Annual report2020© Grégoire Le Bacon

Summary
Editorial

4

CSR approach

6

Legal status and capital

7

Human resources

8

Governance, compliance and risk management

14

Digitization:
adapting and reinforcing the information system

18

ATN’s active role in the development of French Polynesia

20

Flight activity

26

Environmental report

32

Traffic and business results

34

Financial statements

38

Outlook 2021

57

CSR indicators

58

02
03

In the space of a few months, 2020 erased 21 years of uninterrupted growth in global air traffic. For Air Tahiti Nui,eight consecutive years of positive results were stopped in their tracks. Despite fierce competition with a 40%
increase in the number of seats available in 2019, we had maintained our position as leader in French Polynesia
with a near to 50% market share.
The Covid-19 pandemic shattered the encouraging trends that were beginning to emerge at the end of 2019 andaffected every part of our sector and the tourism industry as a whole. The unprecedented health crisis that it
caused has taken its toll on many airlines, regardless of size, economic model or network coverage. If ATN has
so far managed to “hold it together,” our airline has not been spared from the alarming consequences resulting
from its advent, as the figures in this report show.
From the introduction of sanitary measures to travel restrictions, followed by border closures, this unprecedented year has required constant reactivity and agility.
Thus, despite the fact that the year’s budgetary policy had been built on an increase in frequency mainly on
the transatlantic route, in light of the restrictions issued by governments of various countries for transport fromand to French Polynesia, the company implemented a weekly flight schedule at the end of March reduced to
two return flights to Paris, one flight to Auckland and one to Los Angeles. The last flight to Narita took place on
Sunday, March 22nd, 2020. It was then necessary to urgently reconsider our routes with alternative transit stops(Pointe-à-Pitre, Vancouver) and constantly rebuild flight schedules with the aim of mitigating the disastrous
effects of the crisis on the economy of our airline.
At the peak of the disruption in the spring, the exponential evolution of the epidemic gave rise to a hectic
rate of crisis management, for which a constant adaptability to new and constantly questioned decisions was
required, without any short or even medium-term visibility on the improvement of the situation. In the face of thecollapse of global air traffic, the French Government undertook to maintain a territorial continuity route between
French Polynesia and Metropolitan France and entrusted Air Tahiti Nui with a temporary public service
delegation to ensure flights between Tahiti and Paris.
Whilst allowing our airline to ensure a minimum amount of activity, this mission reaffirmed the position of
Air Tahiti Nui as a “strategic business”; on one hand, by its importance in the local economy, and on the other
hand through its essential role as a partner in the development of the country (by way of medical evacuations
from the territory—the only airline that remains to do so—or for cargo flights, of which two to Shanghai, forthe transport of medical supplies, primarily surgical masks and respirators, at a time when there was a world
shortage).
Air Tahiti Nui’s own values of solidarity and mutual support have more than ever guided our employees throughout
all stages of this crisis. In the midst of constant bad news, the unprecedented context that it provided had theadvantage of forcing us to push our limits and allowed us to operate the first direct flight from Tahiti to Paris(16 161.59 km covered in 15 hours and 57 minutes) within the constraints imposed by the American authorities in
response to the Covid-19 epidemic. Following this, three other direct flights of the same type operated to Paris,
including the longest commercial flight ever made, which is also technically speaking, the longest domestic flight
operated to this day, given that Tahiti is a French territory (8 874.68 nautical miles, equivalent to 16 435.91 km
travelled in 16 hours and 30 minutes).
On the social front, the first standard measures for the reduction of working hours devised at the end of March
led to the establishment of a “voluntary redundancy package” which allowed us to avoid the threat of a redundancy plan in a time when numerous airlines were laying off huge numbers of staff and when many others were
not so fortunate as to survive the shock of the crisis. It was with a heavy heart that we had to bid farewell to 117
of our employees from Tahiti and our regions, generating a saving of 17% on the payroll. Thanks to an agreement
protocol concerning a general salary reduction of 5% from November onwards signed by a large majority oftrade unions, a further almost 200 million XPF will be saved every year. An agreement on the productivity offlight crews to adjust our resources according to the needs of flight schedules was the final stage in our efforts
undertaken for the year, thus allowing for a further 10% saving in payroll. This mobilization of our personnel wasparticularly appreciated, considering the fact that compared to other French airlines, Air Tahiti Nui does notreceive any part-time unemployment benefit.

© ATN—MH

Editorial

I would like to take this opportunity to pay tribute to
the support from all the company’s social representatives
who have shown responsibility. I would also like to thank all
Air Tahiti Nui employees who, from a distance, whether isolated athome or deprived of work, did not spare their efforts to guarantee
the continuity of our operations while making the sacrifices necessary
to preserve their working tool and ensure its viability.
I would also like to thank our shareholders for their daily unwaveringcommitment which has enabled us to make our voice heard whenconvincing decision makers of the importance of supporting our indu try andall its players, no matter how small, thus reflecting Air Tahiti Nui’s company
image.
The territory provided financial support through a current account advance ofnearly 2 billion XPF, repayable over a two-year period, allowing us to quickly
cover a part of our fixed costs. This advance completes a loan package of almost
8 billion XPF, within the framework of PGE (loans guaranteed by the State), grantedby the French State whom we also thank for its support, thus easing our cash flow
but establishing a debt repayable from July 2021.
The year 2020 was marked by many challenges that Air Tahiti Nui teams were able to overcome, by working
hand in hand with the local authorities, the State, the airport and our numerous partners and suppliers, primarily
so as to adapt to the new sanitary constraints. We regularly liaised with the health authorities to find increasingly reliable tests and improve our clients’ and staff travel experience; no effort was spared during this hectic,
uncertain and difficult period to reinforce the safety of our crews and passengers. Air Tahiti Nui quickly adopted
sanitary protocols, in combination with the HEPA filtration and air renewal system of our Boeing Dreamliners tosignificantly limit the risk of contamination on board and the spread of the virus from one country to another. In
addition to the detection measures and the presentation of a negative Covid-19 test result required by the regulations in force, our system includes the mandatory wearing of masks by passengers and crews, restrictions andsocial distancing in waiting areas, at check-in counters, and during in-flight movements, an intensified aircraft
and equipment cleaning and disinfection procedure and simplified services to avoid risk of contact.
Given the magnitude of the situation, we can congratulate ourselves on having been capable of such mobilization, thus demonstrating the extraordinary fighting spirit of our staff. Our sector’s current situation andespecially its future is conditioned by this Coronavirus crisis, and for the time being our sole objective remains
to prepare its recovery and to relaunch our destination. We will staunchly continue our efforts to do this, so that
we can continue the journey together and for as long as possible.
Major challenges await our industry in the year ahead with the reopening of international borders, continued
testing, vaccination policies and associated “passports” and new ways to anticipate demand, etc. On a smallerscale, when the market reopens, our company will have to face fierce competition and perhaps operators who
have been strengthened (following their consolidation through mergers or acquisitions) or who have benefitted
from financial aid from their governments.
Despite this unprecedented period for our sector and the lifetime of our company, Air Tahiti Nui did not miss out
on awards at the end of the year, in particular the awards for “Five-star major airline” from APEX Official Airline
Ratings for the 2nd consecutive year, “Best airline in the South Pacific 2020” for the 3rd year running and “Bestleisure airline 2020” for the 2nd consecutive year, from the Global Traveler. Our company also distinguished itself
during the “Business Travelers’ Cellars in the Sky Awards 2020” by winning gold in the categories Best BusinessClass Sparkling, Best Business Class White, Best Business Class Cellar and a special distinction for the best winemenu in business class.
These honors, which are standard-bearers of a collective success and resilience, demonstrate that productand quality are imperatives that Air Tahiti Nui, even in times of crisis, does not neglect, and that our employees
remain committed to making safety go hand in hand with comfort and service through a unique travel experience that continues to meet the highest standards of excellence.
Thanks to our determination to overcome these challenges that have marked the 22 years of our company’s life
story, it is with great pleasure that we will continue to show you our commitment on board.
We look forward to welcoming you aboard our flights very soon.
More than ever, the journey continues,
I fano na, e fano ā.

Michel MONVOISIN
Chairman of the Board of Directors and Chief Executive Officer

0405

CSR approach

Legal status and capital

OUR APPROACH TO CORPORATE SOCIAL RESPONSIBILITY

DISTRIBUTION OF CAPITALAir Tahiti Nui was one of the first Polynesian companies to voluntarily commit to a CSR approach. In 2015,
the airline thus created a committee devoted to formalizing and implementing its policy.
Following the publication of two sustainable development reports for 2016 and 2018, since last year thecompany has continued to communicate its CSR efforts in a consolidated annual report alongside its businessactivity results, financial data and non-financial performance (with no change in compliance with the GRI G4
reference framework—cf. pg. 58).

In September 2001, Air Tahiti Nui’s legal status evolved from Public Limited Company to Local Mixed Economy
Company (SAEML) in order to meet statutory rules when French Polynesia became the majority equity holder
in the company.
Since 22nd November, 2011, capital amounts to 1 622 956 875 XPF and is distributed as follows on 31st December,
2020:

The corporate social responsibility policy initiated and undertaken by Air Tahiti Nui is involved in various aspectsof its business and at all levels of the organization, and is therefore an implicit part of this document, thanks
to the indicators and key figures related to the 4 focus areas and 10 progress commitments (ref. ISO 26000
standard) which define it according to the themes covered in these chapters:
FOCUS AREA 1: maintain responsible operations of our flights 			#1: guarantee flight safety by complying with CORSIA environmental regulations 			#2: maintain sustainable relations with our stakeholders
FOCUS AREA 2: reduce our environmental footprint				#3: reduce our emissions and participate in the fight against climate change#4: mitigate the impact of our activity on the ground						#5: contribute to the preservation and biodiversity of Tahiti as a tourist destination		
FOCUS AREA 3: be a responsible employer							#6: share a common vision and maintain trust-based relations#7: ensure health, safety and well-being at work						#8: develop skills and support employee personal development
FOCUS AREA 4: accompany the development of French Polynesia			#9: integrate sustainable development into our activity and business culture#10: support and promote social and economic development projects in the country

2020 PROGRESS REPORT
Since 2015, Air Tahiti Nui has initiated many projects (a policy for reducing greenhouse gases, an occupational
health program, an ethical approach, the strengthening of its support of environmental and charitable initiatives
in the country, to name a few). In addition, it has succeeded in the biggest project of its history with the renewalof the entire fleet with 4 Boeing Dreamliners 787-9, allowing for a reduction of -15.15%* in CO2 emissions from2019 (the initial target for 2020 was a 20% decrease).
As part of a continuous and long-term improvement process, other objectives and their effects are currently
being developed.
Henceforth shaken by the worldwide Covid-19 health crisis and the economic and social repercussions it has
produced, Air Tahiti Nui must rise to a major new challenge: maintaining the safeguarding and sustainability of
its activity.
The company must thereby remain fully mobilized to fulfil its mission to open up French Polynesia to the restof the world, one that has proved to be essential and crucial in the year 2020, whose unprecedented events
redefined our priorities (air freight, medevac**, repatriation flights for tourists and Polynesians, etc.).
The airline has shown its capacity to find solutions to safeguard financial security in a responsible way due tothe implementation of:- a Business Continuity Plan (BCP) and the immediate application of measures to meet the expectations of its
stakeholders (passengers, crews and customers) in terms of flight safety, compliance with health measuresand consumer rights, thanks to the constant involvement of its employees and partners (specific protocols on
aircraft and in offices, staff prevention and awareness campaigns, remote working, application of rights andregulations concerning compensation, etc.);- a contingency plan for Air Tahiti Nui including short and long-term cost-saving measures, voluntary redundancy package, thanks to both a permanent and regular internal social dialogue (leading to concerted efforts
being made by all staff members) and external dialogue with historical partners, such as the territorial authorities, its economic actors and the French Government.

Shares incapital on
31/12/2020

3.87%

3.43%

2.70%

1.58%

OCI

84.82%FRENCHPOLYNESIAOTHERSAIR TAHITITAHITITOURISME

3.03%
SEGC

0.57%

WAN HOLDINGPARTICIPATIONMEMBERS OF THE BOARD
As a local mixed economy company, Air Tahiti Nui has a Board of Directors composed of 15 members, distributed
since 3rd December, 2020, as follows:

Public administrators representing French Polynesia,
appointed by the Council of Ministers• Mr. Edouard FRITCH, President of the Government of French Polynesia, in charge of territorial equality andinternational relations;• Mr. Yvonnick RAFFIN, Minister of Economy and Finance, in charge of energy, generalized social welfare andcoordination of government action;• Mrs. Nicole BOUTEAU, Minister of Tourism and Labor, in charge of international transport and institutional
relations;• Mr. Jean-Christophe BOUISSOU, Minister for Housing, Development and Urbanization, in charge of inter-islandtransport;• Mr. Michel BUILLARD, Representative of the Assembly of French Polynesia;• Mr. Antonio PEREZ, Representative of the Assembly of French Polynesia;• Mr. Claude PERIOU, Advisor to the President of French Polynesia;• Mr. Michel MONVOISIN, Air Tahiti Nui CEO and Chairman of the Board of Directors;• Mr. Franco LANZA Air Tahiti Nui staff representative.

Private administrators representing the private sector• Mr. Vincent LAW, 1st Vice President of ATN Board of Directors, Representative of la Société d’études et degestion commerciale (research and commercial management company);• Mr. Jean-Pierre FOURCADE, Representative of la Financière hôtelière polynésienne;• Mr. Bruno WAN, Manager of civil society Wan Holding Participation;• Mr. Matahiarii BROTHERS, President of SAS Océanienne de capital investissement (OCI);• Mr. James ESTALL, Representative of Air Tahiti;• Mr. Richard BAILEY, Representative of Tahiti Beachcomber Plc.

Determined to bounce back from this unparalleled crisis, Air Tahiti Nui intends to continue its role as a vehicle
for the development of French Polynesia; the sustainability of its activity is now more than ever dependent on
the reopening of the country and its economic recovery.

STATUTORY AUDITOR* Data revised since the 2019 annual report was published.
** Medical evacuations.

The statutory auditors for Air Tahiti Nui are SCP PARION CHANGUES MENARD ALBERT BOYER, represented by
Mr. Christophe PARION and the SARL (Limited Liability Company) KPMG represented by Mr. Jean-Louis PELLOUX.

06
07

Human resources

French Polynesia
workforceby occupational
category

10.5%

COMPANY ORGANIZATIONFLIGHT CREW

GENERAL MANAGEMENT

45.4%

Michel MONVOISIN
Chairman Chief Executive
Officer

10.5%

CABIN CREW

FLIGHT CREW

Mathieu BECHONNET
Chief Operating Officer

10.5%
21.5%

45.4%

EXECUTIVESTECHNICIANS/MANAGERSCABIN CREWEXECUTIVE MANAGEMENT OF SALES
Mathieu BECHONNET (acting director since 01/10/2020)

10.5%

EXECUTIVES

12.1%

SUPPORT MANAGEMENT

21.5%

EMPLOYEES/WORKERSEXECUTIVE MANAGEMENT OF OPERATIONS
Raymond TOPIN - Responsible Manager

TECHNICIANS/
Source: Social Audit 2020 ATN
MANAGERS

12.1%
10%

© Moana Blackstone et ATN—L. Chongue, M. Hericher, B. Lai Ah Che

REGIONS
Director Americas
Nicholas PANZA

Director Sales &Business Development
Lolita LUTH WONG-YEN

Regional Director
France Europe
Jean-Marc HASTINGS

Director of Revenue
Management, Pricing,
Schedule & Charter
Raimana CHAMPSRegional Director Asia
Atsushi CHINO

Director of Direct
Customer Services
Vaitea KOHLER

Regional Director Pacific(NZ & AUS)
Daniel Eggenberger

Director of Loyalty, Digital,
Product & Communication
Torea COLAS

Regional Director Polynesia& global freight
Yann MASINGUE(since January 2020)

Director of Commercial
Tools & Processes
Mihimana DAVID

Director of
Air Operations
Stanley DESCAMPS

Director of Finance
Pierre CHAMPIONEMPLOYEES/WORKERS18%
AKL
Workforce distribution

Commerical Crew Manager
Éric DELCUVELLERIE

NRT

in external stations

Director of Human
Resources
Manuarii MERVIN(since 01/11/2020)

Director of Ground Operations
stations & freight
Céline CLAEYS

26%

Director of Administration
and Organisation
Heifara MORIENNETechnical Director
Yannick MERMET

Director of Information
Systems
Laurent HUSSON

Director of Management
Systems
Gilles BERNEDE

10%

18%

AKL

NRT

46%

CDG

LAX

26%

46%

CDG

LAX

Source: HRD ATN

DISTRIBUTION OF HUMAN RESOURCES

621

employees

On 31st December, 2020, the company workforce consisted of 621 employees(compared to 755 on 31st December, 2019) divided into Tahiti ground personnel(252), flight crew (319; including 259 cabin crew and 60 technical crew), andagents of overseas offices and stations (50).

Distribution of Air Tahiti Nui workforce by gender		 Distribution		 Distribution		Distribution
Workforce
2018
2019
2020
2018
2019
2020

on 31st December, 2020

ParityWith 53% of female employees, the number of women working for Air Tahiti Nui has once again increasedslightly over the year (from 52.7% in 2019). In particular, we note the maintaining of the feminization rate at 45%
among executives.

Men

372

47.7%

357

47.3%

292

47%

Women

408

52.3%

398

52.7%

329

53%

Total

780

100%

755

100%

621

100%

08
09

COVID-19 SOCIAL MEASURES
Within the context of the lockdown pronounced by the State authorities and French Polynesia from 20th March
to 29th April, 2020, the company undertook a preliminary protocol with its social partners called “RTT1” in orderto reduce working hours. This was followed by a second protocol “RTT2” in order to adapt its human resources
to the new sanitary measures in place and the sharp decrease in activity.

Protocol “RTT1”
The first protocol proposed a 30% reduction in working hours from 1st April, 2020, until 30th June, 2020, andthe implementation of teleworking for all staff on the ground for the duration of the lockdown announced by
the authorities.
Pending the introduction of the DiESE scheme, in effect from 21st May, 2020, the company substituted theequivalent of the DiESE to its employees from 1st April to 20th May, 2020.
The protocol also provided for the suspension of the payment of all bonuses, the freezing of 2020 promotions
for all staff and the suspension of social protocols for flight crew in order to provide maximum flexibility in theplanning of schedules.

Protocol “RTT2”
The second protocol renewed the RTT1 protocol measures and proposed a 30% reduction in working hours inJuly 2020 and 20% in August 2020, by exempting a part of the workforce from commercial duties in order toprepare for the reopening of borders which was then anticipated for 15th July, 2020, and the processing of all theclaims for reimbursement.

Voluntary redundancy plan
On 16th July, 2020, after consultation with the works council, the company set up a voluntary redundancy planwith the aim of reducing the workforce by 20% over a period of three years.
The 117 departures were staggered between 31st August and 31st December, 2020, for a nearly 15% saving of the
full-year payroll, with an average seniority on departure of 15 years.

General salary reduction
Following the voluntary redundancy plan, it was recommended that social partners sign a multi-annual agreement to a general 5% reduction in salaries, which would impact base salaries over a period of three years (theelement is used to calculate other salary benefits such as seniority bonus, overtime and additional hours, etc.).
This reduction took place on 1st November through the signature of a social protocol for the period November
2020 to December 2023.

© Grégoire Le Bacon

6.

INDICATORS FOR POLYNESIA
Employment contracts:

134

566

departures(of which 1 resignation,
19 short term contracts ended
and 117 voluntary departures)

employees on
permanent
contracts

50

employees
on temporary
contracts

employees
promoted
Absenteeism:

16

workplace accidents(6 of which resulted
in medical leave)

1 511

days of maternity
leave

WORKFORCE EVOLUTION
The year 2020 saw a significant decrease in the workforce, with 134 departures for 6 external recruitments at the
beginning of the year (one of these on a permanent contract) in sales and support functions.
As from the lockdown period, all external hiring has been suspended.

GLOBAL PAYROLL
Payroll in 2020 amounted to 5,222 billion XPF (of which 1,4 billion XPF in employer contributions), excluding
compensation for the voluntary redundancy plan, which is a significant decrease (7,263 billion XPF in 2019).

PROFESSIONAL TRAINING
Due to the impact of lockdown, the Human Resources department was only able
to deliver 50% of its training plan in 2020.
346 personnel were trained in administrative matters (professional efficiency andwell-being, IT and administration, sales/customer service, languages, management and health and safety) for a budget of 5 million XPF (compared to 21 M XPF
in 2019).
35.5 million XPF was also allocated to regulatory training for flight crews.

40.5

million XPF
devotedto training

1011© Tahiti Tourisme

CSR FOCUS AREA 3
Commitment #7
Ensuring health, safety and well-being in the workplace
The Human Resources department is implementing an action plan which aims to limit the risks of work-related
accidents for employees.

Evolution of workplace accidents resulting
in medical leave [G4-LA6]

2019: 20
2020: 16

CSR FOCUS AREA 3
Commitment #6

In 2020, it continued its musculoskeletal disorder prevention campaign, with 100% of cabin crew receiving
training, since they were particularly affected by this following the fleet changeover that had included a newworking environment and cabin layout.

Share a common vision and maintain trust-based relations
Since 2016, in order to work alongside the deployment of the CSR approach and regulate how it is governed,
the CSR has led an ethics committee comprising ten permanent members and chaired by the company CEO.
ATN’s values, as collectively defined by the executive committee, constitute the referential framework for
Air Tahiti Nui’s ethical approach, which was completed in 2017 with the drafting of a managers’ charter signedby 70 senior managers.
In 2020, the ethics committee formalized its ethics charter to serve as a guide and boost professional practices
consistent with Air Tahiti Nui’s commitments (its publication was postponed until 2021). An e-learning awarenessmodule was rolled out during the year to bring life to this business ethic and provide guidance to departments
and employees in order to assimilate it.

To inform and heighten employee awareness about the urgent need to prevent biological risks from the startof the pandemic, the airline also relied heavily on its e-learning training platform “Tāmau”, by creating amongst
other things, a module devoted to the coronavirus. Other health and safety risks in the workplace (fire training
for fire marshallers etc.) are also addressed through online training.
In line with its ongoing commitment to the “company actively engaged in employee health” charter, supportedby the public health department, Air Tahiti Nui has continued initiatives undertaken in 2015 to promote healthyeating and regular exercise among staff.
In 2020, the health committee who are all volunteers, managed wherever feasible, to maintain the organization ofawareness-raising activities (yoga classes, walking challenge, permaculture training course, cooking workshopswith a dietician) within the constraints of social distancing, despite a limited budget.
At the same time, the works council continues to actively support these occupational health and well-being
initiatives through its eight sports clubs (hiking, soccer, va’a canoeing, swimming, etc.) and/or subsidizing gym
membership and/or advice from a dietician.

A participative ethical approach

Amount allocated to sports and nutrition
awareness activities

For the past several years, Air Tahiti Nui has undertaken its ethical approach by conducting a participative andcollective process of reflection to define and share the core values of its corporate culture.

2014

Formalization of
Air Tahiti Nui’s values(executive committee
seminar)* Broadcast postponed to 2021.

2016

2019: 4.6 million XPF
2020: 850 000 XPF

Anti-fraud procedure andawareness campaign against
the “fake president” scam

Governance of an ethics
committee (10 designatedmembers) led by the CSR unit

2017

Formalization of
the managers’ charter(managers’ seminar)

2018 - 2019

(jointly financed with the works council)(a decrease of 81.5% due to the cancellation of sporting events and social
distancing constraints imposed by the Covid-19 crisis).

2020

Formalization of
the company ethics
charter (values andprinciples) and therealization of
the e-learningawareness module
about the approach*

CSR FOCUS AREA 3
Commitment #8
Developing skills and supporting employees’ personal growth
As a service provider, Air Tahiti Nui devoted a significant annual budget to training its personnel (0.75% of theworkforce of Polynesia in 2020) [G4-10], excluding Boeing participation.
As a result of the constraints linked to the health crisis and in particular the reduction in staff working hours,
the 2020 budget was frozen, making it possible to give priority to the use of the e-learning training program“Tāmau”.

1213Governance,compliance andrisk management- safety studies on changes linked to the Covid-19 crisis: the opening of routes, specific flights, change ofsubcontractors, etc.;- tracking of safety performance indicators to guarantee the implementation of appropriate corrective andproactive measures and the supervision of business activity as a whole.
Despite the devastating global impact of the crisis, Air Tahiti Nui was able to maintain its standards and upholdits superior ranking in national conformity and safety.

Evolution of ATN management system performancefrom 2017 to 2020 (DGAC/SEAC)
2017
rating2019
ratingB

A

A		

Safety culture

E

A

A 		

Risk analysis

C

B

A		

SGS steering

E

A

A		

Implementation of corrective measures

D

A

A		

Continuous improvement and change management

B

A

A		

Interface management

B

A

A		

Documentation

C

A

A		

Training and communication

MANAGEMENT SYSTEMS DIRECTORATE (MSD)

C

D

C		

Compliance rate

The management system is a structured organization for managing security, uniting sectors including inflight,
ground operations, and maintenance.

D

A

A		

Capacity to obtain compliance

The organization’s continuous improvement process covers all the company’s
operational and legislative compliance risks. Since September 2017, a complianceand risks committee has internally grouped together the 3 pillars of Air Tahiti Nui’s
risk management which are the Management Systems Directorate, Internal Control,and Information Systems Security. They share common interests, in particular:risk control in different domains (MSD: security of flights; ICS: financial security;
ISS: security of information systems) and the potential consequences if these risks
go uncontrolled (air crash, operational accidents, financial losses, impact on company image and reputation, legal impact, etc.).

Reporting to the responsible manager of the company, the Management Systems Directorate supervises all management system actions. It has four divisions:- security: intended to establish the company’s security programs in all countries served by the airline in accordance with the applicable regulations and directives, and to carry out security training for all personnel;- Emergency Response Plan (ERP): whose mission is to establish an emergency plan in case of a company air
disaster, allowing for a centralized, controlled, and coordinated response to emergencies;- safety: aimed at identifying and analyzing the risks related to all areas of operations and implement appropriate
corrective and preventive measures;- compliance monitoring: which guarantees compliance with the applicable regulatory requirements in addition
to any other further requirements.
The supervisory authorities (Directorate General of Civil Aviation [DGAC], State Civil Aviation Service [SEAC],
and the Civil Aviation Safety Authority [OSAC] ensure through audits that Air Tahiti Nui complies with EASA[European Aviation Safety Agency] regulations.
The Covid-19 health crisis had a strong impact on flight operations, leading to:- the closure of airspace (USA, NZ, Japan...);- a serious disruption of flights, in some cases a complete halt in the operation of some routes;- the implementation of specific medical shipping and territorial continuity flights;- the opening of new routes: Pointe-à-Pitre, CDG direct, Vancouver (cf. Aviation Activity, pg. 26-31);- the application of strict health constraints: disinfection protocols, mask-wearing, passenger screening, tracking,etc.
The MSD played a leading role in the management of this health crisis and all of its impacts, in order to guarantee
a business continuity in compliance with safety measures, in particular:- checks on compliance with the applicable requirements, regulatory monitoring and EASA Covid-19 recommendations;- the management of exemptions to the European regulations (EASA), by the DGAC, to extend training
deadlines for flight crews (flight attendants and aircrew), and the management of crew to maintain their fitness
to fly;- studies showing the impact on safety linked to the implementation of Covid-19 health measures, and otheranalyses, checks and implementation of actions;2020
ratingTrend

Criteria

CSR FOCUS AREA 1
Commitment #1
In October 2016, the plenary assembly of the International
Civil Aviation Organization (ICAO) confirmed the global objective for carbon neutral growth from 2020 and, in order to do so,
the introduction of a global measure to compensate for C02
emissions above 2020 levels: a “reduction and offsetting of carbon
scheme for international aviation” named CORSIA (an abbreviation
for Carbon Offsetting and Reduction Scheme for International
Aviation).
Since 1st January, 2019, all ICAO aircraft operator members emitting over 10 000 tonnes of CO2 on their international flights must collect their CO2 emissions data and report them to the relevant authority.
In accordance with the EMP (Emissions Monitoring Plan), approved by the DGAC during 2019, Air Tahiti Nui has
committed to monitoring and reporting its annual emissions for the financial years 2019 and 2020 (cf. Environmental report pg. 32-33).
With the year 2020 having been totally disrupted by the global Covid-19 health crisis, emissions for this year will
not be recorded in the calculation base. Furthermore, between 2021 and 2026, the offsetting requirements will
only apply to international flights between States who are willing to participate in the pilot phase of the plan
(2021-2023) or the first phase (2024-2026).
The start date for payment of this “carbon tax”, initially announced on January 1st, 2021, has been delayed until
January 1st, 2022, to take into consideration the impact of the Covid-19 crisis. It is from 2027 that all airlines will
have to offset a proportion of their CO2 emissions.

1415

Internal control is as much aimed at continual improvement as the quality of company organization through the
optimization of operational processes. Attached to the Directorate General, this department’s main functions
are the following:- developing the internal control system, promote and monitor its implementation;- ensuring the efficiency of the risk management and internal control systems by performing audits.
Investigations rely on the analysis of documents, compliance with procedures, maintenance, applying audit techniques and the use of in-house tools (audit guides, data files), including the compiling of the audit file containing
worksheets in accordance with professional standards.
Since 2016, an internal inspection committee has ensured the consistency and the effectiveness of the airline’s
internal control, of its correct organization, the completion of ongoing activity checks, and effectiveness ofmonitoring plans and risk control. The internal inspection committee meets regularly to examine the audit
reports, approve recommendations, and to ensure these are implemented.
It is through these internal audits that the level of risks incurred are measured and respect for procedures are
kept in check as well as the effectiveness and appropriate nature of the plan in force. The internal auditor also
checks that operations fulfilled by the airline as well as the internal procedures are in accordance with legislative
provisions in force and professional standards and practices. It measures the adequacy and effectiveness of evaluation procedures and risk management and formulates recommendations to make improvements, to reinforce,
safeguard, and organize services in accordance with the risks to which they are exposed.
The recommendations issued in the reports, accompanied by completion dates and a risk level, are approved by
the internal inspection committee and become enforceable thereafter. The audited directorates are in charge of
their application. These elements are recorded by the internal audit and are subject to monitoring and a periodic
review by the directorates concerned.
On December 31st, 2019, there were a total of 31 reported recommendations. During the financial year of 2020,combined efforts from the audited units and the internal inspection department enabled a clearance of collective actions leaving only 6 recommendations in the last quarter of 2020.
During the financial year of 2020, 4 audit assignments were completed, thus generating 30 new recommendations approved by the internal inspection committee of December 21st, 2020.
On December 31 , 2020, there was a new total number of 36 recommendations for which an action plan was
assigned in order to ensure their clearance.
st

INFORMATION SYSTEMSSECURITY(ISS)IT and communication systems are vital for thesmooth running of Air Tahiti Nui’s daily operations.
The company uses hundreds of applications on a
day-to-day basis, and the information they contain is
increasingly under threat.

