AIR - Air NZ.

[iceman]

Social media going on about now that Luxon has gone AIR have reinstated their pink flight to the Sydney Mardi Gras

Good for shareholders - servicing a cause and a couple of extra full flights

I dont think anybody even realised Chris was a conservative christian bloke until he decided to enter politics.

[Beagle]

Its been well known for years. Couple of people I know who work for AIR are very sad to see him leave and think he was an excellent leader.
It'll be very good for the country when he becomes prime minister. Who doesn't want a supercharged economy

[winner69]

Its been well known for years. Couple of people I know who work for AIR are very sad to see him leave and think he was an excellent leader.
It'll be very good for the country when he becomes prime minister. Who doesn't want a supercharged economy

I don’t think a Luxon lead government would be good for NZ

But seeing he’s a has been as far as AiR is concerned we better not taint this thread with politics

[macduffy]

I don’t think a Luxon lead government would be good for NZ

But seeing he’s a has been as far as AiR is concerned we better not taint this thread with politics

Could you expand on your reason/s on the political thread, winner?

[winner69]

****e seems to happen with most airlines

https://www.smh.com.au/national/qant...09-p5391o.html

[stoploss]

Air NZ be glad to be out of this mess .....
8 % .....!!!
https://www.livewiremarkets.com/wire...y-debt-raising

[Beagle]

Air NZ be glad to be out of this mess .....
8 % .....!!!
https://www.livewiremarkets.com/wire...y-debt-raising

Breathtaking stuff isn't it ! I can't figure who in their right mind would invest in those bonds
Quite obviously some investors simply do not read or understand the financials or the risks involved. Pretty obvious there's a serious risk Virgin will go bankrupt in the next few years which will be good for AIR.

Speaking of good for AIR, I notice Virgin has cut back on some of its trans-tasman services and then there's this, AIR might finally start to earn a reasonable return on capital employed with regional aircraft. https://www.nzherald.co.nz/business/...ectid=12283108

[Chinesekiwi]

I have an extremely strong connection to this company and am a shareholder. My thoughts as an interested long term observer....

1. Luxon (or Low Wage Luxon as he was often cheekily referred to by Air NZers) did bring his personal values to the office. His memos to staff were frequently peppered with references to his do good religious activities of himself and his family.

2. He most certiainly stopped the PINK FLIGHTS. They were commercially profitable but he personally intervened to stop them.

3. Luxon will not make a excellent leader of the country if that is what he seeks. He presided over a business that makes the huge percentage of its money from a near monopoly domestic business. It struggles in the competitive international space (It's a bloody tough business though). Luxon has in part held the numbers up by relentless focus on costs and that's great until you understand what that means and how it was achieved:

- He oversaw the casualisation of full time jobs into split shift broken hours and reduced benefits of more vulnerable workers such as aircraft loaders and check in staff. It is common for these 'part time - full time workers to require secondary employment.
- He oversaw and encouraged the 2014 cabin crew Project Choice as it was called. This essentially when all was said and done created a huge pool flight attendants (thank you John Key and the tweeks to employment law which kindly allowed for parallel employment contracts with vastly reduced salaries and benefits for the exact same work. It was a sensational transfer of money from workers to shareholders and reduced the cost of labour by many millions annually.
Result? - sharply increased staff turnover, reduced customer satisfaction ratings, far greater absenteeism, an enlarged head office workforce to manage the same work groups now with vastly different contracts.

- He allowed his team to attempt to, once again, take the razor to the engineers who were less vulnerable and had a strong worker union and were able to fight back.

Luxon's legacy to those inside the company is one of wealth transfer from workers to shareholders. It was no suprise then that his first political speech was straight into the old National chestnut - welfare, low income and beneficiary bashing.

Will he be a great leader for NZ - He'll look great and speak well. He'll would represent NZ well on the global stage. Less visibly I have no doubt he will behave as a Nat behaves - expect less humanity, stricter provisions for the poor, mentally ill, disadvantaged etc

I realise I will be slated here but these are my observations (yes I know Christopher and have had more than one direct conversation with him - I do not dislike the guy, he's a charming speaker and has a charisma but it must be acknowledge that he was a world view that most Kiwis will not identify with)

Its been well known for years. Couple of people I know who work for AIR are very sad to see him leave and think he was an excellent leader.
It'll be very good for the country when he becomes prime minister. Who doesn't want a supercharged economy

[Bobdn]

"...wealth transfer from worker to shareholder" I thought Air NZ workers had great conditions and remuneration? Are they hard done by? I don't want to tread on any toes here but I think it's ok for shareholders to get a return on their investment.

[Beagle]

"...wealth transfer from worker to shareholder" I thought Air NZ workers had great conditions and remuneration? Are they hard done by? I don't want to tread on any toes here but I think it's ok for shareholders to get a return on their investment.

Thank you for sharing your perspective Chinesekiwi
Last time I looked the average worker was getting just on $120,000 which would mark it out as one of the very highest paying employers in the country. I am definitely with Bobdn on this one.

Jeff McDowell, former CFO and current CEO has talked in the last few conference calls how they've been settling deals with unions in the high 2% annual increase range, nearly 3% per annum increases. This has been going on for many many years when inflation has been averaging around 1-1.5% so in real terms the vast majority of the unionised workforce in AIR have been getting real inflation adjusted wage increases for ages. No wonder AIR is consistently voted the most favoured employer in the whole country ! This year, when oil prices were just at a reasonably moderate level, shareholders endured the lowest returns in five years. Who is transferring wealth to who ? If we are to believe Shane Jones the company should be run like a social welfare agency and if we are to listen to some employees they are the real owners of the company and deserve even more of a lion's share of the returns. (Wages and salaries bill for FY19 $1.35 Billion, net profit after tax, just a mere $270m).

The new CEO coming from a tight cost control background needs to bring some serious discipline to same within AIR as in my opinion based on the people I know who work there, there is a tremendous sense of "entitlement" amongst employees to the point where I find it quite disconcerting and not reflective of the fact that the company operates in an intensely competitive international environment competing with other airlines with a much lower cost base. For shareholders to get a decent return on equity that net profit figure needs to go up by $130m to give about 15% in this relatively high risk business so from where I sit that has to come from somewhere and on average I would say employees are overpaid by about 10% ($130m)...which is what happens over a long period of time when unions get settlements 1-2% above the rate of inflation. I hope the new CEO declares war on wage increase demands at above the rate of inflation, he needs too in my opinion to stop this employee entitlement mentality getting any worse.

I only have a modest stake because I genuinely believe this entitlement mentality at AIR is a very serious situation and seriously undermines the competitiveness of the company. My 2 cents worth.