IFT - Infratil

[COLIN]

So why did the s.price go up today? Did the market think that Lubeck was a bad idea? Perhaps people saw it as another Glasgow-Prestwick, which has not exactly performed brilliantly.

[Toddy]

Lubeck was only an option, and a relatively small one compared to the size of IFT. The market did not react when the idea was originally announced and neither did it when the project was basically canned. There will be other European options out there.
And yes, I would think that the market probably would prefer IFT to pile more cash into TPW via Alliant Energy selldown or use the cash for the proposed (upto) 10% market share buyback which is up for approval at the August AGM.

[Toddy]

Not any talk on the forum about IFT.
Great result by TrustPower.
IFT head share broke four bucks for the first time yesterday.
AGM coming up next week. Will IFT buy back shares off Alliant Energy?
Any comments on the proposed upto 10% share buy back.
Digger, how did the exit go a while back.

[Snow Leopard]

Are Alliant selling their shares? This seems to be in doubt.
A buy back would be useful if there is spare cash sloshing around and the SP is way down, otherwise better to find some more infra-structure.

SP doing well at the moment, in a strong uptrend.

[Toddy]

The boy's down at Air NZ must be fuming!



Air NZ told to pay $2m


02.08.05


By Chris Daniels


Air New Zealand has been ordered to pay more than $2 million in legal costs to its opponents in its failed Qantas-Alliance court case.

The airline tried to get Commerce Commission approval for a plan where Qantas would buy a 22.5 per cent stake in Air NZ for $550 million and set up a price- and schedule-fixing deal between the two airlines.

This was refused, since the commission found consumers would be damaged by the alliance. The plan was approved by Australian competition authorities but an Air NZ appeal to the High Court at Auckland failed.

Now the commission and alliance opponents Infratil and Gullivers Pacific have won an application to have Air NZ pay their legal costs.

The commission's total claim against Air NZ was $1,747,796, while Infratil and Gullivers both asked for $300,000. While some of their cost requests were turned down by Justice Rodney Hansen in the High Court, the airline's bill will be more than $2 million.

Infratil is owner of two-thirds of Wellington Airport and opposed any alliance plan. It was joined by Gullivers, which owns the United Travel and Holiday Shoppe franchise brands, and also operates wholesale travel operations and corporate travel agencies.

An airline spokesman said yesterday that the company was deciding whether to appeal against the costs decision.

Air NZ lawyer Jim Farmer, QC, argued in April against the airline having to pay the commission's legal costs. One of his arguments was that the commission's participation in the appeal should be seen as part of its statutory function.

The process of getting a clearance or authorisation to form the alliance was intended to achieve the objects of the Commerce Act.

"A right of appeal is provided; the commission is expected to participate; its costs of doing so should be regarded as having been incurred in the management and administration of the statutory scheme."

Justice Hansen said this was no reason for it not to be entitled to costs. Commission lawyer David Goddard, QC, told the court that costs were routinely awarded to public bodies taking part in litigation.

The commission itself recovered and could be liable for costs in other cases.

"There is no question that the appeal in this case similarly raised issues of general public importance. However, it was initiated and pursued in the private interests of the appellants and I see nothing unjust in their being required to contribute to the costs of the commission."

Air NZ is still trying to stitch up some kind of alliance deal with Qantas, perhaps in the form of a code-sharing arrangement.

[Toddy]

IFT is dribbling info to the market before the AGM. Can we expect something big pulled out of the hat next week.

Wellington airport in line for major makeover

Wellington Airport announced today that it will invest up to $76 million over the next two years to expand and upgrade the terminal to accommodate traffic growth, extend the runway, improve parking facilities, and position Wellington to take advantage of future long-haul flight options.

"Our goal is to give Wellingtonians and visitors the airport they crave," said Chief Executive Simon Draper. "Air travel has become more accessible, but it's still exciting for most travellers - and the experience begins and ends at the airport. Our upgrade will create a more enjoyable and stimulating terminal with a lot more space in the international lounges, funky retail outlets that reflect the Wellington scene and iconic New Zealand products, more duty free shopping, and expanded and reconfigured processing areas."

The $41 million investment in the terminal upgrade will include a significant expansion and redevelopment of the international lounge. The new international terminal will have eight aerobridge international departure gates, up from the current six (two of which are and will remain "swing gates" available to domestic aircraft as well as international). It will also include capacity to park wide-bodied aircraft, including the new long-haul Boeing 787, which will be launched in 2008 and is capable of flying direct from Wellington to Singapore and many other long-haul destinations.

"The 787 will revolutionise Wellington tourism and business, and is something we are absolutely determined to achieve," said Mr Draper. "However, the extra international departure gates are needed now. Growth on trans-Tasman volumes means the international lounge, arrivals areas and aircraft gates are congested during peak periods and we need to address this urgently."

Since the beginning of 2004 the number of international airlines operating from the terminal has grown from four to six, while the Gold Coast and Nadi have been added as destinations. The Australian budget airline Jetstar has also announced it will begin flying in New Zealand later this year.