Cybercrime risk
As a responsible business, Air Tahiti Nui must protect its
clients’ personal data, whether it includes credit card numbers or individual-related data. Strategical value data must also
be protected. This informational heritage, which is, to a certain
extent, the company’s memory and anticipatory capacity, also
needs to be safeguarded against any alteration or misappropriation
by cybercriminals.

© freepik.com

INTERNAL CONTROL SYSTEM (ICS)The risk of an IT system defect,
crucial to the continuity of operations
Information technology has become essential to the success of our activities, and we are dependent on its proper functioning. A malfunction could lead to a flight delay and dissatisfied clients. The continuity of information
systems operations must be ensured.

The risk of non-compliance and security breach
Airline authorities strongly recommend that airlines should take measures to secure all information systems.
The arrival of new generation aircraft which are hyper-connected to their information systems has reinforced
these requirements. Furthermore, the application of the General Data Protection Regulation (GDPR) andnew guidelines such as the NIS directive (Network and Information System Security) have also imposed newprovisions that Air Tahiti Nui must comply with.
In order to confront these risks and control them, four years ago the company initiated an approach to secure
its information system through an action plan consisting of four interrelated focus areas: IS security governance,
IS security audits, project security and raising employee awareness.

Objectives and key ISS achievements over the year

FOCUS 1

GOVERNANCE
OF IS SECURITY

FOCUS 3

INFORMATION SECURITY
IN PROJECTS

2020 objectives

Key achievements of 2020

2020 objectives

Key achievements of 2020

• Set up a risk management system• Organise security and ensure monitoringof actions• Manage the increased security issues during
the period of lockdown• Monitoring of corrective actions• Twice-weekly checks of safety indicators• Integrate recommendations into all
security-sensitive projects• Implementation of additional technical measures
to protect against phishing• Securing of “Office 365”
• Implementation of remote working from home

FOCUS 2

INFORMATION SYSTEMSECURITY AUDITS

FOCUS 4

RAISE EMPLOYEE
AWARENESS

2020 objectives

Key achievements of 2020

2020 objectives

Key achievements of 2020

• Check that all operations proceduresare properly enforced• Audit of vulnerability management• Comprehensive review of residual rights forthe voluntary redundancy scheme• Explain the specific threats of remote working• Encourage employees to step up awarenessduring the Covid-19 crisis• Development of a “remote working” guide• Awareness-raising via email about themes of phishingand “fake president” fraud

16
17

Digitization:

adapting and reinforcing
the information system

The health crisis resulted in an acceleration of changes (regulatory constraints, economic context…) which had
to be incorporated into the airline’s activities.
In order to respond better, the ISD adopted the DevOps method: this new way of developing and putting
software applications into production enables, amongst other things, a reduction in the time needed to produce
and deliver software updates, improve code quality and be part of the virtuous cycle of continued improvement.
DevOps has become a very useful digital transformation tool for Air Tahiti Nui, enabling them to facilitate a
flexible development of software for the benefit and satisfaction of clients and users.

MOBILE APPLICATIONThe Air Tahiti Nui mobile application is an absolute essential within the realms ofairline competition for customer satisfaction and was released in July aimed at
French and English-speaking customers who own IOS and Android devices.

The constraints and changes in pace of work and methods imposed on us during2020 (lockdown, reduced working hours and employees working remotely fromhome…) have allowed Air Tahiti Nui to test the robust constitution and capacity
for adaptability of its information system. Carrying on from the digital transformation process, the IDS used this period of time to reinforce and adapt the digital
infrastructure of the company.
At the beginning of the year, employees of the Air Tahiti Nui information services division had the honor ofseeing their director awarded the Jury’s prize from the “Information services division of the year” election panel.
Since 1999 “IT for Business” (formerly “01 Informatique”), one of the largest professional IT journals in France,
has organized this election process with a panel largely made up of previous information services division
winners. In January 2020, Laurent Husson, who joined Air Tahiti Nui in 2015, was awarded this prize for theextensive projects achieved by his teams under his leadership since being appointed.
Accomplishing much with limited resources—namely how to manage the information systems of an airline
without the means of major airlines, with the added specificity of developing IT solutions locally in an overseas
territory, were the aspects which the panel felt set our “Shiva ISD” apart from the rest. This served as a boost for
the IT department during a very unusual start to the year, to say the least.

The mobile app was developed to be a veritable travel assistant: in just a few
clicks the user can have access to a tailored experience with Air Tahiti Nui bychoosing the services required. In addition to the “key” functions which havebecome standard within the aviation industry (ticket reservation and additional
services, registering online, real time flight schedules, flight searches, etc), one canalso use the interface to book hotel rooms, hire a car with one of Air Tahiti Nui’s
partner companies and enjoy the benefits of their best offers. The application alsooffers all passengers quick and easy access to information concerning their Club
Tiare loyalty account and to the use of their air miles: they can check their points
balance, book flights using the air miles, change their profile and access theirvirtual Club Tiare card.
Lastly, thanks to alerts drawing their attention to any flight changes, passengers
are informed in real time, both before and during their itinerary; travel details canalso be shared with friends and family.
Despite a significant reduction in passenger traffic in 2020, the application was agreat success with our customers and all projected downloading targets were met
immediately from the first year.
Every year, the application will be subject to regular updates in order to improve
the interface, add new functions and respond to and meet the expectations of
Air Tahiti Nui’s customers.

Approximately fifty additional features linked to remote working
and modern secure conference and collaboration tools suchas “Microsoft 365” and “Teams” were made available to users
during the first quarter of the year.
Despite the constraints imposed by the health crisis, employees in all areas were thus able to carry out their tasks,
respond to customer demands and ensure the effective
operation of the airline.
New, more rapid and better performing working
methods were also tested out. These helped theairline adapt to the constraints as and when theyoccurred, which also contributed to the continuationof Air Tahiti Nui’s operational activities.
As part of the company Business Continuity
Plan which aimed to guarantee that operations continued in the event of a major
incident, a secure back-up server was set
up and put into service at a distance fromhead office.
Henceforth, all company programmes
and data are synchronised there in
real time, 24/7.
In the event of the primary IT
system becoming unavailable,
the airline is now able to restart its IT system in the spaceof a few hours.

18
19Air Tahiti Nui’s Economic contribution in 2020
2020 accounting data in M XPF
Employment(571 directly employed of which
92% based in Tahiti; 78% local
executives—figures have remained
unchanged since 2019)

Taxes and charges

Operations

1 616 MXPF

Airports (fees)-51.56% compared to 2019

5 523 MXPF
© Tahiti Tourisme

1 731 MXPF

Social charges/CPS contributions

48 MXPF(State and local authorities)

219 MXPF

Air Traffic Control-92.44% compared to 2019-13.10% compared to 2019

Tax

Contribution

Investments

Air Tahiti Nui was the second largest employer in Polynesia in 2020 and has been an historical partner in its
country’s development. Spearheading its principal economy, that of tourism, the airline with the Tiare flower has
adapted itself to a more competitive context that has totally reshaped the face of the transport network of theIslands of Tahiti since the arrival of two new air operators in 2018.
Early 2020, the Covid-19 pandemic completely disrupted worldwide air travel, paralysing intercountry exchanges
for several consecutive months. Just like its fellow airlines, Air Tahiti Nui had to face the progressive closure ofboth air spaces and borders. With 20 years of experience of service to Polynesians and the country, this occasion
allowed the airline to reaffirm its societal role, vital to the opening up of French Polynesia*.
As customer satisfaction is always at the forefront of Air Tahiti Nui’s concerns, the company committed to theadjusting of its services and protocols throughout all the gradual changes generated by the crisis; their aim
being to enable each traveler peace of mind and travel in optimum air safety conditions, whilst still maintaining
regular and transparent communication with customers via its social media platforms, newsletter and official site.
Despite having only just completed its transformation, this unprecedented period forced Air Tahiti Nui torespond seamlessly to new challenges. Already well equipped with a long-proven capacity for change, the airline
continued to demonstrate its endurance and resilience, even finding itself awarded with new distinctions. Thesebore witness to the way in which the teams and the company show daily commitment to ensure a unique andwelcoming journey, leaving customers immersed in the magic of our islands.

ACTIVE ROLE IN LOCAL DEVELOPMENTCSR FOCUS AREA 4
Commitment #10
Despite plummeting income in 2020, Air Tahiti Nui continues to play a major role, both directly and indirectly,
in Polynesia’s economic and social development.
* Air Tahiti Nui operated during this period 9 return flights to Paris as part of territorial continuity, three to New Zealand for medical
evacuations and freight conveyance, two cargo charters to China, at the country’s request, to repatriate medical equipment to Polynesia(including 1 with a detour to Fiji to drop off part of the equipment), and a charter cargo flight to Japan, also on behalf of the country,
in order to recover equipment.

375 MXPF

150 MXPF

8.9 MXPF

52-80.68% compared to 2019

1 586 MXPF

Repayment of debt
+201.45% compared to 2019

Suppliers(excluding fuel)18%

Ratio of local suppliers-4% compared to 2019

Figure attributed
to investments

9 493 MXPF
-18.97% compared to 2019-26.11% compared to 2019

ATN’s active rolein the development ofFrench Polynesia

Suppliers(fuel bill)-61.64% compared to 2019

Employee costs(employee salaries)+0.35% compared to 2019

2 784 MXPF

589 MXPF

Tax on airline tickets(Excluding CA)

Support of associations(sponsorship,ticket donations)-67.90% compared to 2019-58% compared to 2019

Promotion of Tahiti(media tours,
campaigns)

Number of students
on internships-43% compared to 2019

Increased support during the crisis

CSR FOCUS AREA 4
Commitment #9
Historically speaking, Air Tahiti Nui and its employees have always been both socially committed to andsupportive of various local organisations (e.g. La Saga, La Ligue contre le cancer, le Téléthon, etc.), amouting to
6.2 million XPF overall in 2020 (compared with 16.8 million XPF in 2019).
The health crisis and periods of lockdown further accentuated the precarious nature of already vulnerable
families and as such the airline has:- contributed to the annual collection and distribution of meals for the homeless in Papeete with the mobilization of company collaborators and volunteers from The Order of Malta;- maintained its partnership with the ’Utilbus’ in the districts of Papeete and Punaauia who offer socially
responsible mobility to associations and priority neighborhoods;- taken part in operation “masques solidaires” launched by the country in partnership with the Polynesian
association FACE and the districts;- installed a “Sapin du cœur” (Christmas gift tree) in December on the premises initiated by employees, tocollect donations (foodstuffs, clothing, toys, etc.). This was a beautiful addition to the Family Welfare department’s Solidarity Christmas events called “Noël des Solidarités”;- Donated 11 PCs and screens to the FACE Club which, after reconditioning, helped young people from priority
neighborhoods maintain educative continuity during the lockdown.

Actively contributing to promoting CSR in Polynesia
Air Tahiti Nui is a trailblazer in integrating and popularizing a CSR approach with their main aim being tosustain its voluntary approach of transparency and of liability in relation to its stakeholders (internal andexternal). This sharing of good practice contributes towards encouraging other businesses, in particularpartner businesses, to commit to this virtuous approach for social and economic development of the country.

20
21

156 148

members,
namely an increaseof 1.34% comparedwith 2019

The airline loyalty program can offer more savings and air mile usage to its customers thanks to the regular development of new partnerships.
Equally, it plays an essential role in the economic fabric of French Polynesia
by enhancing the local scene through support given to cultural and musicalproductions. As a direct result of the world pandemic and lockdowns plus
the health measures declared in French Polynesia, very few events that wereoriginally scheduled could be organized during the year (among them: a concert,a gourmet dinner with the Lycée Hôtelier, the Te Vevo festival of the Compagnie
du Caméléon and the Tahitian High School Musical competition).
By December 31st, 2020, Club Tiare reached 156,148 members, namely an increaseof 1.34% compared with 2019.

ACTIVE ROLE IN THE DEVELOPMENT OF TOURISM
Despite the yearly figures not being representative of usual traffic numbers, with a reduction in tourism of-67.5% compared with 2019, Air Tahiti Nui retained its leader status by transporting 49.2% of tourists destinedfor French Polynesia throughout 2020.
Above all, the airline demonstrated its ability to adapt, to be organized and to resolve numerous problems
caused by the Covid-19 pandemic. Since the month of April, Air Tahiti Nui has rallied round with the authorities toensure the territorial continuity of travel between French Polynesia and France, which enabled more than 2,500
travelers to be reunited with their nearest and dearest. At the same time, nearly 105 tonnes of freight wereshipped to Tahiti so that the population and healthcare services could be equipped in the face of the epidemic.
The strict health measures that are now imposed on flights will have to be maintained for as long as the authorities judge necessary. Such obstacles in the way of so many trips are henceforth compensated by a greater
flexibility: more affordable tariffs payable in several instalments, easier modifications to reservations, and travel
insurance that is now specifically tailored to the risk of epidemic.
From September 2020, the airline is in effect proposing an enhanced travel insurance option thanks to the assistance of its partner, Allianz Travel. This comprehensive offer enables every traveler the option of a formula adapted to their requirements right from the moment they book their plane ticket. Among the services guaranteedin case of epidemic or pandemic travelers can thus be insured for:- reimbursement of cancellation or amendment fees;- assistance for medical or hospitalization fees;- holiday curtailment cover;- guarantee for delayed or early return;lastly, the benefit of an extra option of “delayed travel” for maximum cover. Cover can be obtained at the timeof booking.

Promotional policy and presence in markets:
stopped in its tracks
Historically sizeable promotional budgets that ensure Tahiti’s regional exposure
were cut in the first months of the year and Covid-19 events from March onwards
paralysed sponsorships and marketing across all markets served by the airline.
FranceIn France, before the airline industry ground to a halt, the first month of the year
held the prospect of great media exposure thanks to the benefits of partnerships
such as:- the team taking part in the filming of Les Misérables (4 prizes and 8 nominations
for the César in 2020) on the occasion of the Oscars ceremony traveling to
Los Angeles in February;- the program “Treasure Hunt” (La Carte aux Trésors) taking place in French
Polynesia, following press tours backed by Air Tahiti Nui and Tahiti Nui Helicoptersat the end of 2019, and released beginning April on France 3 during prime-time
TV (3.5 million viewers) and then released again during the lockdown period(also viewable from onboard ATN).

October 2020, the Sourire à la vie association, which supports child and adolescent cancer
patients in their fight against the disease, enabled eight children to fulfil their dream and fly
to Tahiti thanks to its partnership with Air Tahiti Nui for the charity evening les Trophées duCœur, organized between travel agents by Tourmag, the number one site for French tourism
professionals.
The aim of this trip, based on initiatives and expeditions to raise awareness of this group ofyoungsters about the beauty of the environment and ecology but also to build a team fromthe association in Tahiti in order to assist and look after Polynesian children diagnosed withcancer. A fitting way for Air Tahiti Nui to pursue its societal commitment in Polynesia, in which
it is very involved.
In December, the airline renewed its commitment to the organization during its 7th Charity
Gala thus further improving the daily lives of sick children and their families.

