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

 

Strong support for NZ aviation drives Airways’ result

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.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Non-Giant Fossil Disoveries: Scientists Discover One Of World’s Oldest Bird Species

At 62 million-years-old, the newly-discovered Protodontopteryx ruthae, is one of the oldest named bird species in the world. It lived in New Zealand soon after the dinosaurs died out. More>>

Rural Employers Keen, Migrants Iffy: Employment Visa Changes Announced

“We are committed to ensuring that businesses are able to get the workers they need to fill critical skills shortages, while encouraging employers and regions to work together on long term workforce planning including supporting New Zealanders with the training they need to fill the gaps,” says Iain Lees-Galloway. More>>

ALSO:

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO:

Oil Scare: Trump Authorises Use Of Emergency Crude Stockpile

The New Zealand dollar fell against the US dollar after President Donald Trump authorised the use of the country's emergency crude stockpile after the weekend attack on Saudi Arabia’s major oil facilities. More>>

ALSO: