AIR - Air NZ.

[Biscuit]

I do think it's interesting that for decades most of us believed that airlines are a terrible investment ......

They are a great cyclical investment. Get in early and then get out early.

[peat]

I do think it's interesting that for decades most of us believed that airlines are a terrible investment and that they mostly end up going bankrupt or in need of a massive bail out resulting in the almost complete destruction of shareholder wealth.

And then we, including me and Warren Buffet, started thinking that maybe things are different now. I don't things are different.

https://www.forbes.com/sites/greatsp.../#7635599d2653

yes indeed Bobdn, I definitely questioned this change of heart and never got duped into placing AIR in my l/t portfolio ( I may have traded it a couple of times)
Nothing really ever changes in the world of finance market because it is based on human psychology.
And , as I have said before I saw the P+L's for all the AIR business units when I worked there for 10 years. Such thin lines between profit and loss.....

[trackers]

Makes me wonder why they didn't extend the trading halt until next Monday and give themselves the weekend to finalise all the details. Maybe two days is the maximum trading halt allowable, (anyone know for sure ?), and if you need longer you have to keep issuing extensions. My money is on another extension to the halt to be announced Friday morning and a capital raise announced to the market on Monday next week. It could even take longer for the Govt to approve this if they don't like the forecasts and information contained in AIR's revised business plan. "Go back to the drawing board guys and come up with a plan that's operationally more feasible".

Virgin just announced the grounding of its entire international fleet.

Can't lose money if you're not trading...good ploy but doubt it would work.

I believe over 3 days and shares move from trading halt, to full suspension, and that has some ramifications and requires a please explain...from memory.

[winner69]

Can't lose money if you're not trading...good ploy but doubt it would work.

I believe over 3 days and shares move from trading halt, to full suspension, and that has some ramifications and requires a please explain...from memory.

That’s right

Possibly AIR shares will be suspended from trading for quite a while

Hope any govt bailout is highly dilutionery to those holding.....that way the taxpayer has a better chance of getting a decent return for being noble enough to save them again.

[Tomtom]

well boeing is on the verge of collapse requesting billions in aid

The risk of a Boeing collapse is small for AirNZ. The US Government is heavily reliant upon Boeing.

Like many companies in this sector Boeing has been the victim of financial engineering by it's executive team which left the company without adequate reserves (FT article from August, 2019.) It seems to have become a regular feature of aviation for governments to offer support at the end of business cycles so aviation businesses purposefully operate to exploit the support. I'm not sure exactly why we do this and yet display such little concern for supporting other cyclical industries that are instead forced to hold appropriate reserves.

[winner69]

This is its a one way bet for the Government, they cannot lose. I estimate between PAYE on wages and salaries, GST on domestic flights, tax and the dividends each year the Government nets well north of $500m per annum from AIR. If once every decade or two they have to tip in a billion or two its no big deal, they are so far ahead it doesn't matter. Joe Bloggs investor on the other hand, faces quite a different situation.

That sort of logic sort of says the likes of Fletcher Building deserved to be bailed out every now and again

[skid]

Should have implemented border controls on all the other countries when they started having virus outbreak, and/or follow the HK, Taiwan and South Korean model.

Instead she followed US & Oz model - now it's all a bit too late but thank goodness we have the stimulus package to cushion the economic fall. Not so for Air NZ.

we get it....you dont like Jacinda or labor.................but it is not to late...It may prove to be....but as we speak,all cases
have been ''imports'' and if they are contained we could still avoid scenarios like Europe and the States....so lets not get carried away

[Balance]

we get it....you dont like Jacinda or labor.................but it is not to late...It may prove to be....but as we speak,all cases
have been ''imports'' and if they are contained we could still avoid scenarios like Europe and the States....so lets not get carried away

If we avoid scenarios like Europe and the States, would only be our good luck!

Nothing to do with good proactive and progressive management of the unfolding virus situation by this incompetent government over the last 2 months!

A lot written about Air NZ needing a second bailout etc etc.

I was there when Air NZ needed the bailout way back in 2001 - the fault then was 100% Air NZ as management & board stuffed up paying mega dollars using debt for Ansett Australia.

This time round, anyone will accept that Air NZ has been a well managed successful airline and in common with most of the other airlines around the world, has unfortunately been caught up in circumstances NOT of its making.

https://www.stuff.co.nz/national/hea...d-analysts-say

As for billions of dollars required for bail-out - good example of why Air NZ should be on trading halt to stop the wild and imo, inaccurate alarmist speculations.

[winner69]

I reckon the government should be generous and give shareholders 20 cents and take over AIR lock stop and barrel.

Even 20 cents a share is generous ...better than nothing

Stop airlines like AIR running the way they do knowing that every decade or so they’ll get a bailout.

[bull....]

air will be virtually idle for the rest of the year easy , so i agree govt should just take them over at 1c