While France found itself beginning a lockdown once again at the end of October,
Air Tahiti Nui remained active by successfully reiterating its partnerships or developing
new collaborations:- a partnership with the singer Keen’V for his video clip “Tahiti”, which obtained 26
million views on YouTube during October 2020 after having been a summer hit on
French radio and the artist’s “Gold Single” was given to the airline in honor of such afine collaboration;- the transport of more than 100 passengers for the making of the new season of KohLanta on the Island of Taha’a in the months of October and November, in conjunction
with its partnership with the Banijay production society;- wide exposure for three weeks in November on the TV channel France 2 for the program “Don’t forget the lyrics” (N’oubliez pas les paroles) presented by Nagui for the
League of Champions—reaching an audience of 12 million viewers;- a partnership with Bixente Lizaruzu for the making of Ma’o Mana, l’esprit du requin,filmed in Rangiroa and Fakarava in January. There was much media coverage about
the release of this new documentary and provided a high level of exposure for thisbeautiful destination on TV shows, social media and on air with four broadcasts on TF1
and on Ushuaïa TV;- collaboration with Aéro-Design, an ambassador brand for Air Tahiti Nui, for the creation of two bracelets to add to the “MACH 2” collection inspired by the contacts,
connectors and steering cables for military and civilian aircraft, already very popularwith Patrouille de France pilots and the Rafale Solo Display. The two designs, the“Charm Edition” and the “Tiki Edition” bearing the airline effigy are intended for those
who share both a love of aviation and the fenua.

© ATN—M. Mellone

This year, in order not to unduly penalize customers who have already been
deprived of travel, Air Tahiti Nui has taken the decision to preserve the Silver
and Gold customer status for their most loyal customers. They have also pledged
to prolong the validity of the air miles which were due to expire in 2020 for all
members of Club Tiare until optimum conditions of use resume.

The CEDIV TRAVEL network convention (one of the largest travel networks in France) and for whom TN is a
travel sponsor, was transformed into a virtual convention from July 15th to July 19th, and this also offered good
exposure of the airline from the point of view of professionals within the sector.

© Sourire à la vie

Loyalty program

During 2020 and despite the long period of lockdown, the Facebook France page gained many subscribers andreached over 5 million people thanks to the airline’s regular publications.
The lockdown period gave rise to a concentration of communication via the use of social media. Alternating
immersive getaway video posts and company news paid off because the rate of engagement from the community steadily increased over the year, thus strengthening Air Tahiti Nui’s exposure, particularly on European sites.
United States
In the U.S market, the year began with a good number of bookings, up 10% from the same period in 2019.
However, due to the spread of the virus, flights were suspended from March 23rd, and only reopened in July ona limited basis to Los Angeles. Just like the rest of the world, the operational schedule initially planned for 2020
was completely disrupted.
Public health constraints led to the cancellation of promotional partnerships across the region, particularly the
local Heiva festivities and the French film festival COLCOA, as well as all business trips and assignments.
As for many companies, necessary measures were taken to minimize spending, including staffing, in order tosurvive the losses incurred by the crisis.
In accordance with local regulations, teams adapted and organized themselves to be able to continue working inthis extraordinary context. Platforms such as “Zoom” and “Teams” and the widespread use of webinars utilizingthese tools became the new standard for communicating and conducting business.
Thanks to their dedication, the region was able to transport over 40,000 passengers on a strictly limited numberof flights, providing an essential support base for the tourism infrastructure in Tahiti and the thousands of jobs
that depend on it.

22
23

Pacific—New Zealand and Australia
Before border closures began to loom over the Pacific, the inauguration ceremony for the new Air Tahiti Nui
premises in Auckland took place on February 12th, 2020.
This was not just a simple move. Above all, this opening on Queen Street marked a new beginning for the regional delegation with the setting up of a whole new company team and freeing them from the relations with thevarious local GSAs (General Sales Agent) who had represented the Air Tahiti Nui product and brand for the past
19 years in New Zealand.
The start of the year seemed promising thanks to the signing of new commercial relations with First Travel Group(FTG), the last of the five large New Zealand travel agencies, which up until that time had focused exclusively
on Air New Zealand, and the commercial and operational performances deemed profitable at the end of thetrial period for Centrecom, the ATN bookings call centre relocated to Suva in Fiji.
As soon as Covid-19 restrictions were announced, remote working was set up in record time.
All service provision contracts were renegotiated, thus allowing for temporary savings (until the flights to
Auckland resume) of up to 75% for certain ones.
All government aid possibilities were closely examined to allow Auckland teams (the office in Sydney having
closed) to benefit from a wage subsidy from the New Zealand Government for the duration of the first 20 weeksof the Covid-19 pandemic.
In Australia, a new sales representation was formed in conjunction with Aviation Online (AOL), which made it
possible to economize on the costs of the former organization, and at the same time enabling more visibility on
the Australian market thanks to a larger database.

© Grégoire Le Bacon

Asia
Just as in Auckland, the Tokyo service was unfortunately suspended from the beginning of the pandemic andfor the whole year.
As a consequence, the four charter flights scheduled for a stopover in Narita (of which three were during thefirst trimester, namely: the traditional charter from Peking for the Chinese New Year holiday, a charter to Easter
Island, and the first ever charter flight from Papeete to South America for Japanese tour operators) were allcancelled and the contracts terminated.
These exclusive flights which usually support the low season in Japan, represented a loss in revenue of over
1.6 million USD.

Customer satisfaction policy
Air Tahiti Nui pays particular attention to customer feedback and to their suggestions for possible improvements. As part of its continuous improvement plan, Air Tahiti Nui has been carrying out an on-going program ofsurveys aboard all flights since 2012 to measure customer satisfaction and better meet their expectations.
In view of the health situation that occurred during the year, satisfaction surveys were suspended.

Awards in 2020

CSR FOCUS
AREA 1
Commitment #2[G4-PR5]

In order to maintain a trust-based relationship, and in theinterests of transparency and centralization of data for greater
efficiency, the company has centralized claims for all its portsof call (with the exception of the Japanese base) through its
software “Mahana” since 2017.
This platform provides a substantial gain in productivity for theteams in charge of customer relations, but also, and above all,better visibility for clients concerning the handling of their claims;
a particularly appreciated added value during a time of masscancellations and travel postponements.
In 2020, the average yearly feedback recorded increased by
36% with 3,419 files registered (mainly due to flight cancellations and enquiries linked to reimbursement procedures inaccordance with each country). All Air Tahiti Nui’s sales teams
were fully mobilized with a 95.72% rate of closure reachedby the end of the year and an average processing time of no
more than 5 days.

Contributing to the reputation and notoriety of air carriers for travellers acrossthe world, awards showcase airlines in various fields.
Despite the massive disruption to the airline industry during the year, Air Tahiti Nuimanaged to maintain a prominent place in the international rankings.
Appreciated for its authenticity, warm welcome, excellence of inflight service andefforts made in customer service and gastronomy in particular, Air Tahiti Nui wasawarded many new distinctions in 2020. These include:
Customer satisfaction
In December, the title of “Five Star Major Airline” in the APEX Official Airline
Ratings for the second year running, for the quality of service provided by theairline, which retains its place of leading airline to French Polynesia and theSouth Pacific; the nomination by the readers of the Global Traveler for “Bestairline in the South Pacific 2020” for the third consecutive year and “Best airline
for leisure 2020” for the 2nd year running.
Gastronomy
These prestigious prizes were completed with four awards during the BusinessTraveller’s Cellars in the Sky Awards 2020: two gold medals for wines served
onboard (“Sparkling wine in Business Class” and “White wine in Business Class”),
a gold medal in the ranking for best on-board wine cellar for Business Class andthe honorary prize from the panel in the “Wine-list presentation in business class”
prize.
In order to achieve this both remarkable and noteworthy selection, Air Tahiti Nuiteams worked with Olivier Poussier, Chef Sommelier, voted best sommelier
in France and the world, to offer a range of products of excellence in Poerava
Business class and to make every journey a unique experience.

24
25

AIR TAHITI NUI / SNCF - TGV

Paris

RennesSeattleSacramento
Salt Lake CitySan Francisco

Shanghaï

Hong Kong© Danee Hazama

BangkokFukuoka

San JoseTokyo

FresnoLos Angeles

NagoyaOsaka

NantesDenverLas Vegas
AlbuquerquePhoenix

San Diego Tucson

El Paso

Lorraine

Le Mans

Oklahoma City

AustinAtlanta

Washington

Strasbourg

ZurichSt Pierredes corps

Milan

Lyon
Valence

BostonBordeaux
Nimes
Montpellier

New York
Philadelphia

St louis

AvignonAix-en provence

Marseille

Rome

MadridCharlotte

Dallas Nouvelle-Orléans

San Antonio

TaipeiTorontoFrancfort

Champagne Ardenne

Poitiers

ChicagoSeoul

AngersSt laudMontréal

PortlandBeijing

Bruxelles

Lille

Vancouver

SapporoAmsterdam

Londres

AIR TAHITI NUI / AMERICAN AIRLINES

HoustonOrlando
Miami

MexicoManilleSaigonTahiti et ses îlesSingapourCairns
Sao Paolo

NouméaFlight activity

Brisbane

Melbourne

Santiago

AucklandQueenstown

CERTIFICATES AND LICENSES

Rapa Nui

SydneyPerthChristchurch
Destinations ATN (en propre ou partage de code) / TN Cities (operated by TN or in codeshare)
Destinations desservies par nos partenaires interline (échantillons) / Destinations serve by our interline partners (samples)
Vols opérés par ATN
Vols ATN en partage de code avec nos partenaires ou opérés par nos partenaires interline /TN flights in codeshare with our partners or operated by our interline partners

To operate as a French international air carrier, Air Tahiti Nui holds:- an air carrier license, December 2006 (Decree 1389 CM);- an air carrier certificate (CTA) n°FR.AOC.OO83, Ed5 August 17th, 2020;- a certificate of approval from the Continuing Airworthiness Management Organization
FR.CAMO.0026 rev. 0 November 3rd, 2020;- a certificate of approval of maintenance part 145 for the maintenance of aircraft FR 145.0423,
rev. 5 June 11th, 2020.
The different authorizations list all specific operational approvals in relation to the Boeing 787-9.

THE NETWORKAir Tahiti Nui is positioned as the main airline serving French Polynesia with daily flights to the destination.
The company operates over four continents, offering flights from Papeete to Los Angeles, Tokyo, Auckland andParis (via Los Angeles).
Air Tahiti Nui offers routes to a total of 62 cities thanks to its codeshare partners:- SNCF trains with the Train + Air program in France and Europe departing daily from CDG to: Aix-en-Provence,
Angers, Avignon, Bordeaux, Le Mans, Lille, Lyon, Marseille, Metz, Montpellier, Nantes, Nîmes, Poitiers, Reims,
Rennes, Strasbourg, Tours, Valence and Brussels.
- American Airlines in North America departing daily from Los Angeles to: Albuquerque, Atlanta, Austin,
Boston, Charlotte, Chicago, Dallas, Denver, El Paso, Fresno (until April 8th, 2020), Houston, Las Vegas, Miami,
New York, La Nouvelle-Orléans, Oklahoma City, Orlando, Philadelphia, Phoenix, Portland, Sacramento, St Louis,
Salt Lake City, San Antonio, San Diego (until October 7th, 2020), San Francisco, San Jose, Seattle, Tucson,
Vancouver and Washington.
- Qantas and Air Calin complete the Air Tahiti Nui offer in the South Pacific to Sydney, Melbourne, Brisbane,
Perth and Nouméa.
- Japan Airlines and Korean Air depart to Osaka, Fukuoka, Nagoya and Sapporo in Japan, and Hong Kong andSeoul in Asia.
- LATAM Airlines in South America depart to Easter Island and Santiago, Chile.

At the same time, Air Tahiti Nui applies its company code to Air New Zealandflights to increase the frequency of service between Tahiti and Auckland, bringing the number to five return flights a week on this route, and with Air France
between Los Angeles and Paris to extend the Paris-Tahiti service to one return
flight per week (under normal operating conditions, outside the pandemic).
The following partners apply their company codes to flights operated by Air Tahiti Nui:
- American Airlines: PPT-LAX / PPT-AKL et LAX-CDG- Qantas: PPT-AKL / PPT-LAX- Air New Zealand: PPT-AKL / PPT-LAX- Air Calin: PPT-AKL / PPT-LAX- Japan Airlines: PPT-NRT- Korean Air: PPT-NRT- Air France: PPT-LAX- LATAM Airlines: PPT-AKL
The worldwide health crisis due to Covid-19 disrupted the 2020 flight schedule,
leading to massive cancellations. In spite of this, Air Tahiti Nui remains attached
to its partners and continues to maintain links with them.
Thus, 43 interline agreements have been made with other transporters to date,in order to offer clients a wider choice of destinations.

43

interline agreements
made with othertransporters

26
27

Frequency of weekly services by codeshare partner*© Kent Matthiesen

		
Provisional 2020
Completed 2020

Air France (AF)LAX – CDG – LAX
X1 per week			

0 flights/wk.
from mid-March

Qantas (QF)
AKL – SYD/MEL/BNE – AKL
Daily
			

0 flights/wk.
from April

Korean Air (KE)NRT – ICN – NRT
X2 per week			

0 flights/wk.
from March

AKL – NOU - AKL
PPT – NOU - PPT

X2 per week
X1 per week

LATAM Airlines (LA)SLC - IPC - PPT - IPC - SCL
X1 per week			commercial flights
in 2020 for 8 541
flight hours

Japan Airlines (JL)ATN FLIGHT SCHEDULE 2021
French Polynesia was not spared from the Covid-19 pandemic, beginning a lockdown on Friday March 20th, 2020,and having a strong impact on Air Tahiti Nui’s flight schedule as numerous flights were cancelled due to borderclosures.

Frequency of service per route

Papeete - Paris
via LAX0 flights/wk.
from April

Air Calin (SB)

692

2019

Air New Zealand (NZ)
PPT – AKL – PPT
X2 per week			Provisional 2020

Completed 2020
Low
seasonLowseasonHighseasonLowseasonHighseasonHighseason2 to 5flights/wk.

5 to 7flights/wk.

2 to 5flights/wk.

5 to 73 to 4 flights/wk.
0 flights/wk.
flights/wk. (Jan. to March)

Papeete – Paris
NA
NA
NA
NA
via PTP*					1 flight/wk. (midMarch-end May)

Papeete – Paris
NA
NA
NA
NA
via YVR**					2 to 4 flights/wk.
5 to 7(Oct. to December) flights/wk.

NA

NRT - HKG 		
NRT - ITM		
HND - ITM
Daily
NRT - NGO 		
HND - FUK
HND - CTS

0 flights/wk.
from April
0 flights/wk.
from mid-March		
0 flights/wk.
from mid-March* Except American Airlines and SNCF who usually operate daily links which were disrupted following the suspension of routes with
American Airlines from April until mid-July and with the SNCF from mid-March until June then from November until mid-December 2020.

PUNCTUALITY
In 2020, ATN’s punctuality improved across the network with 89.75% of flights
leaving on time or within 15 mins of scheduled time (+1.29% compared with2019).
However, the indicator is not fully representative of a year of traditional flight operations: the monitoring of punctuality indicators was interrupted between April
and June before being resumed in July with the partial resumption of flights.
Punctuality for the year was improved thanks to the use of Vancouver as a“technical stopover”. The simplicity of operations (only a technical stopover as
opposed to the usual transit operations and simpler Canadian immigration/
security regulations), did indeed limit delays compared to those usually observedon the Los Angeles stopover (immigration, transit, etc.).

89.75%of flights
departed on time

Papeete – Los Angeles

4 to 8flights/wk.

4 to 6flights/wk.

4 to 8flights/wk.

4 to 6flights/wk.

3 to 5flights/wk.

3 		
flights/wk.

Papeete – Narita

2flights/wk.

