Air New Zealand 2017 Databook

Annual Data Book
2 017

Air New Zealand Group
Kia ora.

Air New Zealand Databook 2 017
3
1. Introduction to Air New Zealand 4
2
.
C
ompetitive advantages
5
3
.
2
017 highlights
6

4.
S
ustainability
8
5
.
S
hareholding structure and performance
1
2
6
.
F
inancial framework and our 2017 performance
1
3

7.
N
etwork
1
4
8
.
O
perating fleet
1
8
9
.
B
alance sheet structure and funding
2
0

10.
R
isk management
2
2
1
1.
E
arnings and dividend performance
2
3
1
2.
F
ive year statistical review
2
4

13.
O
ther information
2
8
1
4.
E
xecutive management team
3
0
1
5.
B
oard of Directors
3
2

16.
I
nvestor resources
3
5
Contents

Air New Zealand Databook 2 017
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Company description
The Air New Zealand Group (‘Air New
Zealand’) operates a global network
that provides air passenger services and
cargo transport services to, from and within
New Zealand to more than 16 million
passengers a year.
Air New Zealand’s strategic focus and
competitive advantage lies within the Pacific
Rim where the airline’s network reach
extends from New Zealand into Australia,
Asia, and the Americas. Air New Zealand
operates its own connection to London and
through global alliance partners connects
New Zealand to Europe and beyond, with
over 3,400 flights, on average, each week
to domestic and international destinations.
Air New Zealand’s consolidated operating
revenue was $5.1 billion in the 2017
financial year, generated by a fleet of
over 100 aircraft and 11,800 employees
based globally.
A key contributor to
and beneficiary of
New Zealand tourism
As New Zealand’s national carrier and the
first New Zealand experience for many
overseas travellers, Air New Zealand is an
integral part of the New Zealand tourism
industry. Similarly, tourism is an important
driver of Air New Zealand’s performance as
the airline generates a significant portion
of its revenue from overseas travellers.
Air New Zealand plays an active role in
increasing the demand for travel into
and around New Zealand through our
comprehensive domestic and regional
network, through our partnerships with
tourism organisations and promoting our
national and regional sponsorships both
off-shore and within New Zealand.
In 2017, tourism was New Zealand’s top
export earner. Tourism contributes 20.7
percent of New Zealand’s total exports of
goods and services, employs 7.5 percent
of New Zealand’s workforce and makes
a total contribution to New Zealand
GDP of $22.7 billion ($12.9 billion direct
contribution and $9.8 billion indirect value
add of industries supporting tourism).
1
An award-winning airline
Air New Zealand is proud of our fleet,
our brand and our Kiwi customer service
culture. These all contribute to Air New
Zealand being an award winning airline,
with the following select accolades
received as recent examples.
AMR’s 2017 Corporate
Reputation Index:
-

M
ost reputable company in
New Zealand
-
M
ost reputable company in
Australia
2017 Condé Nast Reader’s
Choice awards:
-

W
orld’s Top Airline
2017 World Travel Awards:
-
A
ustralasia’s Leading Airline for the
ninth consecutive year
-
I
naugural winner of Leading Airline
Brand for Australasia
2017 www.airlineratings.com
airline awards:
-
A
irline of the Year Award for the
fourth year in a row
2017 Skytrax World Airline Awards:
-
B
est Airline Alliance
-
B
est Airline Alliance Lounge
TripAdvisor’s Travellers’ Choice
Awards for 2017:
-

B
est Premium Economy Class
in the World
-

B
est Airline in the South Pacific
Trading information
Air New Zealand is publicly traded on the
NZX and ASX. Additionally, American
Depositary Shares are traded over-the-
counter (OTC) in the United States under
Air New Zealand’s sponsored Level 1
American Depositary Receipt programme.
NZX Ticker code:
AIR
ASX Ticker code: AIZ
OTC Ticker code: A N Z LY
1. Introduction to Air New Zealand
1. Tourism Satellite Account, March 2016.
Air New Zealand Group
Top markets for international
visitors to New Zealand
International visitor arrivals

10%
for year ended 30 June 2017
Other markets
33%
Australia
40%
USA
9%
China
11%
UK
7%

Air New Zealand Databook 2 017
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2. Competitive advantages
Resilient core domestic business
Our domestic network is unmatched, offering services to 21 main centres and regions across
New Zealand. Our strong corporate brand and renowned Kiwi service culture continue to drive
increased loyalty from our customers, record customer satisfaction levels, strong brand health and
record employee engagement. Investments in larger and modern aircraft and lounges are further
stimulating travel within New Zealand from both international and domestic tourism.
Pacific Rim focused international network
Our alliance-driven international network underpins our Pacific Rim strategy. With a total of five
revenue-share alliance partnerships, Air New Zealand benefits from strong relationships with
market leaders in some of our key international markets, including the United States, Singapore,
Hong Kong, Australia and China.
Airpoints™ loyalty programme
Our Airpoints™ programme is viewed as the most valuable loyalty programme in New Zealand.
Providing our members with the world’s easiest and most transparent loyalty currency,
Airpoints Dollars™, has driven strong membership growth. With over 2.5 million members,
Airpoints also provides Air New Zealand with valuable data that allows us to better understand our
customers and their travel experiences.
Focused on driving sustainable cost improvements
Our simplified and modern fleet has an average age of 7.0 years and is contributing significant
operational efficiencies to the airline. Air New Zealand is nearing the completion of a fleet
programme which will deliver best-in-class aircraft, which is configured for the New Zealand
market. Our fleet now consists of more fuel efficient aircraft, across fewer aircraft types – both
providing the airline with an extremely competitive cost structure.
Investment-grade financial strength
We have a proven history of achieving profitability through the cycle as Air New Zealand has
delivered positive earnings every year since 2003 and paid dividends to our shareholders every
year since 2005. Underpinning our ability to generate strong returns is a focus on capital discipline
Air New Zealand has a credit rating of Baa2 from Moody’s with stable outlook, placing us amongst
the top echelon of airlines in the world.
Our competitive advantages provide us with a simple
and proven strategy for success.

Air New Zealand Databook 2 017
6
1
Created by the global index provider FTSE Russell, the FTSE4Good Index Series is
designed to measure performance of companies demonstrating strong environmental,
social and governance (ESG) practices.
Air New Zealand Group
3. 2017 highlights
No.1
employer
top rated in
New Zealand
Supreme
award winner
NZI Sustainable Business
Network Awards
39%
of women in senior
leadership positions;
up from 16% in 2012
Supreme
award winner
Ma
-
ori Language Awards,
for promoting increased
usage of Te Reo
FTSE4Good
constituent
1
Over 2.5m
Airpoints
™
members;
up 16% from 2016
894,000
flights paid for by
Airpoints Dollars
™

during the year
Airline of
the Year
awarded by
AirlineRatings.com
for the 4th
consecutive year
Record
level
of brand health
15 %
improvement
2 017 t ot a l
recordable injuries

Air New Zealand Databook 2 017
7
6.3%
growth
in network capacity
(ASKs)
7. 0 years
fleet age on
seat-weighted basis,
improved from
7.5 years in 2016
6 new
aircraft
added to fleet
during the year;
consisting of

3 B787-9s, 1 A320
and 2 ATR72-600s
5 lounges
upgraded as part
of ~$120 million,
multi-year lounge
up
grade programme
$ 5 .1b
operating revenue
$ 527m
earnings before taxation
$904m
operating cash flow
21. 0 c e n t s
full year declared
dividend per share
15.3%
pre-tax return on
invested capital
41. 5 %
five year average annual
shareholder return

