Air New Zealand Operations presentation

NIKOLA GEORGIEV – 07059973
nik_singerstr@yahoo.com

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AGENDA
> Route structure
> Route/Flight performance
> Operating fleet
> Operating statistics
> Employee performance
> Financial performance
> Competitors
> Future
> Conclusion
> References
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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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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
Air NZ Flight arrival
Air NZ Flight departure
performance
performance
72%
68%
20%
23%
5%
3%
6%
2%
Less than 10-30
30-60
more
Less than 10-30
30-60
more
10min
min
min
than 60
10min
min
min
than 60
min
min
Source: http://www.airport-la.com/airlines/Air-New-Zealand.html
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OPERATING FLEET
747- 400
X 8
777-200
X 8
767-300
A320
X 5
x 12
737-300
X 18
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%
Load Factor
81,0%
77,4%
3,6pts
Group Op Statistics
June 2008
June 2007
Movement*
Passengers carried
13,2m
12,5m
5,6%
ASKs
36,991m
35,113m
5,4%
Load Factor
79,3%
76,5%
2,8pts
Yield (cents per RPK)
13,0
12,9
0,2%
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EMPLOYEE PERFORMANCE
The following graph shows the productivity of Air New Zealand employees
Source: Air New Zealand
> $37m extra cost savings are achieved in 2008
> $361m per annum are being delivered from business transformation
initiatives already implemented
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FINANCIAL PERFORMANCE
Source: Air New Zealand
Fuel Hedging* (*Fuel hedge position as at 18th August 2008)
>
For the first half of FY09, approximately 74% of the fuel has been hedged
>
The second half of FY09, approximately 38% of the fuel has been hedged
Risk Management/Currency Hedging
>
2009 US Dollar operating cash flow exposure is approximately 90% hedged at an average NZ$/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.
Source: Air New Zealand
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