I used to have a flatmate who came from the UK, but he came to NZ primarily for flight school. Choppers mind, but the benefits in NZ (cost and other) were just too great to miss out on.
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Yes, there are still plenty of really good flight schools in NZ. The overseas students just learn to fly with CPL, Multi engine, IFR and turbine ratings. Serious NZ students also do aviation studies, applied business management, and ATPL. So a three year course rather than 1 year.
This could be one of the more interesting problems with getting your airline up and running again, the need for pilots to have relevant current experience which in the absence of having an actual plane to chuck around the sky probably means simulator time.
Long-haul is almost certainly going to be slowest to recover, it is mostly freight work now (with some passenger jets being flown freight only because half of the worlds air freight was underneath a passenger cabin in the good old days).
When it does recover there will probably be a lot fewer A380's & B747s.
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Ref my post several weeks ago where I advocated the government adopt what I call the NAC policy when in the next aviation crisis it only supports the revival of domestic passenger aviation. Kiwi based international carriers will have to face the turbulence of international aviation without any government support.,
The prospect of having no government supported international carrier arising from the ashes of the next crisis is something many have difficulty accepting.
However New Zealand gets along fine without any ownership of international ocean freight.
Boop boop de do
Marilyn
PS. Government support of domestic aviation post crisis is a rock solid certainty. Can you imagine members of parliament accepting they would have to travel to Wellington by bus.
I would hazard a guess that you have done well in the short term,well done.Great trade!
In the longer term a hold would be riskier?
If down turn lasts, & is likely, your 10 x share likely be diluted to 1x share by government bailout
I would hazard a guess when the government bailed out AIR last time at 50 cents it is more than likely they have got their money back & then some.
That it has been a reasonable investment for the government long term dividend wise
Yep, sounds plausible.
Look, I was really only being devil's advocate and putting the idea out there to gauge opinion. I wouldn't be in favour of foreign ownership of at least the domestic air travel business, but there are plenty of examples out there where key parts of our country's infrastructure have huge foreign investment. I'm sure if the government wanted to farm it out to offshore business, it could come with appropriate caveats that the operator must service xyz destinations at x capacity and cost etc. Let's face it, they reckon Oz is only big enough for one and a half airlines. Maybe Oz and NZ combined can service two regulated airlines without being such a burden on their country's respective tax payers everytime there is a slump. After all, it should be user pays right, so why should the taxpayers that never fly have to stump up? Or do we accept that the tax take (and gov divvy) from AIR during the good times more than offsets the bad times, and so get over it?
The national carrier AIR is much more than just itself, much more than just a means of carrying passengers and freight from A to B.
The fate of the whole tourism industry is inextricably linked with the airline. NZ's tourism sector works closely with & depends on a healthy AIR to open up & promote new international markets.
Where there's any competition for markets, or rationalisation of routes due to economics or rationing of equipment, foreign carriers are inevitably going to put their own rather than NZ's interests first.
Because of this, the govt would never allow the complete demise of AIR. It wouldn't be in the whole countries best interests.
One of the free articles from BusinessDesk relevant to this thread
Seems like Airpoints are safe for now (or at least thats what they want you to believe)
https://businessdesk.co.nz/article/a...s-safe-for-now
Thanks peat. This speaks to the risk. “We have not considered, or made any determination, as to whether covid-19 and its associated impacts could be a force majeure event or a circumstance outside our control, as set out in the Airpoints terms and conditions,” the spokesperson said.
With the way they're "managing" the rest of the business one would be prudent to consider whether there's the chance of an airpoints reset along with a full capital raise shortly.
Funny you say that...I was just getting my second coffee for the morning and pondering how long it is before the market tires of writing cheques for companies with deep systemic issues ?
Logic suggests a quick capital raise is profoundly logical but I suspect the Govt are quite relaxed about seeing minority shareholders take some pain first.