SUPPORT NEEDED FOR SMALL AIRPORTS - OFFICIAL MAGAZINE OF THE NEW ZEALAND AIRPORTS ASSOCIATION
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OFFICIAL MAGAZINE OF THE NEW ZEALAND AIRPORTS ASSOCIATION April 2019
SUPPORT NEEDED FOR SMALL AIRPORTS
Also in this edition ...
Hat Trick of Tech
Firsts for Wellington . ........... p3
Auckland Trial of
“Game Changer”
Scanning Technology .......... p5
Evolving a Long-Haul
and Regional Network
in New Zealand ................... p6
The Silent Traveller
and the Invisible Airport ....... p8
Culture – the Life, Soul and
Reality of Working Life ...... p10
Little and Large – Have Jetstar
Regional and China Southern
Impacted Regional Dynamics
in New Zealand? ............... p12
Taking the Lead – Growing
Your Airport’s Place in
a Region ............................ p13
Taking the Nelson Airport
Redevelopment Project
from Dream to Reality – the
Nuances of Teamwork ....... p15
Airport Business Diversification
Supports Resilience and
Service Quality .................. p18
SMS and Quality
Whakatane Airport Decision Making ................ p21
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz
NZ’s Small Airports Need
Support to do Great Things
NZ Airports chief executive Kevin Ward
If you cannot do great things, do small things in a great way. So said the business guru
Napoleon Hill.
Right now, the small airports that their residential populations and The provincial growth fund bidding
thousands of New Zealanders and economies – and ensure ready process seems designed for projects
tourists are using to see friends, access to healthcare, family, that provide a regional step-change –
connect with family, do business or education, employment and business but this is less relevant for an airport
visit special parts of our country – need opportunities. The 2016 Kaikōura that is simply undertaking normal but
some great thinking. They need help earthquake showed how essential air costly repairs and maintenance, such
to be small, and deliver great things for links are when disasters strike. as runway re-sealing or replacement of
our country. aging landing lights.
With this government’s focus on
Our smallest airports are shut out of supporting regions, some airport New Zealand needs to fund a
normal transport funding solutions. projects are getting valuable support nationally consistent minimum
The level of investment they need through the Provincial Growth Fund. standard of airport infrastructure, and
to maintain minimum safe standards However, this issue warrants a national ensure essential services.
cannot be met from commercial network response. If a state highway
Why don’t we have a national
revenues. The shortfall is met by bridge needs replacement there is a
approach or standard on funding small
airport owners, chiefly local councils, system in place to provide it – not so
airports as core community assets that
and their ratepayers. for small airports.
keep places and people connected to
These are places and communities Airports with too few flights to key services and opportunities?
like Chatham Islands, Hokitika, Kaitaia, generate the revenue to pay their way
The Crown is a half share owner
Westport, Whakatāne, Whanganui, independently need national funding
of five of our small airports, while
and Masterton. Small places that do and a framework that is fair and equal
other similar-sized airports have
great things – helped by a range of with other forms of transport.
no government support. Direct
core community assets including their NZ Airports is calling on the government ownership is the tail-end
local airports. government to allocate dedicated of a long history of Crown development
At a time when local government has funding to small towns that, to thrive, and ownership of most airports,
pressing housing and infrastructure need to maintain air links to a followed later by policies requiring
priorities such as roading, water and major city. all aspects of the air network to be
waste, the burden of subsidising commercially self-sustaining.
airports is becoming too great, and We need a new funding framework
is unfair. Kevin Ward
that will serve all of our communities,
NZ Airports, the representative body and which recognises that commercial
of New Zealand airports, highlighted models will not work in all situations –
this important issue in 2017, with although they can and do for the busy
our report Linking the Long White middle-sized and larger airports.
Cloud. The research report called for A nationally consistent support system
urgent action from the government to for our small, non-commercial airports
secure the future of small and isolated would signal that New Zealand is a
communities by supporting the future country that supports all its communities
of their airports and air links. The equally to do well. It would secure and
pressures have grown since 2017, and improve our resilience as a country too.
in 2019 we need a comprehensive
Other countries with isolated and small
strategic response.
communities like Scotland, Canada,
As a long, thin country, communities Australia and the USA fund airport
up and down our islands rely on infrastructure at a national or state
air transport to bring in people level and also underwrite essential air
and supplies, keep and grow links. We should too.
2 NZ Airports Magazine | April 2019
After an extensive review of global a national airport core infrastructure They would ensure that aerodromes
regional and isolated community fund applicable to any eligible airport to around the country are accessible
assistance schemes, NZ Airports ensure it continued to meet a national to civil emergency services and air
believes that the model most set of minimum standards; second, an
ambulance flights.
applicable to New Zealand is underwriting scheme for air services to
a grant scheme available to eligible airports. They would ensure that our smaller
qualifying communities. communities can do great things in
Together these two elements would
A small communities aviation fund ensure the outer edges of the national business and tourism, and continue to
would comprise two elements: first, air network remain open and viable. be great places to live.
Hat Trick of Tech Firsts for Wellington
Wellington Airport/Frogparking
Wellington Airport has recently set three notable technological benchmarks, in becoming
the first airport in the country to introduce a passenger “virtual assistant” service and first
in the world to deploy both Intellidock automated aerobridge docking and laser-guided
vehicle parking.
Virtual Assistant
Provided free of charge to airport users
by Wellington Airport via United States-
based organisation Aira, the virtual
assistant service offers advice to help
visually-impaired passengers navigate
through the airport.
The service, which connects the user
to a sighted professional agent, also
assists with finding specific locations/
facilities such as gates, retail outlets,
check-in counters and toilets, and can The Aira app
provide live updates on developments
that may affect a passenger’s journey.
