26 February, 2016
Strong support for New Zealand
aviation drives Airways’ result
Airways New Zealand today reported an interim net profit after tax (NOPAT) of $11.5m for the six months ended 31 December, 2015, an improvement on the prior year’s $6.6m result.
The air navigation services provider has delivered consistently high safety and operational outcomes and provided excellent results for its customers. Airways has reported no near collision incidents and achieved technical service availability of 99.98% during the first six months of the year.
Chief executive, Ed Sims says the interim result reflects the state-owned enterprise’s (SOE) central role in New Zealand’s thriving aviation and tourism sectors, and its prudent management of controllable costs.
“The pleasing result has supported Airways’ investment of $14.6m in key capital projects over the first half that will contribute to a move from ground to satellite-based navigation. This is the culmination of a three-year $94m investment programme into future-proofing New Zealand’s aviation safety infrastructure and improving air traffic management for the long term,” says Sims.
Prices charged to Airways’ customers over the six-month period included a price reduction of 0.5% from those agreed in the last pricing round. This has been achieved from higher than expected air traffic volumes in the previous year. Airways is currently undertaking a public consultation on its prices for the next three years and these will be finalised in early June.
Airways Board Chair, Susan Paterson says Airways is a strong performing SOE.
“Airways New Zealand is recognised globally for both its commercial and customer focus. We are confident that Airways’ innovative global business offerings will support long-term growth and create value for its shareholder, the New Zealand Government,” she says.
Airways’ international businesses are ahead of the same period last year achieving a half-year NOPAT of $1.0m. Ambitious sales targets continue to challenge some of the global start-ups, and the expected full year result is expected to be below budget.
Significant progress has been made in extending Airways’ support of neighbouring Pacific nations. In October Airways signed a multi-year contract with the Ministry of Foreign Affairs and Trade (MFAT) to deliver a range of navigation, surveillance and procedural design services into the region.
Mr Sims says he expects continued cost management, improving traffic volumes and Airways’ global businesses to contribute to a full year NOPAT forecast of $18.2m.