2
flights/wk.

2
flights/wk.

2
flights/wk.

2
flights/wk.

0flights/wk.

OPERATIONS IN TIMES OF CRISIS

Papeete – Auckland

3
flights/wk.

2 to 3flights/wk.

3
flights/wk.

2 to 3flights/wk.

3
flights/wk.

0flights/wk.

To compensate for the closure of the borders and in particular the impossibility of transiting via Los Angeles,as planned in our regular flight schedule, alternative transit options via Vancouver and Pointe-à-Pitre wereconsidered in an emergency. Thus, on Saturday March 14th, 2020, the first CDG-PPT flight operated via YVR andon Monday March 16th, 2020, the first CDG-PPT service flew via PTP.

Annual number of flights per route
2018
2019
			

Variation2020
18/19		

Variation
19/20

Papeete - Paris via LAX
Papeete - Paris via PTP*
Papeete - Paris via YVR**
Papeete - Los Angeles
Papeete - Narita
Papeete - Auckland

476
NA
NA
594
217
307

486
NA
NA
492
207
295

2%
NA
NA
-17%
-5%
-4%

75
17
228
253
42
77

-85%
NA
NA
-49%
-80%
-74%

TOTAL

1 594

1 480

-7%

692

-53%

* PTP = Pointe-à-Pitre (Guadeloupe).
** YVR = Vancouver (Canada).

The unprecedented context imposed by this crisis also enabled Air Tahiti Nui to achieve the first direct flightfrom Tahiti to Paris, during the night of March 14th–15th, 2020 (16 161.59 km covered in 15 hours and 57 minutes).
This was to ensure the repatriation of tourists and Polynesian residents following the sudden closure of American
borders to non-US travelers having transited through the Schengen area in the 14 days preceding their trip.
Following this, three other direct flights of the same type operated to Paris, including the longest commercial
flight ever made, which is also technically speaking the longest domestic flight operated to this day, given that
Tahiti is a French territory (8 874.68 nautical miles, equivalent to 16 435.91 km, travelled in 16 hours and 30 minutes).
In view of the extent to which the Covid-19 epidemic spread and the collapse of global air traffic, in early
April, the French Government undertook to maintain a territorial continuity route between French Polynesia andMetropolitan France. In particular this made it possible to ensure medical evacuations for the territory andthereby Air Tahiti Nui was entrusted with a temporary public service delegation to provide the flights between
Tahiti and Paris.

28
29

TAHITI NUI HELICOPTERS SUBSIDIARY© Danee Hazama© Danee Hazama

SAS Tahiti Nui Helicopters is the first subsidiary of the Tiare airline, now the majority shareholder of the entity.
On December 31st, 2020, company capital was divided as follows:

19.81%
Shares in
Tahiti Nui Helicopters
capital on 31/12/2020

68.10%AIR TAHITI NUI

12.07%

19.81%

SOFIDEP

HBG

68.10%

Faced with the world Covid-19 pandemic, the APHI project, led by researchers at The Harvard School of Public Health, was able to demonstrate that the risk ofcontamination on board a plane is low. Indeed, the onboard air renewal system on aircrafts considerably reduces this risk, rendering the air on board healthier than
AIR TAHITI NUI
other closed public spaces (shops, restaurants, etc.). The air inside each aircraft such as the Tahitian Dreamliner is filtered via a HEPA system which captures 99% of
Covid-19 particles and renews it every 2 to 3 minutes.

HBG

12.07%
SOFIDEP

0.02%
FRENCHPOLYNESIA

0.02%
FRENCHPOLYNESIAThe company operates five aircraft: 4 Airbus Helicopters H135 (two EC135T1 and two EC135T2) and 1 Airbus
Helicopter H125 (AS350 B2).

NEW HEALTH MEASURES
When the crisis began, Air Tahiti Nui immediately adapted to the health requirements decreed by the competentauthorities to protect its customers and staff.
Since the beginning of the pandemic, all flight crews have been provided with masks and surgical gloves toensure their work is carried out under optimal safety conditions and individual protection equipment isprovided for every person both on the ground and in-flight. Social distancing is encouraged in waiting areas
and at check-in. In addition, to facilitate compliance with health measures (regular handwashing or sanitizing,wearing of masks on board as well as in the airport, etc.), Air Tahiti Nui provides each passenger with a hygiene
kit including 2 surgical masks, a bottle of sanitizer and disinfectant wipes.
It was also decided that onboard service would be reduced to limit passenger interactions on board andmovement in the cabin: the distribution of travel documents and hygiene kits during boarding, the inclusion ofpre-dinner drinks in the meal tray, and a reduction of other inflight services to minimize points of contact, etc.
Initially simplified to respond to the health crisis, these onboard services were further enhanced in October toimprove our customers’ travel experience.
Thanks to a partnership with Gate Gourmet in Vancouver, the main airline catering services provider in theworld, Air Tahiti Nui proved once again that quality is an essential aspect that it does not neglect even in timesof crisis—as their awards received throughout the year demonstrate (cf. pg. 25).
Therefore, no less than four meal trays are offered in each cabin on the Papeete-Vancouver-Paris and ParisVancouver-Papeete flight sections; all onboard services are provided in a single passage to limit contact and therisk of contamination. In addition, special meals as well as wine and champagne (except for the “Coup de Coeur”
wine) have become available again since this date.
Health and safety of our passengers is at the heart of our concerns, so our airline’s teams are always at theready to adjust services and procedures as and when necessary, to provide the best travel experience and allow
everyone to fly with complete peace of mind, while still respecting all the sanitary measures in place for thesafety of all.
A new specific sanitization protocol is also carried out on every flight for the cabin (seats, cabin, galleys, restrooms)/cockpit/crew rest areas, in accordance with European Air Safety Agency (EASA) recommendations.
In the event of the detection of a Covid-19 case on board (or a strong suspicion arising from the detection ofvirus symptoms), a specific protocol is implemented:- the isolation of the passenger in a “protected” zone at the rear of the aircraft, including seats in front andbehind the passenger if possible;- the assignment of a cabin crew member equipped with personal protection kit including FFP2 mask, faceshield, impermeable gown and gloves, to attend to the said passenger, and a restroom reserved exclusively forthe person at the back of the aircraft;- the disembarkation after all other passengers.
On arrival, an enhanced sanitizing procedure will take place in compliance with local and international regulations.

The activity of TNH is based on 4 main tasks:- on-demand passenger transport, for no-wait direct transportation of clients from international flights orconnecting international flights on private jets;- sightseeing (in and around Tahiti, Moorea, and the Leeward Islands);- medical evacuation or medical emergencies from the islands;- helicopter operations (pylon equipment, etc.) and mountain rescue.
The affiliate company began to operate commercially in July 2018 with two helicopters based in Tahiti, also serving
Moorea, and a third aircraft stationed in Bora Bora.
On July 1st, 2020, a base was opened in Taiohae in the Marquesas islands to perform medical flights (medevac)from the archipelago. This resulted in 112 medical flights taking place between July 1st and December 31st, 2020,
for over 94 flight hours.
Since it first started, Tahiti Nui Helicopters has carried out 1 700 flight hours:

136

FLIGHT HOURS

AIRBORNE WORK

Breakdown of Tahiti Nui Helicopters
flight hours between 20/07/2018
and 31/12/2020
992 flight hours until 31/12/2019 ;708 flight hours between 01/01 and
31/12/2020—closure of Bora Bora basebetween March 16th to July 23rd, 2020

433
FLIGHT HOURS

590
FLIGHT HOURSSIGHTSEEING
BORA BORAMEDEVAC

208
FLIGHT HOURSSIGHTSEEINGTAHITI ET MOOREA333
FLIGHT HOURS

TRANSFERSOn December 31st, 2020, the subsidiary has 19 employees.
Tahiti Nui Helicopters’ commercial portfolio expanded during the year: in particular, new circuits to Taha’a and
Raiatea became part of the catalogue, and a new helipad was opened on motu Nao Nao (small island south of
Raiatea).

30
31

Environmental
reportOpportunities:- to be able to update wind forecasts during cruise with precise personalized data for our aircraft systems;- to optimize the vertical profile of flights with the most up-to-date masses (passengers, freight, catering, etc.).
Principles:- ultra-accurate forecasts are based on high-density global and regional grids and real-time data from otheraircraft on the same route. This data is shared in a cloud hosted on servers around the world;- winds are dynamically adjusted according to flight level;- as soon as the pilots perform a flight plan amendment, the winds of the new route sections are provided;
This advanced system enables a potential saving in fuel of 120 Kg/flight.

CSR FOCUS AREA 2
Reduce the impact of our aviation activity
Since Air Tahiti Nui operates exclusively long-haul flights, its environmental
impact is mainly due to greenhouse gas emissions: 95% are linked to flights,
according to the 2015 carbon assessment. Since then, the company has actively
monitored emissions and has undertaken a reduction policy made up of 4 main
components.

Reduce our emissions and participate
in the fight against climate change
1/ Optimizing the carbon efficiency of our flights
Since the end of 2019, Air Tahiti Nui has operated an exclusive fleet of four Boeing
B787-9 “Tahitian Dreamliners”. These new generation twin-engine aircraft enablesignificant reductions in both noise pollution (below 85 decibels during take-off
and landing) and greenhouse gas emissions.

2018

2019

2020

375 285

318 437

151 212* Direct CO2 emissions including all flights. For CORSIA emission declared, cf. CSR Indicators, pg. 58.

In 2020, there was a significant reduction of -52.5% in greenhouse gas emissions
compared with 2019. While the energy efficiency provided by the new aircraft is
not in question, this decrease is directly correlated to the health crisis and thedrastic reduction in the number of flights, their load factor and therefore the RPK(Revenue Passenger Kilometers). When related to the seat offer, the Fuel Burn by
ASK (Available Seat Kilometers) remains consistent over 2019 and 2020.
At the same time, Air Tahiti Nui has continued to apply operational procedures
which aim to optimize daily fuel consumption (such as adjusting routes andfuel loads, flight tracking and good piloting practice, maximized maintenance
operations such as engine cleaning, etc.).
In 2020, the FLOE—Flight Operations Engineering department deployed a systemprovided by Boeing, named Wind Updates, making it possible to model several
formerly lacking opportunities.

© Danee Hazama

Mitigate the impact of our activity on the ground2/ Involving TN employees through an internal environmental approach
To complete the CO2 reduction policy related to activity on the ground, Air Tahiti Nui promotes energy efficiency
in buildings (air conditioning being the biggest energy consumption item in tropical environments) and encourages employees to adopt eco-friendly practices at work, in particular eco-mobility.

2019		
Energy consumption in the
946 242
4 buildings in Tahiti (in KW)		Commitment #3

Direct greenhouse gas emissions*(tonnes - CO2) [G4-EN15]

Commitment #4

Findings:- the wind forecasts in the flight plans were obsolete (see data in H-6 to H-12);- the last Zero Fuel Weight of the final load sheet had not been taken into account(Zero Fuel Weight of an aircraft is the total mass of a dry aircraft, that is to say
the aircraft mass including all its components minus the total mass of the fuel);- the vertical profile of the flight plan was limited to geographical points, whereas
the aircraft follows a trajectory including other additional navigational points;- wind forecasts sent to the aircraft did not consider immediate conditions (cruiselevel, etc).

2020
850 581(a decrease of -10%
compared with 2019)

In 2020, there was a reduction in the buildings’ electricity consumption due to the lockdown and reduction ofworking hours for employees. Numerous awareness initiatives initially planned by the CSR unit (eco-practices
and eco-mobility) were not able to take place in the wake of the health crisis.
During European Week for Waste Reduction (EWWR), Air Tahiti Nui still managed to contribute to the ADEME
online seminar by presenting its project launched in 2019 to recycle uniforms, thus highlighting innovative upcycling initiatives by local associations.

Commitment#5
Contribute towards the preservation of Tahiti and its biodiversity
3/ Raising passenger awarenessIn order to include our passengers in this comprehensive environmentally friendly approach and to comply
with the new regulatory and sanitary constraints, Air Tahiti Nui has continued to gradually reduce single-use
plastic on-board in favor of more sustainable alternatives (recycled plastic heat-resistant cups, wooden coffee
stirrers, etc). Unfortunately, with the Covid-19 pandemic, aviation standards imposed new non-recyclable practices
to protect passengers and crew health, such as wearing masks, gloves, protecting surfaces with cellophane,
providing bottles of sanitizer, etc.
In 2020, Air Tahiti Nui also took the initiative of removing its inflight magazines, which are now available in digitalformat in the inflight entertainment program of each individual screen, thereby reducing the weight of on-board
material carried.
To promote a circular economy, when certain items and foodstuffs can no longer be used on board (blankets,
comfort masks, condiments, etc.) they are typically donated to local charities. This year, Air Tahiti Nui also supported the association Te Ora which redistributes donations to at-risk families and the homeless in Papeete.
4/ Offsetting our emissions
Before compensating, Air Tahiti Nui continues to apply the ADEME recommendations to reduce its greenhouse gas emissions as much as possible.
Despite not being subject to the application of a carbon tax or to the regulatory
obligation to offset its CO2 emissions, and after conducting an initial study concerning offset platforms in 2019, the company finally approached the New Zealandstart-up CarbonClick to offer its passengers the possibility of voluntarily offsetting
their travel emissions by supporting the environmental carbon storage or reduction
projects (scheduled to be launched in 2021).
The company also continues to sponsor local associations and initiatives who
are fully committed to preserving the environment and biodiversity of French
Polynesia, such as the non-profit organization Tetiaroa Society, the association
Nana Sac Plastique (“Goodbye plastic bag”) or the Institut des récifs coralliens
du Pacifique (Pacific coral reef institute) to the tune of 2.9 million XPF in 2020
(compared with 4.8 million XPF in 2019).

32
33

Traffic andbusiness results

CSR FOCUS AREA 2
Commitment #3
ENERGY EFFICIENCY
Average consumption offuel per passenger/100km
2018: 3.90 L
2019: 3.39 L(2.96 L for the 787-9 and 4.38 L for the A340-300)

2020: 5.61 L

TAHITI-BOUND TRAFFIC
In 2020, the total number of incoming and outgoing passengers to Polynesia was
242 043, namely a variation of -66.1% compared with 2019. The seat availability
was drastically reduced by -54.8% as a consequence of the Covid-19 health crisis.

of internationaltraffic transported by
Air Tahiti Nui

Air Tahiti Nui transported 49.8% of international traffic in 2020, thanks to territorial continuity flights performed during the period where borders were closed,from April through to July, and also its presence when borders reopened in July,which enabled the airline to increase its market share in offers and passengers to
1.6 points more than 2019.

© Tahiti Tourisme

49.8%

This increase is consistent with the reduction of RPK(Revenue passenger kilometers) and with the seat load of all ourroutes as a whole (fewer passengers both by flight and over theyear), as well as the reduction in the number of long-haul flights(such as Narita): the longer the flight with optimized seating,the more energy-efficient it is.

RESULTS & EVOLUTION OF ATN
FARE-PAYING PASSENGERS BY ROUTE
Fare-paying passengers activity per route

TOURIST TRAFFIC

2019

2020

Variation

In 2020, 77 017 tourists visited the Islands of Tahiti, a decrease of 67.5% compared with 2019.
Air Tahiti Nui transported 37 879 tourists (49.2%).

Average passenger load factor

75.3%

56.5%

-18.8 pts

Revenue (in million XPF)

28 42510 145-64%

Tourist traffic market shares by airline

Source : Revenue Management - Air Tahiti Nui Financial Department

passengers
transported in 2020

In 2020, the company generated passenger traffic revenue of 10.1 billion XPF.

