Air NZ Presentation

8/9/2019 Air NZ Presentation

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NIKOLA GEORGIEV07059973

[email protected]


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2

AGENDA

> Route structure

> Route/Flight performance

> Operating fleet

> Operating statistics

> Employee performance

> Financial performance

> Competitors

> Future

> Conclusion

> References


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3

ROUTE STRUCTURE

Route plan divided into domestic and international flights

Over 550 flights a day to 27 domestic destinations

International flights divided into 3 geographical parts:

Europe, Asia & Australasia and the Americas

Air New Zealand operates direct flights to London with code share flights to

other European destinations in UK, Ireland and Germany

Australasia directly by Air New Zealand and its code share partners

North American region is served by Air New Zealand with direct flights to Los

Angeles and San Francisco, USA and the new route - Vancouver, Canada;


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4

ROUTE PERFORMANCE

Routes performance divided into domestic, long haul and

Tasman & Pacific Island flights:

> Long haul flights load factor has increased over 80%, with passenger

numbers up by 12.3%

> Domestic flights capacity has increased by 7.5% compared with 2008,

load factor decreased by 0.7%. The airline operates more domestic routes

than any other airline, which leaded to increase of passenger numbers by

6.1%

> Tasman and Pacific Island flights capacity have been decreased by 1.9%,but load factor have been increased by 2.7%

Overall capacity have increased by 5.4%, while the passenger

load factor have increased by 2.8%


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FLIGHT PERFORMANCE

72%

20%

5% 3%

Less than10min

10-30min

30-60min

morethan 60

min

Air NZ Flight arrivalperformance

68%

23%

6% 2%

Less than10min

10-30min

30-60min

morethan 60

min

Air NZ Flight departureperformance

Source: http://www.airport-la.com/airlines/Air-New-Zealand.htmlSource: http://www.airport-la.com/airlines/Air-New-Zealand.html

Source: http://www.airport-la.com/airlines/Air-New-Zealand.html


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OPERATING FLEET

737-300X 18

A320x 12

767-300

X 5

747- 400X 8777-200

X 8

Additional Fleet

ATR72-500 X11

Bombardier Q300 X21

Beech1900D X17

On order: B787-9 X5 for Y12/13


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OPERATING STATISTICS

Short haul Op Statistic June 2008 June 2007 Movement*

Passengers 11.2 m 10.7m 4.5%

ASKs 14,748m 14,588m 1,1%

RPKs 11,334m 10,980m 3.2%

Load Factor 76,9% 75,3% 1,6pts

Long haul Op Statistics June 2008 June 2007 Movement*

Passengers 2.0m 1.7m 12.3%

ASKs 22,243m 20,525m 8,4%

RPKs 18,015m 15,894m 13,3%


Group Op Statistics June 2008 June 2007 Movement*Passengers carried 13,2m 12,5m 5,6%

ASKs 36,991m 35,113m 5,4%


Yield (cents per RPK) 13,0 12,9 0,2%


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EMPLOYEE PERFORMANCE

> $37m extra cost savings are achieved in 2008

> $361m per annum are being delivered from business transformation

initiatives already implemented

The following graph shows the productivity of Air New Zealand employees

Source: Air New Zealand


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FINANCIAL PERFORMANCE

Fuel Hedging* (*Fuel hedge position as at 18thAugust 2008)

> For the first half of FY09, approximately 74% of the fuel has been hedged

> The second half of FY09, approximately 38% of the fuel has been hedged

Risk Management/Currency Hedging

> 2009 US Dollar operating cash flow exposure is approximately 90% hedged at an average NZ$/US$ rate of 0.76

General financial overview

> $1.3bn cash on balance sheet at year end with gearing of 45.5% (7, 6% percent improvement),

> Average fleet of 6.5 years, 2 X Boeing 747-400s sold and leased back



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FINANCIAL PERFORMANCE 2

The following graph represents the key influences on the company profitability.



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FINANCIAL PERFORMANCE 3

The following is a snapshot of the financial statement of Air New Zealand for operations


From the statement above, we can calculate the operating ratiousing the formula operating expenses / operating revenue: 3,720/4,667 = 0.79X100=79%


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COMPETITORS

Qantas fleet comprises of: 4 x Airbus A380-800, 6 x Boeing 747-400ER, 22 x Boeing 747-400,

27 x Boeing 767-300ER, 41 x Boeing 737-800, 21 x Boeing 737-400, 11 x Boeing 717-200, 10 x

Airbus A330-300, 6 x Airbus A330-200, 21 x Bombardier Dash 8

Qantas flies to 16 domestic and 21 international destinations in 14 countries across Africa,

Americas, Asia, Europe and Oceania.

Qantas has South America and Africa to its direct network of services
http://www.boeing.com/news/releases/2005/q4/051213h_nr.html


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COMPETITORS PASSENGER/LOAD FACTOR

Qantas Group passenger number growth and passenger load factor: 2005 to 1H2009

(Financial year ended 30-Jun)

Source: Qantas

Source: Centre for Asia Pacific Aviation & Qantas Group


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THE FUTURE


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THE FUTURE

Safety Management System.

Integration with other Operational Integrity data

Potentially a Regulatory Tool

Reduction in route Audit frequency/costs

Reduction in Route Checksjust Captains?


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CONCLUSION

Strategic management focus on on utilization of aircrafts,operational activities and general management activitiesstrategy

Focus on network expansion in line with demand eliminatingthe possibility of creating non-profitable routes

Qantas - better fleet capacity and network coverage than AirNew Zealand - does not mean its more profitable

Even with lower fleet and network capacity, Air New Zealand ismore profitable and cost efficient airline than its directcompetitor Qantas

Still work to be done to achieve all the benefits


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REFERENCES

Websites:

> Air New Zealand - http://www.airnewzealand.co.nz/

> Qantas - www.quantas.com.au

> Flight Performances -

http://markets.ft.com/tearsheets/performance.asp?s=nz:AIR

> Los Angeles Airport (flight performances) - http://www.airport-

la.com/airlines/Air-New-Zealand.html

> Boeing (news) -

http://www.boeing.com/news/releases/2008/q4/081111c_nr.html

> Centre for Asia Pacific Aviation & Qantas Group - www.centreforaviation.com

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