They are adding additional seats after they have cancelled the previous existing ones but at double to triple the price. Lol
Printable View
They are adding additional seats after they have cancelled the previous existing ones but at double to triple the price. Lol
They haven't really withdrawn cashfliw guidance. It is still there. Jan and Feb basically circa $125m per month in the hole with one of the 3 IRD Payments still to make. But what I don't get is they repeated what MoF said. The company not stable enough for the govt to support a cap raise. Are people not reading this?? In the zombie airline wars AIR the king zombie. Will expand my position I think. Only 4 months to go. I stick with my forecasts. Net assets to basically nil at cap raise, can't believe they can get a waiver so we will see an offer doc. Cash issue 50 cents. For 8 months I had quantum at 1.5b firm. Now $1.5 to $2b. That will leave around $1b in cash. Credits keep rising. Second cash issue $750m late 2022.
double post
AIR set to make another substantial call on govt's 1.5B standby fund as domestic & business travel hit hard by latest lockdown restrictions, with airline operating at only 40% normal levels.
Already drawn down $445M but expected to grow to $900M by end of Feb.
Previously said burning through $25-$35M month but no longer forecasting how much due ongoing uncertainty.
(Sorry, this much a repeat of earlier posts today. )
https://www.rnz.co.nz/news/business/...9-restrictions
Pretty cool …. eplane flew across Cook Strait Blenheim to Wellington
Yet the SP still holds steady. Is it possible the belief that all will be back to normal again at some point in the future is enough to prevent the SP from falling much lower (to levels discussed earlier in this thread). Even with the massive accumulated debt and looming capital raise. Which will in turn dilute existing share holders as the Government would secure the majority of Cap raise shares at a discounted price. Then the funds from the Cap Raise Air NZ will need to use to pay back the government the $900M loan. Works out well for the government, not so well for existing share holders. Yet the SP continues to disregard these fundamentals.
OR the other way of looking at it is even if shareholders are technically diluted, does it really matter? It would only matter if Air NZ had a takeover or the business was sold. Only then would the fact shares had been diluted would become relevant as the shareholders would receive less per share of the takeover bid/ sale of the business. But what's the likelihood of that ever happening? As long as there is no takeover sale of Air New Zealand, then all shareholders really care about are dividend returns and the SP. Dividends won't be there for a long long way off. But at least if the belief in the company keeps the SP up then the argument that shareholders will be diluted would be irrelevant wouldn't it?