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Speaker 1: As part of results season. What have we got Auckland

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Speaker 1: deport came to the parties Andrew alluded to a couple

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Speaker 1: of moments ago passengers up, revenue up, profit up. The CEO,

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Speaker 1: Kerry Hudahunganui is back with us. Very good morning to you.

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Speaker 2: Good morning mane.

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Speaker 1: How much of your bottom line at the end of

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Speaker 1: the day is what you specifically do versus other people

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Speaker 1: doing stuff for you?

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Speaker 2: I e.

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Speaker 1: And airline lands they bring people in with that comes money.

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Speaker 2: Yeah, great, great question. I mean as an airport you

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Speaker 2: are a passenger or traveler business. Right, You've got travelers

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Speaker 2: that come and so poor relationships with airlines in regards

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Speaker 2: to their operation. Obviously you do have retail and then

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Speaker 2: part of Oakland Airport obviously also we have the landing

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Speaker 2: business park and so logistics and warehouse distribution as well.

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Speaker 1: The shortage of aircraft globally, is that affecting you? And

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Speaker 1: if it is, how badly?

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Speaker 2: Yeah? It is, Mike. It's quite interesting when you look

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Speaker 2: at the numbers and start to compare goggly. So we've

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Speaker 2: finished out that pardon me, the year at about eighty

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Speaker 2: six percent. Any even if you look at July eighty

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Speaker 2: six percent. That's only up a couple of percent from

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Speaker 2: the same time last year, whereas when you look at

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Speaker 2: other markets like US, Canada, Great Britain, Singapore, Australia, they're

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Speaker 2: all up between ten and twenty percentage points. We're up

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Speaker 2: to and so there is definitely a lagging for the

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Speaker 2: New Zealand market comparatively.

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Speaker 1: What would your view be on the tourism picture generally?

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Speaker 1: Is that part of the problem not enough planes? Is

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Speaker 1: it not enough demand? Is there something wrong with us

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Speaker 1: because the tourism picture isn't right yet?

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Speaker 2: I would say it's all of the above, Mike. I mean,

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Speaker 2: you have the we're geographically isolated island, so we're a

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Speaker 2: long way away. So in their line are saying, right,

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Speaker 2: we are short of aircraft, We've already we're already uperating

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Speaker 2: to profitable routes that potentially are closer and so you

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Speaker 2: get a better utilization. New Zealand is what they call

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Speaker 2: a long skinny route, which means the asset is a

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Speaker 2: way for longer and you've got to see the performance

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Speaker 2: to want to invest in it. That being said, airlines

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Speaker 2: we're talking to are still very positive about New Zealand

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Speaker 2: as a destination. And as a place that they do

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Speaker 2: want to expand. But you often have conversations where you're saying, yep,

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Speaker 2: when we get our next fleet or as things come back,

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Speaker 2: you absolutely kind of are one of our next destinations.

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Speaker 2: So there's positive signs, but yes, you are seeing those

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Speaker 2: global supply chain issues that are having an impact on us.

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Speaker 1: What about the domestic scene and how it's being affected

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Speaker 1: by the cycle recession.

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Speaker 2: Yeah, there's a couple of things flying out in the

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Speaker 2: domestic scene. You know, domestic capacity this year is thirteen

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Speaker 2: percent down on what it was in twenty nineteen, so

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Speaker 2: that takes you back to what was twenty sixteen and

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Speaker 2: seventeen levels of capacity. Now you're seeing the load factors

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Speaker 2: up higher as a result of that, and I think

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Speaker 2: you've got a tough economic condition, certainly locally here in

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Speaker 2: New Zealand. We have issues obviously with things like engines

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Speaker 2: that have spreen er New Zealand's ability to get that

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Speaker 2: domestic capacity, and they're working really hard to resolve it,

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Speaker 2: but nonetheless it's our issue. And one of the things

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Speaker 2: that we're also seeing is is there's pockets that are

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Speaker 2: spending less, so kind of those and there's forties and fifties,

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Speaker 2: the ones you generally would see with children and mortgages.

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Speaker 2: You're definitely seeing a drop off in that segment in

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Speaker 2: regards to their travel overall.

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Speaker 1: You bullish, Oh, listen.

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Speaker 2: I'm positive, but it is a game of two has Mike.

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Speaker 2: You've got international positive signs, lots of conversation with their owns. Now,

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Speaker 2: our job is convert that from interest to actual capacity.

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Speaker 2: But the domestic market's going to be tough this next year.

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Speaker 1: I will be inundated with the usual text about how

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Speaker 1: crappy reporters and how long the lines are and how

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Speaker 1: they didn't get their bag in terms of experience. You say, what, in.

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Speaker 2: Terms of experience, I think we've made tremendous headway. And

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Speaker 2: if we think I recall talking to you, Mike earlier

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Speaker 2: around queues for example, internationals. You know that's improved forty

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Speaker 2: three percent from where it was this time last year

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Speaker 2: instead of an average of thirty one minutes at seventeen,

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Speaker 2: so and that's what it should be. That's better than

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Speaker 2: twenty nineteen performance. But we also know that we are

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Speaker 2: creating challenges. We are can't deny at the construction site

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Speaker 2: at the moment, and whilst we're trying to reduce disruption

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Speaker 2: to travelers and make sure they're safe. Sometimes that does

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Speaker 2: create challenges to customers and we're always reviewing it to

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Speaker 2: make sure that we're minimizing that. But we have made

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Speaker 2: significant improvements, but we've got more to do.

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Speaker 1: Definitely good stuff, Carring nice to catch up. Appreciate it

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Speaker 1: very much, Erry Huda hang Anui, who's the Airport Aukland

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Speaker 1: Airport CEO.

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Speaker 2: For more from the mic Asking Breakfast, listen live to

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