Trolling time anyone.
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169 Km's Westport to Hokitika. Having to drive that the odd time for Westport locals compared to Aucklanders spending 10 hours a week commuting doesn't seem all that unreasonable to me for people that enjoy the low cost of living in such a remote part of N.Z....but I digress. I am sorry I forgot that according to some people AIR should be a distributor of social welfare to the regions'. I guess you can't please everyone so you might as well please the people that actually own the airline, the shareholders. Of course you very conveniently overlook the new last minute fare initiatives and the fact that other regions may enjoy potentially lower fares with more efficient aircraft, what a surprise, (NOT).
You've still got your precious service out of Nelson and now enjoy lower last minute fares but still want to have a good dig, I guess some people are never happy...
Great move. And where there is a genuine market for a small route, someone will move in with a Cessna Caravan.
This smells of AIR looking for a government (subsidy) handout. Didn't work out too well last time.
I think that its gone past that point. The smaller regional routes can only support smaller aircraft - which AIR don't want to operate because they can't carry their fair share of the overheads of a big company without charging disproportionately high fares. Now that AIR isn't around on those routes to potentially undercut them, I'd expect to see a few small outfits such as SoundsAir, stepping into the market on some routes.
More positive signs from management. Its another $100m for the 4 options at list (which is not what they pay).
This adds to what are multiple, significant cost savings and revenue enhancements for the company over the next 3-4 years.
I have been watching the oil/fuel price collapse with glee, this is really significant stuff. I am back to my 30c+ eps forecast this year, and pushing 35c next. Whenever I see a reason to sell in the horizon it seems macro factors swing back into favor and create big upside scenarios.. hope this can continue.
So another $12m on the bottom line for 2016 with this sensible fleet rationalisation and it looks like fears of Ebola becoming rampant are rapidly subsiding, so we're looking better on a risk reward profile and of course the major reductions in fuel prices will definitely help, offset partially by the lower currency.