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.”

Ends

To download a copy of the annual report to June 30 2014 go to http://airways.co.nz/documents/AR2014.pdf

________________________________________
[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

 

Budget Policy Statement: Spending Wins Over Tax Cuts; Big Ticket Items Get Boost

Income tax cuts are on hold as the government says “responding to the earthquakes and reducing debt are currently of higher priority”, although election year tax sweeteners remain possible. More>>

ALSO:

Fishy: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news