Air New Zealand Limited · NZX:AIR
Air New Zealand — Deutsche Bank Transport Conference 2008
11 slides from Air New Zealand's conference presentation, Nov 25, 2008
Slide 1: Airline Innovation & Market Update
AIR NEW ZEALAND For personal use only Airline Innovation & Market Update Rob McDonald, CFO Deutsche Bank Transport Conference 25 November 2008 1 AIRLINE INNOVATION
Slide 2: Introduction
INTRODUCTION For personal use only • Airline Innovation –Domestic Airport Experience –Grabaseat – online strategy –Airpoints Programme –Altitude Aerospace Interiors –Environmental Leadership • Market Update 2 AIRLINE INNOVATION
Slide 3: The Innovative Advantage
THE INNOVATIVE ADVANTAGE For personal use only • Innovation plays important part in our strategy – Makes the business fast and flexible – Differentiates our products and service – Enables growth in non-airline revenue sources – Reduces costs – Key to our environmental leadership position 3 AIRLINE I
Slide 4: Domestic Airport Experience
DOMESTIC AIRPORT EXPERIENCE For personal use only • Revolutionising the domestic travel experience at 26 terminals • 112 new kiosks and 84 gate scanners being introduced • Check in process cut from 10-15 to 1-3 minutes – new kiosks enable customers to print their own bag tags – conveyor belt bag dro
Slide 5: Grabaseat – Online Strategy
GRABASEAT – ONLINE STRATEGY For personal use only • Introduced as a innovative sales channel for excess capacity • Developed as a second brand with its own edgy character • Cost effective way to run a low cost parallel brand • Winner of 2008 Innovation Award at the Tourism Industry Awards 5 AIRLINE
Slide 6: Airpoints
AIRPOINTS For personal use only • The ‘any seat’ concept introduced by Air NZ was a world first in November 2004 • Dynamic redemption model links frequent flyer currency into the commercial booking system • 1 Dollar = 1 Airpoints Dollar provides transparency • Concepts explored and replicated by air
Slide 7: Altitude Aerospace Interiors
ALTITUDE AEROSPACE INTERIORS For personal use only • Standalone company with 50 staff • Only significant design shop in Asia Pacific • To capture opportunities in the global aircraft interior design business: – Reconfiguring and integrating interiors on commercial jet aircraft – Designing customised
Slide 8: Environmental Leadership
ENVIRONMENTAL LEADERSHIP For personal use only • Biofuel – World first test flight in Auckland next month • Fuel efficiency – The ‘perfect’ flight – Zonal dryers – Winglets fitted on Boeing 767-300ER fleet 8 AIRLINE INNOVATION
Slide 9: Market Update
MARKET UPDATE For personal use only • Demand uncertain but clearly weaker across all markets • Tasman especially difficult • Rapidly adjusting schedule e.g. International schedule forecast to be down 13% in Q4 • Lower jet fuel prices benefit will be more evident in second half • Well hedged for FX t
Slide 10: Market Update (cont)
MARKET UPDATE (cont) For personal use only • Strong financial position – Modest capital expenditure profile over next 2 years – Strong liquidity $1.3b cash (after excluding restricted cash of $200m) – Benign debt maturity profile – No financial covenants – Two of first three Boeing 777-300ER aircraf
Slide 11: For personal use only
For personal use only 11 AIRLINE INNOVATION
Air New Zealand — Deutsche Bank Transport Conference 2008 on 6ix