49.2%
Air Tahiti Nui

4.4%© Danee Hazama

167 074

In 2020, Air Tahiti Nui transported 167 074 passengers, 61.6% fewer than in 2019,with reduced capacity (48.8% less than in 2019). In conjunction with the reopeningof our borders, the number of seats available was higher than passenger demand
which led to a decrease in seat occupancy of -18.9 points.

Air New Zealand
Source: ISPF

1.7%

Latam Airlines

16.8%

13.8%

10.7%

1.7%

1.3%

0.4%

United Airlines

Air Calin

Air France

Hawaiian Airlines

French Bee

Air Tahiti

3435

4 073© Danee Hazama© Danee Hazama

tonnes of freighttransported for
1.9 billion XPF
in revenue

FREIGHT REVENUECHARTER ACTIVITY

Comparative table of freight revenue and tonnage in 2019 and 2020

The health crisis due to Covid-19 disrupted charter activity from March 2020
(several charter flights were cancelled or postponed such as those to Easter
Island or Lourdes).
The company operated cargo only flights for the country, two of which to
Shanghai, thus allowing for the provision of medical equipment and sanitary
products (mainly surgical masks and respirators when there was a worldwide
shortage).

				Variation
2019
2020
Variation%
Revenue (in million XPF)

2 882

1 992

-890

-30.8%

Weight (in tonnes)

8 922

4 073

-4 849-54.3%

Source: ATN Freight and Management Control Department

3% 3%
AKL

Distributionof tonnagetransported
by origin*

NRT

12%
PPT

60%
CDG

22%
LAX

* Origin of freight departure.

The International Air Transport Association (IATA) indicated that the year 2020 was the worst year for the airtransportation of passengers and goods, since they began monitoring freight performance in 1990.
Air Tahiti Nui is no exception to this assessment: with the closing of borders and lockdowns in mainland France
and in Polynesia throughout the year, the airline has been forced to drastically reduce its flight program even to
the point of stopping its flight operations to New Zealand and Japan; our results are a reflection of this reality
with a reduction of 38.8% in sales revenue over the year.
The freight revenue for 2020 over the whole Air Tahiti Nui network amounts to 1 992 million XPF for an overall
tonnage of 4 073.
• Export from Papeete shows a decrease of -35% compared with 2019; the reduction of flights to CDG, thestopping of LAX flights in April before a progressive recovery, and the closure of AKL and NRT routes have hada significant impact;• The New Zealand station shows a -64% reduction in revenue as a direct consequence of the grounding of AKL
flights since April 2020;• With a decrease of “only” -11%, the destination CDG did reasonably well thanks to continuity flights and exclusively cargo flights which were set up after the gradual resumption of flights to mainland France in the monthof July;• LAX station shows a fall in revenue of -40.9%, following the closure of the LAX-CDG route and LAX-AKL;• The Japanese market endured a slump of -84.1% due to the grounding of NRT-PPT flights in effect since April
2020.

107 flight hours were performed over the year for various other charterers (adecrease of 6% compared to 2019), of which 76 hours for the territory (cargoflights).
This activity generated 194 million XPF in income over the year (compared to
225 million XPF in 2019, a decrease of 14%), of which 121 million XPF for the
territory (cargo flights).

194

million XPF revenue
generated bycharter flights

Comparative table of charter activity in 2019 & 2020
2019

2020

Variation

Full cargo

NA

76

NA

Full charter*

114

31

-73%

Total Nb flight hours

114

107

-6%

Full cargo

NA

121

NA

Full charter

225

74

-67%

Total revenue (million XPF)

225

194

-14%

Number of flight hours

Revenue (M XPF)
Full charter

120 -Full cargo

100 -Full cargo

200 -

80 -

150 -

60 -

100 -

40 -

50 -

20 0-

Full charter

250 -

2019

2020

0-

* Full charter flights carry passengers only; full cargo flights, exclusively freight.

2019

2020

36
37

Financial
statements© Grégoire Le Bacon

Contents
Financial results

40

Income statement42

Cash-flow statement

44

Annual accounts annex

45

Statutory auditors’ report on the annual financial statements

54

DISCLAIMER:
The English version of this report is a translation of the original in Frenchfor information purposes only. In case of a discrepancy, the French original
will prevail.

38
39

Financial results
GROSS ASSETS BALANCE SHEETLIABILITIES BALANCE SHEET		 Amort.
In XPF
Gross& prov.

NetNet
31/12/2020 31/12/2019

UNCALLED SUBSCRIBED CAPITALINTANGIBLE FIXED ASSETS
Start up costs
Development costs
20 222 195
8 779 572
1 1 442 623
Licenses, patents and similar rights
576 360 378
307 1 6 8 715
269 1 9 1 663
Goodwill
Other intangible fixed assets
2 981 753		
2 981 753
Advance payments on intangible fixed assets
TOTAL intangible fixed assets:
599 564 326
315 948 287
283 616 039
TANGIBLE FIXED ASSETS
Sites/lands
Buildings
1 658 218 052
1 3 1 665 584
1 526 552 468
Technical installations, industrial
equipment and tools
3 461 989 647
474 425 079
2 987 564 568
Other tangible fixed assets
806 247 062
487 152 098
319 094 964
Fixed assets in progress
764 000		
764 000
Advances and prepayments				
TOTAL tangible fixed assets:
5 927 218 761
1 093 242 761
4 833 976 000
FINANCIAL FIXED ASSETS
Investment valued using the equity method
Other investments
Receivables related to investments
156 598 684
1 5 6 598 684
Other fixed equity
447 276 000
422 874 000
24 402 000
Loans
2 000 000		
2 000 000
Other financial fixed assets
1 889 682 866		 1 889 682 866
TOTAL financial fixed assets:
2 495 557 550
579 472 684
1 916 084 866

24 402 000
2 000 000
2 083 648 849
2 110 050 849

FIXED ASSETSINVENTORIES & WORK IN PROGRESS
Raw materials and supply
Inventories and production of goods in progress
Inventories and production of services in progress
Inventories of finished and semi-finished products
Inventories of goods
TOTAL inventories & work in progress:
RECEIVABLES
Advances and prepayments on orders
Trade receivables and related accounts
Other receivables
Uncalled subscribed capital
TOTAL receivables:
LIQUID ASSETS AND OTHER
Marketable investment securities
Liquid assets
Prepaid expenses
TOTAL liquid assets and other:
CURRENT ASSETS
Loan issue costs to amortize
Bond redemption premiums
Unrealized foreign exchange losses
GRAND TOTAL

Social or individual capital
299 838 031
16 454 850
316 292 881

1 580 248 963

of wich paid 1 622 956 875

Issue, merger and contribution premiums

1 6 2 295 688

162 295 688

Revaluation variance including equity method evaluation difference
Legal reserve
Statutory or contractual reserves
Regulated reserves
Other reserves
Annual result(8 179 047 679)

175 790 862

TOTAL net position:

4 692 721 924

12 871 769 603

966 500
5 038 872 263

INVESTMENT SUBSIDIESEQUITY

4 692 721 924

12 871 769 603

Provisions for contingencies

1 146 139 055

1 270 361 8 1 7Provisions for charges

2 197 959 232

1 659 430 393

PROVISIONS FOR CONTINGENCIES AND CHARGES

3 344 098 287

2 929 792 210

Loans and liabilities from credit institutions

35 444 818 492

29 761 573 427

Miscellaneous financial loans and debts

2 1 6 3 792 1 5 1

59 688 3 1 1

TOTAL financial liabilities:

37 608 610 643

29 821 261 738

1 1 9 756 966

340 292 049

Trade creditors and related accounts

1 265 686 1 1 5

2 461 250 436

Tax and social security liabilities

1 687 075 461

2 456 087 288

17 865 448

611 757 660

710 397 325

611 757 660

710 397 325

22 022 838		
22 022 838
579 892 909
66 396 848
513 496 061
30 291 308 548
2 608 126 30 288 700 422

1 1 859 915
1 653 884 766
32 320 109 054

30 893 224 295

33 985 853 735

REGULATED PROVISIONSFINANCIAL LIABILITIESConvertible debenture loans
Other debenture loans

ADVANCES AND DEPOSITS RECEIVED ON CURRENT ORDERSMISCELLANEOUS LIABILITIES

Liabilities on fixed assets and related accounts
16 272 744 432		
2 841 531 043		
19 1 1 4 275 475		

16 272 744 432
2 841 531 043
19 114 275 475

50 637 122 878

50 550 252 456 53 433 080 391

59 832 216 626

1 700 973 600

9 209 752 578

629 623 108

1 72 753 1 1 1 		

1 622 956 875

1 700 973 600

9 385 543 440

7 465 215 993

86 870 422

1 622 956 875

Retained earnings

7 033 676 905

69 004 974 30 824 219 321

Net
31/12/2019

3 086 418 043
37 1 238 757

1 988 663 732

17 865 448

Net
31/12/2020

NET FINANCIAL POSITION

9 022 340 637

629 623 108

In XPF16 105 896 774
2 630 932 557
18 736 829 331

172 753 1 1 1

176 294 669

2 075 534 154 57 756 682 472

61 074 591 053

4 406 102

37 528 461

Other liabilities

1 688 998 476

1 451 328 240

TOTAL other liaibilities:

4 646 166 154

6 406 194 425

DEFERRED REVENUE

6 588 494 189

8 673 545 231

48 963 027 952

45 241 293 443

756 834 309

31 735 797

57 756 682 472

61 074 591 053

LIABILITIESCurrency translation adjustment- liabilities
GRAND TOTAL

40
41

Income statement
In XPFNet
31/12/2020

Net
31/12/2019

OPERATING RESULT(8 824 142 621)

(2 256 962 888)

Financial income from investments		

2 074 000

FINANCIAL INCOME

French		 NetExportPolynesia
31/12/2020

In XPFNet
31/12/2019

Sale of merchandise
Sale of products-goods
Sale of products-services

12 605 489 373		

12 605 489 3 7 331 939 830 301

Net revenue

12 605 489 373		

12 605 489 373

31 939 830 301

Stored production
Operations subsidies

379 749 1 7 966 434 614

Write-backs of provisions and transfers of expenditure998 1 1 6 299

495 205 818

8 1 027 448 475

13 983 362 953

32 508 919 208

OPERATING INCOME
EXTERNAL EXPENSES
Purchase of merchandise [and customs duties]
Inventory change
Purchase of raw materials and other supplies

3 1 6 1 909 493

8 1 2 3 081 372

198 507 9 1 9(2 322 024)

Other purchases and external charges

10 070 966 5 5 1

13 496 812 705

TOTAL external charges:

13 431 383 963

21 617 572 053

43 987 504

68 3 1 1 860

Salaries and wages

5 523 155 8 1 2

5 504 15 0 218

Social costs

1 730 510 1 2 8

2 342 340 761

TOTAL staff costs:

7 253 665 940

7 846 490 979

365 327 7 3 12 403 317 753

Inventory change [raw material and supply of provisions]

TAXES, DUTIES AND SIMILAR LEVIESSTAFF COSTSOPERATIONAL PROVISIONS
Depreciation allowance for amortization on fixed assets

Other interest receivable and similar income

74 393 416

Write-backs of provisions and transfer of expenditure267 623 000

Exchange rate gains

1 1 6 239 965

1 781 560 807

1 080 864 268

2 123 577 223

1 199 178 233

Net income from sale of investment securities
FINANCIAL EXPENSES

Self-constructed assets

Other products

Income from (transferable) securities and fixed asset receivables

Financial allowance for depreciation and provisions

306 595 684

50 000 000

Interest and related expenses

492 822 039

338 320 488

Exchange rate losses

1 998 379 702

931 399 562

2 797 797 425

1 3 1 9 720 050

FINANCIAL RESULT(674 220 202)

(120 541 817)

INCOME BEFORE TAX(9 498 362 823)

(2 377 504 705)

1 6 1 1 523 5 3 1

1 450 551 490

Extraordinary income from capital transactions

129 6 1 7 555

33 555 143 610

Write-backs of provisions and transfer of expenditure

68 883 960

1 943 399 434

1 810 025 046

36 949 094 534

Extraordinary management operations expenses

264 865 036

487 704 434

Extraordinary capital transaction expenses

193 076 783

33 201 909 056

Extraordinary amortization and provision allowance

28 768 083

125 654 305

4 867 099 023

3 815 267 795

1 323 315 144

3 133 826 739

Profit-sharing		

14 063 269

Net expenses from sale of investment securities

EXTRAORDINARY INCOME
Extraordinary income from management operations

EXTRAORDINARY EXPENSESEXTRAORDINARY RESULT

Provisions for fixed assets
Provisions for current assets

66 396 849

61 467 952

Provisions for risks and expenses

965 880 1 49

1 825 769 060

TOTAL operating provisions:

1 397 604 729

4 290 554 765

OTHER OPERATING COSTS

680 863 438

942 952 439

OPERATING COSTS

22 807 505 574

OPERATING RESULT(8 824 142 621)

Income tax payable

4 000 000

566 467 903

TOTAL REVENUE

17 916 965 222

70 657 191 975

34 765 882 096

TOTAL EXPENSES

26 096 012 901

70 481 401 1 1 3(2 256 962 888)

PROFIT OR LOSS

(8 179 047 679)

175 790 862

42
43

Cash flow
statement

Annual accounts
annex
I – DESCRIPTION OF ACTIVITY
In XPF

S.A.E.M.L. AIR TAHITI NUI is a local semi-public limited company, formed 31st October, 1996. The company isheadquartered in French Polynesia and the fiscal year begins January 1st and ends December 31st.
The purpose of the company is the operation of a passenger and freight airline business and the provision of allservices directly or indirectly linked to its corporate purpose.

NET INCOME(8 179 047 679)

The financial statements are presented in XPF.

Adjustments to reconcile net loss to net income
with no cash impact
Amortization and provisions

601 367 837

After-tax capital gains on divestments(63 540 772)

Share of investment grants transferred to income
OPERATING CASH FLOW

(7 641 220 614)

Change in working capital requirements attributable to operations
Inventory change

295 073 743

Change in operating receivables

1 2 7 1 7 2 1 299

Change in operating liabilities(3 307 393 525)

NET CASH FLOW FROM OPERATIONS(9 381 819 097)

Fixed assets acquisitions(364 460 014)

Fixed assets disposals

455 1 2 7 753

II – KEY EVENTS
II - 1. Covid-19
Since the beginning of 2020 the worldwide spread of Covid-19 has continued to have a major impact on
global air traffic. After the drastic reduction in traffic in the second quarter following various border closuresand lockdowns, the expected recovery in the second half of the year was delayed by the resurgence of Covid-19
in late summer. New measures were taken by various governments to slow the spread of the virus, particularlyin the last quarter of 2020.
As of March 2020, Air Tahiti Nui has taken a certain number of measures to limit the impact of the pandemic
on the company’s business activity and profitability. These measures included a sharp reduction in the capacity
available and the securing of cash flow. Salary adjustments (see II-3 below) were also undertaken and signed by
the company’s employee representative bodies.

II - 2. Financial aid

Changes in other items (liabilities & receivables) corresponding to fixed assets

1 670 538 405

NET CASH FLOW DERIVED FROM INVESTMENTS

1 761 206 144

On July 1st, 2020, the company was granted Loans Guaranteed by the French State (“PGE”) for a total amount of
7.050 billion XPF. These loans were granted by the three local banks (Banque de Polynésie, Banque de Tahiti and
Socredo) and benefit from a 90% guarantee from the French Government, an initial maturity of 12 months withbullet payments and an amortization option of up to 5 years after the deferred payment period.

