Point taken mikey. Just putting things in perspective in the light of recent developments. Agreed, Air had their own issues in the past.
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Point taken mikey. Just putting things in perspective in the light of recent developments. Agreed, Air had their own issues in the past.
Well done to Craigs for a quick update on AIR.
"Elasticity of demand helps mitigate the impact."
"For every 10% price decline demand lifts 15-20%"
"Forecast domestic yields to decline by 2.5%"
Personally its a win/win form hopefully. I don't give stuff which airline i fly domestically being in the air for an hour max.If the prices drop so i don't feel robbed,dearer than going to aus and back great.
I have bought AIR 20% off its recent high for an est impact of "c4-7% of EBIT" so feel I've got a reasonable margin of safety if these estimates are in the ballpark. Hope its up from here then i would have to reassess ,hold reduce or sell.
Jet Star's reputation in NZ isn't helped by stories like this;
http://www.nzherald.co.nz/nz/news/ar...ectid=11467804
KW there may be tens of thousands of investment opportunities but any one of them could face difficulties at short notice given the occurrence of certain Macro events so why not Air a well run company driving increasing profits, besides I mainly stick to supporting NZ companies.
Totally agree KW, and that is what the CEO is diligently hoping and trying to mitigate. I think he may be partially successful based on historical norms but not completely. Just too many variables in the Airline business.
Disc. Bought back in yesterday in the high 2.30's
NPL also has much higher PAX numbers than TGA and ROT. Some of this will be due to relative distance, but economic factors (such as the median salary in that region being very high) also play a part.
For airports in NZ domestic traffic to Auckland dominates the passenger statistics, so with HLZ only 1 hour away from AKL driving has always been a viable option. Hamilton now has an hourly bus service direct to Auckland Airport.