A Financial Management Plan of Auckland International Airport

Running Head: FINANCIAL MANAGEMENT PLAN
Executive Summary
The purpose of the report is to do a financial management
plan of Auckland International Airport. The study is supported by
analysing the annual reports of the three financial year of the
company. It is found that Auckland airport is committed to
meeting the needs of the stakeholders and the shareholders of
the company. The business has increased its revenue in the
current financial year. The company is able to manage their
operations.

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Contents
Part A.........................................................................................................................................2
Part B..........................................................................................................................................3
Part C..........................................................................................................................................4
Part D.........................................................................................................................................5
Part E..........................................................................................................................................7
Part F..........................................................................................................................................8
Part G.........................................................................................................................................9
Part H.......................................................................................................................................13
Part I.........................................................................................................................................15
Part J.........................................................................................................................................16
References...........................................................................................................................19
Part A.........................................................................................................................................2
Part B..........................................................................................................................................3
Part C..........................................................................................................................................4
Part D.........................................................................................................................................5
Part E..........................................................................................................................................7
Part F..........................................................................................................................................7
Part G.........................................................................................................................................9
The company communication framework and structure designed in such a
way in order to ensure proper communication with shareholders and other

FINANCIAL MANAGEMENT PLAN
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stakeholders of the company properly managed.This strategy forms part
of the disclosure and communication policy.The company keep internal
stakeholder and shareholder informed and communicated through various
strategy involved namely:.............................................................................................12
Part H.......................................................................................................................................13
Part I.........................................................................................................................................15
Part J.........................................................................................................................................16
References...........................................................................................................................18

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Part A
Auckland International airport is one of the largest
airportairports of New Zealand and Itand It is a service provider,
Thethe company is listed both in the New Zealand Stock Exchange.
Auckland airport is an aviation industry, which is located in the
Ray Emery Drive of Auckland. It handles around 71 per cent of the
international passengers. The number of flights operated by the
giant airport on an average is 420 per day with an annual
turnover of approximately 153,300. Auckland Airport is also the
busiest airport of New Zealand and has more than 21 Million
passengerpassengers catered to in 2019. The airport is the hub for the
aircraft Air New Zealand, Virgin Australia and Jetstar Airways. (Auckland
International Airport Ltd, 2020)
https://corporate.aucklandairport.co.nz/corporate-responsibility/
managing-aircraft-noise/understanding-aircraft-noise/auckland-flight-paths
The services provided by Auckland airport encompass the
following:
(a) Flight Information;
(b) Providing parking space for visitors and local cabs;
(c) Shopping and dining;
(d) Clubs;

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(e) Transportation (Auckland International Airport Ltd. , 2020)
https://www.aucklandairport.co.nz/information/terminal-services-and-
facilities
Part B
In any business organisation, there is an owner who invests fund
in the business of the company with an expectation to earn
sustainable returns over the investment horizon. These people in
the accounts of the company are considered as shareholders or
principal. On the other hand, for a company to operate efficiently,
it needs to be managed by a group of experts with diverse
knowledge and wisdom. These people who are managing the
affairs of the company on behalf of the owners/ principal are
considered as agent.
The relation between these two group are critical for the success
of the organisation and vision of the Auckland International
Airport to be the best in the field and catering to a large group
and section of the commuters. In the concerned case, the needs
of the principal isare to earn a steady return on the investment
made over the investment horizon. On the other hand, the agent
shall be required to manage the affairs of the company in a
manner that take care of both the shareholder and stakeholder.
Principal is shareholder of Auckland airport and the agent is the
board of directors and discuss the relationship.

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The two relevant stakeholders of the company are mentioned
here in below:
1. Government: The interest of the government lies in the
collection of taxes from the Auckland Airport, helps in easy
connectivity of the people round the world, also helps in
attracting tourism and many other benefits.
2. Shareholder: The shareholders can raise question for their
Board and can make comments about the company’s
operation and performance and the main interest lies in the
profit maximisation.
Part C
NPV, IRR, Capital Budgeting
Proforma Income statement 2019($)
2020(
$) 2021($) 2022
Details
Sales 11Sales 11% 743.4 825 916 1017
Less:operatingLess: operating
expenses 188.6
206.2
9 228.99 254.17
DeprecitionDeprecation 102.2 102.2 102.2 102.2
290.8
308.4
9 331.19 356.37
net profit before tax 453
516.6
8 584.76 660.32
Tax 28% 127
144.6
7 163.73 184.89
Net profit After Tax 326 372.0 421.03 475.43