4. Sustainability
Our sustainability agenda aligns with Air New Zealand’s
larger purpose to supercharge New Zealand’s success
– socially, economically and environmentally.
On an annual basis, Air New Zealand discloses a Sustainability Report which discusses
our performance and our longer term aspirations. For more information, our Sustainability
Report can be accessed online at airnewzealand.co.nz/sustainability.
Sustainability aspirations
Our People:
Air New Zealand is a global
employer of choice and
an inclusive and equitable
place to work, helping ‘raise
the bar’ for progressive
workplace practices across
New Zealand.
Our Communities:
New Zealand communities
are thriving economically,
culturally, socially and
environmentally, with
New Zealand businesses
helping to address current
disparities in per capita
income and opportunity.
Carbon:
New Zealand transitions
to an ultra-low carbon
economy, on a pathway
consistent with the
world achieving net zero
emissions by 2050.
Nature and Science:
New Zealand’s ecosystems
and biodiversity are
restored and protected
for future generations.
Tourism:
Sustainability is at the heart
of New Zealand’s tourism
value proposition, ensuring
that New Zealand’s 100%
Pure brand position is
fully aligned with national
sustainability performance.
Trade and Enterprise:
New Zealand businesses
are cost-effectively
connected to global
markets, with a reputation
worldwide for premium
environmental, social and
health and safety standards.
Our People
For our People
Our Communities
Nature and Science
Carbon
For our Place
Tourism
Trade and Enterprise
For our Economy
Air New Zealand Group
Air New Zealand Databook 2 017
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Air New Zealand Databook 2 017
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Air New Zealand Databook 2 017
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Air New Zealand Group
Highlighting our carbon strategy
Air New Zealand supports the aviation industry’s mid
and longer term goals of carbon neutral growth from
2020, and halving 2005 emission levels by 2050.
We are targeting an average annual fuel
efficiency improvement of 1.5% - which
equates to approximately 49,000 tonnes of
carbon dioxide per annum at current levels.
Air New Zealand believes that one of the
most significant ways to reduce emissions
is by operating a modern and fuel efficient
fleet, and in 2017 we received three
additional Boeing 787-9 Dreamliner
aircraft and retired our last Boeing 767
aircraft. Over the next two years we also
have commitments to have 13 fuel efficient
A320/321NEOs join our fleet and replace
older aircraft. Operational fuel efficiency
improvements, such as reducing residual
weight on some of our aircraft, and reducing
the use of Auxiliary Power Units (APUs)
while aircraft are on the ground, are just
some of the examples of the fully integrated
approach Air New Zealand is undertaking to
meet our carbon reduction targets.
Also embedded in our carbon reduction
programme is continuing efforts to secure
high quality carbon offsets and sustainable
aviation biofuels. We are committed to
demonstrating carbon leadership in aviation,
but also for New Zealand.
2.5
%
Average annual
fuel efficiency
i
mprovement compared
to 2009 baseline
*Revenue Tonne Kilometre (RTK) is a measure of the weight that has been paid for on the aircraft (freight and passengers) multiplied by
the number of kilometres transported. Freight values are from Air New Zealand records, and passenger weights are estimated at 100kg per
passenger (including checked and carry-on baggage) as recommended by IATA for generating a fuel efficient target. CO
2
-e emissions are
from Air New Zealand’s use of aviation fuel over the same time periods.
0.93
0.88
0.85
0.81
0.79
0.78
0.76
0.74
0.73
kg CO
2
-e/RTK
200920102 011201220132014201520162017
Fuel efficiency: CO
2
-e per Revenue Tonne Kilometre (RTK)*
Air New Zealand Group

Air New Zealand Databook 2 017
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Air New Zealand Databook 2 017
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Air New Zealand Group
Air New Zealand is listed on the New
Zealand Stock Exchange (NZX) with
the ticker symbol AIR.NZ and on the
Australian Securities Exchange (ASX)
with the ticker symbol AIZ.AX. Effective
17 March 2017, the ASX listing changed
from a full listing to a Foreign Exempt
Listing. The Foreign Exempt Listing
means that Air New Zealand is expected
to comply primarily with the Listing
Rules of the NZX Main Board (being
the rules of its home exchange) and
is exempt from complying with most of
ASX’s Listing Rules.
Effective as at 20 July 2017, Air New
Zealand launched a sponsored Level
1 American Depositary Receipt (ADR)
programme. Air New Zealand’s American
Depositary Shares, each representing
five Ordinary Air New Zealand shares
and evidenced by ADRs, are traded over-
the-counter in the United States (ticker
c o d e A N Z LY ) .
There are 1,122,810,044 Ordinary Shares
on issue (excluding Treasury Stock),
as at 30 June 2017. The New Zealand
Government is the majority shareholder
with 582,854,593 shares, or 52% of
total issued capital. The remaining shares
are held by New Zealand institutional
and retail investors and institutional
shareholders primarily in the United
States, Australia, Asia and the United
Kingdom. Air New Zealand has a
robust average daily trading volume of
approximately 1.8 million shares.
5. Shareholding structure and performance
5 year total shareholder return (net dividend)
Air New Zealand vs NZX50 vs Bloomberg World Airline Index
Share register (as at 30 June 2017)
As part of our financial framework, we
target a consistent and sustainable ordinary
dividend as well as growth in share price
to provide a combined Total Shareholder
Return. Due to market fluctuations, we
monitor Total Shareholder returns over
a five year period including the change
in share price and dividends received
(assuming dividends are reinvested in
shares on the ex dividend date).
PERCENT
30 JUNE 201130 JUNE 201230 JUNE 201330 JUNE 201430 JUNE 2015
300%
250%
200%
150%
100%
0%
50%
-50%
30 JUNE 2016
AIR NEW ZEALAND
BWAIRL IndexNZX50 Index

AIR NEW ZEALANDBWAIRL IndexNZX50 Index
500.00
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0
-50.00
TOTAL SHAREHOLDER RETURN (NET DIVIDEND) (%)
30 JUNE 201229 JUNE 201328 JUNE 201430 JUNE 201530 JUNE 201630 JUNE 2017

121%

122%
New Zealand
Government
52%
New Zealand
institutional investors
6%
Retail investors
3%
International
institutional investors
39%

468%

Air New Zealand Databook 2 017
13
Air New Zealand utilises a financial framework
that is focused on profitable growth while
maintaining capital discipline. The ultimate target
is to provide sustainable and strong shareholder
returns over the long-term.
6. Financial framework and our
2017 performance
1
Excluding fuel price movement and foreign exchange.
Profitable GrowthCapital DisciplineShareholder Returns
Capacity growth in-line
with New Zealand tourism
growth over medium term
Maintain investment
grade c
redit rating
Targeting pre-tax
ROIC > 15 %
Continuous CASK
improvement (ex: fuel and FX)
Gearing between
45% to 55%
Targeting a consistent
and sustainable
ordinary dividend
Risk Management
Funding flexibilityHedgingLiquidity
Capacity
growth
6.3 %
Baa2 rating
Stable
CASK
1

improved
1. 9 %
Gearing
51. 8 %
Pre-tax
ROIC
15.3%
Ordinary
dividends
declared
$0.21

