Airways New Zealand has announced a half-year financial profit of $6.6 million.
The air traffic control and navigation service provider's interim results released today reported particularly strong operational metrics. The State-Owned Enterprise has maintained high levels of safety during the first six months of the year with no near collision incidents; achieved technical service availability of 99.94% and further improved flight efficiencies from the prior year, with average inflight delays decreasing from 17 to 14 seconds per flight.
The financial result is below last year's half-year result of $10.4 million, driven largely by unexpected asbestos removal costs and new revenue from international businesses being delayed until the second half of the financial year.
He also stressed the importance of consistency across the aviation sector in adopting Just Culture standards.
Operating revenues of $92.7 million to 31 December 2014 compares to $92.4 million for the same six-month period last year.
However, chief executive Ed Sims expects to deliver a full-year NOPAT (net operating profit after tax) of $13.9 million, a significant improvement of $11.8 million compared to the last full year, with new international business contracts and an improvement in aviation volumes coming through in the second half. A focus on cost control has already enabled the business to offset the one-off asbestos removal costs.
"This six months has been characterised by operational success and continued investment in the modernisation of air traffic control in New Zealand."
"Critically, Airways has maintained its strong safety record and is consistently delivering world-leading service availability rates to airlines and the travelling public."
"We're pleased to have delivered $15.5m in fuel savings to our airline customers over the past 12 months. Revenue is being directly reinvested in new technology, infrastructure and Performance Based Navigation services that will deliver immediate and ongoing benefits", says Mr Sims.
Airways has increased capital investment from $13.8 million to $14.2 million over the half year.
Highlights for the second half of the year are expected to include: the start of a New Zealand based training programme for 30 Saudi Arabian students in January 2015; the first students through Airways' new training partnerships in the United Arab Emirates, Puerto Rico and China; and the first customer going live with the new Flightyield revenue management business.