2 0 1 3 Annual

rep ortBY YOUR SIDE FOR 15 YEARSTA H I T I|

LOS ANGELES|PA R I S|

TO K YO|AU CK L AN D

SUMMARYSTATUS
6 LEGAL
AND CAPITAL4MILESTONES

8ACTIVITYSUMMARY

12CUSTOMERSATISFACTION

14PASSENGER AND
FREIGHT TRAFFIC

20 FINANCIAL RESULTS
24

HUMAN
RESOURCES2 | 2013 PROGRESS
Annual report
REPORT

26

OUTLOOK
FOR 2014

EDITO

2013, THE ADVENTURE GOES ON…
The “Tiare” flower-waving airline is back in the spotlightwith a newfound financial health in 2013!
Air Tahiti Nui achieved a net profit of 1,677 billion F CFP (an increase of 1,4 billion F CFP compared to 2012
figures). However, we must be careful not to celebrate prematurely. Our industry is complex and exposed,and despite signs of recovery in some markets, the worldwide economy remains fragile. Therefore, cautiousness is required and the approach is to take advantage of the financial lull, in order to prepare thetransition and take off again.
Michel Monvoisin
Chairman of the Board
And Chief Executive Officer

15 years later, the adventure goes on…

By accepting to take over the duties of Chairman of the Board and Chief Executive Officer of Air Tahiti Nuiin October 2013, I had the opportunity to commemorate the 15th anniversary of its operation along with our partners andcustomers in Tahiti and on our markets. It was essential to honor our founders, the Air Tahiti Nui “pioneers”, shareholders andemployees who have taken up the formidable challenge of creating an airline. Not forgetting of course, our customers (including the members of our Club Tiare frequent flyer program) who have joined and supported this adventure throughout
the years, to allow our company “Air Tahiti Nui” to grow !
However, the work is not complete. Reinforcing the basics, and remembering that Air Tahiti Nui has been created to ensuresustainable air services across the Polynesian sky, allow us to reassert that our main mission is indeed to contribute to theCountry’s tourism development. But this development can only be implemented by embracing two key pillars which are;maintaining high quality and safety standards and financial profitability which is crucial for any growth policy.

Major projects lie ahead:
The renewal of the fleet;
The reinforcement of alliances and partnerships;
The optimization of the existing routes;
Instilling a new sales and marketing momentum;
Maximise organizational structure for tomorrow’s challenges.
Air Tahiti Nui is the Country’s main tourism development tool and a part of the common heritage shared by all Polynesians.
My priority will be to give us all the means to tackle tomorrow’s challenges, by launching an in-depth and progressive
reform that will continue throughout the 2014 biennium.
Michel Monvoisin
Chairman of the Board
And Chief Executive Officer
2013 Annual report | 3

MILESTONESIn 2013 the airline
with the stylish cab
2013 will be remembered as the year of a return to
growth in our cruise passengers’ transport activity withthe arrival of Oceania Cruises’ ships in the Polynesian
waters, requiring at short notice special flights to be setup from Los Angeles, to carry up to 1200 customers per
cruise.
Upon completion of cabin refit work lasting several
weeks in Zurich, Air Tahiti Nui took delivery of three A340300 aircraft, reconfigured in a two-class layout. The aircraft returned to service on the Papeete-Paris route frommid April onwards.
As a prelude to the reconfiguration the company modernised its logo to better visually reflect its blossoming
maturity. The Tiare flower, being the traditional emblem
of both the company and the Polynesian warm welcome, was preserved with some design enhancement.

2013 IN FIGURES…
© SR Technics

5 Airbus A340-300

Including 3 aircraft renovated ina two-class layout

17 780 hours of flight4 | 2013 Annual reportmarked its 15th Anniversary
bin reconfiguration of 3 aircraft…
The route network was enhanced with the introduction of a third service to Auckland at the end of the year. This development was underpinned by the strengthening of the codeshare agreement with Qantas on the Australia-Auckland-Papeete
route, and a newly implemented codeshare partnership with American Airlines
between Los Angeles and Auckland.
Air Tahiti Nui has also successfully achieved the IOSA audit (IATA Operational Safety
Audit), valid until 2015, certifying that the company complies with the most demanding safety standards in air transportation (ICAO international standards, North
American or European regulations but also practices and procedures generally accepted by airline companies).
In December, Air Tahiti Nui reached a new landmark in maintenance activity by celebrating its one millionth hour of engine operation. This provides first-hand evidenceof the excellent operational reliability of the engines (CFM56-5C), combined with aconstructive partnership between Air Tahiti Nui and engine makers CFM International, along with the subcontractors in charge of engine maintenance (Air France
Industries and Lufthansa Technik).

420 782 passengers
carried

1,677 billion de F CFP

residents of Tahiti(or almost 14 million euros)

including 96 400

89 466 membersof the Club Tiare
Frequent flyer program(including 192 Corporate companies)of positive results

703 employees(includes 392 flight crew and
60 staff based overseas)« Our mission:Operating sustainable air services likely
to support the developmentof the tourism industry in French Polynesia
while preserving profitability and the high safety
standards of our flight operations.”