Wellington Airport is only the second up the arrivals process. It will improve
Wellington Airport aeronautical airport outside of the United States to turnaround times and ultimately result
operations general manager introduce the service (see page four for in a better and faster experience
Ayolt Wiertsema says the virtual more information). for passengers.”
assistant provides greater
independence to passengers who are Automated Aerobridge The system was successfully trialled
with Air New Zealand and is now part
visually impaired. Docking of standard daily operations. The
“Feedback we’ve received says it Developed by Wellington-based airport plans to roll out the automated
provides a sense of freedom to do Airport Equipment, a fully-automated docking system into other gates later
what all travellers like to do – grab this year.
Intellidock aerobridge docking system
a bite to eat or find what they need
has recently become operational
before a flight,” he says. “It requires a lot of work behind the
at one of Wellington Airport’s
scenes, as you’re essentially setting up
The Aira app – which is understood domestic gates.
the working model for others. This type
to have thousands of users worldwide
Once the aircraft has parked at the of automated technology will become
and is enabled for universities,
gate, the system’s sensor scans the the new standard in airport operations
supermarket chains and other
aircraft door and automatically drives around the world in the next ten years.”
international airports such as Heathrow
the bridge into position and locks it into
and Los Angeles – can be downloaded
onto smartphones. Passengers can
place, explains Mr Wiertsema. Laser-Guided Parking
also access the service via Horizon “This new technology eliminates Wellington Airport has deployed
smart glasses. possible operator error and will speed a laser-guided parking system
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 3
developed by Palmerston North-based available parking space as quickly they arrive at the terminal happy and
Frogparking, to direct customers as possible, says Frogparking ready to take off,” says Ms Sandbrook.
through its new, nine-storey chief executive Shareena Sandbrook.
A world-first use of the same laser
parking building.
“Drivers at Wellington Airport are the technology being utilised in Tesla’s
Utilising eye-safe laser vehicle first in New Zealand to experience our autonomous vehicles, the system uses
sensors, ultra-bright LED guidance latest and greatest technology which laser beams to detect parking space
lights and large signs, the system delivers a frictionless path to a parking capacity and feeds information to a
ensures customers are guided to an space as quickly as possible so that live signage system that shows drivers
Life-Changing Experience of Aira
Jonathan Mosen
Following January’s successful launch of the virtual assistant service in Wellington, Aira
explorer communications and Australasia vice-president Jonathan Mosen shared with
NZ Airports Magazine his own “life-changing” experience of discovering the Aira offering.
“I closed down my own successful everywhere. To destination and given confirmation
consultancy firm because I knew be honest, I that I was indeed heading in the
a chance to play a part in truly wasn’t expecting correct direction.
transformative technology only much from Aira, Because of my hearing, and the
happens once in a lifetime – and but I was keen fact that I know navigating these
that’s if you’re very lucky,” he says. to see what environments can be difficult, I had
Jonathan Mosen would happen. allowed myself plenty of time to
Having always been totally blind
reach the exhibit hall. But I reached
with no light perception and in This is the
it much more quickly than I had
recent years confirmed with a moment when I transitioned from the
anticipated and with much less
hearing impairment, Mr Mosen says intellectual understanding that “this is stress than usual.
he first tried Aira’s service when in a quite a good concept”, to the emotional
connection that made me say “holy When we eventually reached
San Diego hotel lobby after having
guacamole, this thing is changing the exhibit hall, which was some
completed a long journey. The
considerable distance away, the
following is directly quoted from one my life!”
agent informed me that the door
of his blogs. I’m not a guide dog handler now, but was closed. I expected this, since
I wasn’t taking much notice of I have been in the past. One of the I was heading to the exhibit hall
advantages of working with a dog over before it was officially open to the
the hotel layout when the porter
using a cane is that you avoid many public. The icing on the cake was
showed me to my room. So, the
obstacles without ever encountering when she said that she could see a
next morning, I made my first call to counter to the left of the door with a
Aira and asked the friendly agent to them. The exception is if you are a
sign labelled “Exhibit Services”. She
guide me to the elevator. Not only cane user with good echolocation. I
then informed me that there was a
did I get to the elevator effortlessly, think that even with full hearing, I would
man behind that counter and offered
I was also guided right to the button have found echolocation difficult in that
to lead me to him. She did so and
very noisy lobby, but it’s certainly not he let me in. Astounded, I thanked
for the elevator.
viable for me now. Therefore, in that the agent and ended the call.
But the call I will never forget is the type of environment, I often find myself
one I made to ask for assistance hitting people’s legs with my cane, as I Full disclosure, at this point, it gets
getting to the exhibit hall while a bit embarrassing. No technology
try to find a way forward. With the Aira
has made me cry for joy before.
exhibits were being set up. If you’ve agent talking in my hearing aids which
But a stressful experience I have to
visited the Grand Hyatt in San were also delivering environmental psych myself up for had just been
Diego, you’ll know how cavernous sounds, I was getting information made effortless and enjoyable. I
the lobby can sound. When the about where the crowds were, and was utterly overwhelmed. This was
lobby is full of people, I find it when I needed to veer to avoid all achieved with no more than the
impossible to navigate, because running into people. I was told when free app and the camera on my
there’s just so much sound bouncing it was necessary to turn to reach my iPhone X.
4 NZ Airports Magazine | April 2019
where parks are and guides them there Wellington Airport transport manager is a stress-free and quick identification
using LED lights. Pippi Kettle says the real-time system for thousands of people who
guidance is proving very popular. use our car park before flying out of
“We are always innovating to make
Wellington Airport every day.”
sure our technology is simple, accurate “Not only does it mean they get a
and cost-effective, removing the need parking space faster but it gives people Since patented last year, Frogparking’s
for clunky, old technology like infrared, a friendlier experience, with less laser-guided system has been installed
cameras, ultrasonic systems, batteries, stress, improving satisfaction overall. in many different locations in Australia
conduit and on-site servers.” Frogparking’s laser guidance system and the United States.
Auckland Trial of “Game Changer”
Scanning Technology
A trial of new three-dimensional imaging (real-time tomography) of international travellers’ bags
was recently launched at Auckland Airport by Biosecurity Minister Damien O’Connor.
