Air New Zealand: Strong operational, safety and financial performance in 2016

Airways New Zealand today announced its interim results for the period ending 31 December 2016, reporting a strong operational, safety and financial performance.

Airways New Zealand today announced its interim results for the period ending 31 December 2016, reporting a strong operational, safety and financial performance.

The State Owned Enterprise has achieved an interim net profit after tax (NOPAT) of $13.8m, a 20 percent increase on the prior yearโ€™s $11.5 million result.

During the period, Airways recorded no near collision incidents and achieved a technical service availability rate of 99.98%.


โ€œContinued growth across the aviation industry, coupled with careful cost control and an excellent operational performance has resulted in a strong start to the year by all measures.โ€ CEO Ed Sims says.
Following a pricing reset for the 2016-2019 period, Airways has delivered a price reduction to customers of 9.8% for the year.

This year, Airways will invest $41 million in capital projects with a focus on delivering next generation technology that will ensure even greater resilience, safety and efficiency. Projects already underway include the installation of a new satellite supported aircraft surveillance system and procurement of a new domestic air traffic management platform. The new platform is expected to be operational by 2020.

Airways Chair Judy Kirk says Airwaysโ€™ direction will play a critical role in supporting aviation and tourism growth in Asia Pacific.
โ€œWith the predicted growth, these investments will enable the future success and efficiency of our own business and those of our customers.โ€

The strong start, supported by further cost savings, is expected to generate a full year result ahead of the budgeted $18.1m.

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Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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