8 843 tons
629 millions de F CFP

of freight

carriedof charter turnover(or 1025 flight hours on behalf ofvarious freight forwarders)
Scan this code and watch “Flying Tiare”
on our Youtube channel,
the special 15 years anniversary video madein Tahiti which went viral with over 850 000 views

RAPPORT D’ACTIVITÉ 2013 | 5

LEGAL STATUS AND CAPITALAIR TAHITI NUI WAS FOUNDED
ON OCTOBER 31ST 1996,
FLIGHT OPERATIONSBEGAN IN NOVEMBER 1998
1. Capital breakdown
In September 2001, Air Tahiti Nui’s legal status evolved from that ofa Limited Company to that of a Local Semi-Public Company, thereby meeting the statutory rules related to the country’s majority
shareholding in the company’s capital. On November 22nd, 2011,
the capital amounted to 1 622 956 875 F CFP and is distributed asfollows:
Electricité de Tahiti
0,5%

Wan Holding Participation

Source Présidence0,6%

Nov 2000 – Shareholders agreement
Air Tahiti Nui’s employees gathered at the Presidential Palace in Tahiti, for the signature of the shareholders agreement, providing Air Tahiti Nui with the opportunity to sustain its activity and to grow. The celebration took place in thepresence of the President of the government Mr. Gaston FLOSSE, that of the late founding CEO of Air Tahiti Nui Mr.
Nelson LEVY and the members of the board of directors.

Brasserie de Tahiti
Tahiti Tourisme
1,6%

French Polynesia

2,7%

84,8%

Air Tahiti
3,4%

6 | 2013 Annual report

1,9%

0,6%

SEGC

CAPITAL SHARINGOF 12/31/2013

Others

OCI
3,9%

1,6

2. List of Directors
As a Local Semi-public company, the Air Tahiti Nui airline
has a Board of Directors consisting of:

LEGAL STATUS AND CAPITALBILLIONcapital• PUBLIC DIRECTORS (9)Representing the Country and appointed by the Council of Ministers• PRIVATE DIRECTORS (6) representing the private sector
On January 1st, 2013

On October 1st, 2013

REPRESENTATIVES OF FRENCH POLYNESIA:REPRESENTATIVES OF FRENCH POLYNESIA:• M. Etienne HOWAN

Chairman & Chief Executive Officer• M. Michel MONVOISIN• M. Oscar Manutahi TEMARU

President of French Polynesia• M. Geffry SALMON	
Minister in charge of Tourism, Ecology,• M. Pierre FREBAULT	
Minister in charge of Economic Affairs,
Finances, of Labor and of Employment• M. Jean-Christophe BOUISSOU	Representative of the Assemblyof French Polynesia• M. Robert TANSEAU	
Representative of the Assemblyof French Polynesia• M. René TEMEHARO	
Representative of the Assemblyof French Polynesia• M. James SALMON	
Minister in chargeof Equipment and Land Transport• M. Jacqui DROLLET	
President of the Assembly• M. Hinoi FRITCH

Chairman & Chief Executive Officer
Culture and Air Transport• M. Nuihau LAUREY	
Vice-President, Minister in charge of Economic
Affairs, Finance, Budget and Labor• M. Marcel TUIHANI	Minister in charge of Housing, Land Affairs, Digital
Economy and Craftmanship• M. Edouard FRITCH	
President of the Assemblyof French Polynesia• M. Jean-Christophe BOUISSOU	Representative of the Assemblyof French Polynesia• M. Teura IRITI	
Representative of the Assemblyof French Polynesia

of French Polynesia• M. Daniel PALACZ

Representative of the Air Tahiti Nui personnel• M. Gilles BERNEDE

Representative of the Air Tahiti Nui personnel

PRIVATE DIRECTORS:PRIVATE DIRECTORS :Representative of SEGC

• M. Vincent LAW

Representative of SEGC

• M. Marcel GALENON

Representative of SA Air Tahiti (LC)• M. Joël ALLAIN

Representative of Air Tahiti LC• M. James ESTALL

Representative of OCI• M. James ESTALL

Representative of OCI• M. Vincent LAW• M. Yves BUHAGIAR	
Representative of SA Financière• M. Yves BUHAGIAR	
Representative of SA Financière Hôteliere
Polynésienne (Limited Company)

Hôteliere Polynésienne (LC)• M. Robert WAN• M. Richard BAILEY

Representative of WAN Holding Participation• M. Robert WAN

Representative of WAN Holding Participation

Representative of Tahiti Beachcomber LC• M. Richard BAILEY

Representative of Tahiti Beachcomber LC

3. Statutory auditors
The company’s statutory auditors are:• M. Jean-Pierre GOSSE, representing the PPC (private professional company)
GOSSE - PARION, Statutory Auditors;• M. Gilles REDON, representing the PPC REDON – PELLOUX – CHAIZE - MU SI YAN –LIS, Statutory Auditors;

2013 Annual report | 7

ACTIVITY SUMMARY5AIRBUS A340-300
MAKE UP THE FLEET

1. The fleet
Air Tahiti Nui’s fleet consists of 5 Airbus A340-300 aircraft, eachwith the same engine configuration. The cabin interiors of threeaircraft were newly renovated in 2013. The remaining two aircraft
are equipped as follows in a two-class layout: 30 seats in Businessand 264 seats in Economy (total of 294) each with individual audio-video system:• MSN 395 F-OJTN on operating lease (“BORA BORA”)• MSN 668 F-OLOV on financial lease (“NUKU HIVA”)
Poerava Business
Designed to accommodate 30 customers, the spacious forward Business cabin is delicately decorated and provides a high quality Polynesian hospitality. The ornamental designs and the spacing between theseats favor privacy and comfort. Each seat is equipped with a head-rest,a foot-rest as well as an individual video display offering movies and games.
Moana Economy
The Moana Economy cabin welcomes 264 guests with all the services and comfort required when travelling on long-haul flights.
The 8 seats abreast, designed in a 2-2-2-2 pattern, meet travelers’
space and comfort requirements. Each customer also benefits froman individual video display with movies and games.

8 | 2013 Annual reportACTIVITY SUMMARY

A new interior, reflecting the colors
and charm of Tahiti

Each seat is equipped with a high definition touch-screen display (12 inches wide)
offering a wide variety of on-demand contents on each flight (i.e. over 14 movies,
24 TV programs, a wide selection of music and games). Navigation is made easierwith the help of a remote control located in the armrest.

