Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 30/10/13 13:41
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - September 2013
• Price Sensitive: No
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					AIR
30/10/2013 11:41
MONTHLY

REL: 1141 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - September 2013

CONTENTS

-September market conditions
-Company news
-Operating statistics table (please see attached document)

SEPTEMBER MARKET CONDITIONS

Air New Zealand carried 1,297,000 passengers during the month of September,
0.8% more than the same period last year. Revenue passenger kilometres (RPKs)
increased 0.3% on a capacity (ASKs) increase of 1.0%. Group load factor was
84.1%, down 0.6 of a percentage point.

Short Haul passenger numbers were up 0.9% on the same period last year.
Demand (RPKs) increased in the Domestic market by 2.0%, while capacity
increased 3.1%. Domestic load factor was down 0.9 of a percentage point to
79.5%.

Tasman/Pacific demand (RPKs) increased 0.6%, with capacity (ASKs) increasing
3.0%, reflecting the up-gauge to a B777 aircraft on Auckland-Perth. Load
factor for Tasman/Pacific was down 2.0 percentage points to 82.0%.

Long Haul passenger numbers decreased 0.1% compared to September last year,
with demand (RPKs) and capacity (ASKs) down 0.4% and 1.0% respectively. Load
factor increased by 0.6 percentage points to 86.9%.

On North America/UK routes, demand (RPKs) increased 9.6% with capacity (ASKs)
increasing by 9.0%. Load factor increased 0.5 of a percentage points to
91.6%.

Demand (RPKs) was down 18.0% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 16.2% due to the withdrawal of Hong Kong-London flights. Load
factor decreased 1.6 percentage points to 77.4%.

Group-wide yields for the financial year to date were down 0.1% on the same
period last year. Short Haul yields were down 1.4%, while Long Haul yields
were up 0.9%. Removing the impact of foreign exchange, Group-wide yields were
up 1.9%.

In September, 81.4% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

APPOINTMENT OF CHIEF SALES & COMMERCIAL OFFICER

Air New Zealand has appointed Cam Wallace to the role of Chief Sales and
Commercial Officer effective January 1, 2014. He will replace Norm Thompson
who retires in December.

Chief Executive Officer Christopher Luxon says Mr Wallace, who is currently
Group General Manager New Zealand and Pacific Islands, has been selected for
the role after an international search.

Mr Wallace has held sales leadership roles for more than ten years on both
sides of the Tasman with Air New Zealand. He currently has responsibility for
generating more than NZ$2 billion in revenue annually through leading a sales
and market development team of over 650 people. Prior to joining Air New
Zealand he held roles within two other airlines.

NEW LOS ANGELES STAR ALLIANCE LOUNGE OPENS

The new Star Alliance Lounge located at Los Angeles International Airport
(LAX) officially opened its doors on 25 September, welcoming all First,
Business and Star Alliance Gold Card passengers departing on Star Alliance
member airlines from the Tom Bradley International Terminal.

Air New Zealand, as a member carrier, was appointed to develop and manage the
new lounge on behalf of the Alliance.

The new premium customer facility offers space for around 400 Business Class
and Star Alliance Gold passengers, including an exclusive area for First
Class passengers. Designed by global architectural firm Gensler, the 18,000
square foot (1,675 square meter) lounge features a unique open air terrace,
offering panoramic views of the northern runway towards the Hollywood Hills.
This outdoor terrace provides passengers with an unparalleled sensory
experience, complete with fire pits and a water wall.

INCREASED CAPACITY TO HAWAII, THE PACIFIC ISLANDS AND A RETURN TO BALI

Kiwis' love affair with the beach is set to continue with Air New Zealand
announcing it will increase capacity on its Auckland to Honolulu service, on
Pacific Island routes and operate a third season of its Auckland to Bali
service. The airline will operate four services a week between Auckland and
Honolulu from 16 June to 25 October next year, moving to five services a week
over the peak 30 June to 27 July period.

Air New Zealand Group General Manager New Zealand and Pacific Islands Cam
Wallace says Hawaii continues to prove popular with customers, especially
those with families. "Hawaii is an ideal school holiday destination as it's
almost a full day behind New Zealand meaning there's no difficulty in
adjusting to a different time zone," Mr Wallace says.

Air New Zealand will also operate a third season of its popular non-stop
Auckland to Bali service next year and increase capacity on the route by 40
percent. The twice weekly 2014 seasonal service between Auckland and Denpasar
will operate from 31 May to 19 October. The service will be bolstered to
three flights a week over the most popular period of 1 July to 12 October.

EMPLOYMENT RELATIONS UPDATE

Air New Zealand has recently concluded a round of employment relations
negotiations which have led to significant changes in terms and conditions
for the Cabin Crew and Technical Operations workforces, designed to improve
efficiency and productivity for the long term.

As a result of new collective agreements, the company will not be involved in
any bargaining for new collective agreements in any of the major workplaces
until the middle of the 2015 calendar year.
End CA:00243056 For:AIR    Type:MONTHLY    Time:2013-10-30 11:41:49