Airways pays Govt $7m dividend

By DANIEL RIORDAN

Despite losing its second-biggest customer during the year, the Airways Corporation has paid the Government a $7 million dividend and, for the first time, rebated airlines $2.4 million.

The state-owned enterprise wrote off $2.4 million in bad debts after the collapse of Tasman Pacific Airlines (also known as Qantas NZ) in April.

The airline's liquidators said creditors would probably receive 7c to 11c in the dollar, which meant Airways was unlikely to receive more than $290,000.

In the year to June 30, Airways made a net profit of $4.6 million, down from $8.7 million the previous year but in line with the company's expectations.

This year's $7 million dividend compared with $6 million last year.

In EVA (economic value added) terms, the company reported a profit of $2 million, its best result in six years.

Apart from the bad debts associated with Tasman Pacific and the rebate to airlines, Airways also took a one-off hit from the cost of its failed bid for Britain's air traffic control system.

A consortium led by Airways' partner, US technology giant Lockheed Martin, made the shortlist of three for the 46 per cent of Britain's National Air Traffic Services being privatised by Tony Blair's Government.

The bid cost Airways $2 million, against a potential gain of $70 million.

A British-European consortium got the nod.

The company said it would hold its air traffic charges this year but would look to reduce costs. Citing the current global climate for aviation, it expected to report a lower profit.

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