Tauranga Business Case for Jetstar – Supporting Document

SUPPORTING DOCUMENT FROM WELLINGTON AIRPORT

for

Tauranga-Wellington Domestic Opportunity

Linking QF Group’s expanding offering with a JQ’s regional service via an integrated terminal makes

sense

Source: Stats NZ, WIAL Data

60%

80%

100%

120%

140%

160%

Oct

-04

Mar

-05

Au

g-0

5

Jan

-06

Jun

-06

No

v-0

6

Ap

r-0

7

Sep

-07

Feb

-08

Jul-

08

De

c-0

8

May

-09

Oct

-09

Mar

-10

Au

g-1

0

Jan

-11

Jun

-11

No

v-1

1

Ap

r-1

2

Sep

-12

Feb

-13

Jul-

13

De

c-1

3

May

-14

Oct

-14

Mar

-15

Au

g-1

5

Jan

-16

Ind

ex Y

ear

Oct

-04

=1

00

%

AKL, WLG, CHC Intl Pax Growth

AKL CHC WLG

• WLG is the fastest growing of

NZ’s main international airports

• Current FY International pax

+16% and could pass 900k by

year-end

• Qantas Group expanding

strongly in market

• QF/EK partnership

opened up WLG to

Asia/Europe

• New JQ services to

OOL/MEL

• New FJ service to NAN

Wellington’s International Connectivity/Market is Growing

The Wellington Network Vision

CHC

AKL

OOL

MEL

SYD

NAN

DUD

ZQN

CHC

AKL

NPE NPL

ROT/TRG HLZ

IVC

Jetstar – A320 Jetstar – Q300 Qantas Fiji

OOL

MEL

SYD

NAN NSN

Current Future

MEL MEL

AKL WLG CHC ZQN DUD HLZ 0:26 1:01 1:41 2:15 2:18

TRG 0:35 1:11 1:47 2:23 2:25

ROT 0:35 1:04 1:40 2:18 2:20

NPE 0:58 0:49 1:30 2:08 2:07

NPL 0:42 0:48 1:20 1:55 1:58

NSN 1:14 0:30 0:45 1:22 1:24

IVC 2:45 1:51 1:12 0:32 0:32

Q300 Block Times Via WLG with connecting Jet service

WLG provides sector lengths that are long enough to support a strong aviation market, but short enough to

maximise frequency with a small fleet – North-South Island connecting times via Jets is comparable with

direct Q300 times meaning a well developed hub could serve a number of connecting markets

AKL CHC ZQN DUD HLZ 2:06 2:36 2:36

TRG 2:16 2:46 2:46

ROT 2:09 2:39 2:39

NPE 1:54 2:24 2:24

NPL 1:53 2:23 2:23

NSN 1:50 1:35 2:05 2:05

IVC 3:11

Assumes Min Connect Time of 30 minutes

Wellington provides a strong operating position

Capacity grew strongly prior to the GFC but has reduced since 2007

Source: Sabre ADI

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

An

uu

al S

eat

sWLG<>TRG Capacity

WLG<>TRG Capacity

Capacity has continued to reduce at a time when population and economic activity continues to grow

Source: Stats NZ

90

100

110

120

130

140

150

160

170

180

190

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Ind

ex

(Y2

00

0=1

00

)

Population & Economic Growth

TRG Population (Bay of Plenty) WLG Population (Wellington)

TRG GDP/Capita (Bay of Plenty) WLG GDP/Capita (Wellington)

WLG<>TRG Exogenous Growth

1-week out Cheapest airfares on the sector have grown by +34% due to constrained capacity

Source: WIAL Data

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

Ap

r 2

01

0

Jun

20

10

Au

g 2

01

0

Oct

20

10

De

c 2

01

0

Feb

20

11

Ap

r 2

01

1

Jun

20

11

Au

g 2

01

1

Oct

20

11

De

c 2

01

1

Feb

20

12

Ap

r 2

01

2

Jun

20

12

Au

g 2

01

2

Oct

20

12

De

c 2

01

2

Feb

20

13

Ap

r 2

01

3

Jun

20

13

Au

g 2

01

3

Oct

20

13

De

c 2

01

3

Feb

20

14

Ap

r 2

01

4

Jun

20

14

Au

g 2

01

4

Oct

20

14

De

c 2

01

4

Feb

20

15

Ap

r 2

01

5

Jun

20

15

Ch

eap

est

Far

es

12

-Mo

nth

Mo

vin

g A

vera

geWLG-TRG 1-Week Out Cheapest Fares

WLG<>TRG Airfares

Wellington is Tauranga’s largest OD market – a service operating TRG-WLG linking with existing

WLG-CHC jet services would connect TRG to its first and third largest markets

Source: Sabre ADI

0%

5%

10%

15%

20%

25%

30%

35%P

rop

ort

ion

of

De

man

dTRG's Largest OD Markets

Current markets linked by WLG service Possible future markets linked

TRG’s Largest Markets

Passengers of Air NZ’s existing service use WLG as a hub connecting to mainly South Island airports

Source: Sabre ADI

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

TRG- -WLG(LOCAL)

TRG-WLG-CHC(BEYOND)

TRG-WLG-NSN(BEYOND)

TRG-WLG-DUD(BEYOND)

TRG-WLG-TIU(BEYOND)

TRG-WLG-PMR(BEYOND)

TRG-WLG-BHE(BEYOND)

An

uu

al S

eat

s

TRG-WLG Sector Traffic

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

WLG- -TRG(LOCAL)

CHC-WLG-TRG(BEHIND)

NSN-WLG-TRG(BEHIND)

DUD-WLG-TRG(BEHIND)

IVC-WLG-TRG(BEHIND)

TIU-WLG-TRG(BEHIND)

BHE-WLG-TRG(BEHIND)

An

uu

al S

eat

s

WLG-TRG Sector Traffic

WLG<>TRG Sector Traffic

Tauranga Business Case for Jetstar – Supporting Document

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