Airways New Zealand Announces Annual Result

Airways New Zealand Announces Annual Result

Airways New Zealand has announced its annual result for the twelve months to 30 June 2002. The company has achieved an Economic Value Added (EVA*) Group profit of $2.57 million, its strongest result for some years. It was able to absorb the turbulence that marked the aviation industry during the period, yet still pay more than $2 million in rebates to customers in line with its Partnership Plan, and return a total of $8 million in dividends to its shareholders.

Chief Executive, Mr Ashley Smout says the 2001/02 year has been one in which the aviation industry in New Zealand and around the world has experienced unprecedented upheaval.

“In this challenging, and for some companies catastrophic environment, Airways has been among the few air traffic management organisations to emerge not only unscathed, but with 12 months of performance excellence to its credit. This is due largely to the reorganisation the company implemented a couple of years ago, and the associated consolidation of operations to one main centre, but also reflects the commitment and hard work of our people,” said Mr Smout.

Operational Performance

Airways achieved or progressed all domestic, international and financial Performance Objectives laid out in its business plan. These included: assisting Auckland International Airport identify and manage all risks associated with the use of the taxiway as a runway while routine maintenance was carried out on the main runway; progressing the planned implementation of the SkyLine air traffic management system; and establishing the framework required to grow the intellectual capital necessary for the company’s future growth.

Safety Performance

Airways continued to improve its already excellent safety record, continuing the trend of the last six years. Airways continues to benchmark its safety performance against air navigation services (ANS) providers in other countries, a process that has so far demonstrated its place among the world’s top ANS providers.

Financial Performance

Airways exceeded its financial targets to achieve a Group EVA of $2.57 million, which included a significant contribution from the company’s fast growing international and technology ventures, which returned $0.65 million EVA. These ventures include international work providing a wide range of services to countries throughout Asia, the Pacific and the Middle East, as well as work with Lockheed Martin Air Traffic Management, the Technology Development Centre in Christchurch and the company’s role in the Auckland International Airport runway upgrade project.

In the conventional accounts net profit after tax was $7.5 million ($4.6m, 2000/2001), and the shareholders’ equity remains stable after paying a dividend of $8 million.

Partnership Plan

The EVA result has enabled Airways to offer its customers more than $2 million in rebates under its Partnership Plan. Established in March 2001, the plan provides a formal and transparent process for disclosing information to its customers and managing its pricing.

The Future

More than in any other year, Airways New Zealand has proven the resilience of its commercial model of air traffic management. This give a measure of optimism for the future as the company develops its core strengths through its international work and continues to build a business platform of skills for the future. Airways’ future growth lies in further exploring international opportunities and through its work with Lockheed Martin it is demonstrating how a small, agile company can work in partnership effectively with a global corporation.

In the next 12 months Airways expects to see the international trend towards industry commercialisation and alliances continue, and it will continue to market its intellectual capital to offshore markets, contributing significantly to New Zealand’s growing knowledge economy.

*(EVA measures the extent to which a business is performing above or below expectation. A positive EVA means the business is adding value after allowing for a market return to the providers of the capital.)