Wellington architects Studio of the Pacific Architecture and Warren Mahoney are doing the design and construction work is scheduled to begin early next year and be completed by late 2007.

"The design brief included a requirement to reflect Wellington's status as a vibrant and daring cultural city," said Mr Draper. "In terms of Wellington Airport's overall retail environment, we are very keen to broaden the range of outlets and greatly increase local content so that it fully reflects the diversity and sophistication of Wellington's retail scene. We'll be approaching retailers who we believe are as 'Wild at Heart' as we are."

Wellington City Mayor Kerry Prendergast said: "This is fantastic news for Wellington and a sign that Wellington Airport has confidence in this city's future, not just from a business perspective, but from a tourism perspective as well. Wellington will continue to grow as a significant business centre and a tourism destination, and we need to be prepared for it with sound infrastructure. We congratulate the company on its foresight."

In addition to the terminal upgrade, the investment includes a $23 million extension of the southern end of the runway by 90 metres to deliver an additional safety precaution. An option analysis into lengthening the runway's northern end is also underway.

"This project is principally driven by a desire to further improve safety at the airport. The expansion will bring us into line with best practice internationally. Naturally, we don't rule out extra runway length where we can deliver it at a reasonable cost. The 787 is able to operate long haul off the current runway, but all improvements are worthwhile and there are some existing short-haul aircraft that suffer limitations on our runway."

Some $12 million has been earmarked for car-parking red

[Toddy]

Did anyone out there attend the AGM.

What was the feedback like out there. Were the shareholders happy with what was said.

[Toddy]

O.K, I'll just talk to myself then. Guess that no one is interested in one of the best performing Coy's on the NZX over the last five years.

Bullish Infratil doubles its profit
09 August 2005
By GARETH VAUGHAN

Infratil posted a 117 per cent rise in first quarter operating profit before investment realisations and predicted a bright future for infrastructure investing.


Director Lloyd Morrison told the infrastructure and utility investor's packed annual meeting at Auckland's Tamaki Yacht Club yesterday that he saw a future for infrastructure investing that was "as good as it had been for the past 10 years". During that period, Infratil's share price has risen steadily.

The company said operating profit after tax rose to $6.49 million in the three months to June 30, up from $2.99 million on the same period of 2004. Including $9.27 million in investment realisation gains, net profit in the first quarter of 2004 was higher at $12.3 million. There were no gains from investment realisations in the first quarter this year.

The contribution from TrustPower, of which Infratil owns 35.2 per cent, increased to $8.6 million from $5.5 million.

"TrustPower continues to be Infratil's key investment. All aspects of its operations appear to be functioning outstandingly," the company said.

Earnings from Infratil's 66 per cent stake in Wellington Airport rose 22 per cent to $6.33 million. Chairman David Newman said Infratil had received no indication from Wellington City Council that it wanted to sell its 34 per cent airport stake. "We would like to have 100 per cent if it came at the right price," he said.

Mr Newman said Infratil was still talking to Luebeck City in northern Germany to see if it could "go in and run" Luebeck Airport. An environment court ruling kast month halted runway expansion plans at Luebeck, and potentially a $77 million deal for Infratil to buy and upgrade the airport. If possible, Infratil wanted to increase passenger numbers through the airport to more than two million a year from 500,000, he said.

AdvertisementAdvertisementAn increase in annual management fees paid to Infratil's managers Morrison & Co to $8.7 million from $6.4 million reflected growth in Infratil's shareholder value, Mr Newman said.

[Binklebonk]

Toddy, I think one reason is because IFT are generally good communicators (i.e regular email updates etc), there's not as much need to second guess what they're up to.
Although I'd like them to provide more regular NTA updates.

[Toddy]

Work still going on in the back ground.



Airbase marked in plan for Waitakere city


22.08.05


By Chris Daniels


Waitakere City Council is to start changing its district plan to ensure that the Whenuapai military airbase can be secured for future civilian use.

Listed airport company Infratil joined forces with the council two years ago to try to get the airbase converted into a commercial airport suitable for low-cost airlines.

After a campaign that pitted the council and Infratil against Auckland International Airport and Air New Zealand, the Government scuppered the deal by saying the Air Force would not move from the site for 10 years. Infratil was prepared to spend more than $50 million to bring the airfield up to scratch for commercial operations. It would serve as a secondary airport for Greater Auckland.

Waitakere development committee chairwoman Penny Hulse said yesterday that planning changes would be made that recognised "the existing use of the airbase and the council's objective that it be reused for commercial aviation".

Any alternative uses, other than those related to an airport, would "have to stack up against the city's long-term objectives".

An economic analysis has estimated a financial loss to Waitakere of $230 million a year if the Air Force leaves its Whenuapai base.

"This is no different to earmarking farmland for future use as a park. We are putting a solid stake in the ground about what the land use should be, bearing in mind the social and economic objectives that we have for the city," Hulse said.