The first announcement by AIR regarding the RR engine issue mentioned that they hoped to have the issue resolved by about April-May 2018, (issue first arose in late 2017 if I remember correctly).
WOW....talk about a problem dragging on !
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The first announcement by AIR regarding the RR engine issue mentioned that they hoped to have the issue resolved by about April-May 2018, (issue first arose in late 2017 if I remember correctly).
WOW....talk about a problem dragging on !
Agreed the engine issues ironically will act as a buffer as will the drop in the oil price and NZD.
Lack of demand is not a good sign though. Any airline is highly vunerable to a drop in demand as they have high fixed costs and slim profit margins. Even currency and fuel costs are hedged to the high side. Air NZ used to be king at right sizing capacity to demand but they have been a bit slow under Luxon. Lots of costs you can't cut quickly too - staff, planes etc
The drop in demand could come from multiple angles.
* No Chinese tourists or students for a while obviously.
* General avoidance of flying and especially of long distance flights.
* Less tourists in Aus and NZ so less trans tasman passengers
* All combining to reduce the load factor on domestic routes
Disclosure: I sold down 2/3 of my stake, first time I've sold since I first bought in at $1.08 in 2008. Been a good trip, 37% return per year according to sharesight.
Drop off in demand could make the special jet setters happy
https://www.stuff.co.nz/business/ind...y-heavy-demand
Aircraft where people sit jam packed together like sardines and breathe each others air for hours on end are the "perfect" breeding ground for this new virus. Don't be shocked when AIR finally come out and admit this is having a profound effect on their entire network.
I would think its quite likely that AIR will cancel its Hong Kong flights in the very near future or dramatically scale them back as what's the point of flying with near empty aircraft ?
I think AIR is a "SELL" at the current price in this environment. If I was into shorting stocks, (I'm not), of all the stocks on the NZX I would choose this and THL.
AIR took a jump yesterday on ASX and currently up 9.5c today wonder if GS transportation earnings report had anything to do with jump............
$2.85 today...you'd want your head looked at paying that. Fabulous shorting opportunity as partial insurance against the rest of one's portfolio.
One more drama for AIR to endure. Massive landing fees paid and they get this... https://www.nzherald.co.nz/business/...ectid=12306688
Seems that perhaps AIA have been investing in all the other 'stuff' for a better "customer experience" while all the time their main asset i.e. the runaway, is neglected, won't help any any airline AirNZ included - do AIA compensate them when they close the runway and aircrat have to divert??
Discl: holding neither at present
The "standard" of the domestic terminal is also a disgrace.
"One of New Zealand's biggest travel agencies says coronavirus FEARS have resulted in FEW CANCELLATIONS from clients, although consultants have been busy rebooking new flights for others who had been flying through China." ............ $2.50 if you want to read more NZ Herald
Seems not everyone fears flying
https://www.cnbc.com/2020/02/07/coro...oll-rises.html Wonder how many will cancel cruises this year ? which will have a roll on effect on the air travel involved.
We were all set to go on our first ever cruise in Sept this year...just as well it was a P&O Oh Buoy $1 initial deposit sale at Christmas. Its looking very unlikely we'll be paying the 25% deposit due next month. https://www.pocruises.com.au/campaigns/oh-buoy-sale
For anyone interested, their marketing, print and T.V. shows a slim young lady encouraging Kiwi's to get into lots of New Zealand natural ice-cream...the only thing is that its clearly implied that this is included in the cruise price but it isn't. The Ice-cream parlor on board is not one of the included dining facilities in the cruise but an optional extra. I'll leave you to judge for yourself if you think this is disingenuous marketing or not. I think its pretty "sharp practice" especially using large imagery that's highly appealing to a hungry dog that likes that ice-cream. https://www.youtube.com/watch?v=W5B6BE0qFTA