Airways Corporation of New Zealand Limited Pricing for the 2019-2022 Period
Airways’ dividend policy
AIRWAYS PROPOSED
Airways’ dividend policy was not included in Airways’ pricing proposal.
SUMMARY OF SUBMISSIONS
While not part of Airways’ pricing proposal, we received three submissions referring to Airways’ dividend policy.
Virgin felt Airways should reduce the dividend in order to offset rising costs.
BARNZ highlighted the increasing dividend payments since 2014, and suggested that the shareholder take a reduced dividend to continue to support growth in the aviation sector, and minimise cost increases. Aviation NZ felt a portion of the Airways’ dividend should be reinvested to retain a basic aviation infrastructure. This investment should be a cost and deducted from revenue before tax and dividends are calculated.
AIRWAYS’ RESPONSE
Airways is a State Owned Enterprise and is run as a commercial business. It is governed by an independent Board of Directors. Airways’ dividend policy reflects the expectations of its shareholder.
36
Made with FlippingBook Online newsletter