Just as well AIR not equity accounting Virgins profit this year
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Just as well AIR not equity accounting Virgins profit this year
Hmmm, that's interesting. I guess FlyBuys isn't owned by the companies that run use it so why should an airline FF program have to be?
Personally, I think that selling a FF program is a bad idea. It's a core part of the marketing of the airline and if the FF program does something that customers don't like, it's the high-value customers that it is going to annoy the most. Admittedly this is only a minority stake but it still strikes me getting a short-term gain in exchange for long-term pain.
Short term pain for 2015 for long term gain ?
AIR took restructuring costs of $45m related to redundancy and fleet transitional costs in the financial just released which is non-recurring so while I guess its fair to say there could be some pain next year from their 25.99% stake in VAH I think from a strategic route expansion perspective AIR's directors clearly see the value, especially in the long term. At a rough guess one matter might replace the other next year so no impact on 2015 normalised profit.. Have I mentioned shareholders are "well positioned" ? :)
I would say Virgin better positioned than Qantas in Australia as well
Best one to choose as a partner
AC floated around 15% of their Aeroplan FFP in the early 2000's and then later sold their final stake several years later. Floating and then later selling FFP did provide them with a financial windfall and the new company is completely focused on becoming a leading consumer loyalty programme, and has all of the traits (e.g. Points accumulation via Credit cards, Supermarkets, etc.) of AirNZ's FFP.
I personally don't see any justification for AirNZ selling theirs at the moment, but perhaps in the long term it could provide a cash windfall for shareholders while also ensuring that the FFP gets the laser focus on customer acquisition that it might other not have.
It would however be nice to see a more detailed breakdown in the financial reports of the impact that the loyalty programme is having on revenue.
Makes a $300 or whatever air new zealand fare cheap ....unless flying to whangarei
http://www.nzherald.co.nz/nz/news/ar...ectid=11317261
Thanks for the link. Reading that was like stepping back decades in time for me to an era when I had little money and no other option but to take the absolute cheapest transport possible. Now days you couldn't pay me $300 to endure an overnight bus trip Wellington to Auckland assuming it went according to plan. As for running out of fuel half way through the trip as mentioned later in that story, where do they find these people to drive these old buses ? Calcutta perhaps...who exactly are you entrusting your life too ???? The Herald's attempt to compare various modes of transport last week was another piece of pathetic journalism...what possible relevance has the cost of a trip on the cheapest cut price bus operator using Mickey Mouse drivers, (a service which takes many hours at best) got with the speed and efficiency of air travel ?
If they want to keep up their attack crusade against AIR you would have thought the least they could have done was to spend some time comparing regional airfares for similar distance trips at the same times in Australia. Don't these so called journalists have any idea of what is a relevant comparison for goodness sake. Another epic fail at any sort of intelligent journalism. Just as well the online edition is free because it sure isn't worth the paper its printed on for the print version LOL.
Roger, Ever get that overnight train between akl and Wgtn in the good old days. It was called the Limited or something like that
Even had sleeping compartments and you could get off at Frankton and Taihape to get a pie and cuppa
Seems punters were better served in the old days
Only the very rich dudes flew those days
Of course Percy. The real McCoy they were
In the 60/70's the best way to get to Chch was the overnight ferry from wgtn. Fond memories of the Maori / Rangitira going down for Cup week. They woke you up with a cuppa when it sailed into Lyttelton forst thing in the morning.
Even back then AIR was price gouging as well ... ha ha