Where is the Government going to get all of the money from to hand around.
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Where is the Government going to get all of the money from to hand around.
On a more positive note, Foran now seems like a brilliant appointment to get AIR through this temporary crisis & obviously they are not delaying in going hard out to slash costs while their revenue stream dwindles.
Previous CEO's might have been slower to respond.
Also aware both China & US are now frantically competing against each other to be first to develop a vaccine in record time, such are the high stakes, & the experts worst case scenario of up to 18 months is looking like being too pessimistic with each passing week. ( latest, Trump currently trying to buy exclusive rights for the US to a German Companies well advanced vaccine ).
This crisis could be over more quickly than we think, and once the virus is dealt with, travel will recover quickly.
Everyone will need a damm good holiday :)
Board and CEO taking a paycut of 15% is not good enough.
Earn over $500K - 50% pay cut
Earn over $300K - 33% pay cut
Earn over $130K - 20% pay cut
All others, except those earning less than $50K - 15% paycut.
Never waste a good recession.
Those that retain their jobs after the redundancies should be pleased they have a job.
These sort of cuts will never happen because although the vast majority of people who work for AIR are very nice people, they don't understand the economic reality of the situation and there is an expectation the Govt and other shareholders will simply cough up to support their comfortable lifestyles.
Haha quite possibly the latter. Although if you cannot service your debts you are in trouble. If current assets < current liabilities it can often spell danger for companies. Especially in times when they cannot get other forms of financing. I always look to the balance sheet and check the current ration and if less than 1, I have questions about going concern. Then I look deeper and see why this is so, and make sure that they can get finance to cover upcoming commitments. The accounts receivable, although a current asset, can also be tainted and not always relied upon. More so in turbulent times.
The definition of an airline is essentially 'current assets less than current liabilities' EVEN Singapore Airlines :eek2:.
Cashflow is King for most businesses it is a question of how much of a time buffer they have when the s*** hits the turbo-fan.
On that basis then, there is obviously an expectation from shareholders and the corporate machine that employees will slash their hard earned incomes to support their comfortable dividends.
While shareholders are very nice people, they don’t understand the functional reality that excellence and expertise is required to make airlines operable, profitable and above all, safe.
Slash the salaries and watch the quality of service, operation and safety record evaporate.
Be careful what you wish for Beagle
Wednesday open is going to be a bloodbath, surely? Something drastic has to happen now. Foran about to either earn or lose his stripes on this one.
and where are they going to go if they don’t like having their paycut? Another airline?
this is going to be happening world wide.
better they get a paycut than have no job.
and somehow I doubt going from 300k to 250k is going to impact how hard they work or someones ability to land a plane.
there is no question the dividend will be cut heavily or entirely
Last time I remember a very unreasonable bunch of employees fighting their struggling airline was with the strikes around Ansett. Staff succeeded in bringing their company to its knees. Ansett got broke and everybody lost their job.
I know one of the pilots working for Ansett. Enormous sense of entitlement - and he did continue to strike to the very end. He never ever managed to get another job in the airline industry and I understand he is now operating harvesting machines.
Lets hope the good staff at Air NZ are more reasonable - not sure our farmers need currently so many more machine operators :), though there might be some vacancies for picking apples and digging potatoes. Not sure, though whether farmers pay 6 digit salaries.
Except no one will have money to pay for a holiday after all this is over. So it will take airlines a lot longer to recover.
I'm down a depressing amount of money during this sell off *sigh* However, fortunately I sold out of my 44,000 Air shares not long after the strike action of December 2018. It just really freaked me out at the time and rattled me out of my position. At that point I realized what a fragile position airlines are in. Everything needs to go perfectly 110 per cent of the time just to have an outside chance of keeping the show on the road. If it wasn't this crisis, I'm guessing it would have been another.
https://www.odt.co.nz/business/air-n...just-christmas
Weirdly, I feel grateful for the Union action for giving me a dose of reality when I needed it.