Airways New Zealand Annual Report 2010/11

Airways New Zealand today released its Annual Report for the year ending 30 June 2011. In his summary, outgoing Chairman Con Anastasiou, said the company’s disappointing financial result was affected materially by global economic uncertainty, high oil prices and major natural disasters in New Zealand and some of its key markets. 

Airways recorded a net operating profit after tax (NOPAT) of $4.8 million on the back of total revenues of $152.6 million; delivering a $6 million dividend to the shareholder.

“This was a year in which the economic challenges of recent years have been compounded by the operational challenges delivered by a series of earthquakes and aftershocks to our Christchurch base” said Mr Anastasiou. “Airways 2010/11 Annual report reflects the impacts of those events but also the strength and integrity of our infrastructure, systems and staff. It was a solid performance in what remains a volatile operating environment.” 
Airways safely controlled over one million air traffic movements in New Zealand last year. It also achieved 99.996% critical systems availability across the air traffic management network.  Airways continued to build on previous years’ initiatives to reduce our airline customers’ fuel burn and CO² emissions.

Since its introduction in 2009, Airways Collaborative Arrivals Manager (CAM) product has saved airlines operating in New Zealand more than $41.4 million in fuel costs and reduced CO² emissions by 86.5 million kgs. 
“Air Navigation Service Providers are well placed to innovate and adapt to changes in the operating environment. Rising fuel costs have a major impact on our airline customers, which means products like CAM and partnerships such as the Asia Pacific Initiative to Reduce Emissions (ASPIRE) ensure Airways is able to deliver significant long-term benefits to our customers , both financially and environmentally” said Airways CEO, Ed Sims.

ASPIRE is another example of Airways commitment to helping our customers succeed. In February, Airways launched the inaugural ASPIRE-Daily flight (Auckland - San Francisco), the first in what will become a series of daily city pairs flying across the Eastern and Western part of the Asia Pacific region.

Airways delivers products and services globally, and whilst our growth business felt the lingering effects of the global economic crisis, success was achieved through securing contracts for training, IT solutions and revenue management in Asia, South Africa and the Middle East.

Airways immediate focus now is to ensure it plays a key role in making the Rugby World Cup (RWC) possible.

“Already our staff, infrastructure and systems have successfully managed some of the busiest days in New Zealand’s aviation history and ensured the safe passage of the many thousands of visitors travelling to, and around, New Zealand for the biggest event ever staged in this country” said Mr Sims.

After the RWC, Airways will embark on a project to reconfigure its service and pricing framework. This will involve extensive consultation with airline customers and airport stakeholders and signals the biggest change to its service and pricing structure in more than 20 years.

Performance Highlights

In 2010/11, Airways New Zealand:

• controlled 1,032,063 aircraft movements (note this is for the calendar year 2010)

• achieved total revenue of $152.6 million

• returned $6 million to the government in dividends

• collaborated with airline partners to implement initiatives to reduce fuel and emissions - saving them an estimated $41.4 million in operating costs (since 2009).

• installed runway lights at Queenstown airport, which supports our customers’ growth portfolios and gives greater surety of service to the community

• won an Aviation Asia Award for its Collaborative Arrivals Manager (CAM) product

• further contributed to New Zealand’s sustainability profile with the implementation of Performance-based Navigation (PBN) and required navigation procedures (RNP)  

• launched the Paraparaumu Flight Information Service at Kapiti Airport, reflecting Airways on-going commitment to meeting the changing needs of its customers

• secured the first offshore sale of the 360˚ Total Control simulator. This state-of-the art simulator, developed in partnership with Dunedin company, Animation Research,  was sold to South Africa

 Ends