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

 

Airways reports record operating profit


30 August, 2016

Airways reports record operating profit, strong operational performance

Airways New Zealand has reported a strong safety, operational and financial performance in the year ending 30 June, 2016.

CEO Ed Sims says, “Airways has maintained its strong safety record in the air traffic control industry, while reducing customer prices and delivering a record operating profit.”

The state-owned enterprise (SOE) achieved a Group Net Operating Profit after Tax (NOPAT) of $23.2 million, well ahead of a budgeted $16.5 million and 54 per cent up on the prior year. Airways’ positive financial result was supported by an eight per cent increase in flight volumes from the prior year, in addition to strong cost management.

In May, Airways announced a 4.7 per cent price decrease for airlines over the next three year pricing period with general aviation prices maintained in line with inflation.

The SOE will also pay a $9m dividend to its shareholder, the New Zealand Government, an increase from $4m in the previous year.

Airways’ commercial businesses made strong gains, increasing NOPAT to $3.5m from $2.2m in FY15.

Over the year Airways increased its capital expenditure by 10 per cent, strengthening network efficiency and resilience and including significant new infrastructure at Queenstown Airport. This supports the region’s continued growth and provides greater convenience to the travelling public with evening flights now operating in the tourist town.

Airways Chair Susan Paterson says, “Airways New Zealand is a high performing SOE by all measures. It has delivered a price reduction to its airline customers, more than doubled its dividend to the Crown and achieved outstanding operational performance during a year of high air traffic growth and continued investment in New Zealand’s essential aviation infrastructure.”

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fund For PPP Plans: Govt Embraces Targeted Rates To Spur Urban Infrastructure

The government's latest response to the Auckland housing shortage will see central government and private sector firms invest in 'special purpose vehicles' to fund essential roading, water and drains that Auckland Council can't fund without threatening its credit rating. More>>

ALSO:

Superu Report: Land Regulation Drives Auckland House Prices

Land use regulation is responsible for up to 56 per cent of the cost of an average house in Auckland according to a new research report quantifying the impact of land use regulations, Finance Minister Steven Joyce says. More>>

ALSO:

Fletcher Whittled: Fletcher Dumps Adamson In Face Of Dissatisfaction

Fletcher Building has taken the unusual step of dumping its chief executive, Mark Adamson, as the company slashed its full-year earnings guidance and flagged an impairment against Australian assets. More>>

ALSO:

No More Dog Docking: New Animal Welfare Regulations Progressed

“These 46 regulations include stock transport, farm husbandry, companion and working animals, pigs, layer hens and the way animals are accounted for in research, testing and teaching.” More>>

ALSO:

Employment: Most Kiwifruit Contractors Breaking Law

A Labour Inspectorate operation targeting the kiwifruit industry in Bay of Plenty has found the majority of labour hire contractors are breaching their obligations as employers. More>>

ALSO: