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Speaker 1: Crayin Bridge Jenie Zealand's half year result out net profit

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Speaker 1: one hundred and six million dollars. That is down eighteen

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Speaker 1: percent on the same period last year. Engine issues. The

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Speaker 1: big problem for them, Greg four and is the chief executive.

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Speaker 2: High, Greg Hi there, how are you right? Good?

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Speaker 1: Thank you? How much worse? So obviously this is not

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Speaker 1: great for you? How much worse will it get in

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Speaker 1: the second half? Do you reckon?

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Speaker 2: Look bit too early to call at this stage, but

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Speaker 2: we have said to the market that we do expect

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Speaker 2: it to be down on where we were in the

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Speaker 2: first half. But I would say, actually, I think this

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Speaker 2: is a really good result for the first half. You know,

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Speaker 2: when you consider what we're dealing with here, it has

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Speaker 2: been tough. It's a bit like you know, an all

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Speaker 2: Blacks team operating without the front row. You know, some

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Speaker 2: of these things are beyond our control. But I think

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Speaker 2: it's been a good performance. We haven't buckled and I

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Speaker 2: think our staff have really done a true terrific job

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Speaker 2: holding this thing together.

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Speaker 1: This is the engine issues. How many how many planes

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Speaker 1: are you short? And how much do you reckon that's

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Speaker 1: taking off your bottom line?

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Speaker 2: Well, we know actually that it's about one hundred and

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Speaker 2: thirty million dollars worth a headwind in that first half,

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Speaker 2: so you know, we calculate that we've got about ninety

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Speaker 2: million dollars worth of compensation. So it didn't cover everything

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Speaker 2: that we had to deal with, but it certainly helped.

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Speaker 2: And that's all part of the negotiation we have with

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Speaker 2: the engine guys. We had been down about you know,

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Speaker 2: seven to eight planes in the first half, but we're

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Speaker 2: predicting that's actually going to be around eleven in the

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Speaker 2: second half and then it should start to improve. And

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Speaker 2: you know this is all due to Rolls Royce and

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Speaker 2: Pratt and Whitney. It's a worldwide issue. It just happens

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Speaker 2: to be that, you know, we've got two of the

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Speaker 2: engine models that are problem about it.

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Speaker 1: What about the performance? This is your on time performance.

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Speaker 1: September you were at eighty point four percent for on

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Speaker 1: time departures. Is that getting better or worse?

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Speaker 2: It's been actually a real focus of ours. We weren't happy,

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Speaker 2: not just in September, we weren't particularly happy in November

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Speaker 2: and December, and neither were our customers. And I apologize

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Speaker 2: for that, but I can tell you we have really

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Speaker 2: nailed our performance since the beginning of the year and

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Speaker 2: on time performance has been over eighty percent for both

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Speaker 2: January and February. To date, cancelation rates has come right

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Speaker 2: down year to date just one point three percent, So

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Speaker 2: a real focus and once again credit to the team.

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Speaker 1: In Ukland Airport having another crack at you. I mean,

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Speaker 1: this is like the perennial back and forth between you guys.

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Speaker 1: But they're saying today, they're saying that your market dominant,

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Speaker 1: you know, eighty four percent of the domestic market. You're

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Speaker 1: not meeting the needs of customers and regional communities. We've

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Speaker 1: got high prices, we've got fewer flights than the pre pandemic.

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Speaker 1: It's affecting tourism.

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Speaker 2: What are you saying, I'd say a couple of things.

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Speaker 2: First of all, in terms of regional connectivity. You know,

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Speaker 2: back in twenty twelve, so just over deco decade ago,

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Speaker 2: we only had thirty four turboprops servicing regional New Zealand.

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Speaker 2: It's eighty hours and Q three hundreds. We now have

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Speaker 2: fifty three seem to be fifty four, so plenty of

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Speaker 2: extra flights in There have there been some adjustments, particularly

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Speaker 2: out of Wellington in the last few months as we

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Speaker 2: deal with a twenty five percent decline in government travel

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Speaker 2: and a decline in corporate travel. Of course you would

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Speaker 2: expect us to do that, but we know how important

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Speaker 2: it is to be fair to everyone in New Zealand

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Speaker 2: and ensure we've got connectivity. In The second point I

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Speaker 2: make is I don't want to get into the pointing

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Speaker 2: fingers that the stage My issue in terms of main

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Speaker 2: airports is around the regulatory settings. And you know that's

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Speaker 2: what I'm asking not just Auckland the airport. I'm asking

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Speaker 2: that you know, the government to look at and say

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Speaker 2: what is the responsible regulatory settings to ensure that infrastructure,

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Speaker 2: which is effectively operating in a monopoly type environment, gets spent.

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Speaker 2: We all know spend some money, but have some checks

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Speaker 2: and balances in there.

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Speaker 1: We have ten seconds left if he's going to get

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Speaker 1: more expensive this half.

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Speaker 2: What we're seeing is what we're seeing all around the country, Ryan,

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Speaker 2: and we're seeing less inflation a little bit still. What

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Speaker 2: I can tell you is we do our best to

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Speaker 2: hold them, but we are still seeing a little bit

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Speaker 2: of inflation, but certainly the rate of increase has decreased. Greg.

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Speaker 1: Thank you very much, Thank you right it's Greig four

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Speaker 1: and he's the chef executive at in New Zealand. Just

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Speaker 1: gone fourteen minutes after five. So yeah, they are slightly

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Speaker 1: less twenty three million dollars less than what they made

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Speaker 1: in the same six months of last year, but still

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Speaker 1: a profit of more than one hundred million dollars Here

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Speaker 1: in New Zealand. For more from Heather Duplassy Allen Drive,

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Speaker 1: listen live to news talks it'd be from four pm weekdays,

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