AIR - Air NZ.

[Snow Leopard]

...They are talking with the Govt because technically they are already insolvent, current liabilities exceed current assets....

NOT the definition of insolvency. An accountant should know that.

[blackcap]

NOT the definition of insolvency. An accountant should know that.

Although when current liabilities exceed current assets, questions about going concern are raised by auditors...

[Tomtom]

I'm quite surprised, there have only been flight restrictions in place for a week or two to most destinations?

[Snow Leopard]

Although when current liabilities exceed current assets, questions about going concern are raised by auditors...

Also wrong.

Really you guys have a lot to learn.

But I am sure we can all agree currently world aviation is deep in it.

[blackcap]

Also wrong.

Really you guys have a lot to learn.

But I am sure we can all agree currently world aviation is deep in it.

I guess my accountancy degree taught some inaccuracies then?

[Toddy]

Where is the Government going to get all of the money from to hand around.

[Blue Skies]

On a more positive note, Foran now seems like a brilliant appointment to get AIR through this temporary crisis & obviously they are not delaying in going hard out to slash costs while their revenue stream dwindles.
Previous CEO's might have been slower to respond.

Also aware both China & US are now frantically competing against each other to be first to develop a vaccine in record time, such are the high stakes, & the experts worst case scenario of up to 18 months is looking like being too pessimistic with each passing week. ( latest, Trump currently trying to buy exclusive rights for the US to a German Companies well advanced vaccine ).
This crisis could be over more quickly than we think, and once the virus is dealt with, travel will recover quickly.
Everyone will need a damm good holiday

[Beagle]

Board and CEO taking a paycut of 15% is not good enough.
Earn over $500K - 50% pay cut
Earn over $300K - 33% pay cut
Earn over $130K - 20% pay cut
All others, except those earning less than $50K - 15% paycut.
Never waste a good recession.
Those that retain their jobs after the redundancies should be pleased they have a job.

These sort of cuts will never happen because although the vast majority of people who work for AIR are very nice people, they don't understand the economic reality of the situation and there is an expectation the Govt and other shareholders will simply cough up to support their comfortable lifestyles.

[Snow Leopard]

I guess my accountancy degree taught some inaccuracies then?

Either that or you were not paying attention

[blackcap]

Either that or you were not paying attention

Haha quite possibly the latter. Although if you cannot service your debts you are in trouble. If current assets < current liabilities it can often spell danger for companies. Especially in times when they cannot get other forms of financing. I always look to the balance sheet and check the current ration and if less than 1, I have questions about going concern. Then I look deeper and see why this is so, and make sure that they can get finance to cover upcoming commitments. The accounts receivable, although a current asset, can also be tainted and not always relied upon. More so in turbulent times.