The enhanced imagery produced by cargo pathways as traveller numbers
the million-dollar Rapiscan RTT X-ray and trade increases.”
unit is expected to make it easier for
quarantine officers to pinpoint potential Minister O’Connor emphasises
items of biosecurity risk that have been that, given New Zealand’s dynamic
difficult to detect in the past, including biosecurity environment, there is a
dried meat, goods hidden behind need to constantly adjust scrutiny
laptops and stink bugs. measures and strengthen border
“This is a game changer for security as new threats emerge.
biosecurity,” says Minister O’Connor.
The Rapiscan RTT X-ray unit “It’s important we all do our bit for
“It is the most sophisticated piece biosecurity as we all benefit from
of X-ray technology we could have
searches, similar to how security X-ray a country relatively free of unwanted
in place to support our officers at
screening operates at many major pests and diseases and we all suffer
Auckland Airport and provides another
international airports. the consequences of an incursion.”
useful tool in our multi-layered
biosecurity system, sitting alongside “Biosecurity New Zealand is also There are currently eight other X-ray
50 detector dog teams, arrival developing software with Australian units in use at Auckland Airport
cards, risk assessment and public counterparts that will allow the scanner which, at peak times, can require up
awareness campaigns. to automatically recognise risky items to 32 staff to operate. Their current
such as fruit that could harbour fruit fly. technology produces two-dimensional
“The scanner will check bags before
passengers pick them up and images “Ultimately we want this technology in images and relies on operators to
will be sent to quarantine ahead of any place across the passenger, mail and identify risk items.
Two-dimensional (left) versus three-dimensional (right) X-ray images
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 5
Evolving a Long-Haul and
Regional Network in New Zealand
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
Air New Zealand chief strategy, networks and alliances officer Nick Judd explained the airline’s
network evolution since 2010 to the audience.
He told delegates that in 2010, the to such developments, highlighting as in more widebody aircraft to provide
airline was following a somewhat one example the collaboration with better connections from Australia, the
disjointed long-haul strategy, with Singapore Airlines enabling the airline airline’s investment in its sales team
little on-the-ground presence in to now offer triple-daily Auckland- across the Tasman had also been
some markets served. This created Singapore flights. reflected somewhat ironically in it
an exposure which, in light of the earning an Australian employer award.
Traditionally targeting annual
Global Financial Crisis, necessitated “The Tasman is a vitally-important
network growth of about 2% to 3%,
some hard calls. market for us – it is over 20% of our
Air New Zealand is now eyeing growth
“At that time we were basing our of 5% to 7% annually, despite potential capacity. Whereas for some of our
long-haul strategy on hope more than volatility and challenges.* Carrying 17 competitors, they are not so worried if
commercial reality and as a result we million passengers in 2017, the airline it succeeds or fails for them, for us we
were losing hundreds of millions of is forecasting it will handle 19 million don’t have a choice in that matter – we
dollars,” he said. in 2020 and to support this growth, have to make the Tasman work and
will have introduced 18 new and more make it sustainable and profitable.”
Over the past eight years the airline
efficient aircraft by the middle of
has evolved a more sustainable long- He said contributing factors to the
next year.
haul network, within which markets decision to end the Virgin Australia
have to now stand profitably in their With one of Air New Zealand’s key alliance were both the additional
own right. He said the development of focuses being to grow its Pacific options provided by Air New Zealand’s
strategic partnerships had been key Rim network, four new international fleet upgrade as well as feedback
services had or were being introduced that customers were experiencing
at the time of Mr Judd’s address – two an inconsistency in service levels. In
Nick Judd of which being Taipei and Chicago. this vein, he welcomed the Qantas
He noted there had been huge market domestic point-to-point code share as
stimulation in regard to the former and enhancing the customer experience –
observed that with the latter, as well but emphasised the two airlines
as attracting flow-through traffic from would remain strong competitors
other United States areas as expected, on the Tasman.
specific Chicago-New Zealand volume
was running a lot higher than business Local Market
case estimates.
Turning to the local market, Mr Judd
It was also noted that the success noted that over 600,000 additional
of such new services was in turn seats were being added to the
feeding volume into Air New Zealand’s network in the 2018-2019 financial
domestic and regional network. year, with the airline having
experienced 44% growth in its
Emphasising the importance of
domestic jet and 59% in its regional
trans-Tasman business to the airline –
business since 2014.
with 190 flights a week being provided
to eight Australian cities – Mr Judd said “We have about 80% domestic market
Queenstown-Brisbane and Wellington- share and it is incredibly important to
Brisbane services were being added at us that we maintain that and continue
the end of 2018. In addition to investing to build.”
* Note: More recently, Air New Zealand has revised network growth to 3 per cent to 5 per cent on average over the next three years, to reflect a
slower demand growth environment. It will also defer by one year the delivery of three A321NEO aircraft planned to operate on the domestic
network, and postpone by two years the delivery of one A320NEO aircraft designated for trans-Tasman services. It will suspend for at least
four years the delivery of two long-haul aircraft as part of a widebody fleet programme to replace the airline’s eight-strong B777-200 fleet.
6 NZ Airports Magazine | April 2019
A current $1.7 billion investment in
domestic and regional aircraft will
see the airline’s fleet entail 23 Q300s,
29 ATRs, 13 A320s and seven A321s
by 2023.