At the dawn of its 15 years of operation, Air Tahiti Nui has chosen to modernize
its cabins in order to provide guests with optimal comfort. The investment of
13 million euros over 2 years includes an expansion of the Business Cabin, newlarger and more comfortable seats, a new in-flight entertainment system that is
entirely digital and on-demand.
With this new interior, Air Tahiti Nui has achieved a product standard the equalof major airlines globally, whilst differentiating itself with its unique Polynesian
touch and welcome.
Three aircraft were remodeled in 2013 and are now featuring a two-class layout:
32 seats in Business and 264 seats in Economy (total of 296) equipped with individual on-demand audio-video screens• MSN 385 F-OJGF owned (“MANGAREVA”)• MSN 438 F-OSEA on financial lease (“RANGIROA”)• MSN 446 F-OSUN on financial lease (MOOREA”)

Moana Economy
In Moana Economy, the cabin features 264 comfortable “Steezy”-styled seats,with a 81cm pitch and 118° recline. Its 45cm-wide seating cushion makes it oneof the widest available on Tahiti serving flights.
Each seat is equipped with a high definition touch-screen (9 inches) display
which offers a wide variety of on-demand contents on each flight (i.e. over 14
movies, 24 TV shows, a wide selection of music and games).

Poerava Business
The new Poerava Business cabin offers 32 “Evolys” type seats: a reclining seat able
to tilt up to 160 degrees, offering optimal comfort. Set out with 152cm-wide spacing between each row to allow greater privacy, the seatback shell allows theseat to be reclined whilst preserving the space for the person behind.

This renovation has been provided by SR Technics, a Zurich group specializing
in aircraft maintenance and one of the most important aeronautical technicalservice providers in the world.

2013 Annual report | 9

ACTIVITY SUMMARY

1 471
FLIGHTSin 2013

2. Aircraft utilization
Overall, the airline has registered 17 780 flight hours in 2013, an estimated 2.9%
less than in 2012, due to slightly declining networking and chartering activities.
The average flying hours for the Air Tahiti Nui fleet displays an efficient activity
level of 9.75h/day (against 10h/day in 2012).

3. Safety at the very heart of our business
APPROVALS AND CERTIFICATES
Air Tahiti Nui is a French international airline company which holds the following
permits in order to operate flight services:- An air services license, renewed on December 1st, 2006 (decree 1389 CM),- An air services operator certificate (CTA) n°F-PL003, renewed on October 27th, 2014,- A Certificate of Maintenance Approval section 145 for FR 145 423 aircraft maintenance, renewed on October 29th, 2010.
SAFETY POLICY
Safety Management System (SMS or SGS in French):
Air Tahiti Nui has set up a safety management system as prescribed by Governing International organizations, Europe and French Polynesia. A continual
improvement process through an internal organization ensures the highest standards of safety for customers, employees and contractors.
IATA Operational Safety Audit (IOSA):
Since 2005, Air Tahiti Nui has been complying with the international standardof safety audit, reviewed every two years. In every audit, the company must
demonstrate its commitment towards the prescribed global standards and its
implementation of newly established rules.
In terms of safety, Air Tahiti Nui applies all French regulations regarding civil aviation safety. These safety programs are also approved by the aviation oversightauthorities in each of the countries served, for compliance with local requirements.

10 | 2013 Annual report

4. The network
Air Tahiti Nui connects the South Pacific zone and four continents. It is positioned
as the main air carrier serving French Polynesia with four daily flights to this destination.
The Tiare airline is also one of the two only airline companies to offer a directroundtrip flight between Paris and Los Angeles. Additionally , Air Tahiti Nui serves
Tokyo, Japan and Auckland, New Zealand, from Papeete.
It serves 39 other cities thanks to its code-share partners: SNCF in France, American Airlines in the United States, Qantas and Air New Zealand in Australia and in
the South Pacific. It includes, among others: Sydney, Brisbane and Melbourne,
17 cities in the United States including New York, Boston, Washington, Chicago,
Miami and Dallas and 19 cities in France among which Marseille, Lyon and Montpellier.
As part of Air Tahiti Nui’s market development, over fifty interline agreements havebeen secured with other carriers, in order to offer customers a wider selection ofdestinations.

17 780FLIGHT HOURSin 2013

ACTIVITY SUMMARY

5. Flight programs
NUMBER OF FLIGHTS BY ROUTE PER YEARFREQUENCY OF FLIGHTS BY ROUTE

2012

2013

Papeete - Paris via LAX

3/7 - 7/7

3/7 - 7/7

Papeete - Los Angeles

5/7 - 7/7

5/7 - 7/7

2/7

2/7

2/7 - 3/7

2/7 - 3/7

Papeete - Japan
Papeete - Auckland
			

2012

2013

12/13
Variation

Papeete - Paris via LAX

478

460

-4%

Papeete - Los Angeles

535

574

7%

Papeete - Japan

210

206

-2%

Papeete - Auckland

234

231

-1%

1 457

1 471

1%

TOTAL

2013 Annual report | 11

CUSTOMER SATISFACTION

88%

overall passenger

SATISFACTION

1. Our customer satisfaction
is our priority
In order to better meet customers expectations, Air Tahiti Nuilaunched a permanent customer satisfaction survey programon all flights, commenced 2012. The feedback allows us toassess customers’ satisfaction during their trip, as measured at
different contact points from check-in to arrival, and to carryout improvement actions. For the period from January to May
2013, 1 315 people have been surveyed and the results arevery positive.
The key points:• The assessment of the crew members is the highest rated
with 96% satisfaction (in Moana Economy & Poerava Business),• The onboard service quality is praised with 88% overall satisfaction.
Areas for improvement:
Key areas identified for improvement were the check-in, catering, seat comfort, and the functionality of the inflight entertainment system (IFE).
On these later two points, Air Tahiti Nui has addressed the seatand IFE issues with the reconfiguration of three aircraft. A second wave of surveys carried out in October 2013 confirmed
the improvement bought about by the investment in modern
cabins and seat comfort. The enhanced IFE system (equipped with on-demand audio-video devices) now provides asatisfaction rating higher than 70%, in Economy and Business.
12 | 2013 Annual report

