AIR - Air NZ.

[pierre]

Yeah I expect there will be a lot more virtual meetings in future which will undermine the most lucrative part of AIR's business.

Yep - the business travel issue will definitely have an impact, but I suspect that in the past many seats at the sharp end were also filled by old farts like me (and my wife, who doesn't fart - or so she says) on leisure trips.

We've canned out of three business class return flights with AIR this year due to Covid. We'll definitely fly to Oz or the Islands once those bubbles are open but it will be quite a while before we are thinking about venturing much further - even if they start flying to other countries.

That's a double whammy for AIR and why I sold my modest holding a while back - admittedly at a loss - but I think there's a bigger one coming.

[Sideshow Bob]

https://www.nzx.com/announcements/353696

Liquidity update

[winner69]

Still got $600m in the bank and haven’t to spend government money

That’s good

Share price might head back to $2

[bull....]

they burn thru all there cash in approx 5 mths on current projections then will need to start using the govt 900 m loan. also it doesnt take account of a second covid wave meaning moving up lockdown levels again in the future

[Sideshow Bob]

Still got $600m in the bank and haven’t to spend government money

That’s good

Share price might head back to $2

Then again, it might not......are you just trying to pump life into it W69?

[whatsup]

Re todays market update.

The reduction of the top table and director salaries/fees is a joke to my mind, under the circumstances a 50% reduction is more in line with what is necessary, this company is in a survival situation at present even if the fish heads cannot recognise that !!!.

[Sideshow Bob]

800 staff going at Fiji Airlines.

https://www.odt.co.nz/business/close-800-fiji-airways-staff-laid

[stoploss]

Still got $600m in the bank and haven’t to spend government money

That’s good

Share price might head back to $2

If they are going that well , surely they will be able to negotiate a better loan package

[Beagle]

Re todays market update.

The reduction of the top table and director salaries/fees is a joke to my mind, under the circumstances a 50% reduction is more in line with what is necessary, this company is in a survival situation at present even if the fish heads cannot recognise that !!!.

Interesting contrast with closest competitor Qantas where many of the senior executives are not taking any salary at all for the next few months.

Better update than I expected BUT it is clear this company faces a monumental sized challenge to get through this so I remain of the view it will need recapitalisation at some point...but it will be later than I expected.

[silverblizzard888]

Had over a $1 billion, after about two months they have $640 million left. Assumption is they have on average burnt $200 million per month.

Add in cost savings and I'd say they will be about $150 million per month burn, which means they have 4 more months to burn on the current amount, maybe 5-6 months if domestic flights and cargo delivery volumes do well.

Not too bad on the cash burn, but at the end of the day its a business and on the business side of things its been chucked into a metal compactor and come out like a small cube.