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Connecting customers to New Zealand Aviation solutions

Stay updated on the advisory and consultancy services available in New Zealand's aviation industry, known for its innovation, reliability, and global success.

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Connecting customers to New Zealand Aviation solutions

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  1. NEW ZEALAND ADVISORY and CONSULTANCY SERVICES Update, 30 May 2012 Connecting customers to New Zealand Aviation solutions

  2. NZ has very mature Aviation capability • NZ has a significant Aviation background: • First aviation exports 1912 • First passenger flights 1915 • First Pilot School 1916 • First airmail service 1919 • Pioneered use of aviation in tourism, forestry, agriculture, horticulture • NZ has developed a high profile over a long time for being an industry leader. From ETOPS, FANS, RNP to the development of ground breaking software applications, NZ industry has set new benchmarks for innovation and product design. • Leveraging this NZ has created a competitive global industry that is enjoying considerable success and growth • A recent study quantified the size of the industry, its contribution to the economy, the value of exports and predicted future domestic and international growth. The industry has real substance. • NZ products and services are exported to over 100 countries and can be found on every continent • International companies using New Zealand aviation products and services comment on their ‘best fit for needs’, ‘reliability’, ‘breakthrough technology’, ‘easy installation’ and ‘revolutionised our business’ Aviation NZ members take this opportunity to update companies on Advisory and Consultancy Services available in New Zealand and how to leverage this capability

  3. Advisory & Consulting Services is a key part of the NZ capability • The sector covers all aspects of aviation from policy, infrastructure, demand for services and performance of services to building sustainable capability • This sector is • actively involved in growth in many offshore markets. Global experience has grown in line with this • winning work on the back of a growing awareness of it’s capabilities and referrals from past customers • made up of small companies and individual specialists who network together to provide the necessary skills and meet customer requirements • leveraging off Air New Zealand’s high profile • The networking of individual specialists has proved to be a successful model for both the suppliers and their clients. It minimises fixed costs and therefore, maximises competitiveness Companies have ready access to this capability

  4. To determine local strategies and plans, industry participants must understand the global trends Global industry trends are generally well documented and understood: • Demand is increasingly being impacted by one off events, economic cycles are less predictable and short term forecasting has become more difficult than long term • Fuel prices are trending up • Lead time to access incremental aircraft technologies or modernise fleet is growing • Strategies need to be more flexible. But flexibility as a risk mitigation, normally adds cost Companies can access world-class experience from New Zealand

  5. Some of the underlying issues and consequences are less well understood • Tendency for organisations to become reactive to short term issues and not spend sufficient time on the longer term • Impact on costs of global skill shortages • This is a significant risk as the high growth regions attract resources • These resources include Engineers and pilots, but also Management expertise • Growing shortage of experienced Executives coupled with increased demand from growing number of airlines • Increasing need to be able to meet Executive and Management needs from within own organisation. Skill development can be met by use of advisors • Effective governance has to ensure that plans are in place to mitigate against these risks; • Understand the potential CRM issue of employing increasing numbers of Expatriates from emerging countries • Ensuring organisations Systems of Management are in place to reduce dependence on individuals and provide for a higher turnover of Executives and Management Companies can access world-class experience from New Zealand

  6. Some of the underlying issues and consequences are less well understood (continued) • In small economies (which we are all part of ) there is a critical need to have alignment of strategies and plans focused on the national interest • Monopolistic suppliers have to be efficient to promote destinational attractiveness, and ease of entry, whilst preserving effective border control. Criteria may be contribution to GDP rather than return on assets • Airlines are high risk, low return entities. Airlines providing services provide the major contribution to the economy • National interest often requires a trade-off across these entities • Each country is effected by the same issues but has to find their unique solution An effective way of understanding and acting on these underlying issues is to leverage a group of advisors who have exposure to many countries and can advise of the best solution for your airline or country

  7. Mike Flanagan and Associates Ltd Connecting customers to New Zealand Aviation solutions For more information and to make contact with the network of Advisory &Consulting Services Mr John Nicholson Chief Executive Aviation New Zealand Tel +64 4 472 2707 PO Box 2096 Mob +64 27 600 9156 Wellington 6140 Fax +64 4 471 1314 New Zealandwww.aviationnz.co.nz

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