AIR - Air NZ.

[Snow Leopard]

The definition of an airline is essentially 'current assets less than current liabilities' EVEN Singapore Airlines .

Cashflow is King for most businesses it is a question of how much of a time buffer they have when the s*** hits the turbo-fan.

[biker]

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.

On that basis then, there is obviously an expectation from shareholders and the corporate machine that employees will slash their hard earned incomes to support their comfortable dividends.
While shareholders are very nice people, they don’t understand the functional reality that excellence and expertise is required to make airlines operable, profitable and above all, safe.
Slash the salaries and watch the quality of service, operation and safety record evaporate.
Be careful what you wish for Beagle

[Independent Observer AUNZ]

Wednesday open is going to be a bloodbath, surely? Something drastic has to happen now. Foran about to either earn or lose his stripes on this one.

[Mr Slothbear]

On that basis then, there is obviously an expectation from shareholders and the corporate machine that employees will slash their hard earned incomes to support their comfortable dividends.
While shareholders are very nice people, they don’t understand the functional reality that excellence and expertise is required to make airlines operable, profitable and above all, safe.
Slash the salaries and watch the quality of service, operation and safety record evaporate.
Be careful what you wish for Beagle

and where are they going to go if they don’t like having their paycut? Another airline?

this is going to be happening world wide.

better they get a paycut than have no job.

and somehow I doubt going from 300k to 250k is going to impact how hard they work or someones ability to land a plane.

there is no question the dividend will be cut heavily or entirely

[Independent Observer AUNZ]

there is no question the dividend will be cut heavily or entirely

There shouldn't have even been one last week. Absolute folly.

[Sideshow Bob]

There shouldn't have even been one last week. Absolute folly.

Govt banked approx. $70m out of them last week in dividends (not to mention tax). Should give it back to them as an interest-free loan.

[BlackPeter]

On that basis then, there is obviously an expectation from shareholders and the corporate machine that employees will slash their hard earned incomes to support their comfortable dividends.
While shareholders are very nice people, they don’t understand the functional reality that excellence and expertise is required to make airlines operable, profitable and above all, safe.
Slash the salaries and watch the quality of service, operation and safety record evaporate.
Be careful what you wish for Beagle

Last time I remember a very unreasonable bunch of employees fighting their struggling airline was with the strikes around Ansett. Staff succeeded in bringing their company to its knees. Ansett got broke and everybody lost their job.

I know one of the pilots working for Ansett. Enormous sense of entitlement - and he did continue to strike to the very end. He never ever managed to get another job in the airline industry and I understand he is now operating harvesting machines.

Lets hope the good staff at Air NZ are more reasonable - not sure our farmers need currently so many more machine operators , though there might be some vacancies for picking apples and digging potatoes. Not sure, though whether farmers pay 6 digit salaries.

[bottomfeeder]

Except no one will have money to pay for a holiday after all this is over. So it will take airlines a lot longer to recover.

[Independent Observer AUNZ]

not sure our farmers need currently so many more machine operators , though there might be some vacancies for picking apples and digging potatoes. Not sure, though whether farmers pay 6 digit salaries.

Depends on how well they meet their KPIs (Potatoes per hour).

[Bobdn]

I'm down a depressing amount of money during this sell off *sigh* However, fortunately I sold out of my 44,000 Air shares not long after the strike action of December 2018. It just really freaked me out at the time and rattled me out of my position. At that point I realized what a fragile position airlines are in. Everything needs to go perfectly 110 per cent of the time just to have an outside chance of keeping the show on the road. If it wasn't this crisis, I'm guessing it would have been another.

https://www.odt.co.nz/business/air-n...just-christmas

Weirdly, I feel grateful for the Union action for giving me a dose of reality when I needed it.