CUSTOMER SATISFACTIONPUNCTUALITY

93,4%

OF FLIGHTSLEAVING ON TIME

89 466

MEMBERS

2. Punctuality

SIGN UP FOR THE CLUB TIAREFREQUENT FLYER PROGRAM

In 2013, Air Tahiti Nui achieved excellent punctuality over its entire networkwith 93.4% of flights leaving on time or within 15 minutes.

(INCLUDING 192 MEMBER COMPANIES)

Flights departing from Paris and Los Angeles remain lower with a respectivepunctuality of 83% and 93%.

3. Frequent Flyer program
The total membership of Air Tahiti Nui’s frequent flyer program amounts to
89 466 members, including 192 companies network wide (60% based in Polynesia and 40% in the external markets).
The cards
Tahia : Individual and private.
Silver : Available to Club Tiare members who have accumulated 30 000
miles, in trips flown over a calendar year. .
Gold : The most privileged status of our program, available to Club Tiare
members who have accumulated 60 000 miles in trips flown over acalendar year.
The Corporate and Fenua Student programs
The Corporate program was redesigned in 2012 to better meet the needsof companies domiciled in Tahiti, resulting in the doubling of memberships –192 member companies in 2013 (representing 1 433 employees travelling forbusiness purposes).
The Fenua student program supports Polynesian students who wish to pursue their studies abroad. It offers many benefits, including airfare reductions
for the student and accompanying parents. With an average of 600 new
memberships per year since 2011, there are 1 795 new memberships to Fenua
Student at the end of 2013.

EVOLUTION OF THE AMOUNT OF MEMBERS OF THE FREQUENT FLYER PROGRAM

100 000

80 000GOLD> 358
SILVER> 1 235
TAHIA> 71 031

GOLD
> 282
SILVER> 948
TAHIA> 79 981

GOLD
> 262
*
CORPORATE
collaborators> 1 433

SILVER> 1 085
TAHIA> 87 927

2000

2000

CORPORATE> 192> 1 795
1500

1500

60 000> 1 145

1000

1000

40 000500
20 0000500*
CORPORATE
collaborators> 212
CORPORATE
> 171

> 458

2011
CLUB TIARE

2012

2013

0

2011

FENUA STUDENT

2012

2013

0

2012

CORPORATE

2013 Annual report | 13

2013

PASSENGER AND FREIGHT TRAFFIC© Tahiti Tourisme - Tim McKenna

1. Passenger traffic to Tahiti

In 2013, the total number of passengers to and from French Polynesia was
526 611, a variation of +1% compared to 2012.

TOTAL PASSENGERS ON ALL LINES• Air Tahiti Nui has carried 65% of the international passenger traffic in 2013, andan equivalent share in 2012.

Number ofpassengers
2013

Market share2012-2013
Variation(number ofpassengers)• Air France was the second biggest carrier, with 16% of traffic share, the sameas in 2012.

AIR TAHITI NUI

342 432

65%

0%• Air New Zealand carried 7% of the passenger traffic, showing a drop of -1%

AIR NEW ZEALAND

39 3787%0%

AIR FRANCE

83 98416%+3%

HAWAIIAN AIRLINES

22 725

4%

+4%

LATAM

18 117

3%-1%

AIR CALIN

17 962

3%

0%

TOTAL

526 611100%

1%

Source : Civil Aviationcompared to 2012.
Hawaiian Airlines
4%

MARKET SHAREBY AIRLINE COMPANY

Latam
3% Air Calin
3%

Air France
16%

Air New Zealand
7%

Air Tahiti Nui
65%

14 | 2013 Annual report

65%

INTERNATIONALPASSENGER TRAFFIC
carriedTRAFICS ET RÉSULTATS COMMERCIAUX

by Air Tahiti Nui

2. Evolution of Air Tahiti Nui passengers traffic by route
EVOLUTION OF THE NUMBER OF PASSENGERS CARRIED BY ROUTE
PASSENGERS CARRIEDROUTES

2012

2013

VAR 2012/13

CDG VIA LAX

214 182

207 603-3%

LAX

117 672

124 109+5%

AKL

52 27450 427-4%TYO

35 38838 643+9%TOTAL

419 516420 7820%

Air Tahiti Nui carried 420 782 passengers in 2013, almost identical to the 2012
figure. In Europe, the bleak economies have resulted in a slight decrease in thepassenger traffic volumes on the Paris route (-3%).
An increase in the passenger traffic on the Los Angeles route (+5%) has been
boosted by an improvement in the American economy as well as an increasein cruise ship passenger traffic.
The Auckland route has experienced a strong increase in 2012, slowing downby -3% due to the increase in the competing offer.
The Tokyo route, on the other hand, is experiencing a rise of 9% in traffic.
TYO
AKL

420 782 passengers
carried

9%

12%

DISTRIBUTION OF THE CARRIEDPASSENGERS BY ROUTE
LAX
29,5%

CDG via LAX

Including 96 400 residents
carried by Air Tahiti Nuiin 2013

49,5%

2013
2013Annual
Annualreportreport| | 15

114 473
TOURISTS
carriedPASSENGER AND FREIGHT TRAFFIC

by Air Tahiti Nui

3. Passenger activity by route
Revenue(Millions F CFP)LF
ROUTES
2013

VAR
2013/122013

RPK(F CFP)

VAR
2013/122013

VAR
2013/12

CDG VIA LAX

76%+ 0,3 pt

13 017

+ 1%

8,0

+ 4%

LAX

74%

- 0,8 pt

8 284

+ 11%

10,1

+ 5%

AKL

74%

- 1,5 pt

1 925

- 3%

9,3

+ 1%

TYO

64%

+ 6,5 pt

3 112

- 6%

8,5

- 14%

TOTAL

74%

+ 0,8 pt

26 337

+ 2%

8,7

+ 2%

Tokyo route – The increase of 9% in the number of passengers combined to aslight decrease in seat supply has led to an improvement of 64% in the passenger load. The decrease of -14% in the average income has contributed to adrop of -6% in revenues.
AKL

TYO

7,3%

11,8%

DISTRIBUTION
OF THE REVENUES BY ROUTE
PAR via LAX

LAX

49,4%

31,5%

Definition: LF= Load Factor;
RPK = Revenue per passenger kilometer.

In comparison with 2012, the overall passenger load factor on the network hasslightly increased to 74% in 2013. The supply for seats has decreased (-1%) andthe number of passengers transported has remained unchanged.
The overall revenue has increased by +2%, specifically from the increase in revenue per kilometer travelled, by +2%.

4. A
 ir Tahiti Nui and the development of tourism in French
Polynesia
TOURISM TRAFFIC TO THE ISLANDS OF TAHITI
2012/2013
Variat°Marketshare-4,6 %

70%

Marketshare
Variat°-1,3 pt

The results vary according to markets, as follows:

Air Tahiti Nui

Number of
tourists in2013
114 473

Paris route - The seat supply has slightly decreased (-3%). The revenues haveremained stable (+1%) thanks to an increase of +4% in the average income.

Air France

22 434

7,2 %

14%+1,3 pt

Air New Zealand

11 331-3,6 %

7%-0,1 pt

Latam

6 791

-5,0 %

4%-0,1 pt

Hawaiian Airlines

4 096

12,4 %

2%+0,3 pt

Air Calin

4 333-8,4 %

3%-0,2 pt

Air Tahiti

935

10,7 %

1%+0,1 pt

164 393-2,7 %

100%

0 pt

Los Angeles route - The Passenger traffic and the average income have bothincreased by +5%, leading to a spectacular increase of the revenues of +11%,
compared to 2012. The supply has increased by +7% for the year, showing aslight passenger load variation (-0.8%).
Auckland route - The amount of passengers carried in 2013 has slightly dropped(-4%) whereas the seat supply has decreased by -2%. The overall revenue has
been affected by -3%.

TOTAL
Source: Tourism Office

16 | 2013 Annual report

70%

PASSENGER AND FREIGHT TRAFFIC

VISITORSCARRIEDby Air Tahiti Nui

In 2013, over 164 000 tourists visited the Islands of Tahiti , two thirds of which havebeen transported by Air Tahiti Nui (70%), then followed by Air France (14%) and
17% representing the other airlines (Latam, Air New Zealand, Air Calin, Hawaiian
Airlines and Air Tahiti).
Hawaiian Airlines
2%

Air Tahiti
1%

Latam
4%

Air New Zealand
7%

Air France

Air Tahiti Nui

14%

70%

Italy

7 156

8 103

-18%

-16%

United Kingdom

2 322

3 255

+15%

+20%

Spain

1 426

2 426

-37%

-24%

Germany

1 728

3 477

-12%

-2%

Switzerland

1 320

2 663

-17%

+4%

Europe (others)

2 956

5 175

-15%

-7%

Japan

12 70413 175

+1%

+1%

Asia

3 154

4 209

+16%

+16%

Australia

6 000

9 167

-12%

-12%

New Zealand

2918

6 477

-24%

-11%

Pacific

525

4 404

+25%

-6%

South America

1 334

6 491

+41%

+6%

Central America

747

978

-31%

-27%

361

585

+3%

+5%

114 473

164 393

-5%

-3%

TOTAL

30
20
10

OTHERS COUNTRIES-9%CENTRAL AMERICA-10%0
SOUTH AMERICA

32 946PA C I F I C E

20 056

NEW-ZELAND

France40

AUSTRALIA

+2%

ASIA

-2%

J A PA N

60 862EUROPE (OTHERS)

49 766

SWITZERLAND

North America

50

GERMANY

Air Tahiti Nui

Total of all
airlines

S PA I N

Air Tahiti Nui

Total of all
airlines

VARIATION OF TOURISTS CARRIED BY COUNTRY 2013/2012 IN %UNITED-KINGDOM

Variation of the amount of
tourists carried in 2013/2012 in %I TA LY

Amount of tourists
carried in 2013

FRANCEEVOLUTION OF TOURISTS BY COUNTRY

Other countries

The tourist growth mainly came from the emerging Asian markets (+16%), Latin
America (+6%), while the growth in the inbound visitors from the United Kingdom(+20%) reflects the consumers’ renewed confidence in the economy.

NORTH AMÉRICA

MARKET SHAREBY AIRLINE

The European tourists (Spain -24%, Italy – 16% and Germany -2%) are also fewer
due to economic pressures.
In other markets on the Air Tahiti Nui network, the number of incoming Japanese
tourists remains stable with 1% increase, whereas those originating from Australia
and New Zealand have decreased, because of the competitors’ supply, by-12% and -11% respectively.

Air Calin
3%

Regarding the markets served by Air Tahiti Nui, the arrival of North American
tourists shows a slight 2% increase, whereas the French market shows a -9% drop.