Features of the airline’s current
domestic network include:
20 destinations
400 flights every day
two million more seats in the
2017-2018 financial year than $2083 is the average spend 6300 tonnes of carbon emissions had
four years earlier of Air New Zealand-delivered been eliminated annually.
tourists to Northland in the
2.9 million seats available 2017-2018 financial year – an Partnering with Airports
under $100 in the 2018-2019 increase of 44.5% over the past
financial year Mr Judd emphasised that
ten years
partnerships with airports were vital
Regional Network tourism businesses in Northland to both initiatives and targeted further
have grown by 9.8% over the advancement in such areas – soberly
Features of the airline’s current
past ten years noting that in light of climate change,
regional network include:
Air New Zealand has grown there was potential for loss of the
340 flights every day seats into Kerikeri by 62% and social licence for people to travel to
seats into Whangarei by 22% far-away places such as New Zealand.
eight million seats in the
2017-2018 financial year over the past five years “We need to be getting ahead of the
11% of employment in curve on this and we need to be taking
1.3 million seats sold for
under $100 in the 2017-2018 Northland is now the initiative.”
financial year tourism related He also touched upon the future of air
Welcoming feedback from the regions “We need to drive itineraries in travel and noted that Air New Zealand
as well as expressing appreciation for New Zealand and we need to drive had entered into a partnership with
their ongoing support – despite some them from multiple cities and towns New Zephyr Airworks to explore
services having ended in recent times rather than just having an individual vertical take off and landing craft, and
– Mr Rudd highlighted the regions as focus. We are not going to get any was eyeing electric and hybrid aircraft
cut through in America, China or developments. Such advancements
being the future of sustainable growth.
wherever it is if we are out there sitting were viewed as potentially having
“Strong regions, strong by ourselves. So it’s a challenge significant tourism potential and NZ Inc
New Zealand, strong that I lay down to you to have those benefits, as well as major implications
Air New Zealand.” conversations as regions and we’re for the aviation network.
more than prepared to be part of that.”
He highlighted a recent partnership
with the Bay of Islands Marketing Collaborative Approaches
Looking Ahead
Group and Far North District Council In parting, Mr Judd said his airline was
as a prime example of what can be Looking ahead, Mr Judd said the “up for discussion”.
achieved by such initiatives. Highlights airline had commenced a review of its
entire medium and long-term planning “We realise that we need aviation
of this partnership including:
processes, with the aim of ensuring it approaches to a number of issues
135,000 seats into Northland in keeps ahead of changes brought about and we want to see collaborative
the 2017-2018 financial year by rapid growth and other factors, and approaches to anything from visitor
utilises improved data sets to identify growth management, to how we drive
ten tonnes of cargo carried by
developing issues much further value over volume, to how we bring
Air New Zealand from Northland
in advance. more tourists to regions.
in the year ending April 2018
In regard to sustainability initiatives, “We certainly want to see those
3.4% of Northland’s GDP is
he touched upon Air New Zealand’s discussions happen in collaboration
now tourism
drive to remove single-use plastics with broader interests rather than just
“Summer of Safety” video from its domestic aircraft – noting this individual towns and cities, and so let’s
helped deliver $270,000 will eradicate 24 million such items a hope we can bring those groupings
media value in marketing for year – and highlighted that by utilising together and add some value to that in
Northland destinations ground power units for its planes, the future.”
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 7
The Silent Traveller
and the Invisible Airport
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
Providing insight into the new customer typology of “silent travellers”, Auckland Airport
operation general manager Anna Cassels-Brown examined how airports might best tailor
their future offerings to accommodate this growing demographic.
Emphasising her presentation was interruptions and no need to interact performed by terminal cameras as
a personal examination of thoughts, with anything other than your phone.” travellers walk through uninterrupted.
Ms Cassels-Brown said such
To provide some context, Ms Another avenue was the deployment
travellers use modern technologies to of individual processing pods
Cassels-Brown also observed:
complete their travel transactions, are that seamlessly combine the
mobile device-focused and often have IATA forecasts growth of
currently separate and disconnected
limited human interaction 3.5 billion travellers by 2036
check-in, compliance and
in airports. most airports face a real screening processes.
“For a whole lot of reasons – including estate challenge
Expected to become feasible within
that silent travellers demand far less there are multiple stress points the next five years, these pods could
of our airport real estate – if this is in the customer journey, from potentially halve the screening time
the future, shouldn’t we do everything home to gate for an individual passenger and
we can to encourage and make totally eliminate multiple queuing
airports easy for the silent travellers?” airports have long-established
and transitions. As well as providing
pondered Ms Cassels-Brown. legacy systems and practices
a significant enhancement to data
sharing, a given pod’s footprint
Noting that customer experience (CX) Biometrics could potentially be half that of the
is based on emotion, she observed that
Leveraging advancements in currently-dispersed processes,
even if individual touchpoints through
biometrics was
an airport journey performed well, the
one of three
overall experience may be ranked
key avenues Anna Cassels-Brown
poorly if others did not.
airports could
explore along
Silent Travellers the invisibility
Arguing that for the majority of path, said Ms
travellers, airports are merely a place Cassels-Brown.
and set of processes to navigate on
In this vein,
the way to their actual destinations,
Auckland Airport
Ms Cassels-Brown suggested that
is working with
silent travellers desire a service
Air New Zealand
environment that:
and Qantas to
is connected to the Internet establish its own
facial recognition
enables progression without the
proof of concept
need to look up, present a piece
in early 2019.
of paper, ask for directions or
The aim being to
stand in an un-natural position
develop a face-
is clean, fast and stress-free on-the-fly solution,
requiring no
“Or, they won’t be silent for long and
physical stopping
not just you, but the whole world, will
at a camera lens
know about it.
or a screen, with
“In short, probably the best thing an image capturing
airport can do for a silent traveller is and confirmation
be invisible to them – no hurdles, no instead being
8 NZ Airports Magazine | April 2019
Invisible airport processing pods
thereby releasing terminal space for Ms Cassels-Brown nonetheless also accurate prediction of system
higher-value purposes. emphasised those alternatives should capacity, performance,
not be seen as a replacement for all bottlenecks and action before
Invisible human-to-human contact. it becomes a stress point
for customers
Ms Cassels-Brown encouraged
airports on the invisibility path to
World-Class a two-speed airport, which
investigate the potential of actionable “Our aspiration is to be a world-class delivers experiences that
intelligence and confirmed Auckland airport and our customers’ favourite. customers of the future will
Airport was advancing an initiative in expect as their daily norm – ie,
“Two of the most important metrics that respectively “invisible” in regard
this area.
