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26-03-2018, 04:45 PM
#13181
So...a third daily service to Singapore with revenue share partner Singapore airlines starting October, (source half year report), new flights to Taipai starting November and now another new destination starting soon, possibly Chicago. Hmmm, looks like pretty good growth to me.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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26-03-2018, 05:52 PM
#13182
Originally Posted by Beagle
So...a third daily service to Singapore with revenue share partner Singapore airlines starting October, (source half year report), new flights to Taipai starting November and now another new destination starting soon, possibly Chicago. Hmmm, looks like pretty good growth to me.
Yeah, they seem to be back to growing the international destinations at the moment.
Chicago has been on the wish list for quite sometime, not sure if this will just cannibalize their existing USA routes...Houston was always promoted as the gateway to the east.... I thought they may have tried to build that market up to a year-round daily service before venturing further a field.
Each new International destination comes with huge start up cost's, so they really need to make sure they have their existing destinations performing before committing to new markets.
Only one 787 now still grounded, should be back in operation in the not too distant future.
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26-03-2018, 06:08 PM
#13183
Originally Posted by Benny1
Yeah, they seem to be back to growing the international destinations at the moment.
Chicago has been on the wish list for quite sometime, not sure if this will just cannibalize their existing USA routes...Houston was always promoted as the gateway to the east.... I thought they may have tried to build that market up to a year-round daily service before venturing further a field.
Each new International destination comes with huge start up cost's, so they really need to make sure they have their existing destinations performing before committing to new markets.
Only one 787 now still grounded, should be back in operation in the not too distant future.
Thanks for the heads-up mate. You make a good point about Houston bring the gateway to the east. I chatted to Chris Luxon after the annual meeting last year, (Houston had those really bad floods at the time) and asked if they'd seen any drop off in demand because of the flooding. No, most pax use it as a transitioning point for eastern USA was the feedback he gave me.
It'll be interesting to see where too next won't it...pretty safe bet its not a new domestic destination
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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26-03-2018, 08:07 PM
#13184
Uneasy that the chart breakout 27/2 and subsequent trading support at and above the 200DMA hasn't pushed through to the previous highs, before turning over today (first warning ... and RSI dropped 71-56, with MACD crossing down). The 50EMA and 200DMA are real close, with only a $1 in it, so should offer support, otherwise the descending medium term trend line 6/9-26/2 (previously resistance) is decent support around $3 + a bit. Assuming the Jones saga doesn't take root and spook the large international positions, or possibly even our local fund managers, who may worry about government intervention in their investment. Eyes on as usual with this cyclical and volatile share.
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26-03-2018, 08:20 PM
#13185
Originally Posted by Beagle
It'll be interesting to see where too next won't it...pretty safe bet its not a new domestic destination
I seem to remember, though not precisely tbh, that before the engines started blowing up and you sold out, that you made a meal of the profitability and importance of the dominance of domestic services routes to AIR's bottom line. They sure did (& do) cane the wallet of the local punters who simply want better alternatives than a bus or train to get from A to B in NZ, but lately (well, actually for some time now) it's looking like screw the regional routes and expand into the less profitable and more risky international destinations. Now you're back in, because apparently the whole engine explosion thing is behind us, it seems this shift in domestic-to-international strategy in your view is fair game?
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26-03-2018, 08:47 PM
#13186
Originally Posted by Beagle
Thanks for the heads-up mate. You make a good point about Houston bring the gateway to the east. I chatted to Chris Luxon after the annual meeting last year, (Houston had those really bad floods at the time) and asked if they'd seen any drop off in demand because of the flooding. No, most pax use it as a transitioning point for eastern USA was the feedback he gave me.
It'll be interesting to see where too next won't it...pretty safe bet its not a new domestic destination
Pretty safe bet on Chicago I reckon....wouldn't be surprised if Obama shot a promo video for the new destination, to be used at this weeks launch and subsequent advertising..while he was here... The airline will want some payback for their "sponsorship" of his recent visit..
No..won't go sticking any money on a domestic destination!!
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26-03-2018, 08:59 PM
#13187
In my view Jones is not going to let this go either, he will be dogged, persistently a thorn in the side of AIR, he's just found a political pathway to ascendence in NZ First to potentially the leader role by riling up the regions and their populace on the back of AIR neglecting the regions for reasons of shareholder hubris.
Playing the 'government owns AIR' card is political gold, NZ First are in government in case some forget, Jones is right despite is methods, AIR is wrong and disconnected, almost like they failed to see this coming and knee-jerk reacted in a way that will undo their credibility.
Jones will never let this opportunity for him, NZ First and the government go. He will pursue it to the bitter end, to empower his, NZ First and the governments pathway to sustain power. Think wine box enquiry for reference.
Any shareholder who underestimates or who does not understand political motivation to 'gain and retain' power, should revisit their own selfish motives. This will not go away. The only longer term outcome for shareholders in AIR is sustained doubt at best, capital loss probably, maybe even nationalisation or less likely government quits AIR and taxpayers are off the hook for AIR's next fiscal calamity.
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26-03-2018, 09:45 PM
#13188
Originally Posted by Baa_Baa
Jones will never let this opportunity for him, NZ First and the government go. He will pursue it to the bitter end, to empower his, NZ First and the governments pathway to sustain power. Think wine box enquiry for reference.
With the last few years of record profits, AIR have done a good job of managing the PR around that. Bonuses to stuff and other things have lead the headlines rather than the price-gouging that I would normally expect for such a public facing company as AIR
With Shane’s help it looks like AIR might be running out of runway on the PR wins unless the can come up with something quickly to counter him.
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27-03-2018, 10:10 AM
#13189
Really good operating stats for Feb
One of the best months for a while ....and international revenues have real positive momentum now
What was AIRs full year forecast again?
http://nzx-prod-s7fsd7f98s.s3-websit...042/276830.pdf
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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27-03-2018, 10:10 AM
#13190
Agreed Winner. Good solid numbers for February with load factors up to 83.1% v 81.6% in the PCP.
Baa - See post #13181.
I will add that by my calculations the N.Z. Govt will receive approximately $700 million dollars per annum in total from company tax, dividends and PAYE from AIR's 11,000 staff this year and for the foreseeable future every year. Pays for an awful lot of police, teachers, hospitals e.t.c. right across N.Z. including in the regions. Clipping the golden goose's wings makes no sense for anyone and as my mechanic once said to me, if somethings working like a well oiled Swiss watch, why fix it !
I have no further comment on the matter as its already had a very, very fulsome airing and doesn't warrant any more oxygen in my opinion.
Stuck for holiday idea's https://luxuryescapes.com/au
Atlantis deal in Dubai looks pretty amazing !
Last edited by Beagle; 27-03-2018 at 01:35 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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