OK smartypants I may have got that a little wrong. Apologies. But judging by the general thrust of the postings since, I think I made my point. Buy the kids a subscription to the National Geographic. They wont be going anywhere far in the bext 5 years.
I got some old school 1970’s NG mags for sale, good reading and investment for the kids
And it could be that there will just be Air NZ & Qantas flying the TransTasman routes for a while.
That's strange clicking on the links are displaying two dead links.
Hmmm Duopoly... Yes it will bee interesting to see how long the two Governments tolerate seeing only their 2 "bailed out" National Carriers flying the Tasman...
Better put...how long Businesses will tolerate it..
Just trying to shake the dust and cobwebs out of these armchair analysts. We can however all agree that Sharesies has turned the old way of carefully placed and priced orders on its head. The number of times I've watched major support and resistance points be ignored by a cascade of 7 dollar trades these past few weeks has been surprising. But it provides much needed liquidity so life is not all bad.
A new owner of Virgin could end up with very cheap aircraft and dirt cheap leases which could give them quite a significant competitive advantage. I imagine crew would also be keen to work on more competitive terms and the spot price for fuel is currently at multi decade lows. The big three costs of operation could be significantly lower than for existing airlines with legacy crew, aircraft and fuel hedging issues.
There will just be one thing missing.....Customers !
There will just be one thing missing.....Customers !
Might be in administration for many months and some customers might be back by then.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
"Air NZ announces profit of $374 million, maintains dividend"
"The airline will also take delivery of six ATR aircraft and three Airbus A320/321 NEO aircraft in the 2020 financial year, which will provide continued growth, fuel efficiency and cost benefits on the Tasman and Pacific Islands network. An additional Boeing 787-9 Dreamliner will also join the fleet this year."
What are the likely costs of exiting these, if no longer required or the orders are slashed ?
It doesn't look any better for the national Airline sitting virtually broke and on Govt Life Support lines just to make it through the next 12-18 months ..
Purchase request deposits particularly with Boeing are 15% (Etihad airlines recently forfeited theirs to cancel future orders). A 787-10 has a ticket price of US$338m so ~ US$50m deposit lost for the additional Boeing 787 alone (albeit the older model might have been slightly cheaper but on less favorable deposit terms)
Chris Luxon let it slip a while back that the Dreamliners are costing them $US150m each. One of the middle east carriers the other day was reported to be getting a 55% discount on original contract retail price , but demanded another 15% off the already discounted price or they can keep them. Boeing caved in from what I read, (despite deposits paid that they could have retained) and they got them for $US$130m.
Bottom line Boeing and Airbus desperately need to keep building and delivering aircraft and airlines have no need for new aircraft at present.
Last edited by Beagle; 28-04-2020 at 01:46 PM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
National geographic
Originally Posted by Lola
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