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Airways New Zealand reports strong full year result

Published: Mon 13 Nov 2017 03:13 PM
MONDAY, NOVEMBER 13, 2017
Driving safety, efficiency and growth in New Zealand’s skies
Airways New Zealand reports strong full year result
Airways New Zealand has reported another strong operating profit during a year in which it has supported continued industry growth and safety within the aviation industry, Airways Chair Judy Kirk said today.
“Airways is playing a critical role in enabling New Zealand’s thriving aviation and tourism industries by delivering a strong safety and operational performance, making smart investments, and substantially reducing prices.
“Most importantly Airways is keeping our skies safe and has maintained a strong safety record with no near collision incidents recorded over the year,” says Judy Kirk.
The state-owned enterprise (SOE) achieved a Group Net Operating Profit after Tax (NOPAT) of $23.7 million in the financial year ending 30 June, 2017. A nine per cent increase in flight volumes coupled with cost management and increased profits in its commercial businesses drove Airways’ positive financial result.
“It is particularly pleasing to note the success of our international businesses. Exporting niche locally-developed services and technologies, along with cost efficiencies achieved through restructuring, contributed to a 49 per cent increase in NOPAT from these businesses over the year,” says Mrs Kirk.
Airways’ commercial businesses delivered a NOPAT result of $5.2 million, up from $3.5m in FY16.
Over the year, Airways invested $41.8 million in capital projects, focusing on next generation technologies that will ensure greater resilience, safety and efficiencies in the future. Key projects include the installation of a new satellite supported aircraft surveillance system and procurement of a new domestic air traffic management platform - the $58m platform is expected to be operational by 2020.
The air navigation service provider (ANSP) also achieved a technical service availability rate of 99.98% during the period.
Following a pricing reset for the 2016-2019 period, Airways delivered a price reduction to airline customers of 9.8% for the year. General aviation prices were maintained in line with inflation.
The SOE has paid a $9m dividend to its shareholder, the New Zealand Government.
ends

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