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Chairman's Message

In a year which saw enormous upheaval in the global aviation sector, Brisbane Airport Corporation delivered positive results for its shareholders and for the wide range of stakeholders who depend on an efficient, productive and sustainable capital city airport for Queensland.

It has been tremendously satisfying to have been part of a Board that has overseen a renewed focus on cost efficiencies, improved business processes and a fundamental review of the corporation and its readiness to embrace the challenges of the future.

BAC reported a net profit, before tax and shareholder distributions of $160 million, up $20 million on the June 2009 year result, reinforcing the company's stability during a year of financial uncertainty for the aviation industry.

International passengers of 4.1 million were up 1 percent on 2008/09. Domestic passengers of 14.9 million were up 1.1 percent. With a record of over 19 million passengers in total (including transit passengers), Brisbane Airport has continued to grow.

A highlight of 2010 was the highly successful transition of Julieanne Alroe to the role of CEO and Managing Director. Her extensive experience at Sydney Airport, where she led that airport's planning and development of aviation and commercial facilities, was a major advantage for BAC as we entered a critical phase of review, restructure and refocus.

Julieanne has overseen the company's first major corporate restructure, ensuring we are best resourced and positioned to manage the inevitable challenges and capitalise on the valuable opportunities that lie ahead.

As we approach the next phase of development, it is becoming apparent that economic and financial market conditions over the last 12 months have improved and uncertainty and negative sentiment appear to have dissipated. Passenger numbers were positive for the period with growth in June, at 7 percent, indicating a return to consumer confidence and the strength of the Queensland tourism sector.

Against this backdrop, BAC remains in a strong position to respond to the current market conditions, and is well placed in terms of control of its capital expenditure program and funding requirements.

The Board used this period to undertake its own review of the company's past, present and future direction, and the resultant Business Plan has helped refocus the organisation on our key strategic challenges. It refreshed BAC's purpose, vision and values, highlighted the external and internal influences at play, and established exciting new business goals and objectives that will take BAC forward through the next decade, including a renewed focus on the development of BAC's extensive property assets.

This review has led to a major corporate restructure, which has seen the creation of new business units focusing on BAC's key business activities - terminal retail, aviation business development and parking and ground transport.

Importantly, the restructure has led to the elevation of the important development of and investment in Brisbane Airport's strategically significant 1000 hectares of land not required for aviation purposes. The new structure will ensure the company is resourced and positioned to capitalise on the opportunities that strong growth presents to the millions of "mum and dad" shareholders whose superannuation investments have enabled BAC to continue to invest in long term infrastructure that underpins the airport's future.

The Board has been driven by a vision of Brisbane Airport as a fundamental player in the future of the State, city and region, and the importance of ensuring our developments are supportive of and sympathetic with the sustainable growth of Greater Brisbane.