AIR - Air NZ.

[Heimand]

I would say there is more than 80% chance of capital rise soon.

[Paradox]

The sharesies crowd will be all over this one. I reackon a 1:1 at $1 would be a goer. Give em another $1B and would not need to touch the loan facility. Whats not to like.

Given it is trading at $1.38, it may get good support even at $1.25?

[Stranger_Danger]

The sharesies crowd will be all over this one. I reackon a 1:1 at $1 would be a goer. Give em another $1B and would not need to touch the loan facility. Whats not to like.

My read on the Sharesies crowd is they would not have the cash on hand, as a group, to participate 1:1. It would also be the first rights issue for a lot of them, many would be confused, and for some it could blow up the "Jacinda has our back" thesis.

I think a successful raising would require an outsized institutional placement component to be successful - and that will require a much lower price than the Sharesies crowd would be theoretically willing to pay.

[blackcap]

My read on the Sharesies crowd is they would not have the cash on hand, as a group, to participate 1:1. It would also be the first rights issue for a lot of them, many would be confused, and for some it could blow up the "Jacinda has our back" thesis.

I think a successful raising would require an outsized institutional placement component to be successful - and that will require a much lower price than the Sharesies crowd would be theoretically willing to pay.

The sharesies crowd have had quite a few placements or rights issues and have participated with gusto. Think KMD, IFT, IKE, and many more the last 2 months. Many have been disappointed they got scaled back. Well that is my read on it.

I take your view about the price. I think insto's would accept $1 as a 30% discount to current SP. Also remembering the govt has to put in their share so not that much needs to be raised.

That said my initial post was a bit more tongue in cheek, sounds nice and symmetrical; 1 for 1 at 1.

[Sideshow Bob]

I thought there was talk capital raise not until after the election? Which would have been 4 weeks away.

Now about 8 weeks away......maybe they can't wait that long??

[Beagle]

The sharesies crowd have had quite a few placements or rights issues and have participated with gusto. Think KMD, IFT, IKE, and many more the last 2 months. Many have been disappointed they got scaled back. Well that is my read on it.

I take your view about the price. I think insto's would accept $1 as a 30% discount to current SP. Also remembering the govt has to put in their share so not that much needs to be raised.

That said my initial post was a bit more tongue in cheek, sounds nice and symmetrical; 1 for 1 at 1.

111 is a good basis to play cricket but I doubt Covid 19 will be a respecter of the long standing rules of the gentleman's game. Its hard to hit the ball out of the park when you keep getting underarm deliveries. $1.1 Billion should see them through to next year's capital raise and keep the hundreds of millions per annum of GST and PAYE flowing through to the Govt so they can't lose...but as for other shareholders, they look like they're on a hiding to nothing.

[iceman]

The International Air Transport Association warning of global annual airline losses of USD 84 BILLION this year. Frightening.

https://www.bbc.com/news/business-53908474

[Paradox]

The International Air Transport Association warning of global annual airline losses of USD 84 BILLION this year. Frightening.

https://www.bbc.com/news/business-53908474

Yet, AirNZ is one of the market darlings and continues to climb. Any guesses what’ll happen tomorrow after the results are out?

[iceman]

Yet, AirNZ is one of the market darlings and continues to climb. Any guesses what’ll happen tomorrow after the results are out?

No guesses from me on that one. I do not understand the current valuation and have no interest in getting back on the SH register anytime soon.

[Beagle]

Glad I didn't book Jetstar for my annual ski holiday this year, (usually go first thing in Sept). Cancelling services altogether in N.Z. through to at least 6 Sept paints them in a bad light. https://www.nzherald.co.nz/business/...ectid=12359252

They're really not interested at all in maintaining continuity of services unless its profitable to them. Not one ounce of thought for customers and how they're affected...that's something new for Jetstar isn't it ! (sarcasm intended).

Picking between flying AIR or flying Jetstar at this point feels like choosing between being forced to marry one extremely ugly sister or the other.
The plain fact of the matter is Covid 19 is major risk on public transport despite all the lies AIR have tried to perpetrate about their so called hospital grade air filters. Those filters will not help you if someone near you has Covid 19.

If I can't be bothered driving the distance I'm not going.