1 Communicating New Zealand Airports’ story Andrew Pirie Strategic Communications Advisor

2 A place where inspiring journeys begin; where loved ones reunite What is an airport?

3 A necessary evil at the start and end of each journey What is an airport?

4 A money-making “tollbooth” that imposes costs on travellers and airlines What is an airport? Taxes and govt charges = 36% of total cost

5 A provider of vital infrastructure that enables air services to grow What is an airport?

6 An important contributor to economic growth What is an airport?

7 A key facilitator in connecting Kiwis with the world and with one another What is an airport?

8 A place where inspiring journeys begin; where loved ones reunite A “necessary evil” at the start and end of each travel journey A money-making “tollbooth” that imposes costs on travellers and airlines A provider of vital infrastructure that enables air services to grow An important contributor to economic growth A key facilitator in connecting Kiwis with the world and with one another It’s up to us to shape the airports story

9 Between us, we: Welcome and farewell over 99% of international travellers to our country Contribute directly to around 20% of New Zealand’s GDP Impact the travel service experience over 25 million times a year Can materially impact the recovery from the recession We have a collective influence

10 Airports vs Airlines: business drivers AIRLINES Short to medium term investment horizon given dynamic operating environment Reasonable flexibility in asset utilisation Incumbents incentivised to constrain industry capacity to maximise load factors and yields AIRPORTS Long term investment horizon focused on infrastructure development Greater risk of asset stranding Incentivised to grow industry capacity, in part by promoting stronger competition that drives down ticket prices

11 Airports vs Airlines – PR “scorecard” AIRLINES The “excitement” of flight Numerous touchpoints for customer service, VIP treatment Delays once on board are rare Link to tourism/economy is obvious and tangible Challenges of dynamic aviation industry are all too apparent in financial performance AIRPORTS The “mundane reality” of bricks and mortar Touchpoints biased towards bureaucracy/control (e.g. border agencies) Delays on the ground are commonplace Link to tourism/economy needs to be explained Financial stability reinforces perceptions of “cosy monopolies”

12 What the airlines say about us

13 Core communications strategies 1.Adopt a more disciplined, pro-active approach to stakeholder engagement that builds stronger relationships and encourages advocacy 2.Develop a succinct set of overarching key messages that summarize the airports ‘story’ 3.Make a more compelling case about the contribution that airports make to NZ and NZ Inc 4.Build a more positive public profile as informed commentators on air travel, trade and tourism

14 1. Stakeholder engagement

15 2. Indicative Key Messages Airports make a vital contribution to tourism and trade, by strengthening connections within New Zealand and with the world We invest in quality airport infrastructure to ensure New Zealand has the capacity to maximise the growth potential of air travel We are working hard to improve the traveller experience, in collaboration with airlines and government agencies We are committed to working positively with our airline customers and recognising their varying commercial needs Focused on achieving fair returns for our owners over the long term whilst keeping pricing reasonable

16 3. Compelling Case Airport capacity drives air travel growth “to get bums on airline seats, you first need the seats” Attracting new airlines Opening new routes Improving schedules

17 Capacity drives growth

18 4. Informed Commentators Tourism trends – national and regional Travel patterns: mine the data Foreign tourists taking domestic flights Domestic routes: business vs leisure Political/regulatory initiatives Regional development issues Streamlining the trans-Tasman border Domestic aviation security

19 Discussion