4^ Council '^'^•^ 25 January 2016

Tauranga Airport - 2015-2035 Airport Masterplan and Associated Revenue and Expenses 2016/17

DC No: 14

Purpose 1. To approve the revised 2015-2035 Airport Masterplan.

2. To outline the financial implications of bringing forward and adding further capital expenditure in the 2016/17 Annual Plan.

Executive Summary 3. The revised 2015-2035 Airport Masterplan (Attachment A) shows no operational

restrictions for the Airport through to 2035 provided additional operational and public area, as indicated in the Masterplan, are developed as needed.

4. The Airport Masterplan should be reviewed again no later than 2020.

5. All depreciation and debt resulting from the additional capital expenditure proposed for 2016/17 can be funded by the associated additional revenue with no requirement for rate funding.

Recommendations That the Council:

(a) Receive Report (DC 14) Tauranga Airport - 2015-2035 Airport Masterplan and Associated Revenue and Expenses 2016/17.

(b) Approve the 2015-2035 Airport Masterplan.

(c) Approve operating revenue and expenses relating to $4.5m capex in 2016/17.

Discussion 6. The Airport Masterplan was due for a five yearly review in 2015. The review is timely

as there has been significant growth in recent years which is forecast to continue. A number of industry developments in the later part of 2015 will also affect the Airport's operational capabilities.

7. The review has looked at the Airport's ability to meet these demands by developing in accordance with the existing Masterplan.

8. The review has found increased terminal space is required for baggage, airline offices and passenger lounge areas as well as the provision of space for likely future security enhancements. Due to the globalisation of terrorism, the latter is required much sooner than previously planned. Additional and brought forward capex has

Objective ID: A6752024 -1 -

TauranqaOty 223 Council

25 January 2016

been included in the 2016/17 draft Annual Plan. The Tauranga Airport - 2015-2035 Master Plan is provided as Attachment A to this report.

9. The review also identified future expansion requirements other than those needed immediately such as car park, further terminal and apron area requirements.

10. The additional capex requirements in the 2016/17 draft Annual Plan has the financial implications as shown in the table below. All depreciation and debt resulting from the total capex of $4.5m (both brought forward and additional capex) can be funded by the additional revenues associated with the expansion with no requirement for rate funding.

Effect of $4 .5m Investment in Tauranga Airport

2015/16 LTP Budget $000's

2016/2017 LTP Budget

(inflated) $000's

Changes relating

to $4.5m $000's

Other Changes $000's

Draft AP 2016/2017

$000's

Operating Revenue 4,647 4,794 375 74 5,243

Other Operating Expenditure 1,919 2,052 301 117 2,470

Depreciation" 919 975 (25) 950

Finance Costs*'* 91 101 58 (17) 142

Total Operating Expenditure 2,929 3,128 359 75 3,562

Operating Surplus 1,718 1,666 16 (1) 1,681

Capital Expenditure 586 899 4,500 5,376

*Depreciation will not come into effect until 2018 (estimated depreciation$42k) ** 6 months debt servicing

Objective ID: A6752024

DC No: 14

^^^A. Council 224

^ ri. 25 January 2016 TauranqaOty '

Consideration strategic Context 11. The Airport Activity provides air transport services to connect Tauranga with the rest

of the country and the world. This activity makes a significant contribution to the community outcome of "A talented and innovative city full of opportunity."

Significance and Engagement 12. Under the Significance and Engagement Policv 2014. this decision is of medium

significance as it is likely to have moderate public interest and have moderate consequences for the city in terms of the future operation of the Airport Activity. Most of the capex funding is budgeted in the latter years of 2015/25 LTP.

Implementation 13. The revised Tauranga Airport Master Plan will be used for all Master planning going

forward.

14. The $4.5m capex planning and design will commence ASAP.

Attachments No. Title

Tauranga Airport Master Plan Update - Summary Report - 11 January 2016 Objective: ID: A6783381

Signatories Authors Ray Dumble: Manager Airport

Authoriser Jaine Lovell-Gadd: General Manager: City Transformation

Objective ID: A6752024

DC No: 14 . .

Attachment A

TAURANGA AIRPORT

MASTER PLAN UPDATE SUMMARY REPORT

11 JANUARY 2016

71

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AIRPORT MASTER PLAN SUMMARY

Am 71 Tauranga Airport Master Plan Summary

1. INTRODUCTION

Airbiz was appointed by Tauranga Airport Authority to prepare an updated Airport Master Plan. The Airport Master Plan update was developed through a series of workshops with Airport Management and the Airport Committee. This report presents a summary of:

The updated Airport Master Plan Annual passenger forecasts Apron and terminal layout concepts.

2. AIRPORT MASTER PLAN

The updated Airport Master Plan is very similar to the previous Airport Master Plan. The most significant changes are the realignment of grass runways and the parallel taxiway of the main runway and the new locations fuel locations. This Airport Master Plan also shows revised apron and terminal reserves.

