AIR - Air NZ.

[winner69]

Because that is the default position of NGO Think Tanks as a result of the neo-liberal perspectives developed since the Thatcherism/Reaganism/ era that wishes to shrink government on the basis the market knows best.
I'm not judging just sayin.

Peat, right on.......and with the ulterior motive to line the pockets of a selected few.

They still want NZ to become more indebted to the world - and then push the issue harder.

Government will own ~50% if AIR for a few more years yet but maybe in four to five years time things will change.

[Joshuatree]

Thanks Roger for your opinions. One could debate the 1 to 3 b points you brought up. I think we are being ripped off already re airfares in NZ and doubt it would get much worse.But my lips are sealed as currently I'm a shareholder which makes me a hypocrite to be sure. Am i right that the govt stepped in to save AIR and didn't own any holdings previously. Im not in favour of govt owning companies like this ; better to leave them to govern thats their forte.

[Beagle]

Thanks Roger for your opinions. One could debate the 1 to 3 b points you brought up. I think we are being ripped off already re airfares in NZ and doubt it would get much worse.But my lips are sealed as currently I'm a shareholder which makes me a hypocrite to be sure. Am i right that the govt stepped in to save AIR and didn't own any holdings previously. Im not in favour of govt owning companies like this ; better to leave them to govern thats their forte.

No problem, I'm never short of an opinion LOL. Yes absolutely Joshuatree you're quite right, after the ill fated Ansett investment in 2001 and the terrible events of Sept 11 of that same year airline bookings simply fell off the edge of a cliff right at a time when AIR was stretched by their (if I remember correctly $450m investment). Govt did the right thing by all Kiwi's supporting AIR during its time of need in my opinion. Seems the current team learned from that experience and extricated themselves from Virgin without too much damage, well done to Chris Luxon for having the courage of his own convictions in that regard.

No question whatsoever AIR uses very sophisticated yield management software to try and extract the maximum yield from each and every flight, they're in business to make money not provide a social service and I don't have any problem with that in the light of the study they undertook. In 2014, sorry not sure if it might have been 2015 when the whole issue of domestic airfares was a political hot potato, Chris Luxon instructed the company to undertake a broad international survey comparison of other countries domestic airfares with similar sort haul characteristics and AIR assert that on an international comparative basis our domestic airfares are on average amongst some of the cheapest in the world. Cold comfort to those booking an airfare at the last minute during peak business hours but for an example as a purely random tiny piece of anecdotal evidence I got flights Auckland to Wellington on 27 April for SUM's annual meeting during business hours, down $89, (had enough airpoints for that one for free) and back, admit this is the last flight of the day at 7.45 p.m. so not truly business hours was $149 which hurt a little bit but still very strongly preferred over Jetstar at $99 for the same flight leaving 15 minutes later coming home. This morning on www.grabaseat.co.nz they had a bunch of airfares around the country at $1, $19 and $29 on sale for those early birds who are quick enough to catch the worm and $848 return to America ! I strongly believe if an overseas owned airline dominated the N.Z. domestic market they'd extricate vast amounts of Kiwi's wealth offshore.

Just imagine as a good analogy, if just one of the major fuel companies dominated 80% of the local fuel market and there was only Gull left to provide some limited so called competition, do you honestly believe the price of fuel would be the same as it is now ?

[Biscuit]

... the govt stepped in to save AIR and didn't own any holdings previously. Im not in favour of govt owning companies like this ....

If you consider that the NZ Govt stepped in to support a company it didn't have any ownership in it demonstrates the strategic importance of the company and the wisdom of the Govt in having some ongoing ownership.

[winner69]

Anybody grab this daily special ...before being taken down

http://www.stuff.co.nz/travel/911388...ts-to-honolulu

[Joshuatree]

If you consider that the NZ Govt stepped in to support a company it didn't have any ownership in it demonstrates the strategic importance of the company and the wisdom of the Govt in having some ongoing ownership.

I agree then but not sure about now when its making a motza.NZ railways well yes the govt were forced to buy it back after fay ,rich white made a killing and then was it Toll flogged it back to the Govt ; it is a strategic asset at this point; although thats debatable too. And has it ever made a profit?

Off on a tangent;I see the gisborne wairoa line being turned into a twin cycle track
Rail trail gets the nod | The Gisborne Herald

[RTFQ]

"I agree then but not sure about now when its making a motza"

Yea right! As I have said before most good businesses aim for a 15% return on capital investment. AIR would be lucky to make 7% on capital.

AIR is one of our national flag wavers and for that reason alone I doubt the Govt would allow the possibility of outside control. Look at the huge success Brieleys made with it.

[Beagle]

http://www.msn.com/en-nz/news/nation...cid=spartandhp

http://www.msn.com/en-nz/news/world/...cid=spartandhp
You'd hope most airlines have better GPS systems that this pilot was using

[Marilyn Munroe]

Have you heard of the Greenspan Put? This refers to an implicit understanding that should things go pear shaped for Wall Street Banks US Federal Reserve Chairman Alan Greenspan would flood the financial system with so much money these banks would be able to survive. Many commentators blame the "Alan's got our back" meme for banks trading recklessly leading to the Global Financial crisis.

Many of you will be aware that I have urged the Government sell its share in Air NZ. The colourful language I used may have lead some of you to conclude I was a loud mouthed troll. Maybe I am, but there is some serious thinking going on behind the noise.

Why do I want the Government to sell? Because the airline operates under the protection of a Cullen Put. Some believe the government has an obligation to shovel cash into the airline to keep it flying if we have an Ansett MK II.

Why should the government be called on for this financial support when it has more pressing calls on its cash for things such as mental health treatment debt repayment and adequate policing. Should the airline go down does it really matter? International routes are already well served by other airlines and I am sure there would be others willing to step into the void left by the airline domestically.

By selling the government would gain a descent wad of cash and free itself from the contingent liability of the Cullen Put.

Boop boop de do
Marilyn

[couta1]

I just awoke from this terrible nightmare that Air had been sold and Jetstar had taken over our domstic network in conjunction with Malaysia airlines.