Ann: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - January 2016

• Release Date: 19/02/16 08:30
• Summary: MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - January 2016
• Price Sensitive: No
• Download Document  5.06KB

					AIR
19/02/2016 08:30
MONTHLY
PRICE SENSITIVE
REL: 0830 HRS Air New Zealand Limited (NS)

MONTHLY: AIR: Air New Zealand Investor Update (Op Stats) - January 2016

Contents
o January market conditions
o Company news
o Operating statistics table

January market conditions
Air New Zealand carried 1,139,000 passengers during the month of January,
6.3% more than the same period last year. Revenue passenger kilometres (RPKs)
were 9.8% higher on a capacity (ASKs) increase of 12.0%. Group load factors
were down 1.8 percentage points to 85.2%.

Short Haul passenger numbers were up 5.1%.  In the Domestic market demand
(RPKs) and capacity (ASKs) increased by 9.3% and 8.5%, respectively.
Domestic load factor was 81.3%, up 0.6 percentage points.

Tasman/Pacific demand (RPKs) increased 0.9% while capacity (ASKs) increased
by 6.0%. Load factor on Tasman/Pacific decreased 4.2 percentage points to
82.8%.

Long Haul passenger numbers increased 13.5% when compared to January last
year, with demand (RPKs) up 14.5% and capacity (ASKs) up 16.0%. Load factor
on Long Haul routes was 87.3%, down 1.1 percentage points.

On Americas/UK routes, demand (RPKs) increased 15.5% with capacity (ASKs)
increasing 18.9% due to the new Auckland-Houston and Auckland-Buenos Aires
routes. Load factor was down 2.5 percentage points to 86.5%.

On Asia/Japan/Singapore routes, demand (RPKs) increased 12.8%, with capacity
(ASKs) increasing by 10.9% due to the remaining annualisation on the
Auckland-Singapore route. Load factor increased 1.5 percentage points to
88.8%.

Group-wide yields for the financial year to date were down 1.1% on the same
period last year. Short Haul yields were down 0.5% while Long Haul yields
were up 1.8%. Removing the impact of foreign exchange, Group-wide yields were
down 4.9%.

Company news

Air New Zealand will commence night flying into and out of Queenstown from
July 2016, offering more options and greater flexibility for travellers

Subject to regulatory approval, the airline will operate services between
Queenstown and Auckland between 7am to 9.30pm daily using A320 aircraft.

Air New Zealand Chief Flight Operations and Safety Officer Captain David
Morgan said the airline has been working closely with industry stakeholders
on a plan to implement night operations for some time.
"We have been working collaboratively with the regulator, Queenstown Airport,
our pilots and safety teams and unions to finalise a thorough operator safety
case which will be submitted to the New Zealand Civil Aviation Authority in
the near future," says Captain Morgan.
The airline's night schedule will provide greater choice and flexibility for
travellers with improved connectivity through the airline's Auckland
international hub.
The schedule changes will also mean the airline will grow capacity between
Auckland and Queenstown by 15 percent in FY17 with an additional 100,000
seats.

Air New Zealand has entered into a partnership with aircraft manufacturer ATR
to equip its 68-seat turboprop fleet with advanced Required Navigation
Performance (RNP AR) technology

RNP AR enables specially trained pilots to fly to lower altitudes with a more
precise and efficient route into the airport, saving fuel and emissions and
helping reduce the impact of bad weather on services.
The airline announced late last year it would purchase 15 new ATR72-600
aircraft to operate its regional services, four to allow for further growth
on regional routes and 11 to replace its ATR72-500 fleet, bringing its ATR
fleet to 29 aircraft. The February announcement was a commitment by Air New
Zealand to invest more than $25m in RNP capability for the fleet.
Air New Zealand Chief Flight Operations and Safety Officer Captain David
Morgan said the advanced RNP AR capability will greatly benefit the airline's
customers.
"This technology will enable us to provide a more consistent service for
customers who travel on our ATR aircraft where weather conditions can at
times prove challenging for our turboprop operations, particularly over the
winter months," said Captain Morgan.
Pending certification and regulatory approval the first advanced RNP enabled
ATR aircraft is expected to enter the fleet in 2018.

Air New Zealand has appointed Jodie King to the Executive position of Chief
People Officer effective 29 February

Jodie takes over the role from Lorraine Murphy, who is moving to Australia to
become Group Executive - People at National Australia Bank.
Jodie had a significant international career before joining Air New Zealand
in 2013 to drive key initiatives including the airline's Talent and
Leadership frameworks. More recently she led the People streams for Airports
and Global Sales.
Prior to joining Air New Zealand Jodie spent 15 years in the United Kingdom
with KPMG where she worked in leadership and consultancy roles across a range
of industries, including infrastructure, oil and gas, banking and retail with
companies like London Underground, BP, easyJet, Royal Bank of Scotland and
Diageo. This has seen her support businesses in countries as diverse as
Russia, North America and Switzerland.

Ends.
End CA:00277909 For:AIR    Type:MONTHLY    Time:2016-02-19 08:30:43