Air New Zealand Databook 2 017
14
Air New Zealand Group
Sydney
Melbourne
Samoa
Tonga
Fiji
Niue
New Caledonia
Norfolk Island
Tahiti
Christchurch
Wellington
Auckland
Adelaide
Perth
Brisbane
Cairns
Queenstown
Rarotonga
Honolulu
Sunshine Coast
Gold Coast
Kerikeri
Whangarei
Blenheim
Timaru
Hokitika
Invercargill
Nelson
Tauranga
Gisborne
Rotorua
Taupo
New Plymouth
Palmerston North
Paraparaumu
Napier
Auckland
Queenstown
Christchurch
Dunedin
Hamilton
Wellington
Denpasar
Air New Zealand provides air passenger and
cargo transport services within New Zealand,
as well as to and from Australia, the Pacific Islands,
Asia, the Americas and the United Kingdom.
Five year key operating statistics
GROUP
JUNE 2017JUNE 2016JUNE 2015JUNE 2014JUNE 2013
Passengers carried (‘000s)15,952 5.2%
15,161 6.0%
14 , 2 97 4.2% 13 ,719 2.3% 13 , 411 2.2%
Available Seat Kilometres (ASK, millions)42 ,169 6.3%
39,684 11. 5 %
35,601 6.6%33,396 0.7% 33 ,167 1.7%
Revenue Passenger Kilometres (RPK, millions)34, 814 4.8%
33,223 11. 0 %
29,934 6.6% 28,078 1.2 % 27,73 3 2.7%
Load Factor82.6%(1.1 pts)
83.7%(0.4 pts)
84 .1%-84 .1%0.5 pts83.6%0.8 pts
Revenue per Available Seat Kilometres (RASK, cents) 10.4(8.1%)
11. 3(2.3%)
11 . 6 0.2% 11 . 51.6 % 11 . 4 1.9 %
New Zealand domestic
and regional
Air New Zealand operates one of the most
comprehensive domestic and regional
networks in the world with over 400 flights
every day to 21 New Zealand destinations.
Our domestic jet network across the
main centres in New Zealand (Auckland,
Wellington, Christchurch, Dunedin and
Queenstown) are operated by a fleet of
17 Airbus A320s (as at 30 June 2017).
Our turboprop network across the regional
centres of New Zealand are operated by
a fleet of 49 turboprops (as at 30 June
2017) including ATRs and Q300.
DOMESTIC AND REGIONAL
JUNE 2017JUNE 2016JUNE 2015JUNE 2014JUNE 2013
Passengers carried (‘000s) 10,379 6.7%
9,725 5.2%
9,246 3.7% 8,920 2.6% 8,694 2.3%
Available Seat Kilometres (ASK, millions) 6,597 8.8%
6,065 8.5%
5,592 3.8% 5,385 5.4% 5 ,10 8 2.8%
Revenue Passenger Kilometres (RPK, millions) 5 , 311 8.7%
4,887 7. 2 %
4,561 4.4% 4,370 3.6% 4,218 4.2%
Load Factor80.5%(0.1 pt)
80.6%(1.0 pt)
81.6 %0.5 pts81.1%(1.5 pts)82.6%1.1 pt s
Revenue per Available Seat Kilometres (RASK, cents) 21.2 (2.9%)
21.8 (6.5%)
23.4 3 .1% 22.7 1.0 % 22.4 (4 .1%)
7. Network

Air New Zealand Databook 2 017
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Sydney
Melbourne
Samoa
Tonga
Fiji
Niue
New Caledonia
Norfolk Island
Tahiti
Christchurch
Wellington
Auckland
Adelaide
Perth
Brisbane
Cairns
Queenstown
Rarotonga
Honolulu
Sunshine Coast
Gold Coast
Kerikeri
Whangarei
Blenheim
Timaru
Hokitika
Invercargill
Nelson
Tauranga
Gisborne
Rotorua
Taupo
New Plymouth
Palmerston North
Paraparaumu
Napier
Auckland
Queenstown
Christchurch
Dunedin
Hamilton
Wellington
Denpasar
Tasman and
Pacific Islands
Air New Zealand operates an expansive
network to Australia and the Pacific
Islands, with over 40 flights every day
to/from eight destinations in Australia
and 14 flights every day to/from 10
destinations throughout the Pacific
Islands. Our international short-haul
network is operated by a fleet of Airbus
A320s and Boeing wide body aircraft.
In March 2017, we exited from service
the last Boeing 767-300ERs.
TASMAN AND PACIFIC ISLANDS
JUNE 2017JUNE 2016JUNE 2015JUNE 2014JUNE 2013
Passengers carried (‘000s) 3,561 1.6%
3,507 3.5%
3,388 3.4% 3,277 3.0% 3 ,181 3.5%
Available Seat Kilometres (ASK, millions)12 ,039 5.3%
11, 4 3 8 5.1%
10,888 2.5% 10,622 3.4% 10,277 6.0%
Revenue Passenger Kilometres (RPK, millions) 9,784 2.6%
9,532 3.8%
9,184 3.7% 8,858 3.3% 8,580 5 .1%
Load Factor81.3%(2.0 pts)
83.3%(1.1 pts )
84.4%1.0 pt83.4%( 0 .1 pt)83.5%(0.7 pts)
Revenue per Available Seat Kilometres (RASK, cents) 9.2 (7.1%)
9.9 (1.1% )
10.0 2.7% 9.8 (2.7%) 10.0 0.9%

Air New Zealand Databook 2 017
16
London
Vancouver
Tokyo
(Haneda)
Los Angeles
Auckland
Houston
Ho Chi Minh City
Beijing
San Francisco
Hong Kong
Shanghai
Singapore
Kerikeri
Whangarei
Blenheim
Timaru
Hokitika
Invercargill
Nelson
Tauranga
Gisborne
Rotorua
Taupo
New Plymouth
Wanganui
Palmerston North
Paraparaumu
Napier
Auckland
Queenstown
Christchurch
Dunedin
Hamilton
Wellington
Buenos Aires
Rarotonga
Christchurch
Wellington
Tokyo
(Narita)
Osaka
International
long-haul
New Zealand is the centre of the Pacific
Rim and accordingly Air New Zealand
operates a strong network within this
region. The airline’s fleet of Boeing
777-200s, Boeing 777-300s and Boeing
787-9s, along with a network of revenue
share partnerships with other airlines,
provides 34 direct flights every day to
14 international long-haul destinations
(outside Australia and the Pacific Islands).

INTERNATIONAL LONG-HAUL
JUNE 2017JUNE 2016JUNE 2015JUNE 2014JUNE 2013
Passengers carried (‘000s) 2 ,012 4.3%
1,929 16.0 %
1,663 9.3% 1,522 (0.9%) 1,536 (0.9%)
Available Seat Kilometres (ASK, millions) 23,533 6.1%
22,181 16.0 %
19,121 10.0 % 17, 3 8 9 (2.2%) 17,782 (1.0 %)
Revenue Passenger Kilometres (RPK, millions) 19,719 4.9%
18,804 16.2 %
16 ,18 9 9.0% 14 , 8 5 0 (0.6%) 14,935 0.9%
Load Factor83.8%(1.0pt)
84.8%0.1 pt
84.7%(0.7 pts)85.4%1.4 pts84.0%1.6 pts
Revenue per Available Seat Kilometres (RASK, cents) 7. 9(12 .9 %)
9.1 1.6 %
9.0 (2.1%) 9.2 2.6% 8.9 5.7%

Operated by Air China
Operated by Singapore Airlines;
Singapore–Wellington operated via Canberra
Operated by Cathay Pacific
Air New Zealand Group
To London
To Buenos Aires

Our network
partnerships
Air New Zealand’s alliance relationships
range from simple interline relationships
through to deep revenue share
alliances, and from destination-specific
arrangements to those covering the globe.
At the global level, Air New Zealand’s
Star Alliance membership and
partnerships with other Revenue Share
and Code Share Alliance partners, in
addition to Interline partners, allows us
to offer connections across 38 major
carriers, offering access for our customers
to nearly 1,700 destinations worldwide.
This is achieved through bilateral interline
and code share relationships with the
other Star Alliance carriers, and through
honouring of each other’s frequent flyer
programmes under the Star Alliance
status tier system.
Revenue share alliances are a key part
of our Pacific Rim strategy. We have five
strategic partnerships, with Air China,
Cathay Pacific, Singapore Airlines,
United Airlines and Virgin Australia.
We maintain a range of other code share
and interline relationships with other
carriers into specific markets, in particular
Aerolineas Argentina, Air Canada, ANA
and Lufthansa.
Code share
alliance partners
Revenue share
alliance partners
Air New Zealand Databook 2 017
17
London
Vancouver
Tokyo
(Haneda)
Los Angeles
Auckland
Houston
Ho Chi Minh City
Beijing
San Francisco
Hong Kong
Shanghai
Singapore
Kerikeri
Whangarei
Blenheim
Timaru
Hokitika
Invercargill
Nelson
Tauranga
Gisborne
Rotorua
Taupo
New Plymouth
Wanganui
Palmerston North
Paraparaumu
Napier
Auckland
Queenstown
Christchurch
Dunedin
Hamilton
Wellington
Buenos Aires
Rarotonga
Christchurch
Wellington
Tokyo
(Narita)
Osaka

