S.P.A.N.Z. Accumulated Losses Now £158,142

Press, Volume CII, Issue 30302, 30 November 1963, Page 14

S.P.A.N.Z. Accumulated Losses Now £158,142

(New Zealand Press Association)

AUCKLAND, November 29.

South Pacific Airlines of New Zealand, Ltd., incurred a net loss of £40,708 during the year ended June 29, less than half of the previous year’s net loss of £86,745. Total accumulated losses have risen from £117,434 to £158,142.

Revenue from timetable •ervices and charter flights rose from £230.613 to £246.160, and other revenue totalled £319 compared with £836 last year. Expenses were reduced by £32,583 to £274,731, excluding depreciation £1576 higher •t £12,456 and aircraft maintenance costs of £64,699, a decline of £5512. The chairman (Mr J. F. Johnston) said in his report that it was expected that the company would have made a greater measure of progress. The combined losses sustained in the past two years

reflected the decline in passenger and freight traffic, which had affected ail airlines. Passengers carried during the year under review showed no real increase, he said, but better scheduling had considerably improved the load factor. Earnings per flying hour had risen from £4l to £49 while operating costs had been maintained at the previous level. In the company’s balance sheet, shareholders’ funds are dowm from £39,403 to £1895, after deduction of the losses. The paid capital is £156,825

Total current liabilities are down from £89,860 to £83,538, a drop of £6322. Last year's bank overdraft of £9605 has been replaced by a credit balance of £1535. Provision for future maintenance has risen from £27,777 to £44,274. Secured term loans have increased £20,000 to £37,500. Total current assets have increased slightly from £18,748 to £lB,BBO, while stocks of petrol, spares and sundries shown ait £7884 compared with £6lBl last year. Sundry debtors are down from £12,567 to £9461. Fixed assets total £125,227, against £133,003 a year ago. and include aircraft valued at £95,147 (£102,085 last year) and spare engines and other spares shown at £17,905 (£19,111). Intangible assets are higher by £3ll at £23,100. Included under this heading is expenditure of £4552 (£4430) on airfield development and air services licences of £10,052, compared with £9863.