Issue of loans

10 223 985 679

On October 31st, 2020, an additional “PGE” to the sum of 7 million euros whose terms of repayment are identicalto those of the local banks, as well as a Tourism loan of 2 million euros were disbursed to Air Tahiti Nui by the
Banque Publique d’Investissement. This tourism loan has a 12-year maturity, the company benefits from a 3-year
capital repayment deferral.

Loan repayments(2 440 740 614)

Cash capital increase/decrease
Dividends paid

Deposits and guarantees

4 103 840

On October 7th, 2020, the Government of French Polynesia, as majority shareholder of the company, approved theallocation of a current account advance to the sum of 2.1 billion XPF. This advance issued on November 2nd, 2020,is repayable in capital no later than 2 years from the date of payment.

7 787 348 905

On December 31st, 2020, Air Tahiti Nui had disbursed all of the Loans Guaranteed by the French State, the Tourism
loan and the current account advance. Cash flow amounted to 16.2 billion XPF.

Investment subsidies received
NET CASH FLOW LINKED TO FINANCING OPERATIONSCASH FLOW VARIATION

166 735 952

Opening cash flow

1 6 104 584 523

Closing cash flow

1 6 27 1 320 475

II - 3. Company restructuring
Covid-19 had a major impact on the airline. A voluntary redundancy package was offered to employees between
July 20th and August 19th, 2020, for departures scheduled between August 31st and December 31st, 2020. In total,
124 employees left the company. A total sum of 1,242.2 million XPF severance payments costs was recorded in
the financial year 2020.
In addition, a company agreement covering a -5% salary reduction for all remaining employees was signed on
November 10th, 2020. This agreement is applicable from November 1st, 2020, until December 31st, 2023.

44
45

II – 4. Outlook and continuity of operations
On December 31st, 2020, cash flow amounted to 16.2 billion XPF. The 2021 budget, as prepared by Management
and endorsed by the Board of Directors in December 2020, was based on the hypothesis of a progressive
increase in passenger demand thanks to the generalization of vaccination and the reopening of borders,thus allowing the complete reopening of all the company’s network of routes.
However, in order to counter the resurgence of the Covid-19 virus and the appearance of variants, on January 29th,
2021, the French Government announced the tightening of travel restrictions between French Polynesia andMetropolitan France. At the same time, on February 5th, 2021, the Government of French Polynesia implemented
a 2-week quarantine period for all new arrivals to the territory.
Air Tahiti Nui has taken a certain number of strong measures to mitigate the impact of these decisions on business,
namely a reduction in the flight schedule and capacity, safeguarding of cash flow by suspending and postponing
investments and expenditure not critical to flight operations and safety, as well as new salary adjustments basedon partial activity for flight and ground staff.
Despite the implementation of these measures, the financial performance of Air Tahiti Nui for the coming
period will be impacted by a significant decline in ticket sales, passenger and cargo revenues as well as negative
cashflow.
The company is working on financing projects that would improve equity and provide new cash assets. Moreover,the Government of French Polynesia has also affirmed its support for the airline Air Tahiti Nui in the face of thecurrent crisis.
In view of these factors, the Board of Directors considers that it is not necessary to question the continuity ofoperations and therefore deems it appropriate to prepare the financial statements on a going concern basis.

III – ACCOUNTING RULES AND METHODS
III – 1. Accounting policies
Accounts presented for S.A.E.M.L. AIR TAHITI NUI were prepared in accordance with the provision of the chartof accounts 1999, made applicable in French Polynesia by the ruling n° 2011-13 APF of May 5th, 2011.
The balance sheet as presented covers the period of January 1st to December 31st, 2020, a period of 12 months.
The previous year also covered a period of 12 months.

Acquisitions for the year amount to 31.6 M XPF corresponding to various research and development costs at
20.2 M XPF and various software.
Intangible assets were amortized at 315.9 M XPF, and software at 171.9 M XPF.
III – 3.2. Tangible fixed assets
Gross Values:
The valuation method for tangible fixed assets was based on historical cost. With a gross value of 5 927.2 M XPF,
the tangible fixed assets are as follows:

Gross amount in M XPF
Technical installations, materials, ind. tools and constructions
Fittings and fixtures
Transport equipment
Office equipment
IT equipment
Furniture

5 120.2
479.7
12.5
25.2
170.1
118.6

Amortizations:
The principal amortization rates applied are as follows:

Rate
Industrial material
Buildings and fittings
Fixtures and fittings
Transport equipment
Office equipment
IT equipment

Duration

20 to 50%
2 to 5%10 to 33.33%
20 to 100%
10 to 50%
20 to 50%

2 to 5 years
20 to 50 years
3 to 10 years
1 to 5 years
2 to 10 years
2 to 5 years

Amortizations are applied according to the straight line method.
Acquisitions:
The year’s acquisitions amount to 110.6 M XPF and principally concern the purchase of rotables and tooling.

The accounts for the financial year 2020 were adopted pursuant to the following general principles:- business continuity,- cut-off procedures,- prudence concept,- consistent methods.

Sorties:
Sorties for the year are 1 618.6 M XPF and principally concern Airbus rotables sorties.

III – 2. Conversion of foreign currency transactions

III – 3.3. Financial fixed assets

Income and expenses denominated in foreign currency are recorded as their equivalent value in XPF on theoperation date. Debts, receivables and existing cash balances in foreign currency are converted at the exchange
rate effective on December 31st. Any differences are carried over to the profit and loss account for cash balance
and recorded on the balance sheet under “conversion differences” for debts and receivables. Unrealized losses
are provided for.

Principally this concerns deposits and guarantees made in currency (USD, EUR, JPY, XPF, NZD, CAD). These
fixed assets were evaluated during the closure of accounts on December 31st, 2020. They figure on the balance
sheet assets for a total gross sum of 2,495.6 M XPF.

In accordance with applicable accounting and tax regulations, the principal methods used are described below.

III – 3. Fixed assets
III – 3.1. Intangible fixed assets
The valuation method for intangible fixed assets was based on historical cost. Gross intangible assets amount to599.6 M XPF and cover the following fixed assets:

Gross total MXPF
Research and development costs
SoftwareImage bank
Web platform
Fixed assets under construction

20.2
344.9
135.5
95.4
3

		
AmountShare
Capitalof equity on
Subsidiary and interestsof capital(MXPF)
31/12/2020
held
			(MXPF)
Tahiti Nui Helicopters (TNH)

621

68.1%

-196

Final year
result on
31/12/2020(MXPF)-236

Taking into consideration the support by the airline of its subsidiary TNH, and the level of equity, provision for a
net negative situation was recorded in the Air Tahiti Nui accounts for an amount of 111.7 M XPF on December 31st,
2020. Equity interests, receivables and current accounts were fully depreciated at the date of close.
During the extraordinary general meeting held on April 30th, 2020, TNH associates decided to recapitalize thecompany as follows:- an increase in capital borne by ATN to the tune of 24 390 new shares with a nominal value of 12 300 XPF,
- the introduction of a new shareholder, SOFIDEP (Société de financement du développement de la Polynésie
française), to the tune of 6 096 new shares with share warrants with a nominal value of 12 300 XPF.

46
47

The company’s share capital thus now reaches 620 977 800 XPF.
On October 22nd, 2020, the Council of Ministers authorized French Polynesia the acquisition of stakes in the TNH
company share capital, by acquiring 10 shares with a nominal value of 12 300 XPF owned by Air Tahiti Nui. On
December 31st, 2020, the percentage holding of the Air Tahiti Nui company in the TNH company was 68.1%.

III – 4. Stocks
At the year end, stock valued as balance sheet assets for a gross total of 629.6 M XPF and break down principally
as follows:- aircraft catering stock supplies for 300.5 M XPF distributed across storage sites in Papeete and other stationsand valued at last cost price;- Boeing consumables stock for 287.1 M XPF, valued at weighted-average cost.
Provision at the end of year closure of accounts was 17.9 M XPF and corresponds to the depreciation ofcommission and uniform stock.

Appropriation
EquityIn Thousands XPF
N-1 by31/12/2019
		
AGO

Financial
Equityyear result
31/12/2020
2020		

Capital stock

1 622 957

1 622 957

Issue premiums

1 700 974

1 700 974

Legal reserve162 296

162 296

Retained earnings

9 209 753

175 791

175 791(175 791)(8 179 048)

(8 179 048)

12 871 770

0(8 179 048)

4 692 722

ResultTOTAL EQUITY

9 385 543

				III – 5. Trade receivables

III – 9.1 Appropriation of profits

Receivables are recorded at their nominal value and amount to 579.9 M XPF on December 31st, 2020.

The legal reserve is 162.3 M XPF which represents 10% of the capital stock.

Receivables presenting a non-recovery risk at the end of the financial year are funded for 100% of their grossvalue in the assessment. These doubtful accounts amount to 1.3 M XPF on December 31st, 2020, compared with
62.4 M XPF on December 31st, 2019.
An allowance for and recovery of the funding for doubtful accounts were recorded respectively for the financial
year at 66.4 M XPF and 87.2 M XPF.

III – 6. Other receivables
This entry increased from 32 320.1 M XPF in December 2019 to 30 288.7 M XPF in December 2020 and break
down principally as follows:

Gross amount in M XPF
Vendor credit granted to SNC Diderot Financement 30 and SNC OTOATax receivables (home territory and other countries)
Accounts linked to BENUs
Accrued income
Other

29 836.7
142.9
45.9
166.8
96.4

The general meeting, having approved the end of year accounts for 2019, retained the appropriation for the sumof 175.8 M XPF.

III – 10. Provisions for liabilities and expenses
The total figure for provisions for liabilities and expenses appears in the liabilities side of the balance sheet andamounts to 3 344.1 M XPF and breaks down as follows:- provisions for liabilities at 973.4 M XPF,
- provisions for foreign-exchange risk at 172.8 M XPF,
- provisions for pension commitments at 313.5 M XPF,
- provisions for large scale maintenance at 1 884.5 M XPF.
III – 10.1. Provisions for litigation and foreign exchange risk
Provisions for litigation amount to 973.4 M XPF and are a reflection of the exact sum of contested debt for
disputes linked to transport, suppliers and provision for refinancing the negative net situation of the TNH affiliate(see supra note III-3.3)
The evaluation of these liabilities and receivables in foreign currency was conducted according to the closing
price. The exchange rate differential was funded to the sum of 172.8 M XPF.

III – 7. Liquid assets

III – 10.2. Provisions for retirement benefits

On December 31st, 2019, the amount of liquid assets was 16 272.7 M XPF. Foreign currency bank balances werevalued according to foreign currency exchange rates on December 31st, 2020.

Since 2013 the company has applied the method recommended by The Association of Chartered Accountants(France), defined in accordance with the standard IAS 19 (International Accounting Standard 19).

III – 8. Prepaid expenses

An average year’s salary over the 12 final months was selected as the base reference salary for calculations.

These amount to 2 841.5 M XPF at the end of the financial year, compared to 2 630.9 M XPF in December 2019,
being principally divided as follows:

The selected discounting rate is the Bloomenberg 15-year rate which is 0.4% at the end of December 2020.

Gross amount in M XPF
Aircraft rental
Maintenance charges
Insurance premiums on aircraft loans

763
1 333
564

Provision for Papeete employee retirement indemnities amounts to 277.1 M XPF at the end of the financial year
2020.
III – 10.3. Provisions for large scale maintenance
Maintenance provision (engine, APU, landing gear and airframe) stands at 1 884.5 M XPF.

Capital stock composition
At the end of the financial year, capital stock is composed of 12 983.655 shares with a nominal value of 125 XPF.

Provisions are evaluated on the basis of information available on the reporting date, to determine the amountequal to the best possible estimate of outflow of resources. The elements based on the foreign currency due
to inherent commercial practices in our operations are converted using the closing exchange rate in order togive the best estimate of outflow of resources in XPF, the reference currency to establish company accounts.
The differences in the exchange rate resulting from the closing conversion rate are recorded in profit and loss.

Variations in equity
At the end of the financial year equity was 4 692.7 M XPF. The table below details these variations during thefinancial year of 2020:

Estimates concerning provision for engines and APUs rely on the maintenance contracts signed by the company.
These costs take into consideration contract escalation and a number of hours and cycles estimated up until thefirst visit.

III – 9. Equity

48
49

Provisions for landing gear and airframe are evaluated by estimating the cost of a future replacement.

- tax liabilities to the sum of 558.6 MXPF are broken down into:

Maintenance reserves paid in connection with lease contracts are recorded as prepaid expenses. During large
scale maintenance, calls for reserve will be deducted from prepaid expenses. Liability provision was recordedat the end of the financial year corresponding to the amount of reserves paid which cannot be recovered at theend of the contract.

Gross amount in M XPF
Collected passenger tax liabilities
Other tax liabilities

478.5
80.1

III – 11. Loans and debts with Credit institutions
On December 31st, 2020, loans and debts from credit institutions amounted to 35 444.8 M XPF of which 82.2 M XPF
is accrued interest.

Statement of debt
GrossAt
At over 1
maturities fromamount1 yearyear and lesscredit institutions
31/12/20
maximumthan 5 years(in XPF)				

At
over 5years

BPI - 2020

835 322 1 9 5 		

672 1 3 6 350

163 185 845

BPI - 2020

238 663 484 		

55 645 81 8

1 83 017 666

Banque de Polynésie - 2015

34 791 665

34 791 665

Banque de Polynésie - 2019692 3 61 1 1 0

332 333 340

360 027 770

2 350 000 000		

2 350 000 000

Banque de Polynésie - 2020
AFD - 2015

36 565 26 1

36 565 261

Société Générale - 2019

7 048 3 1 7 256

621 137 830

2 586 345 876

Pré-financement - 2019

5 750 880 657		

5 750 880 657

Banque de Tahiti - 2018

1 484 052 550

7 1 787 572

299 285 305

Banque de Tahiti - 2020

2 350 000 000		

2 350 000 000

Banque Socredo - 2020

2 350 000 000		

2 350 000 000

Société Générale - 20197 158 906 182

549 310 672

2 4 1 5 823 952

Pré-financement - 2019

5 786 025 936		

5 786 025 936

GRAND TOTAL

36 115 886 296

1 645 926 341

24 248 389 496

The entry “other liabilities” went from 1 451.3 M XPF on December 31st, 2019, to 1 689 M XPF on December 31st, 2020,
and is divided as follows:

Gross amount in M XPF“Club Tiare” loyalty program
Accruals
Other

1 183.1
398.8
107.1

The company offers a “Club Tiare” loyalty program which enables those who subscribe to collect air miles when
they fly with Air Tahiti Nui or when they purchase their services via credit card company. Members can exchangethese air miles for travel or other company services.
Loyalty point value is calculated based on the basis of the stock of miles in circulation at the end of year closureof accounts.
3 840 833 550

III – 15. Deferred revenue
1 1 1 2 979 673

Deferred revenue of 8 673.5 M XPF on December 31st, 2019, amounts to 6 588.5 on December 31st, 2020.
At the end of the fiancial year, deferred revenue is itemized as follows:

Gross amount in M XPF

4 193 7 7 1 558

9 147 584 780

				
III
– 12. Miscellaneous loans and financial debts
Miscellaneous loans and financial debts amount to 2 163.8 M XPF and principally concern an advance on current
account granted by the Government of French Polynesia equivalent to 2.1 billion XPF as well as directors’ attendance fees and travel agency deposits.