will tell us if we are those things are to being fast, frictionless, stress-
She noted that by the time the multiple customer satisfaction and employee free and enabled by technology,
sources of data that are often rapidly engagement scores. while also being “amazing” in
presented to individual airline, airport, regard to being slow, enjoyable,
“Once we are an invisible airport,
ground handler and border agency with curated and signature
the job will be to take any remaining
staff can be digested and actions experiences as well as a warm
customer stress points away. We can
taken, queues have formed and the human touch
focus on captivating our customers,
CX is compromised.
rather than managing them as captives
Whereas, actionable intelligence in a series of processes over which
Conference Presentations
entails electronic datapoints being fed they have little control.”
into a data lake to which predictive/ Further coverage of speakers at the
In conclusion, Ms Cassels-Brown
prescriptive analytics are applied, NZ Airports 2018 Conference will
described an amazing and invisible
thereby enabling appropriate actions appear in future magazine editions.
airport as ideally encompassing:
to be taken, with new insights also fed
Earlier editions of the magazine
back into the process. zero queues and customer
processing time better are available under the NZ Airports
Although having highlighted
than halved Magazines quick link at
how airports can leverage such
technological advancement to enhance space conversion to higher .
their future customer experience, CX-value uses
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 9
Culture – the Life, Soul
and Reality of Working Life
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
“Great culture doesn’t just happen, you need to make it happen,” emphasised Invercargill
Airport general manager Nigel Finnerty, explaining the recent cultural-transformation journey
undertaken by his business.
Mr Finnerty suggested a “normal” day Also essential to building a business Leadership
at the office is like a team of rowers as well as both attracting and retaining
coxed to work in unison. However, if important team members, he observed Emphasising that, as leader, he
the leader was not present then without that culture could either be left to needed to establish clarity on the
strong, underlying culture in place, he evolve or be led. new culture, Mr Finnerty said the next
proposed the office could default to stage entailed both getting buy-in
“If you want a culture, you’ll definitely from as well as teaching the culture
“let’s party!”
get one, but it may not be the one you to the team.
Quoting Whole Foods Market chief want,” he said of the former option.
executive John Mackey, he observed: This all-inclusive approach entailed
“With a clear vision and the passion testing the culture, being specific
“If you are lucky enough to be
someone’s employer, then you have a and drive to get there, you can as to expectations and repeating
moral obligation to make sure people go anywhere,” he emphasised of the message regularly. Noting the
look forward to coming to work in the the latter. importance of “telling the stories”,
morning.” Turning to his personal experience at he gave an example of outlining
Invercargill Airport – which he joined the reasons why maintaining a tidy
While noting “culture” to be simple
in April 2016 – Mr Finnerty observed workshop at the end of each day
word, Mr Finnerty said it was
that having a small management and would deliver an efficient start to the
nonetheless the life, soul and
operational team, it is crucial that all next day’s work.
reality of everyday working life.
This encompasses the: employees work collaboratively and Having subsequently defined the new
efficiently together. culture, Mr Finnerty said the business
way we treat others
Having recently determined that an then set about the key function of
way we act documentation – “values need to be
improvement in culture was required,
way we do it a review and implementation process more than worlds”.
was initiated, which began with
what we do
defining what the new culture Vision
why do we turn up every day should entail. Invercargill Airport identified its vision
Decision-making as: “To be New Zealand’s leading
full-service regional airport with a
processes as
thriving airport community connecting
well as people’s
Southland to the world.”
behaviours and
treatment of Its purpose was defined as to: “Provide
others were an aerodrome that allows safe aviation
among poignant operation, and utilise our assets
issues. Key to grow the business, and provide
questions included excellent customer service from the
– where does front gate to the aircraft.”
the business
Specific values were additionally
want to be, how
outlined under the following headings:
does it want to
be seen and how professional and respectful
does the leader – “we are professional in
want his/her everything we do and treat
Nigel Finnerty people to be seen people the way we want to
and interact? be treated”
10 NZ Airports Magazine | April 2019forward with their observations
and questions.
Examples of such positive
conversation starters include:
our new workshop really helps
us do our job ...
I came in early ...
I had a great day out ...
what a great idea, go for it ...
hey boss, what do you reckon
about this ...
I think we should do it this
way because ...
Furthermore, in his regular one-
on-one meetings with the airport’s
management team, Mr Finnerty said a
key question he now asks is: “What do
you need from me?”
In parting, Mr Finnerty challenged
courageous – “we make the Further emphasising the importance business leaders to ensure they
hard decisions, push the of rewarding positive performance, embed a culture in their teams which
boundaries and know that this is Mr Finnerty noted that need not always is not reliant on them being physically
Invercargill Airport’s business” come in hard form – “a simple thank present to maintain and ensure the
you works really well”. business values continue unabated
creative and flexible – “we have
our goals but know there is even if they or other key staff members
more than one way to get there”
Trust are to leave.
He observed that the overall culture
with integrity and openness “Decide that change is needed, build a
being developed at Invercargill
– “we are a team that acts change plan and get on with it.
Airport was engendering mutual
honestly and openly in
trust, as evidenced by staff becoming “Culture eats strategy
everything we do”
increasingly comfortable to come for breakfast.”
Mr Finnerty said it has thereafter
been a matter of “living it” – noting
the importance of him, as business
Platinum Sponsor
leader, being personally seen to
set the standards and ensure that
deeds match actions. In addition
to representing the key values of
the business, he regularly engages
Gold Sponsors
with team members in action,
seeks feedback and continuously
asks questions.
Measurement and Reward
Silver Sponsors
Another ongoing and crucial facet
of the cultural-change process is
CONSULTING
measurement and reward.
Also informed by regular contact with
Bronze Sponsors
team members, such endeavours
strive to acknowledge particular
discretionary efforts of staff and
reward positive behaviours,
with culture highlighted in every
performance discussion. Conference Sponsors
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 11Little and Large – Have Jetstar
Regional and China Southern
Impacted Regional Dynamics
in New Zealand?
