CHIEF EXECUTIVE’S REPORT
In October we began a trial of radar based drone detection technology at Auckland International Airport. The technology may have the capability to identify drones operating around airports, allowing air traffic controllers to notify pilots of any necessary action. The trial is expected to be ongoing throughout 2019 as we consider how the technology could be integrated into Airways’ operating environment. August saw the opening of new air traffic control towers at Wellington International Airport and Nelson Airport. These two modern towers are a significant investment for Airways and will support the growing aviation needs of both locations. They are likely to be the last two ‘bricks and mortar’ towers to open in New Zealand, as we look to digital air traffic control tower technology as a way to deliver safer and more efficient aerodrome services that are better aligned to our customers’ needs. During the period we continued with the procurement of a digital tower solution for Invercargill Airport – New Zealand’s first digital tower, due to go live in 2020. Construction of the new Auckland and Christchurch Air Traffic Centres is progressing well. Both centres are on track for commissioning in 2020 when our new $58 million ATM platform will become operational, bringing increased safety and efficiency benefits. Airways’ first sustainability framework launched in September. The framework sets out how we will achieve our strategic goals in a socially and environmentally sustainable way that works for us, our people and communities.
Measures of success
FY19 actual YTD
FY19 plan YTD
FY18 actual YTD
Near collisions
1
Nil
Nil
Critical technology services availability
99.99%
99.95% 99.95%
Group NOPAT
13.5m
11.8m
13.9m 1
Commercial business NOPAT
3.7m
3.8m
3.4m
Capital investment
20.8m
35.4m
21.5m
1 Excludes a $4.2 million gain on the sale of land in July 2017.
F I NANC I AL PERFORMANCE The Airways group reported a net operating profit after tax (NOPAT) of $13.5 million for the half year, broadly in line with the prior year’s $13.9 million and $1.7 million ahead of budget. The result has been driven by increasing air traffic volumes and continued growth in profits from our commercial businesses. Flight volumes within the core business have continued to increase on both domestic and international routes, with year to date volumes up 1.9% on budget and 2.4% on the prior year. Core business costs are tracking behind plan for the first six months, although this variance is expected to unwind by year end with the initiation of a number of planned initiatives and projects. Capital investment in key projects is progressing well and, although overall spend for the first six months is below budget, commitments to customers for the 2017-2019 pricing round are on track to be delivered. Investment in two large projects outside the original pricing plan – lighting for a new flexible contingent runway in Auckland and the development of a digital tower at Invercargill Airport – is now likely to occur in future years. The commercial businesses have maintained the steady growth of recent years, with revenue up 16% on the same period last year. This growth is coming from across the portfolio, with significant contributions to the December 2018 result coming from procedure design work in the Philippines and the commencement of a new training partnership in Kuwait. Good progress has also been made on the development and installation of a simulator in Lebanon, although revenue will not be recognised until later in the financial year.
Airways Interim Report 2018 2019
02
Made with FlippingBook - Online catalogs