-10
-20
-30
-40
-50

A IR TA HIT I NU I

OT HE R A IRLINE S

Source: Tourism Office2013 Annual report | 17

PASSENGER AND FREIGHT TRAFFIC

Customers, journalists and partners (travel agents,
airline subcontractors, etc.) were all invited to
discover a preview of Air Tahiti Nui’s new cabins
in Los Angeles, Paris and Papeete for the 15 years
anniversary of Air Tahiti Nui’s operations.

Promotional and advertising policy
The advertising investments in 2013 amount to 382 million F CFP (about +5%
in comparison to 2012) and over 2 900 discounted air tickets (of an estimated
400 million F CFP).
It covers, for the most part, the 3 main markets being the United States (32%),
France and Europe (21%), Japan and Asia (17.2%) In other markets, Australia
represents 8% of investments, French Polynesia 6% and 5% for New Zealand.
The attached visuals are a few samples of the actions led on our markets on theoccasion of Air Tahiti Nui’s 15 years anniversary.

Los Angeles Airport

Source La Dépêche

18 | 2013 Annual report

Travel agents from New Zealand on a familiarization trip in Moorea.

TRAFICSET RÉSULTATSCOMMERCIAUX
8 843
TONS
OF FREIGHT CARRIEDCHARTER FLIGHTS

629 MILLIONIN REVENUES GENERATED

5. Freight outcomesTONNAGE TRANSPORTED BY ROUTEFREIGHT REVENUES BY ROUTE

MARKET SHARE TONNAGE
BY ROUTE

PPT route
15%

REVENUES (in millions F CFP)
2012/2013
Variation

Variation
in %

2012

2013

PPT route

409,006

352,709-56,296-14%

Charter Contract

13,261

7,003-6,257-47%

CDG route

1 044,958

1 228,770

183,812+18%

AKL route150,808

152,795

1,987

+1%

Japan route79,15452,219-26,934-34%

LAX route

801,390824,265

22,875+3%

2 498,577

2 617,763

119,186

5%

TOTAL

PPT route13%

LAX route32%

MARKET SHAREREVENUES BY ROUTE

Japan route2%

AKL route6%

CDG route
47%

21%

55%

AKL route
Japan route6%

2%

WEIGHT IN TONS
2012

2013

2012/2013
Variation

1 531

1 349

-182

-12%

32

17

-15

-47%

CDG route

1 475

1 895

+419

+28%

AKL route

539

550

+11

+2%

Japan route

246

189

-56

-23%

LAX route

5 061

4 874

-187

-4%

TOTAL

8 884

8 874

-10

-0,12%

PPT routeCharter Contract

The freight revenues over the entire Air Tahiti Nui network in 2013 amount to2 617 million F CFP, increasing by 5% compared to 2012, for an overall tonnageof 8 843 tons.

CDG route

LAX routeMarketshare in %6. Overall results of the charter activity
Air Tahiti Nui’s development of on-demand flight activity achieved 1 025 hoursof flight, delivered to various charterer customers. This valuable ancillary activity
generated 629 million F CFP of revenue in 2013.
2013 Annual report | 19$

FINANCIAL RESULTS© Tahiti Tourisme -HMLR

Simplified balance sheet drawn up on 31/12/2013
The balance sheet’s total amounts to 23 997 million F CFP in 2013 against a 22
261 million F CFP in 2012, representing a 1 736 million F CFP rise.
NET

VARIATIONS

GROSS
2013

PROV.
AMORT.

2013

2012

AMOUNTSCAPITALIZED ASSETS
Intangible fixed assets

180

143

36

1

35

2898%

Tangible fixed assets

17 46011 402

6 058

4 652

1 406

30%

Financial fixed assets

7 501

1 203

6 298

7 994

-1 696-21%

TOTAL CAPITALIZED ASSETS

25 141

12 74812 39312 647-254-2%

BALANCE SHEET - ASSETSCURRENT ASSETS
Spare parts stored, pursers
and catering activity

%

685

2

683

593

90

15%

2 102

96

2 006

1 679

327

20%

268

9

259

798

-540

-68%

Cash balances

8 541

2

8 539

6 446

2 093

32%

TOTAL CURRENT ASSETS

11 596109

11 487

9 516

1 971

21%

CURRENCY CONVERSION
ADJUSTMENT - ASSETS

117

117

98

20

20%

23 99722 261

1 736

8%Accounts receivable
Other accounts receivable

GRAND TOTAL
20 | 2013 Annual report

36 85512 857

CAPITAL ASSETS
The main tangible fixed assets’ movements accounting for up to 1 406 million
over the fiscal year of 2013 include:• The remodeling of the cabins and the renewal aircraft: MANGAREVA, MOOREA
and RANGIROA,• The engine overhauls.
The gross financial fixed assets have decreased by 1 696 million F CFP. Thisdrop mainly stems from the conversion rate adjustments for a total of 1,298 billion F CFP as well as an increase in the provision for depreciation of the value ofthe buy options on the Aircraft with tail-number SEA and SUN which total up to
393 million F CFP.
INVENTORY
The gross variation at the end of the fiscal year amounts to 90 million F CFP.
This variation results from:• A 90 million F CFP increase in the airline’s holdings,• And a 20 million F CFP writeback of provisions for the purser’s and cateringstocks up to 24 million F CFP.
ACCOUNTS RECEIVABLE		The accounts receivable are increasing by 327 million F CFP.
CASH FLOWAt the end of the financial year, the cash flow amounts up to 8 539 million F CFP
against 6 446 million FCP on 12/31/2012, a 2 093 million F CFP improvement.

