Media Release 10.04.19

Fact Sheet - Newcastle Airport Board

Wednesday, 10 April 2019

Over the last week, it has become apparent there are some misconceptions and misunderstandings regarding the structure, remuneration and responsibilities of The Newcastle Airport Board. A number of these have been aired in public.

In the interests of clarity, please find the following contextual information.


Historical context

  • The City of Newcastle (CoN) and Port Stephens Council (PSC) currently each own 50% of Newcastle Airport (NAPL).
  • The Airport underwent a corporate restructure in 2013, establishing NAPL as a company limited by shares. This change enables NAPL to independently raise debt and ensure a sustainable and long-term company structure. It also enables the Councils to receive dividends from the Airport's profits.
  • NAPL is responsible for the operation and development of the airport as the agent of the Newcastle Airport Partnership (NAP). NAP consists of four directors; the Mayors and GMs/CEO of the respective Councils.

Current situation

  • In February 2019, the NAPL Board unanimously endorsed an amendment to the NAP Partnership Deed and the NAPL Constitution. This had the effect of increasing the maximum number of NAPL directors from 8 to 10, with a maximum of 4 as shareholder representatives. The change did not affect the requirement that the majority of Board directors be independent.
  • Directors have historically been remunerated as you would expect of a company of the Airport’s size and complexity. The last remuneration review was in early 2017 and was benchmarked against NSW Government Board and Committees. This is $45,000 + superannuation. Director remuneration is paid by NAPL, not the Councils.
  • In May 2018, both shareholders (CoN and PSC) voted in favour of a further restructure for the Airport, associated with the purchase of land adjacent to the Airport. The restructure provided for the creation of two new entities, Greater Newcastle Aerotropolis (GNAPL) and Greater Newcastle Aerotropolis Partnership (GNAP).
  • The corporate restructure of the Airport included a requirement that the NAPL board mirror that of the GNAPL Board. Despite suggestions to the contrary, there is no duplication of Director’s fees across the two Boards. One fee is paid to Directors whose responsibilities include governance of both NAPL and GNAPL.

Recent achievements

  • The Newcastle Airport Board has delivered a raft of outstanding achievements recently, including:
  • Delivery of multi-million dollar dividends to its two shareholders – CoN and PSC, which are re-invested into the community
  • Development of NAPL into an international airport, launching its first international service in 16 years in November 2018
  • Purchase and development of 76 hectares of land adjacent to the Airport, known as Astra Aerolab – a world class Aerospace and innovation precinct that will ultimately deliver 5500 high skilled jobs to the region
  • Been awarded 2018 Major Airport of the Year by the Airports Association of Australia
  • Oversaw a record 1.27million passengers pass through its terminal in 2018 
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