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Thursday, January 8, 2009

Tidbits from NZ annual report 2005

  • Link to report (http://www.airnz.co.nz/aboutus/investorcentre/annualreport/reports/2005fullyear/default.htm)

    Who did the layout/styling of this report? A number of pages are very hard to read due to the combinations of background colour/pictures and text colour.

    Aim to be number one in each market. What does this mean?



    Flight NZ002 has been flying to London since 1982.
    For 23 years, young New Zealanders on their “big
    overseas experience” have departed on Air New Zealand
    bound for Europe. A new Air Services Agreement
    between the New Zealand and UK Governments means
    that from the end of next year, that solitary daily flight will
    have other services for company.


    As mentioned by ntddevsys the 2 page picture of great wall of china is a strong hint of new destination.

    Average fare on premium economy is 25% over economy. A bit higher than promoted but this may be merely a reflection of the high demand (lower % allocated to discounted buckets).

    As previously reported, investigating self-check in kiosks for some international flights.

    The 8th 744 which was originally scheduled to return to leasor has been retained for 5 more years and will be used to increase frequency on AKL-LHR route. [Note doesnt spell out whether via US or asia]


    FLEET DELIVERY SCHEDULE
    Year Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
    2006 Q300 Q300 Q300 Q300 Q300 Q300 Q300 Q300
    A320 A320 A320 A320
    2@B777 B777 B777 B777 B777
    2007 Q300 Q300 Q300 Q300 Q300 Q300 Q300 Q300
    B777 B777
    2008 Q300
    2011 B787 B787



    Our intention to double our daily services between
    New Zealand and the United Kingdom will significantly
    improve cargo capacity to this market. The benefits for
    cargo of this increase will have a greater impact in 2007
    due to the timeframe of the new service.


    FF provision decreased from $222m to $194m, about half assumed to be current and half non-current. The trend of prior years of more earned than redeemed or expired has reversed - through greater redemption/expiry (or else revaluation) as value of earned amount is stable at $110m.


  • The one thing that get's me from that report is the mention of increasing the quantity of self check-in kiosks. How anyone can think that these kiosks save time for passengers checking luggage is beyond me. After the boarding pass has been printed one must queue again (no priority) to check luggage - your name has to be typed again, then luggage weighed, tagged and the agent finally spends several minutes trying to fit your baggage receipts onto the boarding pass.

    Incidentally if anyone saw on One News last night – the background video showed a Koru Club Members checked bag being sent off with no priority tags, and a bit later a suitcase with a tacky priority tag on every handle going off. Clearly something needs to be done.


  • IF the rate of redeeming/expiring airpoints is fairly stable, then the reduction in provision due to revaluation represents a decrease in carrying value of FF provision of about 30%.

    However there's likely to be an increase in redeeming/expiring airpoints (evidenced by reduction in non-current amount despite earned amount stable) and so any reduction in provision will be less than 30%.







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