Unused flight tickets
Fuel and insurance surcharge

5 815.2
723.3

Note on unused tickets:
In accordance with the principle usually applied by airlines, sales are recorded when passengers actually travel,
and based on the coupons received when they actually travel. When the ticket is issued, the company records adeferred income which is discounted upon travel, exchange or refund of tickets.
Coupons received upon travel and issued by a third party airline are invoiced to the latter according to IATA rules
or specific agreements between airlines.

III – 13. Operating liabilities
Liabilities are carried over onto the balance sheet at their nominal value after taking into consideration all
accruals that may result from company contractual obligations and applicable fiscal and social legislation.
Suppliers’ liabilities amount to 1 265.7 M XPF on December 31st, 2020, compared to 2 461.3 M XPF on December
31st, 2019.
Fiscal and social liabilities amount to 1 687.1 M XPF on December 31st, 2020, and are broken down as follows:- social liabilities to the amount of 1 128.5 M XPF are divided as follows:

The value of unused flight tickets (BENUs) at the end of the financial year 2020 appear in the liability sectionof the balance sheet. In light of the health crisis during the year 2020, it was decided that the validity period
would be extended to 2 years (compared to 1 year previously). As such no write-back has been recorded for the2020 financial year for all tickets issued from April 2019. The company has however recorded a one-off productentry corresponding to the cancellation of all issued unused tickets with an issue date before March 2019, namely
62.8 M XPF.

III – 16. One-off income
Gross amount in M XPF

Provision for paid leave
Social contributions
Provision for social costs on paid leave
Other

III – 14. Other liabilities

314.4
278.9
135.9
399.3

December 31st, 2020, the one-off company income which came to 1 323 M XPF is mainly composed of the
profit recording of taxes (311.9 M XPF) and fuel and insurance surcharges (663.2 M XPF) collected on the tickets
issued and not used that had an issue date before March 2019. These adjustments could be recorded during thefinancial year 2020 thanks to an upgrade of our accounting revenue tool, enabling improved monitoring andanalysis of these taxes and surcharges.

III – 17. Auditor’s feesYear ending December 2020, auditor’s fees figuring in the end of year income statement, amount to 16.3 M XPF.

50
51

III – 18. Company workforce

Union Bank
31/12/2018

Executive managers

31/12/2019

31/12/2020

70

67.8

60

Supervisors

144.1

147

119

Manual workers & employees

106.3

93

73

Commercial flight crew

305

307

258.8

Technical flight crew

77

73

60

702.4

687.8

570.8

64.1

58.7

51

766.5

746.5

621.8

TOTAL FRENCH POLYNESIA
Employees based abroad
TOTAL WORKFORCE

Consolidated annual accounts were drawn up for the Air Tahiti Nui group from the financial year 2019.

III – 20. Information concerning receivables and liabilities with related parties
Related party: Tahiti Nui Helicopters.

Receivables
Suppliers

Banque Westpac
Pledged deposit of 125 000 AUD

Bank of New-Zealand
Bank guarantee (137 326.23 NZD)
with pledged deposit of 97 326.23 NZD

La Polynésie française

III – 19. Consolidated accounts

End December 2020

Various Bank guarantees (4 472 489.21 USD)

Amount in XPF
14 691 258
968 478

Bank guarantee received
For loans granted/approved for financing its acquisition
program of two Boeing

French Government
Bank guarantee received
For “PGE” loans received as part of the Covid-19 Pandemic

Amount in XPF
434 935 970

Amount in XPF
9 383 787

Amount in XPF
9 648 715

Amount in XPF
7 279 236 277

Amount in XPF
7 096 789 976

III – 21. Commitments received and given
Banque SocredoBank guarantee (Travel Agency Licence)Tax and customs guarantee

Banque de Polynésie – Société Générale
Bank guarantee for a value of 600 000 USD
with a pledged deposit of 250 000 USD
Bank guaranteewith the pledged deposit of 6 250 000 XPF
Pledge of cash collateral (related to the cabin renovation loan)
Pledge of cash collateral of 5 677 000
related to the funding of fleet renewal

Banque de Tahiti
Bank guarantee on fire and comprehensive home insurance/Mortgage
Bank guarantee for commercial revenue

Agence Française de Développement (AFD)
Pledge of cash collateral (related to cabin renovation loan)

Amount in XPF
5 000 000
34 000 000

Amount in XPF
58 3 4 8 1 7 5
25 000 000
35 000 000
552 070 980

Amount in XPF
1 629 8 6 1 680
1 488 4 2 2 843

Amount in XPF
37 579 200

52
53

Statutory auditors’
report on theannual financial
statements
OpinionIn our capacity as statutory auditors entrusted to us by your annual general meeting, we conducted an audit on
the annual accounts of S.A.E.M.L. AIR TAHITI NUI relating to the past financial year ending December 31st, 2020,
as attached to this report.
We certify that the annual accounts are, in accordance with French accounting rules and principles applicable inFrench Polynesia, a true and fair view of the financial position of the past fiscal year and the company’s financial
situation and assets at the end of the financial year.

Basis of audit opinion
Audit terms
We have undertaken our audit according to the professional standards applicable in France. We believe that theelements we have collated are sufficient and appropriate to form an opinion.
Our responsibilities in accordance with these standards are indicated in the section “Auditor responsibilities
relating to annual accounts audit” of this document.
Independence
We have carried out our audit respecting the independence rulings which apply from January 1st, 2020, until
the date of issue of our report, and we have not provided any services that are prohibited by the applicableprofessional standards.

Observation
Without qualifying our opinion, please refer to section II-4 of the annual accounts annex outlining business
continuity prospects for 2021.

Assessment justification
The world crisis linked to the Covid-19 pandemic creates specific conditions for the preparation of the accounts
audit for the end of this financial year. Indeed, this crisis and the unprecedented measures taken as part of thehealth emergency elicit multiple consequences for businesses, in particular concerning their activity and financing, as well as a high level of uncertainty concerning their future prospects. Some of these measures, such as
travel restrictions and remote working, have also had an impact on the internal organisation of businesses andon the methods used to execute audits.
It is in this complex and evolving context that, by applying professional standards relative to assessment justification, we bring to your attention the following assessments which, in our professional judgement were the mostsignificant for the company annual accounts audit.
Your company makes provisions for the airworthiness requirements of aircraft as described in sections III–10.3 ofthe annex. Our review consisted in verifying the account processing adopted for the translation of maintenanceobligations, to assess the statistics and hypotheses on which estimates are based, to ensure they are reasonable,
to review calculations performed by the company and verify that section III–10.3 of the annual accounts annex
presents appropriate information.
During our assessments concerning the continuity of the company’s operations, we have proceeded to an
analysis of budget forecasts and plans of action as described in point II-4 in the annual accounts annex.

Our review consisted in checking calculations, the coherence of the assumptions adopted and ensuring that the
cash reserves will be sufficient for the pursuit of company business activity over the next twelve months.
These assessments were made within the context of annual account audits, taken as a whole, established under
the conditions referred to earlier, and the formation of our previously expressed opinion. We do not express an
opinion about individual items in these annual accounts.

Verification of management report and other documents addressed to stakeholders
In accordance with French professional standards, we have also conducted specific legally required verifications.
We have no comments to make concerning the correct presentation and consistency of the annual accounts,
the information provided in the Board of Directors’ management report stopped April 28th, 2021, and in otherdocuments concerning the financial situation addressed to stakeholders about the financial state of annual
accounts.

Responsibilities of management and those charged with corporate
governance in relation to the annual accounts
It is the responsibility of Management to establish annual accounts that present a truthful view in accordancewith the rules and principles of French Accounting applicable in French Polynesia, as well as to implement
internal control that it deems necessary to establish that the annual accounts contain no significant material
misstatement, whether due to fraud or error.
When establishing annual accounts, it is incumbent upon Management to evaluate the company’s capacity tocontinue operations, and, if need be, present necessary information in the accounts relative to the continuationof operations and to apply the accounting policy for business continuity, unless the company is expected to go
into liquidation or cease trading.
The annual accounts were approved by your Board of Directors.

Responsibility of auditors relating to the audit of annual accounts
Our task is to establish a report on annual accounts. Our aim is to obtain reasonable assurance that the annual
accounts taken as a whole do not contain any material misstatement.
Reasonable assurance means an elevated level of assurance, without, however, the guarantee that an audit
conducted in accordance with professional standards can consistently detect all material misstatement.
Misstatements can come from fraud or be a result of errors and are considered significant when it can bereasonably expected that they could, individually or cumulatively, influence economic decisions made byreliance on such information.
By applying professional standards applicable in France, our mission to certify accounts does not consist in
guaranteeing the viability or the quality of management of your company.
A more detailed description of our responsibilities as auditors linked to annual account audits can be found in
the annex to this document and is an integral part thereof.
Papeete,May 25th, 2021
For SCPPARION CHANGUES MENARD ALBERT BOYER

For SARL KPMG_____________________________________________

Christophe PARION
AuditorJean-Louis PELLOUX
Auditor54
55

Outlook 2021
REPORT ANNEX
AUDITOR RESPONSIBILITIES IN DETAIL
In the context of an audit conducted in accordance with the professional standards
applicable in France, the auditor shall exercise professional judgement throughout.
Furthermore:• they take heed of relevant internal control for the audit to define the audit procedures that are appropriate
under the circumstances, and not with the aim of expressing an opinion regarding the efficiency of internal
control;• they assess the appropriate character of the accounting methods selected and the reasonable accounting
estimates made by management, as well as information provided about this in the annual accounts;• they assess the appropriate nature of the management’s application of the standard accounting policy and according to the information gathered, the existence or absence of existence of any significant uncertainty linked
to events or circumstances that are susceptible of questioning the capacity of the company to continue its business. This assessment is backed up with elements collected up to the date of the report, always being awarethat subsequent circumstances or events could jeopardise ongoing operations. If they reach the conclusionthat there is a significant uncertainty, they draw the reader’s attention to their report about the information
provided in the annual accounts linked to this uncertainty or, if the information is not provided or relevant, theyissue a certification with reservations or a refusal of certification;• they assess all the annual accounts as a whole and evaluate if the annual accounts reflect underlying operations and events in order to present a fair picture.

© Grégoire Le Bacon• they identify risks that the annual accounts may contain material misstatements, whether the latter come fromfraud or are a result of errors, they define and put into practice audit procedures in the face of these risks andgather elements they feel are sufficient and appropriate on which to base their opinion. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement due
to error because fraud may involve collusion, falsification, wilful omission, misrepresentation, or circumventionof internal control;

The 2021 budget prepared by Air Tahiti Nui’s management and approved by the Board of Directors in December
2020 was based on the assumption that there would be a gradual increase in passenger demand as a result ofwidespread vaccine rollout and the reopening of borders.
However, on January 29th, 2021, the French Government announced the tightening of travel rules between
Polynesia and mainland France in an effort to counter further increase in the spread of the Covid-19 virus as wellas the appearance of variants, and on February 5th, 2021, it implemented a 14-day quarantine for all new arrivals
to the territory.
To limit the impact of these decisions on business, the airline undertook a certain number of significant
measures, beginning with a reduction of flight schedules and capacity. Cashflow would be safeguarded by
the freezing and postponing of investments and spending that would not have a critical impact on operations
and flight safety, as well as introducing new salary measures focused on the partial activity of flight crews andground staff.
Despite these new measures, the financial performance of Air Tahiti Nui will clearly be impacted by the decline
in passenger and freight revenues and the company’s cashflow will be negatively affected. The company will
therefore work on financing projects that could improve equity and provide new liquid assets.
Due to the easing of travel constraints and procedures in the months of May and June, the prospect of areasonable high season is possible, with the demand for travel to Polynesia remaining high in American andFranco-European markets.
With the closure of five hotels during the health crisis, room availability will quickly become a stumbling block,leading to an even more pronounced resurgence of excess capacity in terms of seats on routes to Polynesia than
before the crisis, resulting in a price war which will trigger a decline in unit revenues.
The impact of the Covid-19 crisis on the industry is such that no stakeholder in the sector can currently predicta return to the level of global pre-crisis demand for several years.
In this context, and in continuity with adjustments made in 2020, Air Tahiti Nui will seek to constantly assimilate
its activity with the level of demand and will adapt its offer and commercial approach to this new reality.
The airline will be able to count on the dedication of its staff and its organizational agility to build resilience,and this will enable us to resume once again in more favourable conditions.

5657

CSR indicators
KEY INDICATORS AND LINK TO GRI (CORRESPONDANCE)The guiding principles and recommendations of the Global Reporting Initiative were taken into acccount in thedrafting of this report.

				
Variation
2018
2019
2020
GRI ref
2019/2020
SOCIAL
Number of employees
Unit
Recruitment
Unit
Departures (of which 117 part ofthe voluntary redundancy package)
Unit
Amount of total payroll
Billion XPF
Amount allocated to professional training Billion XPF
Percentage of payroll devoted
to training personnel
Percentage
Number of workplace accidents(resulting in medical leave )Unit
Parity (percentage of female employees—all positions included)*covering all divisions
Percentage
Number of disabled employees
Unit

780
48

755
26

621
5

-17.7%-80.8%

50
7.25
65

46
7.26
110

134
5.222
40.5

191.3%-28.1%-63.2%

0.97

0.91

0.75

-17.6%

G4-10

16

20

16

-20.0%

G4-LA6

52.3
2

52.7
1

53
2

0.6%
100.0%

1 994

1 048

-47.4%

G4-LA1ENVIRONMENT
Number of flights operated(regular commerical flights—
passengers and freight, charters,
technical flights, full cargo flights)(*)
Number of flight hours(*)

Unit innumber of legs
2 129
Block unit hours(block to block) 18 607
Equivalent
tonnes CO2
375 285

17 3149 241-46.6%

318 437

151 212-52.5%

368 392
773 739305 020946 242

139 622850 581-54.0%-10.1%

Billion XPF
Unit
Unit
Percentage

34.1
471 542132 456
61.20%

31.9
434 280
114 06148.30%

12.6
167 074
77 01749.20%-60.5%-61.5%-32.5%
1.9%

Billion XPF
Tonnes

39.6
9 697

na
8 922

Million XPF

31.3

21.6

Unit
Percentage
Unit

143 29196%
4 326

154 086na
4 124

DIRECT CO2 EMISSIONS
all flights(*)
CORSIA emissions declared(compliant with audit—domestic andhumanitarian flights excluded)		
Energy consumption (premises in PPT) Kilowatt kW

G4-EN15SOCIETAL
Sales revenue
Number of passengers transported
Number of tourists transported
Market share of tourist traffic
Tourist revenue generated(indirect impact fromAir Tahiti Nui activity)
Tonnage of goods transported
Amount devoted to supportof local associations (charities
and environmental assoc.)

G4-EC1na		
4 073-54.3%
8.9-58.8%		

STAKEHOLDER FEEDBACK

58
59

Number of active Club Tiare members
Rate of customer satisfaction
Number of customers surveyed

156 148
1.3%
na(1)		G4-PR5
na(1) In view of the health crisis that occurred during the year, onboard customer surveys were suspended (cf. § Customer satisfaction
policy on pg. 24 of this report).
(*) Certain data may have changed since the publication of the sustainable development report 2018 following the value adjustment andindicator update.

Tahiti-Faa’a Airport - Tua Rata Building - Faa’a
PO 1673 - 98713 Papeete - Tahiti - French Polynesia
Phone: (00 689) 40 47 67 87 - Fax: (00 689) 40 47 67 90
www.airtahitinui.com

www.tahitinuihelicopters.com/fr. © Cover: Moana Blackstone; Design: Nicolas Ostrowsky; Translation: Clare Pasdelou.
This report was printed in Tahiti on paper from responsible sources

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