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
Christchurch Airport aeronautical business development manager Gordon Bevan said
Jetstar Regional’s arrival to the market and China Southern’s Christchurch service have
had a big impact on the airport and the wider economy.
Beginning with Jetstar Regional, In regard to potential impacts of the “It insulates our route from any
Mr Bevan noted that over the past Air New Zealand and Qantas code negative factors that may impact any
three years the airline had ambitiously share, he noted that as there was one market.”
introduced Q300s into the regional already existing interline co-operation
between the airlines, essentially there Emphasising that both capacity and
New Zealand market – an initiative he
should be little direct consequence for passenger volume have been very
said was considered outside of the
usual business model. Jetstar Regional. deliberately managed during the
evolution of the service, Mr Bevan
“It had to mix utilisation with revenue Turning to China Southern in welcomed the 30% increase in seating
maximisation,” he said. Christchurch, Mr Bevan noted that
being provided by introduction of the
having begun with two charters in 2014
“It wanted to appeal to a new market new 787-9 aircraft. He also welcomed
the service has grown to now entail
– existing business travellers, road the aircraft containing no first-class
daily 787s year-round. Exponential
travellers, connecting passengers, seating and instead accommodating
growth has occurred in Chinese
leisure travellers and price refugees international arrivals – from 19,024 business, premium economy and
from New Zealand.” in 2014 to now over 60,000. economy classes.
However, having run into on-time Christchurch is now also noted to Mr Bevan elaborated that the service
performance and reliability issues be Guangzhou’s 86th-largest was largely attracting rich, free and
due to having its planes away from overseas-direct market – an upwards independent travellers which were
base every night, the airline had to move of 20 places in four years – noted to spend more, stay longer, be
ultimately resort to returning them to and placing it ahead of some other less driven by seasonality and have
the Auckland hub, which consequently big-name destinations. less impact on infrastructure than
had the effect of removing about 5000 travel groups.
flights each month. Chinese Arrivals’ Growth
Collectively, Chinese visitors were now
Jetstar Regional’s entrance was “Our growth rate for Chinese arrivals spending almost $700 million in the
noted to have caused an initially into Christchurch is something like South Island and staying the equivalent
sharp increase in traffic growth as 25% – the average New Zealand of about 1.12 million nights each year.
well as similar sharp decline in fares, growth rate for Chinese arrivals is 13%. Chinese arrivals were also noted to be
albeit with both trend lines having We really feel we have got something
spending about 82% of their time in
subsequently plateaued. here in the South Island that Chinese
the South Island and have an average
visitors want to see.”
Mr Bevan observed the market had spend of almost $4000.
been stimulated with a lot of new Nonetheless, with only 58% of the
domestic connectivity created – almost Complementing the China Southern
arrivals actually being Chinese
500,000 more passengers travelling residents, the power and range of the service growth, Mr Bevan observed
annually between Auckland and China Southern network and alliance there had been positive increases
Napier, New Plymouth, Palmerston partners was noted to be delivering a in overall international arrivals to
North and Nelson since 2015 (about broad global catchment – other large Christchurch in the year to June 2018
a 60% rise) – with a portion of residencies carried by the service – other notable growth routes including
passengers noted to be accessing being New Zealand (26%), Asia (8%) Thailand (41%), Guangdong (26%),
two cheap and non-interlineable fares. and Europe (6%). Hong Kong (18%) and France (16%).
12 NZ Airports Magazine | April 2019“A lot of our long-haul traffic is growing
very robustly and I’ve got to thank Gordon Bevan
Cathay Pacific for that and Qantas. We
invest in network carriers because we
really need the leverage that network
carrier can bring.”
Returning to China Southern, he noted
that with the airline having very limited
interline arrangements in place with
Air New Zealand, it does not
consequently flow its Christchurch-
bound traffic from China via Auckland
or through the regional network.
Mr Bevan also praised both Dunedin
and Invercargill airports, noting
they are the largest connecting
markets on China Southern’s
Christchurch operation.
“Excellent work there guys, really
pleased with that and it will develop
further. It is all about connectivity, it is
all about opening the pipeline.”
Noting the importance of regional
partnerships, he confirmed that
Christchurch Airport was seeking to
advance dialogue with other airports
and explore potential new initiatives.
Taking the Lead – Growing
Your Airport’s Place in a Region
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
Hawke’s Bay Airport chief executive Stuart Ainslie believes that airports have both an
opportunity and a responsibility to enhance environmental and community facilitation within
their business developments.
Describing Hawke’s Bay Airport as ecological entranceway appropriate to over one million to about 1.4 million
operating in a challenging physical the airport’s role as the gateway to the by 2025.
environment – emphasised by Hawke’s Bay, he noted.
In what Mr Ainslie noted was a
an illustration of the 1932-built
Another significant recent achievement fortuitous act of timing, his arrival at the
aerodrome’s site being underwater
is the 47% growth in passenger airport in March last year presented
prior to the February 1931 earthquake
numbers experienced by the airport opportunity for a thorough review of
– Mr Ainslie expressed pride in its
over the past three years, to reach its terminal development plan to both
ongoing evolution. A recent example
715,000 passengers in the year to take cognisance of its growth trajectory
is the collaborative Watchman Road
October 2018. as well as issues arising with security,
project, which has both removed one
commercial space and baggage.
of the most dangerous intersections in Future medium and high growth
the country while also enhancing the forecasts of 5.5% and 10%
local habitat of wildlife. Completed in respectively are consequently
Revisions
September last year, this project has predicting the airport’s passenger Consequently, the team revised the
ultimately delivered an attractive and volume will reach between just redevelopment from the original 52%
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 13Crown’s shareholding as a positive
for the airport’s future, with this
engagement leading to ecological,
economic and cultural partnerships.
People and Environment
“At the end of the day with what we
achieve, it’s about how you care for
people and the environment. We want
people to enjoy the quality of life, the
standard of life and the community.”
