AIR - Air NZ.

[CJ]

Agree - I dont think the government would approve that level of spend.

[percy]

NO, way that AIR would front up with say $100 million just to say we own 15% of VBA and not have that much say
in running the biz these people that write papers are strugling to stay in WORK..

AIR need an Aussie feeder airline.If you fly from Hobart with Qantas or Jetstar to Sydney they are not going to put you on an AIR plane to Auckland.The other way round AIR can act as a feeder for an Aussie airline.Virgin Blue are stuffed in NZ and AIR will be stuffed in Aussie unless they do a deal with VB.More at stake for AIR. No Aussie feeder means little or no growth for AIR.
I see a deal were VB stops flying within NZ and AIR does not fly withini Australia,but both still keep flying the Tasman.

[Jaa]

More good news for Air NZ today with the share price building off its lows in the last few days.

Annual visitor arrivals to New Zealand hit the 2.5 million mark last month for the first time, says Statistics NZ.

This bit is especially relevant for Air NZ with their focus on North Asia.

June visitor arrivals were up 8 per cent from the same month last year, with more people arriving from Australia and a recovery in numbers from China, Japan and Korea. Arrivals from these countries in June last year were particularly hit by the H1N1 pandemic.

"There is also a clear sign of Asian arrivals rebounding from swine flu- induced weakness, with Korean, Chinese and Japanese arrivals up 33 per cent year on year," he said.

http://www.nzherald.co.nz/business/n...ectid=10660234

[Jaa]

The world's best airline has seen off another airline. I was picking VBA to stick around till after the world cup next year but seems they saw the writing on the wall with the arrival of Air NZ's new domestic A320 fleet next year.

Seem to be in a hurry to get out too, giving only 2 months warning. Aircraft to be re-deployed on to the Tasman and back to Aussie no doubt.

Pacific Blue pulling out of NZ domestic flights
http://www.stuff.co.nz/business/indu...mestic-flights

Share price has responded too, continuing on its upward trend.

[J R Ewing]

I think it is Jetstar's presence that has made Virgin's position untenable here, not Air NZ. They were getting some traction while Qantas was operating as a full service competitor to Air NZ. Once Qantas swapped to Jetstar, Virgin was always going to struggle.

Now no doubt it will be prices up and service down (if there is any scope left for reducing service standards). Good for the shareholders I guess...

[Oiler]

I think it is Jetstar's presence that has made Virgin's position untenable here, not Air NZ. .

Now no doubt it will be prices up and service down (if there is any scope left for reducing service standards). Good for the shareholders I guess...

JR for me as a frequent traveller (from a regional airport) have got no complaints about AIR service and pricing. Competitors Jetstar and Virgin Blue only try and compete on the main trunks and you will never see them servicing the regionals (no money in doing that )

AIR has emerged over the last few years as a very efficient airline and with great service. Go fly a domestic US airline and then you will know what "no service" is about.

Note: I do not own any shares in AIR or work for them, but as a constant traveller I think AIR has a lot to be proud of.
I have no sympathy for the foreign airlines coming in to the NZ domestic market, low balling prices and then running off licking there wounds when they realise the market isnt as big as they thought.

Competition in business is good but the playing fields need to be level and the same for everyone. How come AIR cant operate within AU ??? We open our market to "foreign" competition. Australia is not a foreign country but they love to suck the profits out of this country be it airlines, banks etc etc.

[J R Ewing]

JR for me as a frequent traveller (from a regional airport) have got no complaints about AIR service and pricing. Competitors Jetstar and Virgin Blue only try and compete on the main trunks and you will never see them servicing the regionals (no money in doing that )

AIR has emerged over the last few years as a very efficient airline and with great service. Go fly a domestic US airline and then you will know what "no service" is about.

Note: I do not own any shares in AIR or work for them, but as a constant traveller I think AIR has a lot to be proud of.
I have no sympathy for the foreign airlines coming in to the NZ domestic market, low balling prices and then running off licking there wounds when they realise the market isnt as big as they thought.

