Retail revenue lifts Melbourne airport operator

Nicole Mezzasalma

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Retail operations contributed more to Australia Pacific Airports Corp’s total revenue than aeronautical revenue

Melbourne airport operator Australia Pacific Airports Corp (APAC) has announced its results for the financial year ending June 30 2008, registering a 17% increase in revenue to A$449m ($388.7m). Retail revenue was also up by 17% to A$183m ($158.5m) and now represents more than 40% of the company’s total revenue.

APAC invested A$133m ($115.2m) into capital works at Melbourne airport during the 2007/08 financial year, mostly as part of the A$330m ($285.8m) expansion of terminal two. The redevelopment will add a total of 25,000sq m (269,097sq ft) to the international terminal, including a new 7,000sq m (75,347sq ft) passenger concourse with duty-free and speciality shop space. Retail and lounge space will increase by 50%.

In July, The Nuance Group opened its new arrivals duty-free store at Melbourne T2 under the F1RST Tax and Duty Free fascia. The 1,500sq m (16,146sq ft) outlet offers liquor, fragrances and cosmetics, tobacco products, confectionery, watches, sunglasses and electronics and was described as “the best arrivals store in Australia” by the airport authority.

APAC CEO Chris Woodruff said: “Over the next nine months Melbourne expects to see one of the biggest increases in international seats it has experienced in the past decade, with over 725,000 new international seats direct to and from Melbourne. We will be ready for it. The upgrade of the international terminal began in January this year and is on schedule with this A$330m project, due for completion in 2012, being undertaken in stages to ensure that each completed phase can be immediately operational.”