RESULTATS FINANCIERS
VARIATIONSBALANCE SHEET - LIABILITIES

2013

2012

Capital

1 623

1 623

0

0%

Premiums from issues

1 701

1 701

0

0%

Carried forward

-196

-427

231

-54%

Earnings

1 677

231

1 446

626%

Investment subsidy

1 138

1 358

-220

-16%

Statutory provisions

109

54

54

100%

OWNER’S EQUITY

6 052

4 540

1 512

33%

565

630

-65

-10%

DEBT

15 32314 470853

6%

CURENCY CONVERSION
ADJUSTMENTS - LIABILITIES

2 057

2 620

-563

-21%

GRAND TOTAL

23 99722 261

1 736

8%

PROVISIONS FORCONTIGENCIES AND LOSSAMOUNTS%OWNER’S EQUITY
The owner’s equity changed from 4,540 million F CFP to 6,052 million F CFP, an
increase of 1,512 million F CFP over the 2013 financial year
This increase is mainly explained by the positive 1,677 million F CFP earnings forthe 2013 fiscal year.
PROVISIONS FOR CONTINGENCIES AND LOSS
The total 565 million F CFP of provisions for contingencies and loss appears in theliabilities of the balance sheet, which is broken down as follows:• 350 million F CFP in provisions for litigation and currency exchange risk,• 157 million F CFP in provisions for superannuation commitments,• 59 million F CFP in provisions for maintenance costs.
DEBT
The debt goes from 14 470 in 2012 to 15 323 million F CFP in 2013. The increase ismainly due to the 697 million F CFP rise in fiscal and social payables.
• Social security payables: 283 million F CFP,• Fiscal payables: 414 million F CFP.
© Tahiti Tourisme - Tim McKenna

2013 Annual report | 21

1,677

FINANCIAL RESULTS

BILLION F CFP
PROFIT

Income statement for the year 2013 (in millions F CFP)
Commercial flights revenues including- Commercial passenger flight revenues- Other commercial flights revenues

2013
26 84626 562284

2012
26 87226 561311

13/12 VARIATION
Millions
%
-26
-0,1%
+1
0%
-27
-8,8%

Charter revenues

629

1 075

-446

-41,5%

Freight revenues

2 607

2 446

161

6,6%

EBT revenues*

151

207

-56

-27,1%

Revenues from subsidiary activities

222

529

-307

-58,1%

30 45431 128

-674

-2,2%

TOTAL
Other products

63

98

-926

-949,3%

Writeback of amortisations& provisions Charge transfer

376

545

-170

-31,1%

Commercial monies received

39

50-1 096-2212,4%

TOTAL REVENUES

30 93131 820-889-2,79%

Acquisition of goods and other supplies

11 101

11 886

-785

-6,6%

External services and outsourcing

9 668

10 257

-588

-5,7%

Taxes and duties

34

33

1

4,4%

Personnel costs

6 191

6 015

177

2,9%

Allocations to reserves for depreciation and provisions

1 116

1 068

48

4,5%

Allocations to reserves for current assets

8

11

-3

-25,1%

Allocations to reserves for risks and charges

161

406

-245

-60,4%

Other charges(airport taxes, overflights and landings)

1 019

1 093

-75

-6,8%

TOTAL EXPENDITURE

29 29830 768-1 470-4,78%OPERATING PROFIT

1 632

1 052

581

55,2%

FINANCIAL INCOME

-689

-934

245

-26,2%

EXCEPTIONAL TRESULT

738

118

620

527,6%RESULTS ANALYSISTAX
NET RESULT*Excess Bag Revenues

22 | 2013 Annual report

The operating result of the 2013 financial year is positive(about 14 million euros)
and reaches 1 632 million F CFP, against 1 052 million in
2012. The operating revenues decreased by 889 million F CFP. We may also note a more significant decreasein operating expenses, up to 1 470 million F CFP, hence displaying a 581 million F CFP improvement in the operating profit.
In 2013, the 689 million F CFP financial results are mainly made of currency exchange margin adjustments. It specially includes a provision on the buy options
regarding the Airplanes SEA and SUN for an 810 million F CFP value in 2012 anda 395 million value in 2013.

ARRIVAL OF THE«RANGIROA» AND«MOOREA» AIRCRAFT
A religious baptism is held
for the new planes as wellas an epaulette award
ceremony in regards ofthe technical crew.
Nov. OPENING

22 PAPEETE - JAPAN LINE
98 1st commercial flight to Narita.
nd

1998

-4

-4

0

0,0%

1 677

231

1 446

26,12%

2002
Nov. ARRIVAL OF

14 THE 1 AIRCRAFT
98 An Airbus A340thST

200 baptized«Bora Bora 1» on
the Tahiti-Faa’a
tarmac.

20 ARRIVAL OF THE
BORA» AND
02 «BORA«MANGAREVA»AIRCRAFT

and opening of
the Papeete-Paris
line.

2003

20
03

The extraordinary result goes from 118 million to a 738 million F CFP over the year
2013. This improvement is mainly due to a more significant decrease in charges,
especially with the 1 122 million F CFP provision for depreciation of tangible assets applied to the Mangareva aircraft in 2012, not reinstated in the year 2013.

RETROSPECTIVE

AIR TAHITI NUI : 15 YEARS OF HISTORY
THE JOURNEY GOES ON
20 WORLD TOUR
06 CHARTER

20 EXHIBIT OF THE «NUKU HIVA»
05 AIRCRAFT AT LE BOURGET (FRANCE)

20 ECLIPSE CHARTER
10 Air Tahiti Nui is proud to

Exceptional event onbehalf of TMR with dreamdestinations:Aqaba, Cochin, Bali,
Sydney, Tahiti, Costa
Rica, Rio de Janeiro...

20 FIRST 10 YEAR
08 ANNIVERSARY STAMP

Before welcoming the 5th aircraft of its
fleet, Air Tahiti Nui is proud to introduce«Nuku Hiva» to the famous Salon duBourget. Moreover, its arrival will markthe opening in July of new direct flights
to New York and Sydney.

2005
FLIGHT
20 CHARITY
AT SYDNEY
05 Charity event held in favorof Australian children incollaboration with theCamp Quality association.

