Air New Zealand 2009 Annual Report Download - page 15

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1. SEGMENTAL INFORMATION
Air New Zealand operates predominantly in one segment, its primary business being the transportation of passengers and cargo on scheduled airline
services to, from and within New Zealand.
Geographical
An analysis of operating revenue by geographical region of original sale is provided below.
GROUP
2009
$M
GROUP
2008
$M
Analysis of revenue by geographical region of original sale
New Zealand 2,373 2,448
Australia and Pacific Islands 647 625
United Kingdom and Europe 533 551
Asia 498 480
North America 558 563
Total operating revenue 4,609 4,667
The principal non-current assets of the Group are the aircraft fleet which is registered in New Zealand and employed across the worldwide network.
Accordingly, there is no reasonable basis for allocating these assets to geographical segments.
2. PROFIT BEFORE TAXATION
GROUP
2009
$M
GROUP
2008
$M
COMPANY
2009
$M
COMPANY
2008
$M
Profit before taxation has been determined by (debiting)/crediting the
following:
Total operating revenue, including finance income 4,707 4,784 4,101 4,365
Audit of financial statements* (1) (1) (1) (1)
Termination costs (6) (4) (6) (4)
Net foreign exchange gain on working capital balances 27 6 18 11
Loss on disposal of property, plant and equipment (11) (4) (8) (6)
Impairment losses on property, plant and equipment** (81) - (14) -
Discount on acquisition (refer Note 13) 10 - - -
Amortisation of deferred credits - - - 1
Donations*** (1) - (1) -
Rental and lease expenses
Aircraft (286) (226) (417) (387)
Buildings (48) (44) (42) (39)
Total rental and lease expenses (334) (270) (459) (426)
* Excluded from the fees above are fees for other audit related services of $196k for the year ended 30 June 2009 (30 June 2008: $218k) paid in
respect of the half-year review. Other fees of $45k (30 June 2008: $31k) were paid for tax compliance work and other assurance services.
** Impairment losses on property, plant and equipment (recognised within “Other expenses”) relate to an Airbus A320 ($45 million) which was lost in
the Mediterranean sea, and one Boeing 747-400 aircraft ($36 million). The Airbus A320 aircraft was being leased to and operated by XL Airways
Germany GmbH and was insured by the lessor. Impairment of the Group’s last remaining owned Boeing 747-400 Rolls Royce powered aircraft arose
upon transfer of the airframe and two engines to an assets held for resale category.
*** Donations predominately comprise payments to the Air New Zealand Environmental Charitable Trust, Kids Restore New Zealand and Make-A-Wish
Foundation.
“Foreign exchange gains/(losses)” as disclosed in the Statement of Financial Performance comprise realised gains/(losses) from operating hedge
derivatives, the translation of monetary assets and liabilities denominated in foreign currencies and ineffective and non-hedge accounted foreign
currency derivatives.
AIR NEW ZEALAND
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR TO 30 JUNE 2009
13