Ann: MONTHLY: AIR: Air New Zealand Investor Updat

• Release Date: 23/05/14 12:54
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - April 2014
• Price Sensitive: No
• Download Document  3.89KB

					AIR
23/05/2014 10:54
MONTHLY

REL: 1054 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - April 2014

Contents

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

APRIL MARKET CONDITIONS

Air New Zealand carried 1,049,000 passengers during the month of April, 0.3%
more than the same period last year. Revenue passenger kilometres (RPKs)
increased 3.9% on a capacity (ASKs) increase of 2.7%. Group load factor was
83.1%, up 1.0 percentage point.

The Short Haul network was impacted by the timing of the Easter and ANZAC
holiday periods falling on consecutive weeks, with passenger numbers down
0.3% on the same period last year.

Demand (RPKs) decreased in the Domestic market by 1.3%, while capacity
increased 5.0%. Domestic load factor was down 5.1 percentage points to 79.9%.

Tasman/Pacific demand (RPKs) increased 4.4% while capacity (ASKs) increased
by 3.4%. Load factor on Tasman/Pacific was up 0.8 of a percentage point to
84.1%.

Long Haul passenger numbers increased 5.5% compared to April last year, with
demand (RPKs) and capacity (ASKs) up 5.4% and 1.5% respectively. Load factor
increased by 3.2 percentage points to 83.5%.

On North America/UK routes, demand (RPKs) increased 4.2% with capacity (ASKs)
increasing by 0.8%. Load factor increased 2.7 percentage points to 83.4%.

Demand (RPKs) was up 8.0% on Asia/Japan/UK routes, with capacity (ASKs)
increasing by 2.7%. Load factor increased 4.2 percentage points to 83.6%.

Group-wide yields for the financial year to date were up 0.9% on the same
period last year. Short Haul yields were up 0.1%, while Long Haul yields were
up 0.7%. Removing the impact of foreign exchange, Group-wide yields were up
3.2%.

In April, 80.4% of Air New Zealand's Domestic Jet flights departed within 10
minutes of scheduled departure time.

COMPANY NEWS

$20 million extension to Air New Zealand & Tourism New Zealand partnership

On 20 May 2014 Air New Zealand and Tourism New Zealand announced a $20
million extension to their marketing partnership. The airline signed a
Memorandum of Understanding with Tourism New Zealand last year to undertake
joint marketing activity promoting travel to New Zealand in key international
markets.

The announcement, which will see the partnership continue through financial
year 2015, will extend cooperative marketing activity to include Singapore
and South East Asia, in support of Air New Zealand's proposed alliance with
Singapore Airlines.

Christchurch Engine Centre opens new state-of-the-art facility

On 9 May 2014 Pratt & Whitney and Air New Zealand opened new workshops and a
logistics centre at the Christchurch Engine Centre to perform V2500 engine
maintenance, repair and overhaul work. The Christchurch Engine Centre, based
at Christchurch Airport, is a joint venture between Pratt & Whitney and Air
New Zealand. Pratt & Whitney is a division of United Technologies Corp.
(NYSE:UTX).

The new 13,500-square-metre space replaces three older buildings on separate
sites, reducing the facility's footprint and cost base, while increasing
efficiencies.
The centre's V2500 engine maintenance shop, established in 2004, employs
around 300 staff and overhauls the popular International Aero Engines V2500
engine for Air New Zealand and various other airline customers.

First regulatory clearance for proposed Singapore Airlines alliance

The Competition Commission of Singapore has given clearance for the proposed
alliance between Air New Zealand and Singapore Airlines.

Air New Zealand welcomes the decision which is the first of two regulatory
approvals required. The alliance is also subject to the approval of the New
Zealand Minister of Transport. The Competition Commission of Singapore has
found that any competition concerns associated with the proposed alliance are
outweighed by the net economic benefits to Singapore.
End CA:00250814 For:AIR    Type:MONTHLY    Time:2014-05-23 10:54:01