Air New Zealand 2015 Annual Report Download - page 41

Notes to the Financial Statements (continued)
For the year to and as at 30 June 2015
Air New Zealand Annual Financial Results 2015 39
25. Related Parties
Crown
The Crown, the major shareholder of the Company, owns 52 percent of the issued capital of the Company (30 June 2014: 52 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.
Key management personnel
Compensation of key management personnel (including directors) was as follows:
2015
$M
2014
$M
Short-term employee costs
Directors’ fees
Share-based payments
13
1
2
12
1
2
16 15
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.
Staff share purchase schemes and Executive share option plans
Shares held by the Staff Share Purchase scheme and Executive share option plans are detailed in Note 18.
Bank set-off arrangements
The Group has a set-off arrangement on certain Bank of New Zealand balances, allowing the offset of overdraft amounts against in-fund amounts.
The following entities are included in the set-off arrangement:
Air Nelson Limited
Air New Zealand Limited
Air New Zealand Regional Maintenance Limited
Eagle Airways Limited
Mount Cook Airlines Limited
Associated companies
Transactions between the Group and associated companies are conducted on normal terms and conditions.
With effect from 4 July 2014, the investment in Virgin Australia Holdings Limited Group (Virgin Australia) has been recognised as an associate.
Air New Zealand provides aircraft maintenance services and contract work, catering and ground handling services, and engine sharing with Virgin
Australia. The Group has a revenue share trans-Tasman alliance with Virgin Australia (including interline arrangements) which includes providing
customer access to Air New Zealand lounges and loyalty programmes.
The Christchurch Engine Centre (CEC) provides maintenance services to the Group on certain V2500 engines. The Group receives revenue for
contract and administration services performed for the CEC.
2015
$M
2014
$M
During the year, there have been transactions between Air New Zealand and its associated companies as follows:
Operating revenue*
Operating expenditure
62
(24)
3
(4)
Balances outstanding with associates at the end of the year are unsecured and on normal trading terms:
Amounts owing from associates
Amounts owing to associates
24
18
6
-
* Excludes passenger revenue from interline arrangements.
On 23 March 2015 the CEC declared a distribution to the Group of $5 million. The amount was outstanding as at 30 June 2015. On 9 May 2014
the CEC declared a distribution to the Group of $4 million which was paid on 24 July 2014.
Other related party disclosures
Other balances and transactions with related parties are not considered material to Air New Zealand and are entered into in the normal course of
business on standard commercial terms. There have been no related party debts forgiven during the year.