The updated Airport Master Plan is shown in Figure 1. ro ro m

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I' -it k » 1 0

0 t+0+ + 0

- .vV> •> «

O 870 X 45m Grass Runway strip

1825rTi X 45m Runway

Ls 0 220rT, Strip

DRAFT

• -

1 Passenger Terminal 2 Apron 3 Control Tower 4 Rescue Flre Station 5 Fuel 6 Aviation Education 7 Helicopter FATOn'ALO 8 Possible Future RESA 9 NDB/DME

10 Public Viewing Area 11 Car Rental 12 General Aviation Hangars 13 Gliding and Aviation Tourism 14 Unjpa (Burial Ground)

• Airfield • General Aviation • Roads

• Carparking • Commercial

Urupa Extension Reserve Green Space

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FIGURE 1 Airport Master Plan

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3. ANNUAL FORECASTS

There are three growth scenarios for which annual passengers were forecast. The three scenarios are presented in Table 2 and the annual passenger forecast is presented in Table 3 and Figure 4.

Scenario Jetstar Propensity to Travel

Low

Medium

High

No service

WLG service October 2016

WLG service October 2016

Unchanged

Increased

Further Increased

TABLE 2 Forecast Scenarios

Passengers FY2015 FY2020

Low

Medium

High

295,000

295,000

295,000

351,000

400,000

460,000

CAGR

Low

Medium

High

2015-2020

3.5%

6.3%

9.3%

FY2025

372,000

441,000

549,000

2020-2035

0.9%

1.5%

2.1%

FY2035

402,000

499,000

630,000

2015-2035

1.6%

2.7%

3.9%

TABLE 3 Annual Passenger Forecast ro ro on

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Annual Passenger Forecast

700,000

600,000

S 500,000 -c !2 400,000 - Z Historic n

Q.

™ 300,000

c < 200,000

100,000

High

Medium

Low

M I - > l - > l - > l - > N J N J N J N J N J M N ) N J M N J t > J r O K J N J t v J t v J N J | v j I D I O I D I D I D O O O O O O O O O O O O O O O O O O l 0 l D U 3 l D U 3 O O O O O I - > l - > l - » l - > h . » N J I V J I V J M N J U J U l < J J i - > U ) ( j i > j i D i - ' L o t n ^ t D M O i ) i / i ^ i f l i - > U ) i n v j i o i - i u ) L n

FIGURE 4 Annual Passenger Forecast

4. MASTER PLAN APRON LAYOUTS

The scheduled aircraft stand demand forecast for Fy2035 is given in Table 5 below: ro ro t o

Scenario FY2035 Stand Demand

Low

Medium

High

4

6

8

TABLE 5 FY2035 Aircraft Stand Demand

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I Terminal Reserve

FIGURE 6 FY2035 Free Manoeuvring Apron Layout

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931.» «

Terminal Reserve

FIGURE 7 Rr2035 Pushback Apron Layout

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SHORT TERM TERMINAL CONCEPT

The requirement to expand the passenger terminal has been identified. This requirement is driven by the following factors:

Growth of Air New Zealand Introduction of Jetstar services Additional aircraft stands.

As part of the planning for a terminal expansion the potential for the introduction of additional security screening requirements for passengers, cabin and hold baggage have been considered.

A terminal expansion concept for FY2020 has been developed that accounts for current state of security screening as well as the potential introduction of passenger, cabin and hold baggage screening. The following terminal layout drawings are shown:

Existing ground floor Existing first floor 2020 ground floor without security screening 2020 ground floor with security screening 2020 first floor

Figure 8 Figure 9 Figure 10 Figure 11 Figure 12

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AIR NZ OFFICES 3 AIR NZ OFFICES BOH F&B

SEATING

AIR NZ CHECK-IN

BAGGAGE MAKE-UP

1.. BAGGAGE SECURITY

CLAIM

F= y - 1 LJ

1 ^

DEPARTURE LOUNGE

RETAIL r IB BBB

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FIGURE 8 Existmg Ground Floor

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13—ET

AIRLINE LOUNGE

AIRPORT OFFICE

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DOM DEP PAX 'y DOM ARR PAX

FIGURE 9 Existing First Floor

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TOILETS

CAR RENTAL

BAGGAGE MAKE-UP

r" BOH

BAGGAGE CLAIM

rr nn 2i 7

Y

DEPARTURE LOUNGE

F&B SEATING AIRLINE OFFICES

• a

r CHECK-IN F&B

RETAIL

r TOILETS CAR BOH RENTAL . I 4^1

t 1 Y ro

DOM DEP PAX > DOM ARR PAX

FIGURE 10 FY2020 Ground Floor without Security Screening

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BAGGAGE MAKE-UP BOH H D

t 7 Y L m l 4

SCREENED BOARDIN

r FUR DEPARTURE I F&B UNSCREENED SEATING BOARDING

SECURITY >CREENIN( LOUNGE

) BOH 3 ' I l & O _ _ O O

BAGGAGE ' CLAIM I

I

AIRLINE OFFICES CHECK-IN

F&B RETAIL TOILETS

TOILETS CAR RENTAL

if I CAR RENTAL

t 1 Y ro CO

DOM DEP PAX > DOM ARR PAX

FIGURE 11 FY2020 Ground Floor w i th Security Screening

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AIRLINE LOUNGE

AIRPORT OFFICE

TOILETS

3 ro CO

DOM DEP PAX • > DOM ARR PAX

FIGURE 12 Fy2020 First Fioor

/IIRBIZ ^ Tauranga Airport Master Plan Summary

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