Air New Zealand 2011 Annual Report Download - page 53

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27. RELATED PARTIES
Crown
The Crown, the major shareholder of the Company, owns 74 percent of the issued capital of the Company (30 June 2010: 75 percent).
The balance is owned by the public.
Air New Zealand enters into numerous transactions with Government Departments, Crown Agencies and State Owned Enterprises on
an arm’s length basis. All transactions are entered into in the normal course of business.
All members of the Group are considered to be related parties of the Company. This includes the subsidiaries and associates identified
in Note 13.
Key management personnel
Compensation of key management personnel (including directors) was as follows:
GROUP
2011
$M
GROUP
2010
$M
COMPANY
2011
$M
COMPANY
2010
$M
Short-term employee costs 6 5 6 5
Directors' fees 1 1 1 1
Share-based payments 3 3 3 3
10 9 10 9
Certain key management personnel (including directors) have relevant interests in a number of companies (including non-executive
directorships) to which Air New Zealand provides aircraft related services in the normal course of business, on standard commercial terms.
Jane Freeman was a director of Air New Zealand Limited during the year and retired on 24 August 2011. A related party to Jane Freeman,
Chris Hunter (Husband), is CEO of Hawkins Construction Limited. During the year Air New Zealand paid to Hawkins Construction Limited
and Hawkins Interiors $3 million (30 June 2010: $2 million) for construction related services. At balance date there were no amounts
outstanding (30 June 2010: Nil). All transactions between Air New Zealand, Hawkins Construction Limited and Hawkins Interiors are
conducted on standard commercial terms.
Paul Bingham (Director), is also a Director of Christchurch & Canterbury Marketing Limited (trading as Christchurch & Canterbury
Tourism). During the year Air New Zealand provided $115,000 to Christchurch & Canterbury Tourism to enter into an Australian Joint
Venture Marketing Campaign.
Staff Share Purchase Schemes
The Air New Zealand A and B Staff Share Purchase Schemes were established by the Group in 1998. All full time and regular part-time
employees were invited to participate in the Schemes with a share allotment date, being 12 August 1998. The shares were held by the
Trustees during a three year restrictive period, which expired in September 2001. As at 30 June 2011, the Scheme held 93 unallocated
ordinary shares (30 June 2010: 93 shares).
Executive share option plans
Executive share option plans are detailed in Note 22.
Transactions between the Company and its subsidiary or associated companies
Subsidiaries
During the year there have been transactions between the Company and its subsidiaries as follows:
COMPANY
2011
$M
COMPANY
2010
$M
Operating revenue (excluding dividend revenue) 66 61
Dividend revenue 256 16
Finance costs * (17) (12)
Operating expenditure (290) (306)
Included within Operating expenditure ("Other expenses") are the following amounts:
Reversal of impairment of investment in subsidiaries - 2
* Finance costs include finance income of $8 million (30 June 2010: $6 million) and finance costs of $25 million
(30 June 2010: $18 million).
AIR NEW ZEALAND ANNUAL FINANCIAL RESULTS 2011