Media Release
Tuesday 4 November 2003
Airways New Zealand Announces Annual Result
Airways New Zealand has announced its annual result for the twelve months to 30 June 2003. The company has achieved an
Economic Value Added (EVA*) Group profit of $2.52 million, slightly down on last year’s profit of $2.57, but a strong
result over a difficult year for the aviation industry internationally. Airways 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 $6 million in dividends to its shareholders.
Airways Chairman, Mr Errol Millar, says the 2002/03 year was one in which the aviation industry in New Zealand and
around the world continued to experience unprecedented upheaval.
“In an environment where many of our airline customers have confronted ongoing challenges to their survival, Airways has
succeeded in meeting its financial and performance targets while maintaining not only its prices, but also an
uncompromising commitment to safety, quality and customer service,” said Mr Millar.
Operational Performance
Airways achieved or progressed all domestic performance objectives laid out in its business plan, with international
business continuing to grow, though at a slower than expected rate due to SARS, client-country delays and general
international aviation industry distress. These objectives also included: completion of the three year project to
upgrade New Zealand’s air traffic management system; completing a renegotiation of the contract to continue to supply
services to the RNZAF; and successfully implementing air navigation services in Tonga and Samoa.
Safety Performance
Airways continued to improve its already excellent safety record, continuing the trend of the last seven 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 $2.52 million. This EVA result has improved shareholder
equity to almost $58 million, representing a return on investment after tax of 17.9 percent.
In the conventional accounts net profit after tax was $6.8 million ($7.5m, 2001/2002), and the shareholders’ equity
remains stable after paying a dividend of $6 million.
ENDS
*(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.)