Excuse my ignorance, but what do they mean by that? Does it reference revenue from non NZ'ers?
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That's going to be a big problem for legacy carriers down the track. New entrants with dirt cheap planes, much cheaper labour from redundant staff desperate to get back into the industry and cheap fuel without legacy fuel hedging issues = some very important commercial advantages.
You're dead right. Air NZ etc need to use this as a proper reset, not just expect tax payers to tide them over and hope to come out the other side BAU with their fat salaries. There is no way they can feasibly operate at a much reduced size while only axing 30% of the current labour base. Tough as it will be to swallow, realistically they need to have everyone reapply for their jobs at rates more in line with the new paradigm. But I guess that won't happen under the left leaning government, so we'll be shafted as tax payers and also on domestic flights for a long time to come.
Crikey, even Buffet dropping Berkshire's investments in airlines.......see article here.
Breaking News :
Virgin Airlines shut down NZ operations - 600 staff redundant.
Union disappointed that Virgin did not attempt to at least obtain the wage subsidy from NZ government to tide the next few months over.
https://www.cnbc.com/2017/02/27/warr...ne-stocks.html
Why he bought :
"These aren’t last century’s airline companies, and that’s why legendary investor Warren Buffett is spending money on them."
Major downside of being a huge investor like Buffett is you can't be as nimble as smaller investors. Being able to execute easily well within one days average volume is the single biggest advantage a small investor has. People need to keep that key advantage in mind and use it whenever appropriate.
The established fat cats don't want a cost reset and that's AIR's biggest weakness going forward.
Govt have admitted they can't let the airline fail and they're not going to "manage" AIR so management know they can count on the Govt for as long as they need too.
The competitive disadvantage this will place AIR at in the long term is something to keep front and central of mind for anyone considering reinvesting for the long haul at some stage down the track.
We still need air freight for exporters & importers
Zillions of dollars worth of credits waiting to be used .... a big chunk of that $1 billion cash on hand isn't really theirs eh
Personally I'm glad I insisted and got a full refund ...non of this credit stuff
https://www.stuff.co.nz/business/mon...alands-credits