Wellington International Airport outlines cost reduction and liquidity measures

Wellington International Airport (WIAL) stated (28-May-2020) the airport has taken a number of significant actions to resize its business for the forecast impact of reduced airline travel, including reduced staff salaries and introducing a four day working week. Other expenditure has also been reduced, including reduced passenger related costs and non essential or discretionary costs. In addition, capital expenditure has been substantially resized to provide for the maintenance of critical services and required expenditure. WIAL has also undertaken a range of measures to enhance its liquidity and overall financial flexibility. WIAL has agreed with its banking group an increase in its banking facilities from NZD100 million (USD62.8 million) to NZD170 million (USD106.8 million). WIAL has also obtained a temporary waiver of certain bank covenants for the next three test dates being Sep-2020, Mar-2021 and Sep-2021. WIAL is seeking to obtain a temporary waiver for its USPP debt covenants for the test dates, and has put in place a NZD25 million (USD15.7 million) shareholders agreement. [more - original PR]