The Auckland International Airport Ltd (ASX: AIA) share price is on the rise today. This is despite the company announcing the departure of its chief executive.
At the time of writing, the airport operator’s shares are swapping hands for $6.91, up 1.4%.
What did AIA announce this morning?
Investors are pushing AIA shares higher today after investors appear unfazed by the news.
Mr Littlewood stated that he remained as chief executive longer than planned due to the unexpected emergence of COVID-19. In that time, he focused his efforts in seeing the company through the COVID-19 response and safe re-opening of borders.
AIA chair, Patrick Strange touched Mr Littlewood’s tenure, saying:
From his appointment as Chief Executive in 2012 up to the emergence of COVID-19 early last year, Adrian has led the organisation through a period of significant growth and development across all areas of the business while delivering strong shareholder returns.
Over the past year, Adrian has shown his considerable leadership skills through some of the most challenging times the business has ever faced. With the sudden and highly disruptive impact of COVID-19 on the company’s core business, Adrian has led a business response that has not only ensured the health, safety and wellbeing of Auckland Airport staff and travellers, but has also ensured the business is well placed for the future.
The resumption of travel to Australia and the Cook Islands has marked a progressive recovery for AIA. Future re-opening of selected international borders is being discussed with the New Zealand government.
Mr Littlewood noted that he hopes the company’s airport infrastructure development plan will continue during his time. He said:
While COVID- 19 up-ended our multi-billion-dollar airport infrastructure development, the reset of our 30-year master plan and the start on its eight anchor projects and the hundreds of enabling projects is an ambitious but important programme that has set the path for restarting as the recovery builds.
AIA will now begin a search to replace Mr Littlewood, with both internal and external candidates being considered.
About the AIA share price
Over the last 12 months, AIA shares have performed relatively well in spite of the current global economic conditions. The company’s share price has travelled north of 25% in that time frame.
On valuation grounds, AIA has a market capitalisation of roughly $10 billion, with more than 1.4 billion shares outstanding.
According to this morning’s release, AIA advised that its chief executive, Adrian Littlewood has decided to step down. This comes after spending almost 9 years in the role, which will see him retire towards the end of 2021.
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