Perth Airport profit takes off on property boom

More air travellers have helped keep Westralia Airports Corporation Pty Ltd flying high this year but property deals have provided the thrust for the Perth Airport owner to record a bumper net profit of $17.3 million, triple the previous year's result.
Operating revenue for Westralia was up 12 per cent for the year ending June 30 to $136.4 million, as the company benefited from the booming resources sector which overcame a big drop-off in tourist traffic to Bali.
But income relating to the adjustment of value of land and buildings plus the profit of the sale of land and buildings took off to $36.5 million in 2005-06, nearly three times the $12.9 million recorded in the previous corresponding period and providing a big boost to profitability.
Westralia chairman David Crawford said property development accounted for 33 per cent of revenue and a significant portion of the airport's $85 million capital expenditure earmarked for spending this financial year is related to property on the site.
Mr Crawford also noted a 22 per cent rise in ground transport revenues to $23.5 million, pointing out that this was due to expanded car parking capacity.
In its annual report Overall passenger numbers climbed 7.2 per cent to 7.1 million.
Domestic passenger numbers rose 9.2 per cent to 5.1 million while international traffic, impacted by a big drop in Bali-Perth travellers, grew 2.5 per cent to 2 million people.
But it was in the property side where the real activity took place - notably leases to Coles Myer for a distribution centre and BGC which is building its brickworks.
Property developer Lester Group was also a participant in new leases which cover 60 hectares of the 2,105ha Commonwealth-owned estate which the airport controls.
The Westralia board has also approved a 4,000 sqm, three-storey office development near the domestic terminals, which will house the airport administration in its top floor.
Some of this development has been quite controversial. While the BGC brickworks has attracted ongoing protests from locals and environmentalists, the scale of development on the airport has upset some in the state and local governments because the airport federal status puts it outside normal planning controls.