Impressions from the call :-
Sounds like they have been having good dialogue with RR and direct cost impact this year will be about half the previously indicated $30-40m
Indirect RR impact costs running at about $20m per annum to be largely out of the business by Q1 FY20.
Capacity growth in FY20 towards the top end of the 3-5% range.
First 777-200 replacement due in 2023.
Focus on revenue per available seat kilometer strength (RASK)
Cost reduction focus is on top of existing plans to reduce CASK (cost per available seat kilometer)
Very minimal noticeable impact to forward bookings from Chch tragedy
Free wifi from today for enabled planes is a good thing.
I think the confidence within the business is strong and they are focused on executing well in this lower growth environment.
Capex deferral underwrites their ability to pay strong and sustainable dividends and get their gearing back to very moderate level's...(music to any dividend hounds ears).
https://www.marketscreener.com/AIR-N...07/financials/ I think we could see some modest upgrade to average analyst forecasts for FY20 and FY21 of $430m before tax.
A year is a long time in the aviation industry but I see fair value of ~ $2.75 a year from now and a gross yield of approx. 12.4% at the current share price of ~ $2.47.
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