Neha Jain: http://newzealandaviationnews.blogspot.com/25

1. Retail investment pays off for Auckland Airport
NEW ZEALAND. Auckland International Airport Limited today announced a strong set of interim results for the six months ending 31 December, with retail playing a key role.

Retail revenue increased in the period by +12.9%, up to NZ$54.8 million (US$40.8 million). This was largely due to recent investment in the retail environment at the airport’s international departures area and an increase in marketing activity and customer choice, said AIAL.

The company said it was “highly confident” of surpassing its goal of NZ$105 million (US$78.2 million) in retail revenue for the full financial year, with a “significant uplift in spend evident as stores are established in new locations".
Among the new tenants that opened in the six months to December 2010 were Icebreaker, Moët, Apple, Swatch, MAC cosmetics, and a new temporary Rugby World Cup store.

New tenants opening in the next six months include Zarboin airside food & beverage and KFC, Silk Road and new bars in an expanded landside food & beverage range.

Total revenue for the six months to 31 December increased by +8.7% to NZ$198.2 million (US$147.6 million), with earnings before interest, taxation, depreciation, fair value adjustments and investments in associates (EBITDAFI) at NZ$151 million (US$112.4 million) for the six-month period, an increase of +9.2%.

Underlying profits after tax hit NZ$61.5 million (US$45.8 million), a rise of +14% compared to the previous year.

2. Air NZ’s profit jump

Air New Zealand has posted normalised earnings before tax of NZ$112 million for the first half of the current financial year, up 33 per cent on the same half in the 2009-10 financial year.
The result (NZ$96 million after tax) includes an NZ$18 million gain on equity swaps relating to Air NZ’s recent investment in Virgin Blue. Statutory profit before tax was $115 million, up NZ$31 million on the same period in 2009.
“Overall Air New Zealand has had a strong six months. Passenger numbers, cargo volumes and yields have all increased year on year, with an increase in revenues of nine percent. This has been offset by costs relating to increased capacity, increasing fuel prices and losses from foreign exchange hedges,” Air New Zealand chairman John Palmer said.
“Air New Zealand continued to invest throughout the worst of the global financial crisis and is now in a far stronger competitive position as a result of our innovation, people and strategic alliances. We now have a solid platform to progress and build value from these investments.”
The airline has a net cash position of $940 million, while the board has declared a fully imputed interim dividend of three cents per share.
Air New Zealand CEO Rob Fyfe said the last six months had been an “exciting period” for the airline, as it continued with new initiatives to strengthen its market position. “Bookings on our Tasman and Pacific Island services have increased 15 per cent since the introduction of the Seats to Suit product, performing far better than we expected. The trans-Tasman is an extremely competitive and important market for us and together with our alliance with Virgin Blue we are in a very strong market position,” Fyfe said.
“Domestic passenger numbers are also up eight percent on the same period last year and we are adding capacity to meet that increased demand as our new domestic A320 fleet arrives.
“Overall passengers load factors increased by 2.6 percentage points over the same period last year, group yield has increased by 3.0 per cent, we have added 2.7 per cent capacity and seen an increase of 6.0 per cent in demand.”
“Cargo revenue has recovered, up 13 per cent compared to last year. Volumes were up 6 per cent on a small capacity increase and a strong 10 per cent increase in yields. Improvements were achieved in all markets with the Pacific and Asian routes being the primary contributors.”
The airline says a key management focus will be assistance and recovery from the recent and devastating Christchurch earthquake, as the airline works with tourism partners to mitigate the economic effects.

3. Extension of restricted air space over Christchurch

Police and the New Zealand Fire Service have advised that the Civil Aviation Authority is extending the restricted air space requirement over central Christchurch.

This extension is being put in place to enable USAR (urban search and rescue) teams to more effectively use listening equipment and other technical tools to detect signs of life within the search areas of central Christchurch.

With additional USAR teams coming in from overseas to assist with the operation, there will be more equipment operating at sites throughout the city.

The exclusion zone is currently the area bounded by the Four Avenues (Bealey/Fitzgerald/Moorhouse/Rolleston). This will now be extended to the area bounded approximately by Edgeware Road, Linwood Ave, Ensors Road, Brougham Street, Park Terrace and Papanui Road.

This is effective from 8pm tonight [Thursday 25 Feb] until further notice.

4. Aircraft News

Airbus on Thursday announced it has rolled out the first Korean Air Airbus A380 bearing the airline's livery. The paint work was done in Hamburg. The aircraft is one of 10 ordered by the carrier, which will become the sixth A380 operator when it takes delivery of its first in the second quarter (ATW Daily News, Jan. 19).

Boeing reached agreement with UPS to expand its Airplane Health Management coverage to include its 38 MD-11 Freighters. UPS’ 13 747-400Fs already utilize the solution.

AJW Aviation will base its new Aircraft Engine Services division in Wales. It anticipates “beating our initial target of a $50 million business within the first 12 months.”

Air Lease Corp. mandated KfW IPEX-Bank as arranger and sole lender in a six-year commercial debt financing of one new Airbus A320-200 operated by Air New Zealand, part of ALC's order for 51 A320 family aircraft. The aircraft were previously operated by an airline that ceased operations at the end of 2010.

GECAS signed a purchase and leaseback transaction with AviancaTaca for two new Airbus A330-200s and four new A320s. Two of the A320s will be operated by Taca, the remainder by Avianca.

Airstream International placed one Embraer ERJ-145 with bmi Regional, which will operate in the UK and Europe.

Air Arabia took delivery of the third and fourth of 44 A320 aircraft it ordered from Airbus. Including the two new A320s, Air Arabia operates a fleet of 27 A320s. A total of six aircraft are expected to be delivered in 2011.

Germania took delivery of the first of nine Airbus A319s, which it will use to replace Boeing 737s by 2013. Five of these A319s were ordered directly by Airbus, two are leased from Doric Asset Finance, and two A319s are on long term lease from Austrian LCC Niki.