Airways NZ Announces 2005/06 Annual Result

16 October 2006

Airways New Zealand Announces 2005/06 Annual Result

The State Owned Enterprise, Airways Corporation of New Zealand has announced its annual result for the twelve months to 30 June 2006. The company achieved a net profit after tax of $8.24 million – equivalent to last year’s record result. After abnormal adjustments the result was a $7.57 million net profit after tax and a return on equity of 19.3 percent. Airways returned a total of $8 million in dividends to its Shareholder, the Government.

Airways successfully renegotiated its future pricing with the airlines, which confirmed their support for Airways’ approach to self-regulation – a policy under which Airways’ customers share in the financial success of the company. Under Airways’ Partnership Plan $3.25 million in rebates was paid to its airline customers.

Airways’ Chairman, Mr Con Anastasiou, said that while the 2005/06 year was a challenging one for the international aviation industry, it was one in which Airways continued on its path of strong, steady and positive performance.

“Airways has succeeded in meeting its financial and performance targets without increasing its prices, whilst at the same time maintaining its uncompromising commitment to safety, quality and customer service. In an environment where many of our airline customers have had to contend with increased competition and soaring fuel prices, Airways has launched a number of initiatives to contribute to reduced fuel consumption and improve on time performance”, Mr Anastasiou said.

“This performance is only possible due to the efforts of our people, who once again have performed to a very high standard.”

Safety Performance

Last year Airways again improved on its already excellent safety record, continuing the trend of the last ten years. Airways regularly benchmarks its safety performance against air navigation services (ANS) providers in other countries, a process that has confirmed its place among the world’s top ANS providers.

Operational Performance

Airways achieved or progressed all domestic performance objectives in its Statement of Corporate Intent. These objectives included: successfully managing the key communication, navigation and surveillance replacement projects including radar modernisation, data communication and voice switch projects; and completing the transition of Ohakea radar services to Christchurch.

During the year Airways negotiated a joint venture with US-based aviation English language experts, Aviation English Consulting, to provide pilot and air traffic control language proficiency training to the global aviation industry. The company was also awarded three high profile IT awards including the Overall Excellence in IT Award from ComputerWorld Magazine, for its New Zealand-developed air traffic control training simulator.

ENDS

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