Airways and RNZAF contracts recognised in half year report

For immediate release
5 March 2013
Airways and RNZAF contracts recognised in Airways’ half year report
A highlight of Airways NZ’s first six months of 2012-13 was the finalising and signing of contracts with RNZAF and Thales to provide new navigation aids at RNZAF bases Ohakea and Whenuapai.

Today those contracts were recognised at a brief ceremony at Defence House in Wellington.

The contracts included the purchase and installation of four instrument landing systems (ILS) and two Doppler VHF Omnidirectional Radio Range Navigational Aids (DVORs) as well as a 15-year maintenance support agreement.

Airways chief executive Ed Sims said that RNZAF is an important customer and business partner for Airways.

In announcing Airways’ half yearly results Mr Sims said that the first six months of 2012-13 had shown some signs of recovery and growth in domestic markets for Airways NZ.

“However, international markets continue to be a challenge for Airways, with heavy competition for every piece of business, particularly in the Middle East.”

Airways had a relatively flat start to the financial year with Group net operating profit after tax (NOPAT) before extraordinary items of $6.1 million compared with $7.7 million for the same six month period last year. However, taking into account extraordinary items the Group NOPAT was $18.9 million, driven largely by a one-off transaction, the early termination of Airways Cross Border (QTE ) Lease.

“Consistent with previous years, NOPAT for the six months to June 2013 is expected to taper off from the first half levels, with airline volumes weighted to the first half of the year and capital expenditure weighted to the second half,” said Sims.

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