[Peetwo]

ASA bottom line? - FY 2014-15

Lisa Allen, from the Oz Business, has been reviewing the ASA Financial statements from their recently released Annual Report.

First:

Airlines seek new horizons as mining downturn clips wings  

• by: LISA ALLEN
  
• From: The Australian
  
• November 05, 2015 12:00AM
  

Property & Tourism Reporter
Sydney



The softening mining boom is cutting sharply into air traffic volumes. Source: Supplied
 
The softening mining boom is cutting sharply into air traffic volumes as carriers reduce flights and switch from dedicated long-haul mining routes to more lucrative commercial services on key leisure routes.  

Airservices Australia reported total income for the 2015 financial year at $1.012 billion, marginally below its 2014 performance because of reductions in air traffic volumes as the major domestic airlines reduced and consolidated services.

Linc Energy’s executive chairman, Peter Bond, himself a pilot, says there’s been a number of reductions in flights since the height of the mining boom.

“Charter work has slowed down and stopped. The sheer volume of fly-in and fly-out work has reduced, as has a lot of the short-term flights. I would say traffic has definitely reduced.”

Airlines such as Qantas have reacted to the loss of some FIFO mining routes by redeploying planes from the resources states of Western Australia and Queensland.
Qantas recently introduced special Boeing 737 Sydney to Denpasar flights for Bali’s peak Christmas and New Year season in December and January.

“In response to changes in the resources sector we have moved some capacity on to the east coast, including leisure markets like Melbourne and the Gold Coast where we are seeing good levels of demand,” said Qantas spokesman Andrew McGinnes. “We are still serving resource markets and resource clients but our focus has been using smaller gauge aircraft with a similar level of frequency,’’ he said.

Airservices Australia’s financial report reveals the organisation produced lower finance incomes, as cash holdings and interest rates reduced during the year. Business revenues also reduced, while one-off contracts that had generated additional income in the previous year disappeared, Airservices said in its 2014-2015 annual report.

“These reductions were partially offset by scheduled price increases averaging 0.4 per cent for the year as endorsed by the Australian Competition & Consumer Commission under the five-year pricing agreement that was set in 2011,” Airservices said.

The report’s financial statements do not reveal individual salaries but total executive remuneration dropped from $5.407 million in 2014 to $4.84m in 2015. Full-time executives earned an average $537,777 in 2015, down from $551,734 in 2014.

Termination benefits of $655,000 were paid out in 2014, as opposed to $494,000 the following year.

And today (bucket maybe required - i.e. Harf-wit smug phot):

Airservices cuts airport delays to save $18m in fuel

• by: LISA ALLEN
  
• From: The Australian
  
• November 06, 2015 12:00AM
  

Airservices Australia acting chief executive Jason Harfield. Source: News Limited

Reducing delays at major airports by 8700 hours helped cut airline fuel costs by $18 million this financial year and Airservices Australia says it is continuing to drive fuel efficiencies and reduce emissions as the nation’s air traffic continues to increase.  

The federal air traffic control body produced a net profit after tax of $4.5m for the year, reflecting an after-tax return on average equity of 0.7 per cent, well below the planned target of 6.4 per cent. “This outcome was mainly due to the limited short-term flexibility in our cost base to respond to short-term changes in revenues which are outside our control,” Airservices recently released annual report said.

On a brighter note, Airservices reported its air traffic flow management program — one of a number of measures implemented to drive fuel efficiencies, reduce emissions and enhance safety for airlines and operators — continued to deliver savings to Airservices Australia customers such as Qantas and Virgin Australia.

An independent study reported the air traffic flow management ground delay program, which streamlines air traffic management, had driven a combined annual saving of about 8700 hours in airborne delay time across four major airports — Sydney, Melbourne, Brisbane and Perth.

“The study suggests that with a 60 per cent increase in Australia’s air traffic expected by 2020, these savings could increase to 14,300 hours, or 1.3 minutes per flight, and $37.3m in annual fuel savings by 2022,” Airservices acting chief executive Jason Harfield said.

“Other important initiatives this year include greater use of flexible air traffic routes and user preferred routes allowing airlines to maximise their flight routes.”

 
Note there is no mention of the mortal wounds inflicted on the vital GA industry by ASA or CASA - look here for a dose of reality: Sky Wars - The Force awakens


MTF...P2