AIR - Air NZ.

[macduffy]

What a lot of nonsense is being written about AIR! Would we prefer the alternative - no airline in NZ and back to road, rail and sea transport until some brave soul takes a risk on trying again?

[Beagle]

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.

Not alarmist at all. Quick back of the envelope calculation the other day showed me they will be losing $5m+ a day and are un-investable even if there's a massive capital raise. The proposed new structure simply doesn't work. Its complete madness they are still talking about just "up to 30% job losses" when shortly they will only be making around 10-15% of their normal revenue.
Analyst Marcus Curley has impressed me with his searching questions whenever I have tuned into investor briefings that AIR run after each result. His suggestion they are burning through about $211m a month from April looks about right to me.

If professional analysts are suggesting the bailout needs to be $2-3b and they're burning $211m a month and I have come up with very similar figures based on my knowledge of the airline and its operating costs, then maybe the sort of numbers being talked about are simply reality, not alarmist at all.

A bailout would need to include staff wage subsidies because Air New Zealand could not afford to make mass layoffs due to costly redundancy clauses many workers would have in their contracts, she said.

This is the real problem, the cost of redundancies. I am sorry but the culture on entitlement must be broken if the airline is to survive.

A full reset of the cost structure of the airline is desperately required. The only way to effect this is to let the airline collapse and nationalise the airline.

[skid]

not sure who is to blame...the government or the airline(s) ...or both...........but from what Im reading (and hearing) passengers are not getting well informed about this problem...............toursts are still landing ,grabbing tourist brochures ,and heading off knowing none the better.... they really need to fix that

[Beagle]

Climate of fear https://www.stuff.co.nz/national/hea...ckness-slammed

[skid]

Climate of fear https://www.stuff.co.nz/national/hea...ckness-slammed

They dont seem to get the message that a bit of reassurance helps with panic....not just letting the mind create senarios.....everyone wants to feel their airline staff are being straight with them.....goes for doctors and the government as well......I hope they remedy this

[stoploss]

Qantas just stood down 2/3 of its workforce and scrapped all international flights late march till at least end of May ( source Bloomberg)

[silverblizzard888]

The year is 2023, Jetstar is the main airline, that tangy orange flare now the kiwi pride of aviation and the now 100% owned Government run Air New Zealand has slowly drifted from its premium ideals and Air NZ now prides itself as the communities airline, flying on minimum margins across large cities and townships. Grant Robertson has assured the people never again will expensive flights happen under his watch and that it will be as well run and funded as kiwi rail!

[Beagle]

https://www.msn.com/en-nz/news/world...cid=spartandhp

Here's the link. AIR are just "playing with it" thinking they can keep 70% or more of their workforce employed when nearly 90% of revenue has disappeared.
Grant Robertson needs to tell Greg Foran he's not running a social welfare department.

[Beagle]

https://www.nzherald.co.nz/business/...ectid=12317978 Rob Fyfe - AIR's fixed costs $450m a month !

[Balance]

https://www.msn.com/en-nz/news/world...cid=spartandhp

Here's the link. AIR are just "playing with it" thinking they can keep 70% or more of their workforce employed when nearly 90% of revenue has disappeared.
Grant Robertson needs to tell Greg Foran he's not running a social welfare department.

Wrong message! Grant IS running a social welfare department!