Record Profit Made By Air N.Z.

Press, Volume CX, Issue 32382, 22 August 1970, Page 44

Record Profit Made By Air N.Z.

(New Zealand Press Association/

WELLINGTON, August 21. Air New Zealand made a record net profit of $2.5m in the last financial year, the Minister of Transport (Mr Gordon) announced today.

The airline also made a net contribution of sl9m in overseas exchange to the national economy.

lar rise in profitability in the last two years, and the future looked promising. “But we must be realistic,” he said.

after payment of all overseas costs and external charges, is expected to increase even more dramatically during the next decade.

Records for profitability and savings in overseas exchange were set by Air New Zealand during the 1969-70 financial year, the chairman of directors (Mr G. N. Roberts) said, commenting on the report. Mr Roberts said a record net profit and a record contribution in overseas exchange were made possible by support from the Government, the people of New Zealand, and a competent, dedicated staff.

“Although the capital cost of re-equipping with widebodied jets will require an initial investment of nearly SlOOm, the new aircraft will ensure New Zealand’s place in international aviation and earn in excess of $325m in cumulative earnings and savings of foreign exchange from their introduction through to 1980. From then on they are expected to continue to escalate from an estimated annual figure in 1980 of s6om.”

The number of passengers increased by 17.4 per cent to 303,570. Cargo traffic growth was steady, and the over-all load factor rose significantly by 9 per cent to 55.8 per cent Total earnings increased by 15 per cent to §38.8m, compared with §33.9m last year. The net profit allowed a dividend, which will take §630,000. Reviewing the airline's growth over the last five years, Mr Gordon said miles down had more than doubled to 574.3 million a year. There had been a spectacu-

"This resulted in a very satisfactory year, just when we needed it,” he said. “The §l9m return to the national economy made

While the coming months would be extremely competitive for Air New Zealand, the rewards would be great. The DCIO-30 aircraft would be a major factor in achieving those rewards. The future also called for the support and co-operation of not only the airline’s staff and the Government “but all New Zealanders who, after all, are shareholders and beneficiaries in what has become a major international enterprise with an unlimited future.”

In achieving its twentysixth profit in 30 years of opperation, Air New Zealand set a new figure for total revenue; §38.8m, a 15 per cent increase on the previous year. This made it possible to pay a 5 per cent dividend on the increased capital associated with jet operations, and to further bolster Air New Zealand reserves in preparation for re-equipment, he said. “In the 1969-70 financial year Air New Zealand, for the first time, carried more than 300,000 passengers on its services, increasing its passenger carriage by 17.4 per cent over the previous year,” said Mr Roberts. “It had grown in 30 years to an enterprise employing 2476 men and women with offices in 30 places throughout the world.” The airline identified New Zealand wherever it flew, he said. This had a distinct impact on the development of trade and tourism. Confidence in the growing visitor industry in New Zealand was being expressed by the industry’s planned programme of hotel construction and other ancillary facilities needed to support tourism’s expansion. "The successful operation of the generation of widebodied jets will firmly establish the company as an important entity in the world’s airline network,” he said.

Indonesian in School Cert? —The Education Department is considering the question of approving Indonesian as an examinable subject for School Certificate, the Minister of Education (Mr Talboys) said in Parliament yesterday, in reply to a .question from Mr M. J. King | (Lab., Birkenhead).—(P.A.).