Air New Zealand Databook 2 017
18
Air New Zealand Group
Air New Zealand has a modern and highly
efficient fleet configured for its network
and customers. The airline continues to
simplify the fleet for greater operational
efficiency and operate aircraft which
are highly fuel efficient, with increased
capacity and the best configuration for
customers and cargo.
In June 2014, Air New Zealand announced
the purchase of 13 new Airbus A320/
A321NEO aircraft to refresh its
international narrow body fleet. The first
10 A320/A321 NEO aircraft will enter
the fleet in the 2019 financial year.
Air New Zealand currently have nine
Boeing 787-9 Dreamliner aircraft in its
fleet (as at 30 June 2017), servicing long-
haul destinations to Asia, Hawaii, Perth
and Buenos Aires. A further four aircraft
are on order to be delivered in the 2018
and 2019 financial years and will increase
the total number of Dreamliners in the
fleet to 13. Air New Zealand has further
Boeing 787-9 purchase options available.
In November 2015, Air New Zealand
announced the purchase of 15 new
ATR72-600 aircraft to operate its regional
services. Four of the new aircraft will
allow for further growth on regional
Air New Zealand routes while 11 will
replace the airline’s ATR72- 500 fleet.
In August 2016, the last of our 19-seater
Beech 1900Ds ceased operating in the
regional network, which have now all been
replaced with larger 50-seater Q300s and
68-seater ATRs. Additionally, in March
2017, the last of the Boeing 767-300ERs
exited from service.
Air New Zealand continues to grow
a more simplified fleet with additional
fuel efficient aircraft, delivering strong
efficiencies while ensuring our customers
enjoy a consistent and world-class inflight
experience wherever they travel.
8. Operating fleet
Aircraft f leet age
in years
– seat weighted
AIRCRAFT DELIVERY SCHEDULE
(as at 30 June 2017)
Number
in existing
fleet
Number
on
order
Delivery Dates (Financial Year)
2018201920202021
Owned fleet on order
B oeing 787-9
93
21--
Airbus A320/A321 NEOs
ˆ
-8
-62-
ATR72-500/600
2614
446-
Operating leased aircraft
B oeing 787-9
-1
-1--
Airbus A320/A321 NEOs
-5
-41-
Actual and forecast
aircraft capital expenditure
*
– $ millions
Historic trend of
fleet ownership
– seat weighted
100 %
90%
80%
70 %
60%
50%
40%
30%
20%
10 %
0
2005
50
%
50
%
2009
50
%
50
%
2013
63
%
37
%
2 017
71
%
29
%
LeasedOwned
$ MILLIONS
20162 0172019
$1,000
$800
$600
$400
$200
0
202020212018
ActualForecast
* Excludes orders of up to five
A320/A321 NEOs with purchase
substitution rights.
**
P
rojected aircraft expenditure
based on US dollar exchange
rate of 0.725.
AGE IN YEARS
7. 8
2015
7. 5
2016
7. 0
2 017
6.7
2019
10
8
6
4
2
0
6.9
2020
7. 9
20212 014
9.1
7. 5
20182013
9.2
HistoricalForecast
2015
~$1.5b
**
2018 – 2021
PROJECTED
AIRCRAFT CAPITAL
EXPENDITURE
ˆ Excludes orders of up to five A320/A321 NEOs with purchase substitution rights.

Boeing 777-300ER
Number: 7
Average Age: 5.2 years
Maximum Passengers: 332*
Cruising Speed: 910 km/hr
Average Daily Utilisation: 14:20 hrs
Boeing 777-200ER
Number: 8
Average Age: 11.2 years
Maximum Passengers: 312
Cruising Speed: 910 km/hr
Average Daily Utilisation: 12:37 hrs
Boeing 787-9 Dreamliner
Number: 9
Average Age: 1.8 years
Maximum Passengers: 302
Cruising Speed: 910 km/hr
Average Daily Utilisation: 13:29 hrs
Airbus A320-200
Number: 30
Average Age: 12.9 years short haul, or
3.4 years domestic
M
aximum Passengers: 168 short haul, or
171 domestic
C
ruising Speed: 850 km/hr
Average Daily Utilisation: 9: 02 hrs short haul, or

8:30 hrs domestic
ATR 72-500 / ATR 72-600
Number: 26
Average Age: 16.5 years ATR 72-500, or
2.3 years ATR 72-600
Ma
ximum Passengers: 68
Cruising Speed: 518 km/hr
Average Daily Utilisation: 6:41 hrs ATR 72-500, or

6:51 hrs ATR 72-600
Bombardier Q300
Number: 23
Average Age: 10.4 years
Maximum Passengers: 50
Cruising Speed: 520 km/hr
Average Daily Utilisation: 6:24 hrs
* As at 30 June 2017, three aircraft had been reconfigured to 342 seats with the remaining aircraft to be reconfigured by the end of 2017.
Operating fleet as at 30 June 2017
Air New Zealand Databook 2 017
19

Air New Zealand Databook 2 017
20
Credit rating
On 3 July 2015 Moody’s upgraded Air
New Zealand Limited’s (AIR NZ) senior
unsecured issuer rating to Baa2 from
Baa3. The outlook on the rating is stable
as at 30 June 2017. This puts Air New
Zealand as one of the top investment
grade rated airlines in the world.
Funding
Air New Zealand aircraft and associated
aircraft assets are acquired via a mixture
of ownership and lease structures. As at
30 June 2017, 83 of Air New Zealand’s
103 aircraft fleet were effectively owned.
Secured borrowings
Air New Zealand funds the purchase
of its aircraft and other aircraft related
assets through secured bank borrowings
from major international banks which
specialise in airline and aircraft funding.
As at 30 June 2017, Air New Zealand
had total secured bank borrowings of
$1,243 million.
Finance leases
As at 30 June 2017, Air New Zealand
had total finance leases of $1,221 million.
Finance lease liabilities are secured over
aircraft and aircraft related assets and are
subject to both fixed and floating interest
rates. Fixed interest rates as at 30 June
2017 ranged from 0.7% to 3.4% .
Purchase options are available on
expiry or, if applicable under the lease
agreement, on early termination of the
finance leases. Finance leases are treated
as owned aircraft.
Unsecured borrowings
As at 30 June 2017, Air New Zealand
had NZX listed bonds of $50 million.
The unsecured, unsubordinated fixed rate
bonds have a maturity date of 28 October
2022 and an interest rate of 4.25%
payable semi-annually. The bonds are
quoted on the NZX Debt Market under
the ticker code AIR020.
Operating leases
As at 30 June 2017, 20 of Air New
Zealand’s 103 aircraft fleet were under
operating lease contracts. Payments
made under operating leases (net of any
incentives received) are recognised as
an expense in the Statement of Financial
Performance on a straight-line basis over
the term of the lease.
For the year ended 30 June 2017,
Air New Zealand recognised $178 million
of operating lease expenses in relation
to aircraft, and as at 30 June 2017,
had $785 million future operating lease
commitments in relation to aircraft.
For the purposes of Net Debt and
gearing calculations, operating leases are
capitalised as aircraft operating lease
commitments for the next 12 months
multiplied by a factor of seven. As at 30
June 2017, Air New Zealand included
$1,120 million of net aircraft operating
lease commitments as part of Net Debt.
*Total borrowings comprise secured borrowings, bonds and finance lease liabilities.
**Operating leases comprise aircraft operating lease commitments for the next twelve months, multiplied by a factor of seven.
Air New Zealand Group
Gross debt ($m)
as at 30 June
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
NZ$ MILLION
Total borrowings*Operating leases**
2 017
3,634
2013
2 , 574
2 014
2,755
2015
3,645
3,855
2016
9. Balance sheet structure and funding

Air New Zealand Databook 2 017
21
Gearing
1

When calculating the level of gearing,
Net Debt includes secured and
unsecured borrowings, finance leases,
capitalised aircraft operating leases less
interest-bearing and non interest-bearing
assets and unrealised gains/losses on
open debt derivatives. As at 30 June
2017, Net Debt (including capitalised
aircraft operating leases) was $2,133
million and gearing (including capitalised
aircraft operating leases) was 51.8% . Air
New Zealand targets a capital structure
within the range of 45% to 55% .
Distribution policy
The Air New Zealand Board of Directors
(the Board) is committed to a Distribution
Policy geared towards providing a
consistent and sustainable ordinary
dividend stream to shareholders in the
medium term while maintaining financial
flexibility through the business cycle
Policy guidelines
The following policy guidelines form
Air New Zealand’s Distribution Policy:
•
D
ividend declarations will take into
account current earnings, the
medium-term trading outlook, long
term capital structure and future capital
expenditure requirements.
D
• Target capital structure (including
capitalised aircraft operating leases
recognised as debt) is within the range
of 45% to 55% .
•

