Execs get paid zillions if AIR share price beats the Bloomberg World Airlines Index
Anybody know where to find this?
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Execs get paid zillions if AIR share price beats the Bloomberg World Airlines Index
Anybody know where to find this?
That's a hugh drop in SP
Circa $1.5m base salary doesn't seem unreasonable considering C.L.'s performance and he's leading a team of 11,000 people and the company has sales of over $5b. Compare that to what some CEO's of much smaller companies are paid especially some of the bankers.
The new performance share rights seem less generous than the previously overly generous options arrangements that senior management have been recently cashing in.
AA thing has been known for some time and already been factored into broker models. Consensus valuation is $3.03.
Kiwi's are a parochial bunch and while there will be an initial hiss and roar by AA and QAN and heavily discounted tickets which AIR will match but over time flight prices will return to normal level's.
No biggie really...AIR expanding into other routes and experiencing strong demand on them. AA will bring more customers down under and grow the market overall and boost tourism's growth rate even higher than 9% per annum. I am wondering how AIR will meet the extra domestic demand for more travel throughout N.Z ?...they might be one or two A320's short...travel Auckland to Queenstown is really going to grow very strongly IMO.
Edit, just saw it dropped at one point to $2.65. Quite an overreaction IMO.
You're a VERY keen man. Thing is though mate, the big trades of 2m shares and another 600K shares happened at 12.30 and a bit later before the Herald article at 2.00 p.m. was published. Insider trading from someone knowing the article was coming from the Herald ?
Qan down 9 cents last time I looked so best to keep in mind its a soft day for the market overall with a very weak lead from the U.S. overnight.
I topped up at $2.75... ridiculous day... so many people quick to push the sell button as soon as something appears in the press. Air NZ is a fundamentally great business, very profitable, pays great divvys and has consistently performed the last few years. I am a fan of the business and don't yet understand why the SP hasn't climbed over the $3 barrier.... This isn't a cyclical stock. AA/QF were always going to compete again and was well publicized months ago... knee jerk reaction anyone??
You said a few posts ago that this AA/Qantas thing has been known for some time. And here you're accusing someone of insider trading for trades made on the same day as a newspaper article was published.
Surely you can't have it both ways! This news is either public, or it's not.
Yes at $2.75 AIR is under-priced and today the price as fallen for whatever combinations of reasons it has fallen.
Yes this and further competition and many other factors are priced into the valuation range for AIR which is centered around $3.03. (A little note here if you look at enough airline valuations you will spot that AIR is regarded as one of the better ones).
But never delude yourself that this is not a cyclical stock - most stocks are to a lesser or greater degree cyclical - and airlines are not at the lesser end.
IF AIR is not cyclical then I am not a Tiger
Best Wishes
Paper Tiger