Transcript Document

NEW ZEALAND ADVISORY and CONSULTANCY SERVICES
Update, 30 May 2012
Connecting customers to
New Zealand Aviation solutions
NZ has very mature Aviation capability
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NZ has a significant Aviation background:
• First aviation exports 1912
• First passenger flights 1915
• First Pilot School 1916
• First airmail service 1919
• Pioneered use of aviation in tourism, forestry, agriculture, horticulture
NZ has developed a high profile over a long time for being an industry leader. From ETOPS, FANS, RNP to
the development of ground breaking software applications, NZ industry has set new benchmarks for
innovation and product design.
Leveraging this NZ has created a competitive global industry that is enjoying considerable success and
growth
A recent study quantified the size of the industry, its contribution to the economy, the value of exports and
predicted future domestic and international growth. The industry has real substance.
NZ products and services are exported to over 100 countries and can be found on every continent
International companies using New Zealand aviation products and services comment on their ‘best fit for
needs’, ‘reliability’, ‘breakthrough technology’, ‘easy installation’ and ‘revolutionised our business’
Aviation NZ members take this opportunity to update companies on Advisory and
Consultancy Services available in New Zealand and how to leverage this capability
Advisory & Consulting Services is a key part of
the NZ capability
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The sector covers all aspects of aviation from policy, infrastructure, demand for services and
performance of services to building sustainable capability
This sector is
– actively involved in growth in many offshore markets. Global experience has grown in line with this
– winning work on the back of a growing awareness of it’s capabilities and referrals from past
customers
– made up of small companies and individual specialists who network together to provide the
necessary skills and meet customer requirements
– leveraging off Air New Zealand’s high profile
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The networking of individual specialists has proved to be a successful model for both the
suppliers and their clients. It minimises fixed costs and therefore, maximises
competitiveness
Companies have ready access to this capability
To determine local strategies and plans, industry participants
must understand the global trends
Global industry trends are generally well documented and understood:
– Demand is increasingly being impacted by one off events,
economic cycles are less predictable and short term forecasting
has become more difficult than long term
– Fuel prices are trending up
– Lead time to access incremental aircraft technologies or
modernise fleet is growing
– Strategies need to be more flexible. But flexibility as a risk
mitigation, normally adds cost
Companies can access world-class experience from New Zealand
Some of the underlying issues and
consequences are less well understood
• Tendency for organisations to become reactive to short term issues
and not spend sufficient time on the longer term
• Impact on costs of global skill shortages
– This is a significant risk as the high growth regions attract resources
– These resources include Engineers and pilots, but also Management expertise
• Growing shortage of experienced Executives coupled with increased
demand from growing number of airlines
– Increasing need to be able to meet Executive and Management needs from within
own organisation. Skill development can be met by use of advisors
• Effective governance has to ensure that plans are in place to mitigate
against these risks;
– Understand the potential CRM issue of employing increasing numbers of
Expatriates from emerging countries
– Ensuring organisations Systems of Management are in place to reduce
dependence on individuals and provide for a higher turnover of Executives and
Management
Companies can access world-class experience from New Zealand
Some of the underlying issues and consequences
are less well understood (continued)
• In small economies (which we are all part of ) there is a critical need
to have alignment of strategies and plans focused on the national
interest
– Monopolistic suppliers have to be efficient to promote destinational
attractiveness, and ease of entry, whilst preserving effective border control.
Criteria may be contribution to GDP rather than return on assets
– Airlines are high risk, low return entities. Airlines providing services provide the
major contribution to the economy
– National interest often requires a trade-off across these entities
– Each country is effected by the same issues but has to find their unique
solution
An effective way of understanding and acting on these underlying issues
is to leverage a group of advisors who have exposure to many countries
and can advise of the best solution for your airline or country
For more information and to make
contact with the network of
Advisory &Consulting Services
Mike Flanagan and Associates Ltd
Mr John Nicholson
Chief Executive
Aviation New Zealand
PO Box 2096
Wellington 6140
Tel +64 4 472 2707
Mob +64 27 600 9156
Fax +64 4 471 1314
New Zealand
www.aviationnz.co.nz
Connecting customers to
New Zealand Aviation solutions