G
iven the cyclical nature of the airline
industry and the requirement to
undertake significant fleet reinvestment
programmes, Air New Zealand may, for
periods, operate outside the target net
gearing range.
•

O
ther relevant economic factors
impacting on the Air New Zealand Group.
The Board recognises that distributions
to shareholders by way of fully imputed
dividends represent the optimal way in
which to return funds to shareholders.
This is dependent on the level of
imputation credits available to be
attached to dividends.
1
Gearing defined as Net Debt/(Net Debt plus Equity)
Gearing %
as at 30 June
(including capitalised aircraft operating leases)
GEARING (%)
20132 01420152016
65%
60%
55%
50%
45%
40%
35%
30%
2 017
Gearing
(Includes net capitalised
aircraft operating leases)
Gearing
Target minimum
Gearing
Target maximum
39.3%
42.9%
48.6%
52.4%
51.8%

Air New Zealand Databook 2 017
22
Risk management
Air New Zealand is subject to foreign
currency, fuel price, interest rate and
credit risks. These risks are managed
with various financial instruments,
applying a set of policies approved by
the Board of Directors. Compliance with
these policies is reviewed and reported
monthly to the Board and is included
as part of the internal audit programme.
The Group policy is not to enter, issue or
hold financial instruments for speculative
purposes. The latest Air New Zealand
Annual Financial Results provides a full
description of financial risk management
and discusses the specific risks and
risk management applicable to Air New
Zealand, including fuel price risk and
foreign exchange risk.
Fuel price risk
Fuel price risk is the risk of loss to
Air New Zealand arising from adverse
fluctuations in fuel prices. The objective
of Air New Zealand’s commodity risk
management activities is to provide time
to adjust to changing fuel prices while
protecting the operating margin in the
short term.
Air New Zealand manages jet fuel price
risk by using crude oil hedges consisting
of Brent Crude hedges.
Any fuel price hedge term does not
exceed 12 months. In general, the next
four months of future fuel purchases
are hedged to a minimum of 50% and
then progressively reducing to zero by
the eighth month. The maximum amount
of hedges can be 80% for the next six
months and then progressively falling to
20% in the twelfth month.
On a quarterly basis, Air New Zealand
discloses its fuel hedging position for the
next 12 months, which can be accessed
online at www.airnewzealand.co.nz/fuel-
hedging-announcements.
Foreign currency risk
The Group’s currency exposure primarily
arises from operating activities, receiving
ticket sales in foreign currencies and
paying for fuel, aircraft leases and aircraft
maintenance largely in USD. From capital
activities, the company purchases fixed
assets denominated in foreign currency on
a regular basis and also has borrowings in
foreign currency.
Currency risk management has the
objective to give the company time to
adjust to changes in market circumstances.
Air New Zealand manages currency risk
through two methodologies:
•
P
lacement of hedging cover on identified
operating foreign currency exposures.
•
M
anagement of foreign currency balance
sheet items, mainly debt, by way of actual
hedges, use of future foreign currency
revenues, and aircraft values which are
largely determined in USD.
The above policies are adhered to and
monitored on a day to day operational
basis. The Executive Management Team
and the Board of Directors reserve the
right to operate outside of these policy
parameters from time to time and as
required for the financial and operational
benefit of Air New Zealand.
Air New Zealand Group
10. Risk management

Air New Zealand Databook 2 017
23
6.3
5.8
6.6
9.2
7. 5
11. Earnings and dividend performance
Ordinary dividend yield
DIVIDEND YIELD (%)
20132 01420152 017
10.0 %
9.0%
8.0%
7. 0 %
6.0%
5.0%
4.0%
3.0%
2.0%
1.0 %
0
Earnings before taxation
700
600
500
400
300
200
100
0
NZ$ MILLION
2015
474
2013
255
2 014
358
2 017
527
Net profit after taxation
NZ$ MILLION
181
2013
263
2 014
327
2015
382
2 017
500
450
400
350
300
250
200
150
100
50
0
Operating cash flow
NZ$ MILLION
750
2013
730
2 014
1,100
2015
904
2 017
1,200
1,000
800
600
400
200
0
Cash on hand
NZ$ MILLION
1,150
2013
1,234
2 014
1,321
2015
1,369
2 017
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Dividends (declared)
50
45
40
35
30
25
20
15
10
5
0
DIVIDEND (NZD CENTS PER SHARE)
INTERIMFINALSPECIAL
2 014
20.0
463
2016
1 ,074
2016
1,594
2016
2016
2016
663
2 017
21.0
2016
45.0
2013
8.0
2015
16.0

Air New Zealand Databook 2 017
24
12. Five year statistical review
Key Financial Metrics
For the year ended 30 June
20172016201520142013
Profitability and Capital Management
EBIT
1
/Operating Revenue
EBITDRA
2
/Operating Revenue
Passenger Revenue per Revenue Passenger Kilometre (Yield)
Passenger Revenue per Available Seat Kilometre (RASK)
Cost per Available Seat Kilometre (CASK)
3
Return on Invested Capital Pre-tax (ROIC)
4
Liquidity ratio
5
Gearing (incl. net capitalised aircraft operating leases)
6

%
%
cents
cents
cents
%
%
%

10.6
24.8
12 .6
10.4
9.1
15.3
30.0
51.8

15.9
29.5
13.5
11. 3
9.3
18.8
36.0
48.6
11 .1
23.6
13 .7
11 . 6
10.6
15.6
29.7
52.4

8.4
21.6
13 .7
11 . 5
10.9
14 . 3
29.2
42.9

6.7
19.4
13 .6
11 . 4
11 . 2
11 . 6
29.9
39.3
Shareholder Value
Basic Earnings per Share
7
Operating Cash Flow per Share
7
Ordinary Dividends Declared per Share
7
Special Dividends Declared per Share
7
Net Tangible Assets per Share
7
Closing Share Price 30 June
Weighted Average Number of Ordinary Shares
Total Number of Ordinary Shares
Total Market Capitalisation
Total Shareholder Returns
8

cps
cps
cps
cps
$
$
m
m
$m
%
34.0
80.5
21.0
-
1.64
3.26
1,123
1,123
3,660
41.5
41. 3
95.6
20.0
25.0
1.76
2.10
1,122
1,123
2,352
20.0
29.2
98 .1
16 .0
-
1.66
2.55
1 ,118
1,122
2,861
25.6
23.9
65.5
10.0
10.0
1.60
2.08
1,101
1 ,114
2,318
24.0
16 .5
67. 9
8.0
-
1.57
1.49
1,096
1,104
1,639
11 . 6
1

E
arnings before interest and taxation (EBIT) excluding share of earnings of associates (net of taxation) and other significant items.
2
E
BITDRA excludes share of earnings of associates (net of taxation) and other significant items.
3
O
perating expenditure per ASK.
4
(
EBIT plus interest component of aircraft operating leases)/average capital employed (being Net Debt plus Equity) over the period.
5
(
Bank and short-term deposits, interest-bearing assets and non-interest bearing assets)/Operating Revenue.
6
N
et Debt (including capitalised aircraft operating leases)/(Net Debt plus Equity).
7
P
er-share measures based upon Ordinary Shares.
8
R
eturn over five years including the change in share price and dividends received (assuming dividends are reinvested in shares on ex dividend date).
Certain comparatives within the five year statistical review have been reclassified for comparative purposes, to ensure consistency with the current year.
The Group adopted NZ IFRS 9 (2010) - Financial Instruments and NZ IFRS 9 (2013) - Hedge Accounting and amendments to NZ IFRS 9, NZ IFRS 7
and NZ IAS 39 on 1 July 2014. Comparatives have been restated for the 2014 financial year only in respect of the adopted standards and the amounts
for the 2013 financial year are as previously published.
Air New Zealand Group

