CONTENTS
-May market conditions
-Company news
-Operating statistics table (please see attached document)
MAY MARKET CONDITIONS
Air New Zealand carried 960,000 passengers during the month of May, 5.6% more
than the same period last year. Revenue passenger kilometres (RPKs) increased
3.7% on a capacity (ASKs) increase of 1.2%. Group load factor was 81.7%, up
2.0 percentage points.
Short Haul passenger numbers were up 6.0% on the same period last year.
Demand (RPKs) increased in the Domestic market by 9.9%, while capacity
increased 3.3%. Domestic load factor was up 5.0 percentage points to 83.9%.
Tasman/Pacific demand (RPKs) increased 2.5%, with capacity (ASKs) increasing
2.0%, reflecting the additional frequency on Auckland-Honolulu and the
up-gauge to a B777 aircraft on Auckland-Perth. Load factor for Tasman/Pacific
was up 0.4 of a percentage point to 82.6%.
Long Haul passenger numbers increased 2.0% compared to May last year, with
demand (RPKs) up 2.6% while capacity increased 0.2%. Load factor increased by
1.8 percentage points to 80.5%.
On North America/UK routes, demand (RPKs) increased 17.4% with capacity
(ASKs) increasing by 17.5%. Load factor decreased 0.1 of a percentage point
on the previous year to 82.6%.
Demand (RPKs) was down 20.4% on Asia/Japan/UK routes, with capacity (ASKs)
decreasing by 23.4% as a result of the consolidation of China flying onto
Shanghai and the withdrawal of Hong Kong-London flights. Load factor
increased 2.9 percentage points to 76.2%.
Group-wide yields for the financial year to date were up 1.6% on the same
period last year. Short Haul yields were down 1.6%, while Long Haul yields
were up 5.2%. Removing the impact of foreign exchange, Group-wide yields were
up 2.6%.
In May, 78.9% of Air New Zealand''s Domestic flights departed within 10
minutes of scheduled departure time.
COMPANY NEWS
AIR NEW ZEALAND INCREASES INTEREST IN VIRGIN AUSTRALIA TO 22.99%
Air New Zealand has entered into an agreement to acquire a further 3% of the
shares of Virgin Australia, taking its interest to 22.99%. The agreement is
subject to customary Foreign Investment Review Board (FIRB) and Australian
Competition and Consumer Commission (ACCC) conditions and Air New Zealand has
filed the required Substantial Shareholder Notice.
Air New Zealand will consider acquiring up to a further 3% of the shares in
Virgin Australia, to the extent it is permitted to do so under the Australian
Corporations Act, and has made an application to FIRB on that basis.
The additional interest affirms Air New Zealand''s strong belief and
confidence in Virgin Australia and the strategy it is pursuing under the
leadership of John Borghetti and his team.
Air New Zealand is not seeking a position on the Board of Virgin Australia
nor does it have the intention of obtaining control of Virgin Australia.
NEW LIVERY UNVEILED, ALONG WITH $20 MILLION PARTNERSHIP WITH TOURISM NEW
ZEALAND
Air New Zealand and Tourism New Zealand have signed a Memorandum of
Understanding (MoU) valued at more than $20 million, in a one year
partnership to undertake joint marketing activity promoting travel to New
Zealand in selected international markets.
Air New Zealand has also unveiled its new aircraft livery which features the
iconic official New Zealand Fern Mark, the use of which is managed by Tourism
New Zealand and New Zealand Trade and Enterprise.
SETTLEMENT OF CARGO PROCEEDINGS
The High Court of New Zealand has approved a settlement agreement between Air
New Zealand and the New Zealand Commerce Commission which resolves long
standing proceedings brought by the Commission against a number of airlines
in 2008.
The settlement avoids further protracted and costly litigation. The
proceedings alleged agreements in relation to fuel and security surcharges on
air cargo.
The agreed settlement amount of $7.5 million was already factored into the
Normalised Earnings before Tax guidance communicated in April.
787-9 DESTINATIONS AND SEAT SELECTION CONFIRMED
Air New Zealand has confirmed the destinations its new fleet of 10 Boeing
787-9 aircraft will fly to.
The key long haul destinations for the new aircraft will be Shanghai and
Tokyo, while it will also service some mid haul destinations such as Perth,
Honolulu and Papeete.
The Business Premier cabin will feature Air New Zealand''s signature chalk
coloured luxurious leather armchair which converts to an indulgent lay flat
bed complete with memory foam mattress, cosy duvet and two full size pillows.
In the Premium Economy cabin the airline has worked with US seat designer
Zodiac on a customised seat best described as Business-lite. This comfortable
ink coloured luxury leather seat will have a 41" pitch, a generous 5" wide
armrest and a leg rest and extendable foot support which will allow
passengers to really stretch out and relax.
The Economy cabin will feature 16 rows of Air New Zealand''s unique and highly
popular Kiwi designed Skycouch seats. This is a row of three seats that
converts into a sofa like flat surface for both rest and relaxation.
The standard Economy seat in the 787-9 will be also be supplied by US
manufacturer Zodiac and customised to Air New Zealand''s specifications
including a slim line seat back to enhance the feeling of space, sculpted
upholstering and a more flexible headrest.
End CA:00237772 For:AIR Type:MONTHLY Time:2013-06-25 11:37:48