Better to let one of the bigger boys take on RR, Beagle? At least ZEL would be local - and a lower cost action.
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Better to let one of the bigger boys take on RR, Beagle? At least ZEL would be local - and a lower cost action.
Impressions from the call :-
Sounds like they have been having good dialogue with RR and direct cost impact this year will be about half the previously indicated $30-40m
Indirect RR impact costs running at about $20m per annum to be largely out of the business by Q1 FY20.
Capacity growth in FY20 towards the top end of the 3-5% range.
First 777-200 replacement due in 2023.
Focus on revenue per available seat kilometer strength (RASK)
Cost reduction focus is on top of existing plans to reduce CASK (cost per available seat kilometer)
Very minimal noticeable impact to forward bookings from Chch tragedy
Free wifi from today for enabled planes is a good thing.
I think the confidence within the business is strong and they are focused on executing well in this lower growth environment.
Capex deferral underwrites their ability to pay strong and sustainable dividends and get their gearing back to very moderate level's...(music to any dividend hounds ears).
https://www.marketscreener.com/AIR-N...07/financials/ I think we could see some modest upgrade to average analyst forecasts for FY20 and FY21 of $430m before tax.
A year is a long time in the aviation industry but I see fair value of ~ $2.75 a year from now and a gross yield of approx. 12.4% at the current share price of ~ $2.47.
You got to laugh at the old announcement the way they praise themselves for being the pinnacle of dynamic proactive & reactive management when half of the time they can not organise a drinking session in a Koru Lounge.
Big egos eh Snowy ... but Chris’s halo is shining less brightly these days as AIRs earnings this year head to about the half of that of a few years ago ....headline won’t say ‘Worst year for a while but still a strong performance’
Talking of Koru lounges the Wellington domestic one is in temporary premises .....still have the barista but the rich and famous now need to join the hoi polloi in the public toilets ....shocking state off affairs
Thought I better read the AIR update to see what the fuss is all about ...in case I reinvest
So $60m extra savings sometime ...like pissing in the ocean ....and one of those immeasurable things that gives comfort management doing something
Focus on CASK and RASK .....OMG (not an aviation term) isn’t that what they are meant to be doing every single day as part of their job.
Putting off upgrading the fleet ...hmm ....just deferring the inevitable as the average age creeps higher
Improved economy class experience .....pigs might fly (sorry planes fly and pigs don’t)
Oh well - all honky dory on the AIRfront. Chris has had his thrill for the month and loyal shareholders happy.
See Tourism New Zealand has suspended promoting New Zealand as a tourist destination
AIR better up their media budget and do the job for them to fill the void
Apparently lots of people interested in coming here now.
Thought of you beagle when I saw this cartoon this morning