Air New Zealand Databook 2016
25
Key operating statistics
For the year to 30 June
20172016201520142013
Passengers Carried (000)
Domestic
International
Australia and Pacific Islands
Asia*
America and Europe
10,379
3,561
814
1,198
9,725
3,507
791
1,138
9,246
3,388
642
1,021
8,920
3,277
517
1,005
8,694
3 ,181
596
940
Total International5,5735,4365 , 0 514,7994 ,717
Total Group15,95215,16114, 29713,71913 , 411
Available Seat Kilometres (m)
Domestic
International
Australia and Pacific Islands
Asia*
America and Europe

6,597
12,039
8 , 918
14 , 615

6,065
11 , 4 3 8
8,349
13 , 832

5,592
10,888
7,022
12,0 9 9

5,385
10,622
5,656
11 , 7 3 3

5 ,10 8
10,277
6,780
11 , 0 0 2
Total International35,57233,61930,0092 8 , 01128,059
Total Group42 ,16939,68435,60133,39633,167
Revenue Passenger Kilometres (m)
Domestic
International
Australia and Pacific Islands
Asia*
America and Europe
5 , 311
9,784
7, 270
12,449
4,887
9,532
7, 070
11 , 7 3 4
4,561
9,184
5,784
10,405
4,370
8,858
4,630
10,220
4,218
8,580
5 , 418
9 , 517
Total International29,50328,33625,37323,70823,515
Total Group34, 81433,22329,93428,07827,733
Passenger Load Factor (%)
Domestic
International
Australia and Pacific Islands
Asia*
America and Europe
80.5
81.3
81.5
85.2
80.6
83.3
84.7
84.8
81.6
84.4
82.4
86.0
81.1
83.4
81.9
87.1
82.6
83.5
79.9
86.5
Total International83.884.384.684.783.8
Total Group82.683.784.184.183.6
* Asia included Hong Kong – London flying up until March 2013.

Air New Zealand Databook 2 017
26
Summary Financial Performance
For the year to 30 June
2017
$M
2016
$M
2015
$M
2014
$M
2013
$M
Operating Revenue
Passenger revenue
Cargo
Contract services
Other revenue
4,376
335
164
234
4,481
349
172
229
4 ,113
317
258
237
3 , 8 51
287
277
237
3,765
301
310
239

5,1095,2314,9254,6524,615
Operating Expenditure
Labour
Fuel
Maintenance
Aircraft operations
Passenger services
Sales and marketing
Foreign exchange (losses)/gains
Other expenses
(1,261)
(827)
(321)
(556)
(266)
(352)
(6)
(255)
(1,225)
(846)
(350)
(531)
(246)
(348)
112
(255)
(1,193 )
(1,089)
(320)
(466)
(220)
(303)
79
(252)
(1,151)
(1,120 )
(285)
(424)
(212)
(280)
45
(222)
(1,068)
(1,204)
(302)
(419 )
(222)
(274)
7
(236)

(3,844)(3,689)(3,764)(3,649)(3,718)
Operating Earnings (excluding items below)
Depreciation and amortisation
Rental and lease expenses
1,265
(493)
(230)
1,542
(465)
(244)
1,161
(402)
( 2 11)
1,003
(436)
(174 )
897
( 411)
(177)
Earnings Before Finance Costs, Associates,
Other Significant Items and Taxation
Finance income
Finance costs
Share of earnings of associates (net of taxation)

542
43
(87)
26

833
53
(100)
20

548
56
(108)
(22)

393
44
(90)
11

309
37
(91)
-
Earnings Before Other Significant Items and Taxation
Other significant items
524
3
806
(143)
474
-
358
-
255
-
Earnings Before Taxation
Taxation expense
527
(14 5)
663
(200)
474
(147)
358
(95)
255
( 74 )
Net Profit Attributable to Shareholders of Parent Company382463327263181
Summary of Cash Flows
For the year to 30 June
2017
$M
2016
$M
2015
$M
2014
$M
2013
$M
Cash flow from operating activities
Cash flow from investing activities
Cash flow from financing activities
904
(616)
( 513 )
1, 0 74
(797)
(4)
1,10 0
(1,066)
53
730
(727)
81
750
(480)
(147)
(Decrease)/increase in cash holding(225)2738784123
Total cash and cash equivalents1,3691,5941,3211,2341,150
Air New Zealand Group

Air New Zealand Databook 2 017
27
Summary Financial Position
As at 30 June
2017
$M
2016
$M
2015
$M
2014
$M
2013
$M
Current Assets
Bank and short-term deposits
Other current assets
1,369
518
1,594
74 5
1,321
661
1,234
593
1,150
693
Total Current Assets1,8872,3391,9821,8271,843
Non-Current Assets
Property, plant and equipment
Other non-current assets

4,745
539

4,485
427

4,061
732

3,279
74 4

2,933
820
Total Non-Current Assets5,2844,9124,7934,0233,753
Total Assets7,1717, 2516,7755,8505,596
Current Liabilities
Debt
1
Other current liabilities
317
2,088
464
2,007
253
1,875
190
1,682
159
1,555
Total Current Liabilities2,4052,4712 ,1281,8721,714
Non-Current Liabilities
Debt
1
Other non-current liabilities
2,197
583
2,103
569
2,069
613
1,543
563
1,470
6 11
Total Non-Current Liabilities2,7802,6722,6822 ,1062,081
Total Liabilities5,1855,1434,8103,9783,795
Net Assets1,9862 ,1081,9651,8721,801
Total Equity1,9862 ,1081,9651,8721,801
1.

D
ebt is comprised of secured borrowings, bonds and finance lease liabilities.
Summary of Debt
As at 30 June
2017
$M
2016
$M
2015
$M
2014
$M
2013
$M
Debt
Secured borrowings
Unsecured bonds
Finance lease liabilities

1,243
50
1,221

930
150
1,487

512
150
1,660

213
150
1,370

84
150
1,395
Bank and short-term deposits
Net open derivatives held in relation to interest-bearing liabilities
1

Non interest-bearing assets (included within Other assets)
Interest-bearing assets (included within Other assets)
2 , 514
1,369
(32)
-
164
2,567
1,594
(17)
-
288
2,322
1,321
24
-
141
1,733
1,234
(10)
-
125
1,629
1,150
28
44
184
Net Debt
Net aircraft operating lease commitments
2
1,013
1,120
702
1,288
836
1,323
384
1,022
223
945
Net Debt (including off Balance Sheet)2 ,1331,9902 ,1591,4061,168
1.
U
nrealised gains/losses on open debt derivatives.
2.
N
et aircraft operating lease commitments for the next twelve months, multiplied by a factor of seven.

Air New Zealand Databook 2 017
28
13. Other information
April 1940
Tasman Empire Airways Limited (TEAL) incorporated
April 1965
TEAL renamed Air New Zealand Limited
April 1978
Air New Zealand and National Airways Corporation (NAC) merge
April 1989
New Zealand Government privatises Air New Zealand
October 1989
Air New Zealand listed on the New Zealand Stock Exchange (NZX)
October 1996
Air New Zealand acquires 50 percent of Ansett Australia
March 1999
Air New Zealand becomes a member of the Star Alliance group
June 2000
Air New Zealand acquires remaining 50 percent of Ansett Australia
September 2001
Ansett Australia placed into voluntary administration due to downturn
January 2002
Air New Zealand recapitalised by New Zealand Government for $885m resulting in
82 percent government ownership
March 2011 to May 2014
Air New Zealand purchased shares in Virgin Australia taking ownership to 25.9 percent
as at 30 June 2015
July 2011
Revenue share alliance with Virgin Australia commenced
January 2013
Revenue share alliance with Cathay Pacific commenced
November 2013
New Zealand Government sells down its holding to 52 percent
January 2015
Revenue share alliance with Singapore Airlines commenced
December 2015
Revenue share alliance with Air China commenced
June 2016
Air New Zealand sells 19.98 percent of its stake in Virgin Australia, reducing total
stake to 2.5 percent
July 2016
Revenue share alliance with United Airlines commenced
October 2016
Air New Zealand sells remaining stake in Virgin Australia
Company history
Air New Zealand Group

