Air NZ wins big Qantas contract (Geoff Thomas)
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Air NZ wins big Qantas contract (Geoff Thomas)
Sat "West Australian" 4/5/02
Air NZ wins big Qantas contract
By Geoffrey Thomas
QANTAS Airways, in a move seen as a precursor to taking an equity stake in Air New Zealand, has awarded the NZ airline a major maintenance contract.
The $NZ13.5 million ($11.25 million) deal covers up to 15 Boeing 747-400 aircraft, with the work being done at Air NZ's engineering jet base in Auckland.
The contract involves cabin reconfiguration and in-flight entertainment system installation on nine aircraft and heavy maintenance on three aircraft.
The deal comes as Air NZ's fortunes gather momentum with the share price gaining 50 per cent in the past week to $NZ0.54 on a brighter profit outlook and solid passenger numbers.
This week the airline announced that it expected to comfortably turnaround its earlier forecast of a 2001-2002 full year loss of NZ$63.4 million and achieve a full year operating result near to break-even.
Air NZ posted a net loss of $NZ376 million in the half year to December but that included an additional $NZ350 million charge arising from its separation from Ansett.
Qantas wants to take a stake in Air NZ from the NZ Government, which is the majority shareholder with 82 per cent after a $NZ885 million bailout last year.
But rather than a takeover, the Australian airline has been proposing a 25 per cent stake and a partnership with Air NZ. Air NZ's new management team is well down the road of rebuilding the airline after wholly owned subsidiary Ansett brought it to the brink of receivership last year.
Yesterday the airline gained some financial flexibility when it finalised a rollover of a $NZ200 million loan and extended leases on six aircraft for up to seven years at greatly reduced rates.
The two-year revolving credit facility will be syndicated with provision for a further $NZ50 million in over-subscriptions, with the National Bank of New Zealand the lead bank.
Air NZ has also secured major concessions from Los Angeles based International Lease Finance Corporation (ILFC), the world's biggest leasing company.
According to analysts, the airline has used the depressed market for aircraft as a lever to renegotiate better leasing rates on four, 426-seat Boeing 747 and two, 236-seat Boeing 767 aircraft.
Also pleasing the market and analysts such as Peter Sigley of Auckland based JBWere are Air NZ's latest passenger numbers.
In March, Air NZ lifted revenue passenger kilometres (passengers times distance travelled or RPK) 7.8 per cent, while the available seat kilometres was cut 7.7 per cent. That shift resulted in a massive 11 per cent rise in load factor to 82 per cent.
"You have to be making money on numbers like that," Mr Sigley said.
Air NZ wins big Qantas contract
By Geoffrey Thomas
QANTAS Airways, in a move seen as a precursor to taking an equity stake in Air New Zealand, has awarded the NZ airline a major maintenance contract.
The $NZ13.5 million ($11.25 million) deal covers up to 15 Boeing 747-400 aircraft, with the work being done at Air NZ's engineering jet base in Auckland.
The contract involves cabin reconfiguration and in-flight entertainment system installation on nine aircraft and heavy maintenance on three aircraft.
The deal comes as Air NZ's fortunes gather momentum with the share price gaining 50 per cent in the past week to $NZ0.54 on a brighter profit outlook and solid passenger numbers.
This week the airline announced that it expected to comfortably turnaround its earlier forecast of a 2001-2002 full year loss of NZ$63.4 million and achieve a full year operating result near to break-even.
Air NZ posted a net loss of $NZ376 million in the half year to December but that included an additional $NZ350 million charge arising from its separation from Ansett.
Qantas wants to take a stake in Air NZ from the NZ Government, which is the majority shareholder with 82 per cent after a $NZ885 million bailout last year.
But rather than a takeover, the Australian airline has been proposing a 25 per cent stake and a partnership with Air NZ. Air NZ's new management team is well down the road of rebuilding the airline after wholly owned subsidiary Ansett brought it to the brink of receivership last year.
Yesterday the airline gained some financial flexibility when it finalised a rollover of a $NZ200 million loan and extended leases on six aircraft for up to seven years at greatly reduced rates.
The two-year revolving credit facility will be syndicated with provision for a further $NZ50 million in over-subscriptions, with the National Bank of New Zealand the lead bank.
Air NZ has also secured major concessions from Los Angeles based International Lease Finance Corporation (ILFC), the world's biggest leasing company.
According to analysts, the airline has used the depressed market for aircraft as a lever to renegotiate better leasing rates on four, 426-seat Boeing 747 and two, 236-seat Boeing 767 aircraft.
Also pleasing the market and analysts such as Peter Sigley of Auckland based JBWere are Air NZ's latest passenger numbers.
In March, Air NZ lifted revenue passenger kilometres (passengers times distance travelled or RPK) 7.8 per cent, while the available seat kilometres was cut 7.7 per cent. That shift resulted in a massive 11 per cent rise in load factor to 82 per cent.
"You have to be making money on numbers like that," Mr Sigley said.
