AIR - Air NZ.

[Baa_Baa]

Putting wifi in some of their 777s for all to use

Cost $40 to use for the whole trip ....irrespective of duration

One of the highest charges of the airlines that have wifi

Good eh ...thinking of shareholders

Ridiculous isn't it, like hotels who thought they could charge a premium on room wifi when fairly quickly they realise it's a commodity that the punters expect for free ... or they pick a hotel that has free wifi or is in cooee of the Spark phone box and get their gB of wifi free.

Bet they didn't give a thought to shareholders making this decision, it's just a cynical margin on top of their back-haul & satellite costs. For how many years were we not even able to turn on our devices on the airplanes in case it buggered the flight control systems (and presumably crashed the plane)? Now it's suddenly OK and costs can be covered with a decent margin to the bottom line. Get real!

Crap like this, you'd think they might see through the eyes of the traveller, but no, maybe there's a few desperate enough connected travellers that are prepared to pay equivalent of 1/2 to 2/3 of a monthly hi-speed broadband fee just for one flight. Good luck on sustaining that!

I'd give it 6-12 months max before wifi is free on AIR. Like it should be.

[pierre]

Flew on AIR to Houston a couple of days ago and never saw a single Spark phonebox for the entire flight. Mind you a large part of the trip was at night.

[upside_umop]

Must say I am surprised by AIR's SP given all the issues they're having including the headwind of higher oil prices looming large for FY19.
Resilient that's for sure. Hope no more fan blades come off and do something even worse than spraying the aircraft with shrapnel. We wouldn't want any passengers sucked out of broken windows or something even worse. We can trust RR 100% that their inspections of cracked and corroded blades and the front and rear of those engines are free of any commercial bias that might otherwise add to their damages costs right ?
Hmmmm. These issues didn't even rate a mention by Chris Luxon at the Macquarie's Australian institutional investor day, quite obviously not relevant...or are they ?

I suspect AIR is holding up ok with their hedging strategy and the forward oil curve being in steep backwardation. I.e. the market doesn't believe high oil prices will remain.

If oil remains higher for longer, then AIR will suffer through higher costs and generally lower economic activity (from oil strangling the economy). It's a double whammy and for airlines, it's never worked out well.

I'm still surprised Warren invested in the US airlines to be honest.

[Beagle]

Brent now up over U.S.$78 at its highest since November 2014. AIR's policy on hedging only gives them limited time to adjust their business model.
Customers should expect higher airfares in the months ahead.

[upside_umop]

Brent now up over U.S.$78 at its highest since November 2014. AIR's policy on hedging only gives them limited time to adjust their business model.
Customers should expect higher airfares in the months ahead.

Just checked their hedging position as at 28 February 2018. They don't hedge as much as I thought they would have:

- 70% hedged Jan-Jun 2018
- 35% hedged from Jul-Dec 2018

https://p-airnz.com/cms/assets/PDFs/...-14feb2018.pdf

Agree that you would expect significant increases in the airfares in the months ahead if oil prices don't reduce to the forward prices currently projected by the market.

[sb9]

Air New Zealand fares going up by 5 per cent on domestic routes from Thursday

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12051728

[winner69]

Got a link to that news article about price increase mate ? Suppose its inevitable with fuel costs going up.

Travel agent told me but here’s a link anyway

Only took NZHerald a week to get up to speed


https://www.nzherald.co.nz/business/...ectid=12051728

[Beagle]

Travel agent told me but here’s a link anyway

Only took NZHerald a week to get up to speed


https://www.nzherald.co.nz/business/...ectid=12051728

Yeap had to happen. Some guy on here a while back reckons fuel prices and air fares are inextricably linked
International airfares next and then fuel surcharges after that. Might put off some tourists and lead to slightly less intense overcrowding at Queenstown which wouldn't be a bad thing at all ! When your mate Jascinda imposes new fuel levies, (levy increase is not a new tax, yeah right) it'll cost about $2.50 per litre so extra costs to get to the airport and of course the airports are putting up car parking charges on such a regular basis it seems they go up every time I fly.
The cost for a little jaunt around the country is going through the roof ! (better hope SUM have their annual meeting in Auckland again next year)

[BlackPeter]

Yeap had to happen. Some guy on here a while back reckons fuel prices and air fares are inextricably linked
International airfares next and then fuel surcharges after that. Might put off some tourists and lead to slightly less intense overcrowding at Queenstown which wouldn't be a bad thing at all !

Add to that

• a tourist tax from our new gummit,
• reduced immigration (i.e. nobody who wants to work for the tourists anymore),
• increasing hostility of natives against tourist drivers (conveniently ignoring all the home-bread idiots on our roads who only get slapped with wet bus tickets if they kill their fellow road users ...)
• an increasing number of environmental calamities and
• ah yes, and there are still some tourists who don't realize yet that the "clean and green" in our slogans refers to the (chlorinated) tap water ...

I am sure the tourists will learn and we will solve the tourism problem ; I guess, really - who wants to make money?

Problem is just that it is not so easy to turn the tap on again after we closed it ...

[Snow Leopard]

These things happen occasionally: