Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Airways NZ operating profit up 31% over previous year

Airways NZ operating profit up 31% over previous year

Media statement
For immediate release
14 August 2014

Airways New Zealand had a solid performance in the year to June 2014, improving its results in most areas over the previous year, says Airways Chief Executive Ed Sims.

New Zealand’s air traffic control and navigation SOE made a net operating profit after tax (NOPAT) of $11.8 million for the year ended June 2014, up from last year’s operating profit of $9 million. (The final NOPAT last year of $21.7 million was affected by an abnormal cross border lease exit[1]). A 1.9% increase in aviation volumes combined with tight cost control were the primary drivers of the $10.2 million profit for air traffic control services.

Global benchmarks continue to place Airways at the forefront of safety globally, and in the top 5% of most efficient air navigation service providers in terms of aircraft movements per air traffic controller[2].

Airways’ commercial business units returned a $1.6 million profit, lower than last year’s $3 million result, due to lower than forecast revenues and the investment required to establish new businesses. Airways now has three core commercial businesses - training, revenue management and aeronautical information.

Airways invested $33.8 million (an increase of 43% on 2012-13) during the year in service enhancement and capital expenditure programmes to deliver significant benefits to customers. Benefits include fuel savings from more efficient flight profiles, capacity enhancements in controlled airspace and improved on-time performance of aircraft. Inflight delay for airlines flying in to Auckland, Wellington, Christchurch and Queenstown dropped by 52% in the three months to July 2014 compared with the average in the previous two years.

“Airways’ safety, service and productivity initiatives drive our investment in aviation infrastructure as we undergo a quantum transition from ground to satellite-based navigation,” says Ed Sims. “Airways will continue to keep a tight handle on all operating costs to ensure these efficiencies are sustainable.”


To download a copy of the annual report to June 30 2014 go to

[1] Airways’ NOPAT of $21.7 million in the year to June 2013 was largely the result of a one-off financial transaction, the termination of a cross border lease which resulted in the release of deferred income of $18.8 million and an increase to NOPAT of $12.8 million. The cross border lease was a type of Qualifying Technological Equipment (QTE) lease. In simple terms, the lease involved the sale and leaseback of equipment and was entered into by Airways in the early 2000s. In 2012, Airways took advantage of highly favourable interest and exchange rates to negotiate the early termination of the lease at a significant profit to Airways.

[2] Global ANS Performance Report 2013

© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news