To celebrate its 10 year
anniversary, Air Tahiti
Nui and l’Office desPostes (the local Post
Office) come up with a
special stamp.

2006

2007

4C/5 YEAR OVERHAULAir Tahiti Nui plans the firstmajor so-called 4C/5year
overhaul in collaboration
with Lufthansa Technik.

20
07

2008

2009

NEW UNIFORM
created by Balenciaga
and premiered during aMiss Tahiti fashion show.

2009

20 NEW CABINS
1 3 Delivery of the 3 aircrafttransport astronomers andeclipse hunters from theworld over to observe theexceptionnal solar eclipse
during a Papeete circular
short flyover.

SIGNATURE
OF A CODE-SHARE
AGREEMENT WITHAMERICAN AIRLINES

2010

reconfigured in a two-class layout

20
12

2012

2013

20
12
Air Tahiti Nui offers the passengers
10 YEAR ANNIVERSARY
OF THE PAPEETE-PARIS LINEof its first departing flight from Roissy
Charles de Gaulle a festive planeboarding in the colors of Polynesia.

2013 Annual report | 23

HUMAN RESOURCES

24 | 2013 Annual report

+ 50

703

HUMAN RESOURCESMILLIONF CFP

STAFF MEMBERS

AS OF DECEMBER 31ST, 2013

devoted to staff training

1. Distribution of the workforce by social and occupational
category
The number of staff as at December 31st 2013 is 703 employees (to be compared to 706 as at December 31st, 2012, split between ground personnel in
Tahiti (251), flight crew (392) and overseas staff (60).
E/O
13,5%

2013 will stay as a key year with the continuing collective corporate agreement
negotiations and the adoption of a new governance style in October 2013.
As a whole, Air Tahiti Nui shows a relatively balanced social health with an unchanged overall staffing and a stabilization of the main indicators.

NRT
TAM

16%

AKL

14,7%

10%

Manager
7,6%

SYD

4. Indicators
CDG

Employment contracts

Absenteeism27%

12 exits

9426 sick-leave days

13 recruits

21 work-related accidents

241 staff salaries increased

1 666 days on maternity leave

2%

PNT
PNC

3. 2013 main assets

634 permanent contracts (CDI)

10,1%

LAX

45,6%

45%

SOURCE : SOCIAL REPORT

2. Evolution by category

An average of 9 wage-earners on fixedterm contracts over the year (CDD)

5. Payroll

2011

2012

2013

Var 12/13

Executives

59

53

53

-%

Supervisors (TAM)

104

96

103

+7,3%

Employees (E/O)

107

99

95

-4,0%

Flight attendants (PNC)

357

323

321

-0,6%

Pilots and co-pilots (PNT)

76

73

71

-2,7%

Overseas staff

71

62

60

-3,2%

TOTAL STAFFING

774

706

703

-0,4%

The incentives to voluntary departure introduced in 2012 have had their impact on
the overall staff and a reduction in the all categories staff graph is to be noted. At
the close of 2013, the staff number became stable at the level of 643 wage-earners(Papeete-based), with an average of 653 employment contracts over the year.

The payroll reaches up to 5.1 billion F CFP. Social security charges (employer’s
contributions) amount to 1.254 billion F CFP (i.e. an increase of 6.36% comparedwith the previous year).

6. Ongoing professional training
Year 2013 marked the resumption of the administrative and technical personnel
training (skills building and strengthening) with the allocation of a 13 million F CFP
budget envelope. The department of human resources expects to pursue thisprofessionalization of the staff in 2014.
At the same time, 40 million F CFP are also allocated to the regulatory training
for the cabin and cockpit crews (mostly the acquisition or the renewal of authorizations with limited validity imposed by the regulations in force).

2013 Annual report | 25

OUTLOOK FOR 2014
The company is facing a number of challenges for 2014
The company launched a third flight on the Auckland route from December
2013. The commercial team is working hard to generate the extra traffic necessary to guarantee a full success of this development initiative. Air Tahiti Nui now
offers 5 weekly Auckland-bound flights (3 directly operated and 2 operated incode share with Air New Zealand), with connections to Sydney with Qantas. The
code share agreement signed in 2013 with American Airlines should help stimulate transpacific customer demand with new passengers that will also enjoy thepossibility of a few days stop-over in Tahiti during their journey. Air Tahiti Nui andits partners have also reinforced their commercial activities on the New-Zealandand Australia markets in order to increase the number of inbound visitors.

Product wise 2013 saw the remodeling of part of the fleet with latest last generation seats and audio-video systems. In 2014, it will be necessary to enhance theservices offered to customers by launching the the upgrade renovation project ofa further aircraft, which will ensure a consistent product. In line with its tourist development mission, Air Tahiti Nui’s ambitious 2014 objective is to increase by 10% thenumber of visitors carried by the company to Tahiti.
To achieve or exceed this target, the flight program aims at increasing the number of seats available, and increasing promotional actions to be launched in ourmarkets.
Over 15 000 seats will be available at sharply reduced fares in order to attract
new targeted customers to the Islands of Tahiti. Additional agreements are in thepipeline with airline partners to strengthen our network offer.
With regard to the results, after two consecutive fiscal years with positive financial
results, 2014 must achieve a long-term financially balanced operation. The positive results are crucial for Air Tahiti Nui’s quest to perform its mission which requires
substantial investment both in promotional actions on the various tourist markets
and in the future renewal of its fleet. In this respect, 2014 should be the year dedicated to studying and selecting the new generation aircraft that will replace theA340-300. The delivery of the company’s new fleet in 2019-2020 will futureproof
international air transport to to the Islands of Tahiti for the following 15 years.

26 | 2013 Annual report2013 Annual report | 27

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