1 2008/09 update bryan lau young, corporate finance manager grant rawstorn, regional services...

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2008/09 Update

Bryan Lau Young , Corporate Finance ManagerGrant Rawstorn, Regional Services Manager

Ashley Smout, Chief Executive Officer

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Operational Performance

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Operational Highlights

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1,168,588 movements, 28 incidents of loss of minimum separation

99.98% systems availability

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Financial Summary - 2009 The Perfect Storm

IATA forecasting $11b (USD) loss in 2009

Revenue pressure – $119M ANS revenue (120M in 2007/08)

$4.5M NOPAT down 57% on prior year ($1.5b EVA Loss)

Airways Response

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Pricing Framework

4% Price Increase – first since 1998 SOE Act Monopoly- not regulated

Location Specific Pricing Customer Partnership Plan

Customer Rebate Annual Disclosure Ring fence domestic business

WACC (Long term post tax average – 7%)

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Major Projects

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Christchurch Tower

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Operational September 2009

$6m Airways Investment

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Low Visibility Operations - Auckland

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18 month project $4.5m Airways

Investment From Zero

movements to 16-20 /hour movements in low vis.

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Vision 2015 – Collaborative Arrivals Manager (CAM)

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Auckland – Cost of Airborne Delays

Wellington - Cost of Airborne Delays

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Vision 2015 – Performance Based Navigation (PBN)

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Enhanced Safety Fuel Savings Noise

Concentration

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Key Issues

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Aging Assets at unattended aerodromes

Strategic Relationship / Communication

Service Levels

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