Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 22/11/13 14:03
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - October 2013
• Price Sensitive: No
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					AIR
22/11/2013 12:03
MONTHLY

REL: 1203 HRS Air New Zealand Limited (NS)

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

CONTENTS

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

OCTOBER MARKET CONDITIONS

Air New Zealand carried 1,062,000 passengers during the month of October,
0.7% more than the same period last year. Revenue passenger kilometres (RPKs)
decreased 0.5% on a capacity (ASKs) decrease of 1.7%. Group load factor was
82.7%, up 1.0 percentage points.

Short Haul passenger numbers were up 1.3% on the same period last year.
Demand (RPKs) increased in the Domestic market by 1.6%, while capacity
increased 0.8%. Domestic load factor was up 0.6 of a percentage point to
81.8%.

Tasman/Pacific demand (RPKs) increased 3.9%, with capacity (ASKs) increasing
4.0%. Load factor for Tasman/Pacific was unchanged at 83.7%.

Long Haul passenger numbers decreased 3.8% compared to October last year,
with demand (RPKs) and capacity (ASKs) down 3.8% and 5.7% respectively. Load
factor increased by 1.7 percentage points to 82.4%.

On North America/UK routes, demand (RPKs) increased 3.4% with capacity (ASKs)
increasing by 3.7%. Load factor decreased 0.2 of a percentage point to 82.7%.

Demand (RPKs) was down 16.5% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 21.3% due to the withdrawal of Hong Kong-London flights. Load
factor increased 4.7 percentage points to 81.7%.

Group-wide yields for the financial year to date were flat on the same period
last year. Short Haul yields were down 1.6%, while Long Haul yields were up
1.1%. Removing the impact of foreign exchange, Group-wide yields were up
1.9%.

In October, 77.8% of Air New Zealand's Domestic flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

GOVERNMENT SELL DOWN COMPLETED

Air New Zealand notes the Crown has announced that it has completed the sell
down of part of its shareholding in Air New Zealand.  The Crown sold just
over 221 million ordinary shares, which represent approximately 20% of the
issued ordinary shares in the Company, at a price of $1.65 per share.

The Crown's holding of ordinary shares in Air New Zealand will now represent
approximately 53% of the Company's ordinary shares.

"We have been very pleased to see this positive reaction to the increased
availability of Air New Zealand shares.  It clearly recognises the value that
has been created in recent years with the right strategies and a great team
operating in one of the most challenging industries", said Air New Zealand's
Chairman, Tony Carter.

MOODY'S REAFFIRMS AIR NEW ZEALAND'S BAA3 RATING AND STABLE OUTLOOK

Moody's Investors Service has affirmed Air New Zealand's Baa3 Senior
Unsecured Issuer rating and stable outlook. This follows the Government of
New Zealand's announcement that it would be selling up to 20% of its existing
73% shareholding in the company.

AIR NEW ZEALAND SUPPORTS VIRGIN AUSTRALIA RIGHTS ISSUE

The A$350 million capital raising will further strengthen Virgin Australia as
it consolidates and builds its position in the Australian domestic and
international airline markets.

Air New Zealand currently holds 22.9% of Virgin Australia shares and has
regulatory approval in Australia to increase that to 25.99%. The Company will
take up its full pro rata entitlement under the rights issue and
sub-underwrite the issue together with the other major shareholders,
Singapore Airlines and Etihad Airways. In the event that additional shares
are available from the underwriting, Air New Zealand's shareholding could
increase to as much as 25.5%.

The additional investment by Air New Zealand of between A$81 million and
A$116 million will strengthen the Virgin Australia balance sheet and enable
the continuation of its strategy as it enhances its market position and
improves business performance following a period of substantial change and
growth. The completion of the rights issue will result in the termination of
the undrawn shareholder term loan facility of A$38 million from Air New
Zealand.

AUCKLAND-PERTH TO BE THE WORLD'S FIRST SCHEDULED BOEING 787-9 ROUTE

Air New Zealand has announced Auckland-Perth will be the first scheduled
route ever operated by the revolutionary new Boeing 787-9 when the airline
takes delivery of the launch aircraft next year.

The airline has confirmed an 18 seat lie-flat Business Premier zone in a
herringbone layout and a separate 21 seat Premium Economy cabin in a 2-3-2
configuration, each with its own dedicated bathroom facilities. The two
Economy cabins will accommodate 263 passengers, including 14 Skycouch rows.
All customers will benefit from the Boeing 787-9s larger windows, cleaner
cabin air, higher humidity and lower relative cabin pressure.

Air New Zealand Chief Executive Officer Christopher Luxon says the 787-9
dedicated routes to follow Auckland-Perth (which is operated as part of its
trans-Tasman alliance with Virgin Australia) will be Auckland-Tokyo and
Auckland-Shanghai.

AIRLINE LICENSING DEAL FOR KIWI DESIGNED SKYCOUCH

Air New Zealand has signed a deal licensing its Skycouch seat product to a
large airline based in Asia. This is the first licensing agreement for the
Skycouch and follows the expiry of the exclusivity period Air New Zealand
adopted at the launch of the revolutionary new product in 2011.

The Skycouch is a row of three economy seats that together adapt to create a
flat flexible space to stretch out and relax in. It was developed as part of
a three year innovation process to re-invent the long haul flying experience.
Under the confidentiality terms of the licensing agreement Air New Zealand is
not able to name the Asian-based carrier until next year.
End CA:00244173 For:AIR    Type:MONTHLY    Time:2013-11-22 12:03:23