Air New Zealand Opts to Limit Dividend Payments
Air New Zealand has been reported to have opted for limiting its dividend payments in its latest year. It was despite of the fact that it produced record operating cash flow. It piled cash on its balance sheet and pushed gearing below its target range. This served as a buffer against fleet against fleet renewal and volatile fuel costs.
A final dividend of five cents a share will be paid by the state-controlled airline. It will make eight percent for the year, which is 45% more than the previous year. In 2012, there was a reduction to 49% from 85% in its dividend ratio payout.
Rickey Ward, head of equities at Tyndall Investment Management, said, "The dividend payment will raise eyebrows. Even taking into account the increased level of debt for new aircraft they appear to remain comfortably inside imposed guidelines".
Mr. Ward added that he has nothing to argue about the latest results, which has clearly gone way ahead than market expectations. He said it is always good to see a NZ company doing well in a high competitive arena on the global scene.
Air New Zealand there were serious concerns for the loss of cabin pressure on a flight this morning. It, however, was well-controlled.
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