Airways Corporation of New Zealand Limited Annual Report 2018 2019
STATUTORY BUSINESS Flight volumes increased by 1.8% on the previous year, with domestic increases of 2.0% and international increases of 1.4%. Operating costs were higher than plan primarily due to revaluation losses on long term leave liabilities driven by continued falls in long term interest rates. A continued focus on cost control across key areas of discretionary spend has partly offset the revaluation losses. The capital investment programme is behind initial budget targets but in line with pricing commitments to customers. Key next generation projects remain on track, notably the new ATM platform and new IP based communication infrastructure to support the new Air Traffic Control centres being constructed in Auckland and Christchurch Delays on the capital plan have come from the flexible contingent runway (FCR), which is moving in line with progress from Auckland International Airport Limited, and investment in new digital towers in Invercargill and Auckland (contingent) which are being rolled out in a more staged and considered way to ensure all stakeholders are comfortable with progress.
COMMERCIAL BUSINESS Revenue increased by 18.4% on the previous year. Investment in key customer relationships and continued product development has supported strong contributions from all business units. Key contributions have come from the installation of a simulator in Lebanon, procedure design in Philippines, new training campus in Kuwait and continued strong volumes in the domestic training business. The refreshed team structure put in place at the start of the year has supported the 25% growth in NOPAT from the 2017–18 financial year. The Commercial businesses continue to remain an integral part of Airways’ growth aspirations and the organisation will continue to manage and fund them independently of the core business.
CHAIR AND CEO’S REVIEW
INVESTING IN THE FUTURE
INTEGRATING DRONES INTO OUR AIRSPACE
AIRWAYS INTERNATIONAL
SUSTAINABILITY
AIRWAYS BOARD OF DIRECTORS
FINANCIALS
FINANCIAL PERFORMANCE
PERFORMANCE AND PROGRESS AGAINST SCI METRICS
FINANCIAL STATEMENTS
EVA KEY PERFORMANCE INDICATORS
ADDITIONAL FINANCIAL INFORMATION
GOVERNANCE AT AIRWAYS
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