Air New Zealand 2016 Annual Report Download - page 41

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Notes to the Financial Statements (continued)
For the year to and as at 30 June 2016
39
AIR NEW ZEALAND GROUPAIR NEW ZEALAND GROUP
26. Related Parties
Crown
The Crown, the major shareholder of the Company, owns 52 percent of the issued capital of the Company (30 June 2015: 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:
2016
$M
2015
$M
Short-term employee costs
Directors’ fees
Share-based payments
14
1
2
13
1
2
17 16
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 and performance right plans
Shares held by the Staff Share Purchase scheme and Executive share option and performance right plans are detailed in Note 19.
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.
Between 4 July 2015 and 30 March 2016 the Group recognised Virgin Australia Holdings Limited as an associate investment (refer Note 3).
During the period Air New Zealand provided 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 disclosures below, as they relate to transactions with
Virgin Australia, are for the period ending 30 March 2016.
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.
2016
$M
2015
$M
During the year, there have been transactions between Air New Zealand and its associated companies as follows:
Operating revenue*
Operating expenditure
46
(18)
62
(24)
Balances outstanding at the end of the year are unsecured and on normal trading terms:
Amounts owing from associates
Amounts owing to associates
1
1
24
18
* Excludes passenger revenue from interline arrangements.
The CEC paid a distribution to the Group of $5 million on 21 January 2016. On 23 March 2015 the CEC declared a distribution to the Group of
$5 million which was paid on 22 July 2015.
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.