The A. B. Won Pat International Airport Authority, Guam (GIAA) posted an increase in net assets of $24.4M in Fiscal Year 2009, as reported by independent auditors Ernst & Young LLP, marking the sixth consecutive year of increases in net assets.
Operating under austerity measures, the Airport’s total expenses declined from $29.7M in FY 2008 to $29.5M in FY 2009. Most notable of these decreases were in the categories of Material and Supplies at $520k and Bad Debt Expenses of $516K.
Consistent with the 9.7% decline of in passenger activity, Airport revenue declined nominally in FY 2009, attributable to decrease in facilities and systems usage charges and concessions fees. However, revenue was offset by increases in rental income and miscellaneous revenue. Rental income increased by $235K and miscellaneous revenue increased by $1M in FY 2009.
As a result of management’s efforts to control costs and increase revenue, the Airport closed FY 2009 with a debt service ratio of 1.33 which is above the 1.25 debt service requirements of the 2003 Bond Covenants. FY 2009 was a challenging year for GIAA and its airline partners. The global economic crises exacerbated the conditions of an extremely fragile airline industry reeling from the astronomic rise of fuel prices in FY 2009. In addition, the onset of the H1N1 Sine Flu Pandemic in April 2009 further stressed an already constrained environment for airline and aviation businesses. The fall-out of these events have resulted in depressed global demand for travel and decreased passenger activity while conversely resulting in increases in global airline capacity.
Board Chairman Martin J. Gerber stated, “The current conditions of aviation and the airline industry is reflected in our financial statements. To counter the market conditions, we remained diligent in maintaining a low cost business model for our airline partners and worked to diversify and enhance our revenue streams. We are very pleased with the final outcome of the 26% increase in net assets of $24.4M for FY2009 as compared to the $18.7M increase posted in FY 2008. We are cautiously optimistic for FY 2010, and will take full advantage of opportunities to expand air services for passenger and cargo, especially with excess capacity in the global market, and proceed with infrastructure and facility improvements to increase the operational capacity of Guam’s Airport.”
Rolenda Lujan Faasuamalie – Airport Marketing Administrator
Tel: (671) 642-4645 / 4652 / 51 | Fax: (671) 646-8823