Economic & Management Performance The Airways New Zealand Experience

1. Economic & Management PerformanceThe Airways New ZealandExperience ICAO Symposium onPerformance of the Air Navigation System Montreal 2007 Monica Davis, Airways New Zealand

2. 20 years of experience

3. Our Key Drivers • Customer Focus • Performance Improvement • Operational Efficiency • Profitable Growth

6. Airways New Zealand

7. New Zealand Government Shareholder Minister for Transport Civil Aviation Authority ( CAA ) Independent Safety Regulator Auditor Airways = Company Board of Directors - Not funded / controlled by Government Funded and directly controlled by Government - Set own financial / operational targets - Determine own funding requirements Airways: Corporate Governance Safety is their #1 concern

8. 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

9. ‘HOW’ Services Delivered • Increased focus on customer outcomes • Increased focus on technology solutions • Accurate understanding of cost of services • Culture of performance improvement

10. Lowest possible prices Highest possible returns SAFETY Highest possible pay The Stakeholder Balancing Act Shareholder Customer People

11. Dividend and ROI History

12. Twenty Years On

13. (R1) Real ANS Price, before & after Rebate 102 Nominal Price 97 92 Real Price 87 RealPrice 82 +Rebate 77 72 -97 -98 -99 -00 -01 -02 -03 -04 -05 -06 -07f -08f -09f 100 101 101 101 98 98 98 98 98 98 98 98 98 Nominal Price 100 99 99 97 92 90 89 86 84 81 78 76 74 Real Price 100 99 99 97 90 88 85 83 80 77 77 76 74 RealPrice+Rebate Pricing

14. Benchmarking

15. Stakeholder Performance

16. Loss of Separation Incidents

17. Performance Philosophy • Customer Focus • Performance Improvement • Operational Efficiency • Profitable Growth

18. Thank you