Air New Zealand Databook 2015
29
Available seat kilometres (ASKs)
Number of seats operated multiplied by the distance flown (capacity)
Cost/ASK (CASK)
Operating expenses divided by the total ASK for the period
EBIT
Earnings before interest and taxation
EBITDRA
Earnings before interest, taxation, depreciation, rentals and amortisation
Gearing
Net debt / (net debt plus equity); Net debt includes capitalised aircraft operating leases
Liquidity
Total cash (comprising Bank and short-term deposits, interest-bearing assets and
non-interest bearing assets as at the end of the financial year divided by total operating
revenue for that financial year
Net Debt
Interest-bearing liabilities less bank and short-term deposits, net open derivatives held
in relation to interest-bearing liabilities, interest-bearing assets and non-interest bearing
assets, plus net aircraft operating lease commitments for the next twelve months
multiplied by a factor of seven
Other Significant Items
Other significant items are items of revenue or expenditure which due to their size and
nature warrant separate disclosure to assist with the understanding of the financial
performance of the Group. Other significant items is reported within the Group’s
audited annual financial statements
Passenger Load Factor
RPKs as a percentage of ASKs
Passenger Revenue/ASK (RASK)
Passenger revenue for the period divided by the total ASK for the period
Pre-Tax Return on Invested Capital
(ROIC)
Earnings before interest and taxation (EBIT), and aircraft lease expense divided by three,
all divided by the average capital employed (being net debt plus equity) over the period
Revenue passenger kilometres (RPKs)
Number of revenue passengers carried multiplied by the distance flown (demand)
The following non-GAAP measures are not audited: CASK, Gearing, Net Debt, RASK and ROIC. Amounts used within the calculations are derived
from the audited Group financial statements and Five Year Statistical Review contained in the 2017 Annual Financial Results. The non-GAAP
measures are used by management and the Board of Directors to assess the underlying financial performance of the Group in order to make
decisions around the allocation of resources.
Glossary of key terms
Expenditure classifications
Labour
All salaries, wages and employee benefits
Fuel
Fuel including hedging gains/losses
Maintenance
Materials and services
Aircraft operations
Airport dues, aircraft ground handling, line servicing, loading, air navigation and tech
crew trip costs
Passenger services
Passenger ground handling, meals, inflight services, cabin crew trip expenses, lounge
expenses and security charges
Sales and marketing
Commissions, advertising, promotions, marketing, FFP costs and distribution costs
Other expenses
Safety, IT costs, legal and accounting, insurance, employee relations and property costs
Rental and lease expenses
Aircraft and property operating lease rentals

Christopher Luxon | CHIEF EXECUTIVE OFFICER
Christopher has been Chief Executive Officer since January 2013 having previously held
the role of Group General Manager International Airline for almost two years. Prior to
joining Air New Zealand, Christopher was President and Chief Executive Officer at
Unilever Canada. This was one of several senior leadership roles he held during an
18-year career at the multi-national that saw him work in roles in Europe, North America
and Asia/Pacific. Christopher has a Master of Commerce in Business Administration from
the University of Canterbury.
14. Executive management team
Avi Golan | CHIEF DIGITAL OFFICER
Avi joined Air New Zealand as Chief Digital Officer in January 2016 and has been leading
the Digital Team through a significant transformation to engage digitally with customers
across multiple international markets and enhance the new revenue opportunities while
driving customer innovation. Previously based in the United States, Avi has held senior
leadership positions in some of the most innovative global companies across a range
of industries, including Google, Intuit and Nook Digital. He also spent the first part of
his career as a product leader in Israeli based start-ups and co-founding the Israeli
Entrepreneurs and Founders Foundation (IEFF), an organisation that helps technology
start-ups be more successful in Silicon Valley.
Nick Judd | CHIEF STRATEGY, NETWORKS & ALLIANCES OFFICER
Nick Judd was appointed as the Chief Strategy, Networks and Alliances Officer in October
2017 and leads Air New Zealand’s five Joint Venture Alliance partnerships, the Star Alliance
relationship and the Sustainability and Transformation portfolios. He has worked across a
number of functions and regions in the business beginning his Air New Zealand career in
Finance, before holding senior roles in Loyalty, Sales and Commercial areas across Australia,
China, America and New Zealand.
Nick joined Air New Zealand in May 2003 after working in the United Kingdom and Canada
in finance roles for companies such as Chase Manhattan Bank and News Limited. Nick
is a Chartered Accountant and holds a Bachelor of Management Studies (Hons) from the
University of Waikato.
Rob McDonald | CHIEF FINANCIAL OFFICER
Rob started his finance career as a commerce graduate with a large building products company
in 1980. He worked overseas before joining Coopers and Lybrand in the corporate advisory and
valuation practice in 1985. Rob took up the position of Group Financial Planning Manager at
Air New Zealand in 1993 and was appointed Group Treasurer in 1995. In October 2004 Rob
was appointed as Chief Financial Officer of Air New Zealand. Rob has a Bachelor of Commerce
from Auckland University and in 1999 completed the Program of Management Development at
Harvard Business School. He is a Fellow of Chartered Accountants Australia and New Zealand
a member of the Institute of Finance Professionals New Zealand Inc. and from 2006 to 2015
was a member of the IATA Financial Committee, appointed as Vice Chairman from 2013 to 2015.
In September 2017, Air New Zealand announced Rob McDonald will retire at the end of 2017
and will be succeeded by Group General Manager Corporate Finance, Jeff McDowall.
Jodie King | CHIEF PEOPLE OFFICER
Jodie joined Air New Zealand in 2012 as an HR General Manager and member of the
People Leadership Team, before being appointed as Chief People Officer in February 2016.
Prior to this she had managed Air New Zealand’s Organisational Effectiveness and Talent,
HR Corporate and HR Airports and Sales and Commercial teams.
Jodie has had a significant international career, living and working in the United Kingdom for
16 years. During her time in London Jodie worked at KPMG in leadership and management
consultancy roles across a range of industries, including infrastructure, oil and gas, banking
and retail. Her last role at KPMG saw her as Director of Talent Management across nine
European countries. Prior to KPMG she worked for New Zealand Treasury and NZ Dairy
Co-operative after graduating from Otago University with an Arts and a Commerce degree.
Air New Zealand Group
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Cam Wallace | CHIEF REVENUE OFFICER
Cam was appointed as Chief Revenue Officer in January 2014 and is responsible for
generating Air New Zealand’s passenger and cargo revenue, currently a portfolio with a
turnover of $5 billion. His responsibilities include revenue management, global pricing, online
sales, grabaseat, retail marketing, corporate, distribution, government sales and contact centres.
Cam joined Air New Zealand in 2001 and has held a number of senior positions in the
airline including Group General Manager New Zealand and Pacific Islands and General
Manager Australia. Cam has completed business management programmes at Darden
School of Business, Kellogg School of Management – Northwestern University Chicago
and the London Business School. Most recently he studied at INSEAD, France where he
completed the Advanced Management Programme.
Bruce Parton | CHIEF OPERATIONS OFFICER
Bruce has a Bachelor of Business degree from Massey University. He has worked in
a variety of businesses, including five years for Coca-Cola in London in the logistics and
supplier management field, and three years with Tegel Foods in New Zealand in logistics.
He joined Air New Zealand in 1996. His roles have included Group General Manager
Australasia, Logistics and Components management at Engineering, General Manager of
Operations for the Airline, General Manager of the Pacific Airline (Australia, Pacific Islands
and Domestic Jets), and General Manager Domestic Jet (737 Fleet and New Zealand Airports).
Mike Tod | CHIEF MARKETING & CUSTOMER OFFICER
Mike has responsibility for Air New Zealand’s global marketing and its customer experience
related functions together with accountability for Corporate Affairs, Government Affairs
and Industry Relations, Sponsorship and Community Partnership programmes. Mike was
previously General Manager of Marketing and Communications and prior to that General
Manager of Communications. He joined Air New Zealand from Fonterra where he held the
roles of Assistant to the Chief Executive Officer and Shareholder Communications Manager.
Prior to these roles he held senior positions with Television New Zealand and in the print
industry. Mike is a Fellow of the Chartered Institute of Marketing and a graduate of Harvard
Business School’s Advanced Management Programme.
John Whittaker | CHIEF AIR OPERATIONS & PEOPLE SAFETY OFFICER
John leads the 3,300 people in Air New Zealand’s Jet Pilot, Cabin Crew and People
Safety teams. He started with broad based tourism Mount Cook Group in 1985
and was General Manager of Mount Cook Airline when this was integrated into
Air New Zealand. Since then John has held General Management roles in Operations,
Loyalty, Alliances and Government Relations. Prior to his 2016 appointment to Chief
Air Operations & People Safety Officer, he held the role of Group General Manager
Airports leading the worldwide Airport and Lounge teams and championed the adoption
of High Performance Engagement with unions and Air New Zealanders. He has a
Bachelor of Commerce from the University of Canterbury.
Captain David Morgan | CHIEF OPERATIONAL INTEGRITY & STANDARDS OFFICER
David joined Air New Zealand in 1985 after a career in general aviation and subsequently
joined the Flight Operations management team in 1996. David has held various senior
operational management positions and was appointed to the Executive in 2008. In his
current role David is responsible for the essential core airline activity of operational integrity
and safety, regulatory accountability, aeronautical policy and process, standards, security and
emergency management.
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15. Board of Directors
Antony (Tony) Carter | CHAIRMAN
BE (Hons), M.E., MPhil
Independent Non-Executive Director (Appointed 1 December 2010)
Mr Carter is Chairman of Fisher & Paykel Healthcare Limited, a director of Fletcher Building
Limited and ANZ Bank New Zealand Limited and Independent Chairman of Blues LLP.
He attended the University of Canterbury where he studied chemical engineering,
graduating with a Bachelor in Engineering with honours and a Masters in Engineering in
1980. He then went on to study at Loughborough University of Technology in the United
Kingdom and graduated in 1982 with a Master of Philosophy degree.
Janice (Jan) Dawson | DEPUTY CHAIR
CNZM, BCom, FCA
Independent Non-Executive Director (Appointed 1 April 2011)
Ms Dawson is Chairman of Westpac New Zealand and a director of AIG Insurance New Zealand
Limited, Beca Group Limited, Fulbright New Zealand, Meridian Energy Limited and World Sailing.
Ms Dawson is Pro-Chancellor and a member of the University of Auckland Council, the Capital
Investment Committee of the National Health Board and a Trustee of the National Maritime Museum.
Ms Dawson was a partner of KPMG for 30 years, specialising in audit and risk advisory, and the
Chair and Chief Executive of KPMG New Zealand from 2006 until 2011.
Ms Dawson holds a Bachelor of Commerce from the University of Auckland. She is a Fellow
of the New Zealand Institute of Chartered Accountants, a Fellow of the Institute of Directors in
New Zealand, a Paul Harris Fellow and a North Shore Business Hall of Fame Laureate (2010).
Ms Dawson was named Chartered Accountant of the Year in 2011 by the New Zealand Institute
of Chartered Accountants.
Air New Zealand Group
Robert (Rob) Jager | DIRECTOR
BE (Hons), MBA
Independent Non-Executive Director (Appointed 1 April 2013)
Mr Jager is Chairman of the Shell Companies in New Zealand and General Manager,
Shell Todd Oil Services. He chaired the Workplace Health and Safety Review Taskforce
in New Zealand, which has been instrumental in encouraging fundamental changes to
New Zealand’s approach to workplace health and safety. Mr Jager chairs the Petroleum
Exploration and Production Association NZ and is a member of the Business Leaders
Health and Safety Forum steering committee. Mr Jager is a Director for National
Science Challenge – Sustainable Seas – Project.
Mr Jager joined Shell in New Zealand in 1978 as an engineering cadet. He completed
his Bachelor of Engineering degree in 1983 with 1st Class Honours and later gained
an MBA with Distinction. Mr Jager has nearly 40 years experience in the oil and gas
industry in New Zealand and overseas.
Linda Jenkinson | DIRECTOR
MBA, BBS
Independent Non-Executive Director (Appointed 1 June 2014)
Ms Jenkinson was the Co-Founder of John Paul Inc., a United Kingdom based global
concierge services and digital solutions company that services some of the world’s
leading customer facing businesses.
Ms Jenkinson is currently director and secretary of Massey University US Foundation and
a Trustee of the Massey University Foundation in New Zealand. Ms Jenkinson is also a
Director of Guild Group Holdings Ltd.
Ms Jenkinson holds a Master of Business Administration from The Wharton School,
University of Pennsylvania and a Bachelor of Business Studies from Massey University.

