KEY POINTS:
How has the credit crunch changed your world?
The credit crunch has had an impact in a few ways. The increased cost and difficulty of accessing capital means that all businesses, including Auckland Airport, must use their capital more efficiently and effectively. We have also seen a flattening of international passenger growth that, I think, can be partially attributed to the credit crunch and its subsequent flow-on effect to global economies. Because of this, business pressures on the aviation sector have increased and there has been a greater focus on cost and margins.
While we are not immune to those pressures, long-term businesses like Auckland Airport which have strong balance sheets and have already invested prudently into future-proofing in terms of infrastructure and capacity are in a good position to take advantage of growth opportunities that may arise during difficult times.
How serious is the current downturn in a historical context?
Clearly, these are the worst economic conditions in New Zealand for some time and in my view are at least as challenging for the aviation industry as the Asian financial crisis in the 1990s. However, so far it appears that New Zealand is better placed to weather global economic storms than in previous downturns, as the impact of global economic change on our local economy does not appear to be as pronounced as in earlier times.
It is important to keep the perspective that, despite the severity of the crisis, downturns are not new and are cyclic, so we have little doubt there will be a recovery in due course.
What helps you put it in perspective and stay positive?
What helps keep me positive and provides me with a wider perspective is the knowledge that tough times can throw up opportunities for those who are bold and smart enough to take them.
Auckland Airport has a new leadership team with new energy and drive, and we have the capacity and infrastructure already in place to support a new growth strategy and the targeting of opportunities as they arise. One of those opportunities will be to build on the customer experience side of the business, and we now have the right people and infrastructure in place to do just that.
I think challenging times can forge battle-hardened organisations.
Businesses that can survive and thrive in tough times learn good habits that will enable them to take advantage of sunnier weather when it inevitably returns.
