Air N.Z. earnings to pay loans

Press, Volume CXI, Issue 32524, 6 February 1971, Page 7

Air N.Z. earnings to pay loans

(New Zealand Frets Association? AUCKLAND, February 4. The terms of the Export-Import Bank credit to Air New Zealand were very satisfactory, said Air New Zealand’s general manager (Mr C. J. Keppel) this week.

Air New Zealand would pay off the DCIO loans from its eamings, as had been done

with the company’s past aircraft purchases, he said. Wide-bodied jets were essential for Air New Zealand’s continued development in a highly competitive environment.

"Competition is strong on most of our routes, and it is getting stronger,” said Mr Keppel. “It is essential, therefore, that Air New Zealand has the best aircraft available if the airline is to continue expanding its financial trade and tourism role for this country.

“Our studies show a DCIO fleet, backed by the DCBs which is giving excellent service, will allow us to operate to New Zealand major tourism markets with sufficient frequency to encourage a continuing build-up in passenger numbers.

“They will also enable us to match or better the service of our competitors—all of whom on the North American services are buying widebodied jets.”

With the DClOs in service from 1973, there would be dramatic growth in several important aspects of Air New Zealand’s operation, said Mr Keppel. These aircraft, for instance, would considerably increase the air cargo capacity available to New Zealand exporters, because a DCIO would carry some 15 tons of freight—very nearly equivalent to the total payload of a DCB. By 1980, said Mr Keppel, Air New Zealand would be offering about 2500'seats in its fleet, compared with 800 today.

Most important of all would be the company’s net eamings and savings in overseas funds in the DCIO era. The advent of the company’s DCBs ahd route expansion accelerated Air New Zealand’s net overseas funds figure to a total of s66m for the last five years, said Mr Keppel. In the next five years its was estimated at $126 and for the five years beyond that at $1991 —a total of $325m for the decade of the 19705. “The DCIO is the vehicle which will primarily make these figures achievable,” Mr Keppel said.