 Passenger ratings of the quality of the security clearance search process were on average just below good from 2005–06 to 2007–08 (chart 4.2.17).

The number of departing passengers per domestic security clearance system during peak hour decreased from around 507 passengers in 2006–07 to 368 passengers in 2007–08. This measure fell from around 466 passengers per domestic security clearance system in 2004–05 to 344 in 2005–06. This fall was largely because Adelaide airport increased the number of security clearance systems from one in 2005–06 to two from 2006–07 onwards. It is important to note that the number of security clearance systems relates to those used for domestic services only. The number of departing passengers relates to combined departing international and domestic passenger numbers because separate information for passenger numbers was not available.

51 The ACCC’s Airport quality of service monitoring guideline and the Airports Act 1996 did not require the provision of information concerning the number of domestic passengers arriving via an aerobridge for the 2007–08 period as is the case for arriving international passengers. However, for comparative purposes the ACCC has derived a quantitative measure of utilisation wherever possible to assist with analysis. As such, the quantitative measure of number of passengers per aerobridge was used.

96 Adelaide airport Airport monitoring report 2007–08 Chart 4.2.18: Adelaide airport—baggage facilities (domestic services) Average rating Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 Airline survey– baggage facilities availability (LHS) Airline survey– baggage facilities standard (LHS) Passenger surveys– baggage reclaim waiting time (LHS) Passenger surveys– baggage reclaim information display (LHS) Passenger surveys– baggage reclaim circulation space (LHS) Airline ratings of the availability of baggage facilities improved from satisfactory in 2006–07 to good in 2007–08 (chart 4.2.18).

Airline ratings of the standard of baggage facilities were satisfactory from 2004–05 onwards.

Passenger ratings of the waiting time associated with baggage reclaim and baggage reclaim circulation space fell slightly in 2007–08, though ratings remained good. Information regarding baggage reclaim information display was not collected as part of the passenger survey for Adelaide airport. Chart 4.2.19: Adelaide airport—baggage trolleys (domestic services) Average rating Number of passengers per trolley Passenger surveys– baggage trolleys findability (LHS) Number of passengers per baggage trolley (during peak hour) (RHS) 2007–08 2006–07 2005–06 2004–05 2003–04 6 4 2 Excellent Good Satisfactory Poor Very poor Passenger ratings of the findability of baggage trolleys decreased in 2007–08 (chart 4.2.19).

In 2007–08 the number of passengers per baggage trolley during peak hour decreased from 3.9 passengers in 2006–07 to 3.0 passengers in 2007–08. This measure fell significantly from 5.6 in 2004–05 to 1.4 in 2005–06 largely because the new terminal provides substantially more baggage trolleys. The number of passengers per baggage trolley during peak hour then increased from 1.4 in 2005–06 to 3.9 in 2006–07, which was mainly attributable to an increase in peak hour passenger numbers. In commentary to the airport survey, Adelaide airport noted that baggage trolleys are made available to all passengers at no charge.

97 Airport monitoring report 2007–08  Adelaide airport Chart 4.2.20: Adelaide airport—flight information display screens (domestic services) Average rating Number of passengers per flight information display screen/information point Passenger surveys– flight information display screens (LHS) Number of passengers per flight information display screen (during peak hour) (RHS) Number of passengers per information point (during peak hour) (RHS) 1000 900 800 700 600 500 400 300 200 100 Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 Passenger ratings of flight information display screens increased from satisfactory in 2004–05 to good in 2007–08 (chart 4.2.20).

In 2007–08, the number of passengers per flight information display screen during peak hour decreased from around 29 passengers in 2006–07 to 21 passengers in 2007–08. The number of passengers per information point during peak hour decreased significantly from around 913 in 2006–07 to 672 in 2007–08, largely because of a significant decrease in peak hour passenger numbers in this period. Chart 4.2.21: Adelaide airport—washroom facilities (domestic services) Average rating 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor Passenger surveys– washrooms standard Passengers rated the standard of washroom facilities at just below good in 2006–07 and 2007–08 (chart 4.2.21).

98 Adelaide airport Airport monitoring report 2007–08 Other airport services 4.2.4. Chart 4.2.22: Adelaide airport—availability of airside services and facilities (other airport services) Average rating Runway Taxiways Aprons Gates Ground services sites Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 Airline ratings of the availability of the runway and taxiways increased from satisfactory in 2003–04 to just below good in 2007–08 (chart 4.2.22). The availability of aprons, gates and ground services sites increased from poor in 2003–04 to satisfactory in 2007–08.

One airline noted in survey commentary that there are insufficient aerobridges when there are more than four international aircraft at the terminal. Several airlines also noted that there is limited ground service equipment storage area. Chart 4.2.23: Adelaide airport—standard of airside services and facilities (other airport services) Average rating 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor Runway Taxiways Aprons Gates Ground services sites Airline ratings of the standard of the runway decreased from good in 2006–07 to satisfactory in 2007–08 (chart 4.2.23).

The airline ratings for taxiway standard fell from good in 2005–06 to satisfactory in 2007–08. One airline noted in survey commentary that taxiways are well maintained and clearly marked. Ratings of the standard of both aprons and ground service sites increased in 2007–08, though both remained rated at satisfactory. Ratings of the standard of the gates increased from satisfactory in 2006–07 to just below good in 2007–08.

99 Airport monitoring report 2007–08  Adelaide airport Chart 4.2.24: Adelaide airport—airport management responsiveness (other airport services) Average rating Airline surveys– overall system for addressing quality of service concerns (LHS) ACS whole-of- government survey– management approach to concerns (LHS) 2007–08 2006–07 2005–06 2004–05 2003–04 Excellent Good Satisfactory Poor Very poor Airline ratings of airport management’s approach to addressing quality of service matters increased somewhat in 2007–08, though ratings remained at satisfactory (chart 4.2.24). The ACS whole-of-government survey rating of airport management’s approach to concerns increased from satisfactory in 2005–06 to good in 2007–08.

In commentary to the survey, it was noted that operational issues—such as power outages, building works, access control, and gate control—are addressed in a timely manner by Adelaide airport, often with negotiated outcomes. In some cases, however, it was noted that actions are delayed and issues regarding the responsibility of costs arise. Chart 4.2.25: Adelaide airport—kerbside and taxi facilities (other airport services) Average rating Passenger surveys– kerbside pick-up and drop-off facilities (LHS) Passenger surveys– taxi facilities waiting time (LHS) Passenger surveys– kerbside space congestion (LHS) Excellent Good Satisfactory Poor Very poor 2007–08 2006–07 2005–06 2004–05 2003–04 Passenger ratings of kerbside pick-up and drop-off facilities were not collected as part of the passenger survey for Adelaide airport in 2007–08.

Passenger ratings of taxi facility waiting time were good from 2005–06 onwards (chart 4.2.25). Congestion associated with kerbside space was rated by passengers as just below good from 2005–06 onwards.