Will be interested to see if Qantas's just announced A$2.7 Billion loss, will sober up some of AIR current shareholders this afternoon.
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Will be interested to see if Qantas's just announced A$2.7 Billion loss, will sober up some of AIR current shareholders this afternoon.
https://www.nzherald.co.nz/business/...ectid=12358047 Read it and weep. Excerpt "The impact of Covid on all airlines is clear. It's devastating and it will be a question of survival for many".
A VERY bad sector to be invested in for the foreseeable future. AIR reports next Thursday. Good luck to shareholders, you're going to need it :eek2:
I think the chances of a substantial capital raise at a deeply discounted price being announced contemporaneously with the full year result next week are quite high.
https://www.nzherald.co.nz/business/...ectid=12358616 Pay-walled
"The airline — led by Walsh — has been advocating for months now to its 51 per cent shareholder (the Government) that it should step up and lead a capital raise to restore the company's balance sheet". Walsh is the new Chairperson.
I think there's at least a 50% chance a substantial capital raise will be announced on Thursday this week along with the annual result.
I would say there is more than 80% chance of capital rise soon.
My read on the Sharesies crowd is they would not have the cash on hand, as a group, to participate 1:1. It would also be the first rights issue for a lot of them, many would be confused, and for some it could blow up the "Jacinda has our back" thesis.
I think a successful raising would require an outsized institutional placement component to be successful - and that will require a much lower price than the Sharesies crowd would be theoretically willing to pay.
The sharesies crowd have had quite a few placements or rights issues and have participated with gusto. Think KMD, IFT, IKE, and many more the last 2 months. Many have been disappointed they got scaled back. Well that is my read on it.
I take your view about the price. I think insto's would accept $1 as a 30% discount to current SP. Also remembering the govt has to put in their share so not that much needs to be raised.
That said my initial post was a bit more tongue in cheek, sounds nice and symmetrical; 1 for 1 at 1.
I thought there was talk capital raise not until after the election? Which would have been 4 weeks away.
Now about 8 weeks away......maybe they can't wait that long??
111 is a good basis to play cricket but I doubt Covid 19 will be a respecter of the long standing rules of the gentleman's game. Its hard to hit the ball out of the park when you keep getting underarm deliveries. $1.1 Billion should see them through to next year's capital raise and keep the hundreds of millions per annum of GST and PAYE flowing through to the Govt so they can't lose...but as for other shareholders, they look like they're on a hiding to nothing.
The International Air Transport Association warning of global annual airline losses of USD 84 BILLION this year. Frightening.
https://www.bbc.com/news/business-53908474
Glad I didn't book Jetstar for my annual ski holiday this year, (usually go first thing in Sept). Cancelling services altogether in N.Z. through to at least 6 Sept paints them in a bad light. https://www.nzherald.co.nz/business/...ectid=12359252
They're really not interested at all in maintaining continuity of services unless its profitable to them. Not one ounce of thought for customers and how they're affected...that's something new for Jetstar isn't it ! (sarcasm intended).
Picking between flying AIR or flying Jetstar at this point feels like choosing between being forced to marry one extremely ugly sister or the other.
The plain fact of the matter is Covid 19 is major risk on public transport despite all the lies AIR have tried to perpetrate about their so called hospital grade air filters. Those filters will not help you if someone near you has Covid 19.
If I can't be bothered driving the distance I'm not going.