Competition in business is good but the playing fields need to be level and the same for everyone. How come AIR cant operate within AU ??? We open our market to "foreign" competition. Australia is not a foreign country but they love to suck the profits out of this country be it airlines, banks etc etc.

I agree Air NZ is one of the best airlines in the world. My comment on service standards relate mostly to ticketing conditions and price gouging of customers that have to change travel plans, not to cabin service or the staff in general. The airline industry as a whole has suceeded in setting abysmally low standards in how to treat a customer - to the point that you can now be treated like dirt and think you are getting 5-star service because you would be even worse off with another carrier.

[Jaa]

I agree Air NZ is one of the best airlines in the world. My comment on service standards relate mostly to ticketing conditions and price gouging of customers that have to change travel plans, not to cabin service or the staff in general. The airline industry as a whole has suceeded in setting abysmally low standards in how to treat a customer - to the point that you can now be treated like dirt and think you are getting 5-star service because you would be even worse off with another carrier.

I really don't get what your beef is JR?

Air NZ's full fare ticket allows you to change your flight for free even after the flight has taken off. Features like that ensure business travelers like myself will pay more for their tickets. JetStar may have squeezed Pacific Blue from below but believe me the real damage was done by Air NZ squeezing from above as it the higher paying customers that give an airline most of its margin.

I am also stunned you think airlines price gouge as collectively (and AIR is only marginally better than average in this regard) either lose money or make a tiny margin on the amount of revenue they bring in. Qantas's underlying profits in the current year after tax was only $112 million on total revenues of $13.8 billion!!

If your looking for price gouging have a look at the airports with their 50%+ margins

As the large amounts of silence on the AIR thread shows no sensible people invest in airlines.

[Jaa]

June visitor arrivals were up 8 per cent from the same month last year, with more people arriving from Australia and a recovery in numbers from China, Japan and Korea. Arrivals from these countries in June last year were particularly hit by the H1N1 pandemic.

"There is also a clear sign of Asian arrivals rebounding from swine flu- induced weakness, with Korean, Chinese and Japanese arrivals up 33 per cent year on year," he said.

Beginning to feel like Snoopy replying to my own posts....

Today's monthly operational stats from Air NZ were very strong including as alluded to above a very strong bounce back in Asian demand. Passengers carried on Asian/UK routes were up 12.2% with a healthy increase in yield taking the Revenue Passenger Kilometres (RPK) for the sector which is the key KPI for an airline up 15.4% on last year. Also in the news today was a tripling of charter flights out of Japan for the summer from 4 to 14.

Overall yields were up 5% and RPKs 6.8% were both up strongly. The load factor at 84% is now so high that to grow further Air NZ will need to add capacity which it has already started to do with its existing aircraft. Many of its 747s have been lightly used in the last year so plenty of capacity on tap. Of course any new capacity after the marginal costs will go straight to the bottom line.

The upcoming result may not reflect this improved operating environment but the outlook with the demise of the Pacific Blue domestic operation and the Rugby World Cup next year combining with the arrival of their new A320 domestic fleet the outlook is starting to look good (insert general airline disclaimers).

[Jaa]

Result "in line" with analyst expectations and as a suggested above a very aggressive outlook.

Operational and share price momentum is now strongly positive and the arrival of new 777-300ERs and A320s in the next 6 months should ensure this momentum is maintained.

Highlights
• Normalised earnings before taxation of $137 million, down $8 million
• Normalised earnings after taxation of $92 million
• Operating revenue down 12% to $4.0 billion
• Passenger demand down 4.7%
• Passenger load factor up 2.8 percentage points to 81.8%
• Net cash position $1.1 billion
• Final dividend of 4c per share

To put this result in context, Air NZ earned more from flying in the previous year than every other Australasian airline combined. Qantas & JetStar managed $AUS17m combined with Virgin Blue $AUS20m and Tiger Airways still in growth aka loss mode.