AIR - Air NZ.

[Beagle]

LOL PT, maybe Joyce had a bad hair day and hair just been forced to sit through his kids school play that didn't go well

I had a quick look back through the annual reports to look at gearing over the last 6 years. Its typically been 45-47% range in all those years with the exception of 2014 when it got down to 42.9%.
One of the reasons it got that low in 2014 was the very high $Kiwi so when the accountants crunched the numbers on capitalising their international foreign currency operating leases, which they're required to do under generally accepted accounting principles the $Kiwi translation of same was fairly low. Obviously there's two sides to that coin so that when our currency drops a lot like it did towards the end of FY15 the translation to $Kiwi is materially higher.

Factor in too that they took delivery of 3 new Dreamliner's in FY15 and a host of other smaller planes plus paid advance deposits on more aircraft early to gain additional discounts from Boeing. Further, they paid out a special divvy last year. Gearing was 52.4% as at 30 June 2015. From memory their stated policy is they keep gearing in the 45-55% range.

The other side to this lower $Kiwi is that overseas sales account for approx. 45% of sales so obviously the translation affect of those going forward is better into $Kiwi.
Not trying to talk you into it mate, just setting the record straight and explaining how the capitalisation of overseas leases works and its effect on gearing when translated to $Kiwi.

[h2so4]

PT- Further to what Roger said about paying for planes in FY15. If you take an average for CE over the last 3 years I think it would be about half of what FY15 was.

[sb9]

Not being loved atm....

[couta1]

Not being loved atm....

Let them sell, good to shake out all the sheeple and non believers.

[Baa_Baa]

NBR reporting Qatar Air "possibility of flights".

If you're a monopoly making big uncontested profits, it's only a matter of time before every man and his flying dog wants a piece of the action. And regardless of the NZ Govt owning a goodly portion of AIR, the Minister will welcome the competition with open arms.

[couta1]

NBR reporting Qatar Air "possibility of flights".

If you're a monopoly making big uncontested profits, it's only a matter of time before every man and his flying dog wants a piece of the action. And regardless of the NZ Govt owning a goodly portion of AIR, the Minister will welcome the competition with open arms.

This is old news Baa Baa, the idea was floated prior to and again in 2013 with nothing coming of it and if it did come to fruition it would be a two way agreement allowing Air to fly to Qatar so of benefit to both airlines, competition is a fact of life for all companies but that doesn't stop the well managed ones from driving increasing profits and dividends.

[Baa_Baa]

This is old news Baa Baa, the idea was floated prior to and again in 2013 with nothing coming of it and if it did come to fruition it would be a two way agreement allowing Air to fly to Qatar so of benefit to both airlines, competition is a fact of life for all companies but that doesn't stop the well managed ones from driving increasing profits and dividends.

No, it's NBR news today Couta. Just pointing out an NBR article, you devotees can ride AIR down the cyclical elevator/escalator as long as you want, but continual optimistic postings won't hold the SP up by themselves. I was questioned for bailing out at $2.83 after over three years gradually buying when I could, I only made 48% on my complete exit when it was obvious what was happening. How's it going for you?

[couta1]

No, it's NBR news today Couta. Just pointing out an NBR article, you devotees can ride AIR down the cyclical elevator/escalator as long as you want, but continual optimistic postings won't hold the SP up by themselves. I was questioned for bailing out at $2.83 after over three years gradually buying when I could, I only made 48% on my complete exit when it was obvious what was happening. How's it going for you?

It may have been in today but its nothing new as I have highlighted and if things go ahead it will also benefit Air, its going fine for me because I've got forward vision, a couple of months ago my SPK holding was down 40k but I could see it wasn't going to stay that way and its exactly the same for Air, I don't worry about being in the red, even substantially as long as its a good company with good management driving increasing profits and dividends, cheers

[Snow Leopard]

I spend the equivalent of several months a year, most years, travelling on assorted airlines, staying in hotels of widely varying quality and sometimes passing many a day on the far side of nowhere.

Amongst the items that are part of my kit are an Air New Zealand toiletries bag which is at least 10 years old and a Qatar Air bag of some considerable, but unknown age, which holds my front line medicine kit.

Both do a good job and look like they have a few more years of adventure in them.

This proves that buy and hold of the goodies that quality airlines give you is an excellent idea.

Best Wishes
Paper Tiger

Disc: still do not want to own an airline.

[Baa_Baa]

It may have been in today but its nothing new as I have highlighted and if things go ahead it will also benefit Air, its going fine for me because I've got forward vision, a couple of months ago my SPK holding was down 40k but I could see it wasn't going to stay that way and its exactly the same for Air, I don't worry about being in the red, even substantially as long as its a good company with good management driving increasing profits and dividends, cheers

Well good luck with that Couta, you'll be blessed some day when the cycle reverses and few years have gone by after that, to recover your losses. I'll be back in again on that reversal as well, I agree this is a good .. no, great company, but right now it's killing it's shareholders. Better I think to be managing capital than absorbing the losses on the hope that quality isn't exposed to cyclical down trends. Imho of course.