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Rt Hon Sir John Key | DIRECTOR
GNZM, AC
Independent Non-Executive Director (Appointed 1 September 2017)
Sir John was Prime Minister of New Zealand from 2008 to 2016. He successfully led the
country through the aftermath of the global financial crisis and a series of devastating
earthquakes in New Zealand’s second-biggest city, Christchurch. Among his portfolios, Sir
John was Minister for Tourism.
Sir John chairs the International Democrat Union and chaired the United Nations Security
Council in 2016. Sir John, who was knighted in the 2017 Queen’s Birthday Honours, has
also been appointed an Honorary Companion of the Order of Australia.
Sir John’s current business activities include a role advising a $200 billion United
States corporation on its investments in China as well as an advisory role with a New
York fund manager.
In October 2017, Sir John was appointed to the Board of Directors of ANZ Bank New
Zealand and will become Chairman effective January 2018.
Sir John worked in investment banking for 20 years primarily for Bankers Trust in
New Zealand and Merrill Lynch in Singapore, London and Sydney. His positions included
heading Merrill Lynch’s global foreign exchange business along with responsibility
for European derivative trading and E. Commerce. He was a member of the Foreign
Exchange Committee of the Federal Reserve Bank of New York (1999-2001).
Jonathan Mason | DIRECTOR
BA, MBA, MA
Independent Non-Executive Director (Appointed 1 March 2014)
Mr Mason has more than 30 years experience in the financial sector, with an emphasis
on emerging markets. Prior to joining Air New Zealand’s Board in March 2014, he was
Fonterra Co-operative Group’s Chief Financial Officer.
He joined Fonterra in 2009 from US-based chemicals company Cabot Corporation where
he was Executive Vice-President and Chief Financial Officer. Prior to this he was employed
as the Chief Financial Officer at forest products company Carter Holt Harvey Limited.
His current directorships include Vector Limited, Westpac New Zealand Limited and
Zespri Group Limited. Mr Mason also serves as an Adjunct Professor of Management at
the University of Auckland, specialising in international finance.
Dame Therese Walsh | DIRECTOR
DNZM, BCA, FCA
Independent Non-Executive Director (Appointed 1 May 2016)
Dame Therese is Chairman of Television New Zealand Limited, a Director of NZX Limited,
and ASB Bank Limited, a Trustee of Wellington Regional Stadium, and a Victoria University
Council Member. She also sits on a number of Government panels.
Previously she was the Head of the New Zealand for the ICC Cricket World Cup 2015,
and the Chief Operating Officer for Rugby New Zealand 2011 Limited.
Dame Therese is a Fellow of the New Zealand Institute of Chartered Accountants and
a commerce graduate from Victoria University. In 2013, she was named the inaugural
supreme winner of the Women of Influence Awards and was awarded a Sir Peter Blake
Trust Leadership Award in 2014. She became a Dame Companion of the New Zealand
Order of Merit in June 2015.

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Air New Zealand Group

16. Investor resources
Investor Centre
airnewzealand.co.nz/investor-centre
Monthly traffic updates
airnewzealand.co.nz/monthly-operating-data
Quarterly fuel hedging disclosure
airnewzealand.co.nz/fuel-hedging-announcements
Corporate Governance
airnewzealand.co.nz/corporate-governance
Sustainability
airnewzealand.co.nz/sustainability
Contact information
Email
investor@airnz.co.nz
Share register
enquiries@linkmarketservices.com
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