By NATARIO McKENZIE Tribune Business Reporter nmckenzie@tribunemedia.net DESPITE suffering an almost-36 per cent net income decline to $7.77 million for the year to end-June, the Nassau Airport Development Company (NAD) still had a large enough bottom line to maintain its credit rating and service its debt. The Lynden Pindling International Airport (LPIA) operator also recorded a revenue increase of $5.3 million year-over-year to finish its 2011 financial year at $46.7 million, according to its audited financial statements. These also revealed that costs increased by $1.5 million to $19.2 million. Giving an overview of NAD's financial performance, its chief financial officer, Paul Ward, said the revenue increase had been driven by 'aeronautical growth' and 'commercial revenues', while costs had been driven by increases in utilities and supplies. "Our non-operating expenses increased by $8.1 million to finish the year at $19.7 million as a result of increased interest and depreciation with Phase I opening," Mr Ward said, noting that NAD had generated $7.8 million in net income. "This level of net income is indeed required to fund our debt obligations associated with the redevelopment and to maintain an investment grade credit rating," he noted: "The redevelopment project has a total budget of $409 million, and to date NAD has raised $582 million in four separate transactions. We currently have just over $346 million outstanding." In April, 2007, the Government handed over the development, operation and management of LPIA to (NAD), a Bahamian company, through a 30 year lease. Executives from Vancouver Airport Services (YVRAS) lead the company. Mr Ward said a key driver of NAD's financial performance is the passenger traffic. He noted that the airport has not been immune to the economic downturn. "During our 2011 fiscal year, LPIA handled 3.1 million passengers, basically flat from the prior year but down from the 3.4 handled in 2008," he said. "Despite the challenges, the long-term projection is for passengers at LPIA to increase to 5.8 million by 2025. The terminal redevelopment will indeed allow us to raise this growth potential." NAD executives revealed that construction on phase II of the Lynden Pindling International Airport (LPIA) is 36 per cent complete, with $37.8 million worth of work being awarded to Bahamian contractors under this phase. The second phase, which began back in March 2011, calls for the selective demolition of the current US Departures terminal, the construction of a 226,000 square foot international arrivals terminal and international departures pier, the removal and rebuilding of existing parking facilities and about 200,000 square feet of asphalt apron rehabilitation.