He said Hawke’s Bay Airport was also
now developing its 20-year masterplan,
within which focuses include:
an environmental
management plan
supporting delivery of
strategic objectives
strong engagement and
Stuart Ainslie consultation with iwi
and community
understanding risk and
increase in space to 3800 square of its shareholders – the Crown 50%
opportunity from land zoning
metres to a 74% increase to 4340 and Napier City Council and Hastings
and land title
square metres, with a staged City Council 25% apiece – Mr Ainslie
approach bringing forward elements by said the airport had also taken positive a partnership with Biodiversity
a year. However, the terminal – which strides in this space. Hawke’s Bay
is to be fully-completed in the first “We have realised, as we’ve started
quarter of 2020 – will retain the original to really look closely at our strategy,
Sense of Place
concept of having the design what is best for growth. Instead of Turning the discussion to new
of the roofline inspired by the local our council shareholders leading beginnings and establishing a deeper
kuaka bird. us, we’re starting to take the lead sense of place, Mr Ainslie highlighted
“In that central area we have and say ‘this is what we think is some of his region’s unique features
reimagined that whole space,” best, but notwithstanding working in – the Art Deco revolution, Heretaunga
said Mr Ainslie. collaboration and consultation with Plains, rich soil, world-class food and
our shareholders’.” wine and Te Mata Peaks.
“The layout has allowed for security,
The airport is also now viewing the iwi “I’m very keen as we move forward on
but we have essentially created a dwell
treaty settlement component of the the airport journey, that we play our
space where we can give a real sense
of ambience. When you’re talking to
the community, it is about getting that
Gateway to Hawke’s Bay
balance between the frictionless travel
but also feeling that you’re actually at a
regional airport.
“What’s important is that we get that
regional sense of place, that function of
space and make it more streamlined.
We want people to enjoy it and if we
can get them focused away from
mobile phones.”
Guiding Shareholders
Having at times faced challenges
advancing previous developments
through the often-conflicting opinions
14 NZ Airports Magazine | April 2019part by not just looking at the airport,
but by looking at the whole journey
from the city into the airport and the
environs around it.”
As an aside, Mr Ainslie noted that
the history of regional airports had
often been plagued by less-than-ideal
investment practice, fragile competition
among airlines, inefficient operations
and localised resource constraints.
Regional Partnerships
However, having gone through
those growing pains – and with
greater competition now prevalent
among airlines – he sees significant In 1932 volunteers from the Napier Aero Club built a new aerodrome
potential for regional airports to
become increasingly sharper in their
business approaches. He encouraged and the community, and exploring such as ground handling, aircraft
the pursuit of meaningful regional the potential to become hotspots for turnaround and sustainability –
partnerships with local iwi, businesses innovation and pilot projects in areas “Regional airports can take the lead.”
Taking the Nelson Airport
Redevelopment Project from Dream
to Reality – the Nuances of Teamwork
NZ AIRPORTS CONFERENCE 2018, DUNEDIN
Nelson Airport chief executive Rob Evans, in collaboration with Fulton Hogan national
development manager Michael Fulton, drove the airport’s major redevelopment project
with five “vision principles”.
With its infrastructure no longer able business – and with significant future formulated plans for redevelopment
to efficiently accommodate existing growth forecast – the airport last year driven by the following key
vision principles:
intuitiveness – customer
experience and wayfinding
flexibility – expandable for
future growth, modular design
affordability – airlines agree to
design and cost
sense of place –
representing the region and
instantly recognisable
master-planned – for future
growth of non-aero activities
Upon completion of the design,
consultation and approvals
processes in the project – for which
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 15Designed by Studio Pacific, the new terminal will meet the requirements of the airport’s anticipated growth and enhance the gateway experience for visitors to the Nelson Tasman region 16 NZ Airports Magazine | April 2019
Rob Evans
construction had reached about “So the challenge is – how do you “So once we had expanded our overall
two-thirds completion at the time of the keep your vision in line with the reality redevelopment team to include the
conference presentation – the planning of what’s occurring?” construction crews, optimising team
team had largely achieved “everything work between all parties was vital to a
The airport awarded the
we wanted and more!” successful project outcome.”
redevelopment contract to
“You are in control at this point – you Naylor Love in partnership with In order to help facilitate this goal,
decide how big or small, what style and Gibbons Construction and communication was identified as its
colour and create your own sense of Fulton Hogan as contractors. own, specific area of focus. A catch-
place,” said Mr Evans. phrase was introduced which defined
“This is a big project for what is a
project success as being, “The best
“Then the tender phase and fairly small team at Nelson Airport – journey of our lives delivering
construction starts. Something and at the onset of the construction iconic experiences!”
changes with site fences, piling phase, some doubts even lingered
and risks – you have handed as to if we were going down the Achieving that success was
over responsibility and a lot of right path for our needs.” continued consequently determined as being
decision making. Mr Evans. reliant on “living our team behaviours
and actions” – documented as follows:
open, respectful communication
– talk before we type; clarity
Drivers of Nelson in communication with clear
protocol; all committed to an
Airport Development open, last-planner process
trust – we will deliver on
opened in 1975 to accommodate 120,000 passengers per annum promises; full disclosure, do
I have all the information I
pre-redevelopment seismic rating of 34% – under Nelson City Council need to make a decision?; be
order to remediate by 2020 supportive through our actions
no space available to accommodate new airlines – particularly in solution-focused – open
regard to check-in and boarding gates to explore opportunities,
facilities were outdated and retail was over trading everything is possible; we are
able to compromise; check in
cars were being parked on grass and off airport that we understand the issue
currently accommodating over one million passengers per annum Numerous key interfaces have had to
six airlines currently accommodated be managed throughout the project to
date, including airside/landside risks.
passenger volume forecast to reach 1.3 million per annum by 2035 To address such issues, Nelson Airport
growth being experienced in all ground transport activities and appointed a project co-ordinator as
roading infrastructure interface between the project team and
airport management, and to oversee
daily tasks as well as health and safety
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 17and customer
experience
matters.
