New Zealand News

In an official statement Air New Zealand said the trading loss of $NZ22. 03m for the three months to 30 June were in line with its own published forecasts of a loss between $NZ20 and $NZ25m for the quarter.

The disappointing trading outcome for the 15 months to the end of June was influenced primarily by the recessionary economic conditions in many markets and by the Gulf War crisis, said the airline’s chairman, Mr Bob Matthew. Events in the Gulf from August last year led to major fuel increases and a significant downturn in international travel worldwide,both during and after the war.

There was also a cost of $NZ38m for withdrawing the F27 Friendship fleet and closing the Safe Air Freight operation. The other major factor in the company’s performance was the significant one off costs incurred as a consequence of restructuring. Directors said they believed the company was on track for a consolidated trading profit of $NZ85m for the 12 months to next June.

The group’s result from trading for the 15 months was a loss of $NZ14. 5m (last year $NZ62m profit). In addition there was an abnormal profit contribution of $NZ64. 3m (last year $NZ28. 7m).

Air New Zealand said this contribution comprised:

• Asset sale profits totalling $NZ85. 4m, mainly from the sale of one Boeing 747-200 and two Boeing 737 aircraft.

• A $NZ7. 8m write down (to net asset book value) of the now 100% owned Mount Cook Group.

• A goodwill write down of $NZ2. 1m arising on consolidation of subsidiaries and staff redundancy payments totally $NZ19. 2m. Associate companies contributed losses totalling $NZ4m (last year $NZ1. 8m profit).

Air New Zealand said associate companies’ losses primarily reflected the difficult trading environment experienced by the Jetset Group internationally during and following the Gulf War and the start up costs incurred by Air Nelson. Both companies are 50% owned by Air New Zealand. Turnover for the 15 months was $NZ2. 44 billion, a 2. 8% increase on an annualised basis.

“While no dividends have been declared in respect of the 15 month period to 30 June, directors expect to be able to reintroduce a policy of distributing dividends representing around 40% of tax paid profits. Provided that the forecast operating profit of $NZ85m is achieved, this would allow a current year dividend distribution of eight cents per share on the recently expanded share capital,” said an airline spokesperson.

The Air New Zealand chairman, Mr Bob Matthew, said directors took some comfort from the fact that Air New Zealand had weathered these particularly difficult times well in comparison with its competitors.

Total assets were $NZ2. 35bn ($NZ2. 18bn) MOUNT COOK AIRLINE WINS CONTRACT

The financial news regarding Air New Zealand came at the same time as the aviation division of the Mount Cook Group – now 100% owned by Air New Zealand -was in the news, having secured a contract for about 3,000 hours work on an Air Marshall Islands Hawker Siddeley 748.

The Christchurch based engineering manager for the Mount Cook Airline, Mr Tony Kenworthy, told AA; “We did some heavy maintenance work on this aircraft two years ago, after Air New Zealand did some work about two years earlier. “The major work this time is the removal of corrosion in the under floor structure. So far we’ve not had to change any of the skin. ”

Mr Kenworthy, who was chief engineer for 18 years with the Civil Aviation Division of the Ministry of Transport, said a Malaysian company, as well as another business in New Zealand, had been interested in winning the Air Marshall Island contract. The island airline also operates two Dorniers and a leased DC-8.

“The Mount Cook Airline has also been doing undercarriage work for the RAAF’s 12 HS?48s for the last two years. “We tackle four main and four nose undercarriage systems a year. The equipment is removed from the RAAF aircraft and air freighted here, most coming from East Sale, Victoria.

“We’ve changed various systems and now work on our own six HS?48s for 20 weeks of the year, instead of the whole year which gives us 32 weeks for contract work. Today the airline is far more efficient, with costs well under control,” said Mr Kenworthy.

Raaf Investigates Near Miss

The Royal Australian Air Force has investigated a near miss involving a Hercules aircraft and a light aircraft over Dairy Flat airfield north of Auckland.

The RAAF Hercules had left the Whenuapai Royal New Zealand Air Force base, 26km from central Auckland, with six crewmen for a pilot conversion training flight when the incident occurred.

It is understood a Cessna 182, flown by a North Shore Aero Club instructor and another person, was descending to the airfield when the Australian transport came across its path.

The Cessna pilot had to take “violent action” to avoid the Hercules, according to reports. It was claimed the gap between the two aircraft was “no more than 200 metres. ” A military source said the RAAF Hercules had failed to stay clear of the Auckland North Shore area.

Airline Files Incident Report in USA

Air New Zealand has filed an incident report in America after one of the airline’s Boeing 747s was cleared for takeoff from Los Angeles airport while the tail of another aircraft was protruding over the same runway.

An Air New Zealand pilot has filed a report to the US National Transportation Safety Board. The incident happened on 12 August but it was some six weeks later that the incident was first reported – by the American television Cable News Network.

The pilot of the 747 is understood to have believed there was no risk to the jumbo or its passengers who were bound for Auckland. The incident is one of several which have come to light following investigations into ATC procedures at LAX.

Ansett NZ Staff Help Children

About 5,000 people recently attended an open day at Ansett New Zealand’s engineering hangar at Christchurch international airport with more than $NZ4,000 being raised to go to a trust for children with special needs.

The open day was part of the official launch of the Ansett New Zealand Stars Trust. The trust was set up by staff of Ansett New Zealand. Visitors filed through a British Aerospace 146, Which Ansett NZ has been flying for more than two years.

Ansett NZ’s chief executive, Gary Smith, said the trust was funded by hundreds of Ansett NZ staff who give a small amount of their wages each week to the cause.