AIR - Air NZ.

[nztx]

Expect fares to jump by 20 per cent says Air New Zealand as fuel soars - NZ Herald

Also saying demand pushing prices higher (for how long??)

They're probably 'dreaming mate' going forwards

[Dassets]

They're probably 'dreaming mate' going forwards

Someone needs to draw a supply demand curve for Mr Foran and explain elastic and inelastic features of flying ie demand is elastic, supply not so much. Hard to use the train/tunnel analogy for an airline. Sadly the Tenerife "Goddamn, that son-of-a-bitch is coming!" comment (apologies for any offence) might describe the AIR NZ CEO/Pilot describing the demand destruction coming down the runway. The AIR team members aren't stupid but it is hard to understand the strategic direction of the airline atm.

[mikelee]

Someone needs to draw a supply demand curve for Mr Foran and explain elastic and inelastic features of flying ie demand is elastic, supply not so much. Hard to use the train/tunnel analogy for an airline. Sadly the Tenerife "Goddamn, that son-of-a-bitch is coming!" comment (apologies for any offence) might describe the AIR NZ CEO/Pilot describing the demand destruction coming down the runway. The AIR team members aren't stupid but it is hard to understand the strategic direction of the airline atm.

Capacity is so low atm that staffs are not even allowed to book a flight using standby tickets I hear. Little point working for an airline I reckon and I expect more brain drains to follow. Employees have very little loyalty these days and will happily jump ship if better offers are on the table.

[kiora]

In the USA pilots for the bigger companies work for outside contract companies contracted back to the airline

[Snow Leopard]

In the USA pilots for the bigger companies work for outside contract companies contracted back to the airline

This is only partially true and the reality is more complicated and variable.

But as a f'rinstance, as they were in the news a few days ago, Piedmont Airlines as a regional airline, flies planes and employs aircrew for American Airlines Group but in this case AAG own them.

There is career path from Piedmont to American itself.


Eagle Airways was a fully own subsidiary of Air NZ in a 'similar' manner.

[Maxtrade]

I see .50 is the 10 year recent low , will that be breached shortly ?

Might well make sense how they derived the arbitrary figure of 0.53 Cap Raise!

Would make sense that SP holds around this level 0.50- 0.53. Surely it cant breach and drop to 0.35 as a few have suggested in this thread!? But who knows they are going to be in the RED for a very long time and no dividends, much less attractive to savvy investors. Demand going out of the sails. Just need to look at SP since Cap Raise. Cant believe people were gullible enough to be buying in at those previous levels. The amazing hyped up buy 2 shares for each one at this bargain discount. Folk buying SP rights. Those who did buy in are now sitting negative to their cost average for sure It was written on the wall SP was going to drop at least to 0.53. Most experienced investors on this thread were all saying the same thing. Hope is a wonderful yet dangerous thing. FOMO I guess encouraged that many people to jump on board, ignoring all the fundamentals of the company and what it faces. Flight tickets are already so much more than they use to be, obviously as the airlines need to try to maximise where they can, and higher fuel costs etc. But with inflation, interest, higher living costs, people won't be able to travel as much as they once did. Travel will become more of a luxury for those who can afford it. There will be less people that can afford it. In New Zealand it's going to be facing these hurdles and challenges for many years ahead. Its not going to be the miracle SP suddenly bounces back up miraculously because our boarders are open. Business fundamentals shouldn't simply be ignored when looking to invest in a company.

[Sideshow Bob]

Business travel will be one of the keys moving forward. Would see the leisure market much more price driven, but many companies have got by with Zoom, limited domestic travel and next-to-no international travel for the last 2+ years. It may redefine for business what is "necessary", and what is superfluous - especially as prices/costs increase and the economic conditions come under more pressure. No doubt Govt depts will have no problem hopping on a plane....!!

Our company is export-based, and we've done no international travel since the start of Covid - previously maybe $100-120k on international fares (almost all on AIR). We would be pretty regular beforehand, but have got by OK without travel. Going forward, foresee we'll still travel internationally, but travel less, and probably less domestically.

[Beagle]

Business travel will be one of the keys moving forward. Would see the leisure market much more price driven, but many companies have got by with Zoom, limited domestic travel and next-to-no international travel for the last 2+ years. It may redefine for business what is "necessary", and what is superfluous - especially as prices/costs increase and the economic conditions come under more pressure. No doubt Govt depts will have no problem hopping on a plane....!!

Our company is export-based, and we've done no international travel since the start of Covid - previously maybe $100-120k on international fares (almost all on AIR). We would be pretty regular beforehand, but have got by OK without travel. Going forward, foresee we'll still travel internationally, but travel less, and probably less domestically.

Dead right mate. Digital platforms like Zoom have become a widely accepted, entrenched and safe means of engaging with customers. Business executives don't want the risk of travelling to other countries. A lot of hype went with the "refuel" propaganda. I have never seen so many highly detailed disclaimers and elaborately worded caveats in the fine print as in that capital raise. I suspect many in the Sharsies crowd didn't read the fine print.

To me the capital raise for all intents and purposes looked like a shearing shed. Enter the plane at the front, get all your wool shorn off and sorry about all the blood you lost from the knicks and cuts and exit at the rear. Thanks for coming.

[samjaynz]

Business travel will be one of the keys moving forward. Would see the leisure market much more price driven, but many companies have got by with Zoom, limited domestic travel and next-to-no international travel for the last 2+ years. It may redefine for business what is "necessary", and what is superfluous - especially as prices/costs increase and the economic conditions come under more pressure. No doubt Govt depts will have no problem hopping on a plane....!!

Our company is export-based, and we've done no international travel since the start of Covid - previously maybe $100-120k on international fares (almost all on AIR). We would be pretty regular beforehand, but have got by OK without travel. Going forward, foresee we'll still travel internationally, but travel less, and probably less domestically.

Similar story here. Pre-Covid I used to travel a lot for business - in the 2019/2020 year I spent around $30k with Air NZ. Down to about $3k in the past year, for domestic routes only.

I've been able to keep the majority of my international business without needing to travel (in fact it's easier as now Zoom/Skype is so acceptable, there's no stressing about whether you'll actually get there) and it is so much less hassle. I don't miss in the slightest getting up at 3am to get to the airport for a 6am Sydney flight every couple of weeks.

With borders reopened and testing requirement going away, I will look to do a bit of work travel but nowhere near the same volume (probably once per year per customer, as opposed to every month or so pre Covid). I don't think I would ever want or need to go back to the same degree of travel ... I have so much more spare time and have saved a fortune.

I am eager to do some leisure travel, but that is more price sensitive for me. I will pick Air NZ if the price is reasonable as I like their service, but it does look like Qantas, Jetstar, Emirates etc are providing much better value. I might miss out on the Koru lounge, but that is packed to the rafters and very mediocre these days anyway (and with the savings I can go and get a nice meal in the airport or nearby).

As you say, govt departments will keep Air NZ's business travel afloat. I'm thinking of a relative of mine, who's on their fifth business class trip to Europe (on the public's dime) this year so far, for some "climate change policy" work. Lucky for some, I guess - although I presume that govt departments get a favourable price for travel so maybe it's not so expensive?

[nztx]

Runway 56 .. crash landing narrowly missed

NTA 34.9c EPS -0.267c

Anyone fancy some surface skimming with Covid Air ? .. one wrong turn for a dip in the drink or
spot of window washing so you can see the fish outside better ..