economic & management performance the airways new zealand experience icao symposium on...

Economic & Management Performance

The Airways New ZealandExperience

ICAO Symposium onPerformance of the Air Navigation System

Montreal 2007

Monica Davis, Airways New Zealand

20 years of experience

Our Key Drivers

• Customer Focus

• Performance Improvement

• Operational Efficiency

• Profitable Growth

Airways New Zealand

Airways: Corporate Governance

New Zealand GovernmentShareholder

Airways = CompanyBoard of Directors

Funded and directly controlledby Government

Auditor

Minister for Transport

Civil Aviation Authority ( CAA )

Independent Safety Regulator

- Not funded / controlled by Government

- Set own financial / operational targets

- Determine own funding requirements

Safety is their #1 concern

Tracking Performance

• What services delivered

• Cost of delivering those services

• Transparent pricing structure

• Track revenue and fee accurately

• Budgeting and forecasting

• Monitoring actuals against targets

• Capital expenditure planned and budgeted

‘HOW’ Services Delivered

• Increased focus on customer outcomes

• Increased focus on technology solutions

• Accurate understanding of cost of services

• Culture of performance improvement

Customer Shareholder

People

Lowestpossible

prices

Highestpossible returns

Highestpossible

pay

SAFETY

The Stakeholder Balancing Act

Dividend and ROI History

Twenty Years On

(R1) Real ANS Price, before & after Rebate

Nominal Price

Real Price

RealPrice +Rebate

72

77

82

87

92

97

102

Nominal Price 100 101 101 101 98 98 98 98 98 98 98 98 98

Real Price 100 99 99 97 92 90 89 86 84 81 78 76 74

RealPrice+Rebate 100 99 99 97 90 88 85 83 80 77 77 76 74

-97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07f -08f -09f

Pricing

Benchmarking

Total ANS cost per movement

$0

$50

$100

$150

$200

$250

New Zealand CountryB CountryC CountryD CountryE

Countries

$U

S

Stakeholder Performance

Loss of Separation Incidents

54

2726

27

19

36

26 25

38

34

24

0

10

20

30

40

50

60

"96/97" "97/98" "98/99" "99/00" "00/01" "01/02" "02/03" "03/04" "04/05" "05/06" "06/07"

Performance as at 28

February 2007 projected to 30 June 2007

Performance Philosophy

• Customer Focus

• Performance Improvement

• Operational Efficiency

•Profitable Growth

Thank you