Adding further
complexity to
the project,
construction of the
air traffic control
tower project
has occurred
simultaneously.
The fortunate
involvement of the
same architects,
engineers as
well as Gibbons
Construction
across the two
builds has
helped mitigate
certain issues.
Airport Business Diversification
Supports Resilience and
Service Quality
Iain MacIntyre
Numerous airports around the country are increasingly generating positive returns through
various commercial (non-aeronautical) initiatives.
Christchurch in the development of the property Property income accounted for 19%
portfolio – plays a pivotal role in of the airport’s total revenue in the last
As part of its strategic review process underpinning the long-term competitive financial and developing vacant land
in 2014, Christchurch International position of CIAL and provides continued, with the business securing
Airport (CIAL) analysed what long-term resilience and the ability Bunnings Warehouse as an anchor
underlines strong and successful to manage risk within aviation. tenant for the new Harvard Park trade
airport businesses across Australia and
With the business reporting 10% retail precinct at the northern end of
New Zealand, explains chief executive
growth in annual revenue to $236 the airport campus.
Malcolm Johns.
million and passenger numbers
The airport also invested about
This process revealed that business reaching a record 6.87 million in the
$85 million in new land and buildings
risk diversification – through growth 2017-2018 financial year, the strategy
during the financial year – ending the
reset the undertaken in 2014-2015 has
begun to produce tangible results, year with 98% of property leased, with
he says. a weighted average lease term of
Airport News Releases
6.5 years (up from 6.45 years).
Please send your airport “All parts of the business are now
news releases to showing pleasing commercial “Developing our vacant land in a way
maturity in the way we are building which services those wanting to be
our business, enhancing customer located around the airport, in a way
for inclusion on that builds shareholder returns and the
journeys and being great kaitiaki
our Website. focused on safety and sustainability,” company’s value, has been a key focus
says Mr Johns. for the past few years.”
18 NZ Airports Magazine | April 2019Tauranga
Tauranga Airport manager Ray Dumble
observes that record-high growth
Global Airport Data
in passenger numbers has been
experienced at the airport over the past From its database of over 900 airports worldwide,
two years – a 29% rise to 434,000. Airports Council International has advised that in 2018:
“This growth is driven by a strong local
non-aeronautical revenues = 39.9% of total revenue
economy with a booming port facility
and a very strong horticultural industry, components of non-aeronautical revenue
to name a couple, along with strong • retail concessions = 30%
domestic migration driving population
growth,” he says. • car parking = 20%
“The strong economy has significantly • property = 15%
increased the airport’s land holding • others = 35%
values which in turn drives rental
returns of the leased commercial land,
which makes up 40% of the airport’s
total revenue. The strong economy sport equipment retailer Torpedo7, facilities at the hotel and terminal.
is also keeping the demand for any Amourguard, Shaw Wire Ropes, We think there is also potential for
available leasable commercial New Zealand Boxer, Tambo Properties weddings and other functions, so there
land high. (The Caravan Hire Company) and is a lot of opportunity on the site.
Zero Fire.
“A doubling of the terminal footprint “Our growing regional visitor market,
and capacity will in turn increase Stage Four of the park’s Central along with the increase in flights
aeronautical revenues, with completion Precinct development has been coming in and out of Hamilton, shows
due by April 2019.” brought forward due to high demand, the demand is there and growing.”
with Waikato Regional Airport,
Mr Morgan expects the four-star
Hamilton Hamilton & Waikato Tourism and
hotel and conference centre will also
A surge of development is happening Titanium Park having recently opened
strengthen the long-term earnings of
adjacent to Hamilton Airport at the up an additional 12 hectares of land.
the Waikato Regional Airport group
mixed-use Titanium Park, which Earthworks have also commenced which includes Hamilton Airport,
is attracting a diverse range of on the park’s Southern Precinct Hamilton & Waikato Tourism and
businesses as well as companies following the sale of approximately Titanium Park.
from the aeronautical industry, three hectares of land to a national
advises Waikato Regional Airport automotive distribution company and Rotorua
chief executive Mark Morgan. a further one hectare to a commercial
Work being advanced on a masterplan
roofing and scaffold company.
“We have had a huge amount of for Rotorua Airport, as well as to build
interest in land in both the Central and Furthermore, Hamilton Airport is about its non-aviation revenue, is being
Southern precincts over the past 18 to commence a multi-million dollar largely credited with the value of the
months,” he says. refurbishment of its hotel for new airport’s land having risen significantly
operator, Jet Park Hamilton. Due to during the past year.
“We are excited about the calibre and commence managing the operation
variety of businesses looking to locate As well as noting the business’
from May 2019, Jet Park Hamilton
themselves in the airport precinct. financial surplus and passenger
is noted to have a strong focus on
movements were both progressing
“We’ve attracted a lot of interest from food and beverage and customer
ahead of target, Rotorua Airport
business owners due to the position service elements.
chief executive Mark Gibb says the
of the land and the easy connectivity “That will be both an external upgrade value of Rotorua Lakes Council’s
to roading networks, as well as those – so it’ll look and feel completely interest in the airport has increased
looking for flexibility in lot sizes.” different to what it does now – and a 60% over the year to $48 million.
An agricultural machinery distributor total refurbishment of the interior, up to
Following recent completion of its
is set to join other notable businesses a four-star standard,” continues
Emergency Operations Centre,
Mr Morgan.
established at the park, which include a having had the early morning flight
production plant owned by the world’s “We want a high standard of reinstated between Rotorua and
largest paper, packaging and recycling accommodation with a range of other Wellington and commencing its
company VISY Board, a distribution quality offerings including a restaurant, terminal redevelopment, he says
warehouse for outdoor adventure bar and extensive conferencing the 100%-council-owned airport is
Level 8, Midland Chambers, 45 Johnston Street, Wellington | PO Box 11369, Manners Street, Wellington 6142 | +64 4 384 3217 | nzairports.co.nz 19You can also read
