Wise move W69 - because they are stopping flying to London from October anyhow! :scared:
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Oh, fair enough, bit bloody cheeky of them to think people will be happy with a credit when you're talking those sort of figures...I'm not sure I'd sleep at night if I knew Air NZ was looking after that kind of money for me...would rather risk it on the shares, almost!
Inferences were made that if their stake in AIR went up they would take a more proactive hands on role. $900m loan will get converted to equity as sure as night follows day so there's going to be a major cash issue at some stage. How much a major future rights issue might be supported by existing minority shareholders will determine the Govt's ultimate stake but I think its a fair bet that the Govt will have to underwrite the issue. I doubt they will nationalize it but its quite conceivable they could end up with 80% like they did in the last bailout in 2001 or potentially even 90% this time.
They haven't got the capital to last years, maybe not even enough to survive 2020 hence my contention a massive rights issue is a certainty at some stage later this year.
Agree Beagle.
I'd say they definitively have not got the cash to last until the end of the year.
The way I see it their international is poked until late 2021, domestic will be 50% for the next year, I reckon they need another 1 billion to get through this, assuming our borders are largely closed the next 1
year.
Are the AIR directors relying on the safe-harbours yet? Only a matter of time. Tick tock. Now is the time for at least half the management (exec, senior, middle) to go (and yes I feel for them, but they'll find roles elsewhere).
Yep, it's time for AIR to do a full reset and become lean and mean. The future has no place for a fat overweight airline, even if they do have a domestic monopoly...it won't last.
A bit off topic, but will be interesting to see if Rolls Royce manage to use this issue to get on top of those shoddy engines. And how old are those new 737 Max planes going to be by the time Boeing clears all of it's stock? What are Airbus and Boeing going to look like out the other side of all this?
One million Chinese students stranded in America wishing to return home, one student saying she paid a travel agency $12,000 for an economy class ticket from Chicago to Xiamen.......... This may be the cost of FUTURE FLYING limited seats and high costs
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