AIR - Air NZ.

[skid]

Jetstar is a loss leader for a reason... if you understand the strategic plan, the point was a clear example where price will convert kiwis even with an inferior network & product.

Yes I'm aware, I know about the Deloitte 200 awards and actually some of the past winners, they are competent. Now look at how many kiwis have made it overseas on boards and excelled. A very small group indeed. I work on a number of advisory boards in the US, and because of family... three boards in europe. It is such a small group we know each other..the group really is that small. I would like to think I'm competent as well haha however I can tell you I have worked with some exceptional directors overseas..they are on another level, opened my eyes to what is possible...now that is what I call world class. People like Chris Liddell are in demand back here for a reason. Not many in little old NZ from my experience.

I think it would be a whole lot fairer to compare AIR to another premium airline with cheaper prices.
no getting around the fact that Jet star longer flights are crap.

[Raz]

Thanks for your comments RAZ but as a shareholder its water off a ducks back as far as I'm concerned. Fact is demand and seat load factors YTD are very strong and there are literally millions of happy customers. Demand growth is significantly outstripping seat capacity growth despite the airline growing at a faster rate in FY16 than in their entire 75 year history and further, their RPK growth is double that of the average Asia pacific airlines so they're doing a heck of a lot of things right in the assessment of millions of their other customers. One of two anecdotal reports from you, me or anyone else, (no disrespect intended) mean very little in the face of these compelling YTD operating statistics.
Fact is load factors above 80% have been the norm for the last five years so I have every confidence that management and marketing team are a highly competent group of people.

Yes load factors are good, YTD is strong, question demand growth is actually outstripping seat capacity as they would not be discounting as much as seen in Feb vs Jan

Share price has highly likely fallen in part directly as a result of management mis-step on pricing and PR on competition.

I have made no suggestion they are not competent, I do think they could do better, think they enjoy a captive market which is a mixed bag, good for investors not so good for passengers...still that does not mean they are not a good investment.

I like to be objective about investments, when you get biased you can run into problems...I have no need to influence your opinion..just putting it out there for consideration.

I'm holding and buying. Not going to ever be enamored by a company.

[Beagle]

Suggest we let the half year results and outlook speak for themselves Raz.

[dobby41]

When I fly price is one input.
Quality of experiance is another (meal for long haul, luggage, pitch etc).
Reputation for being on-time etc.
Plus time of day. I have to save a lot of money to get a really early flight!
If you look at a longish holiday (3-4 weeks) then a few hundred to get a better flight on a better airline is neither here nor there.
I believe I am not the only one who thinks like this.

[Raz]

Skid - Emirates is usually cheaper when I fly, economy or business, for frequently flyers they offer serious discounts after you first flight and on sector upgrades to business or first class via email before next flight, also smart way to keep your real pricing not clear on their website and to you opposition. In essence, I go business class to Australia at economy pricing. I suspect only Rodger would say it is not a superior product:-)

[Raz]

Suggest we let the half year results and outlook speak for themselves Raz.

Sure if you want to ignore the share price.

[Snow Leopard]

Doors open in an hour.

I will let you know if I see anyone from Air New Zealand spending your dividend on some shiny new hardware.

Best Wishes
Paper Tiger

[Beagle]

When I fly price is one input.
Quality of experiance is another (meal for long haul, luggage, pitch etc).
Reputation for being on-time etc.
Plus time of day. I have to save a lot of money to get a really early flight!
If you look at a longish holiday (3-4 weeks) then a few hundred to get a better flight on a better airline is neither here nor there.
I believe I am not the only one who thinks like this.

You're not and Raz I would be the first to acknowledge Emirates have a very good product offer to Europe. Personally if I go this winter it will be an Air New Zealand Dreamliner to Singapore, then Singapore Airlines A380 to London and I'd be looking for an Emirates A380 out of Paris to Dubai and onward on the way back. Now don't fall out of your chair when you read this post :-)

PT - If you see Chris Luxon eyeing up those shiny new A350's please tell him we'd all prefer XXXXXL special dividends instead.

[skid]

Speaking of dreamliners--I know its a long shot .but I was wondering if possible the big drop in Boeings SP has caused any ripples(It had more to do with potentially dicey accounting than the planes though)
Yep Emirates and Singapore Air are great airlines and as far as planes and flying experience I think most would say they have the edge over AIR IMO (dare I say it)....but even if Im not as comfortable in Air New Zealand planes,who cares...they have good management

[winner69]

Airline management thinking. Is US-centric but interesting as shareholders need to trust management to balance customer needs but make money

http://www.strategy-business.com/blo...lone?gko=f1ee7

Extract -

There’s a market-based method to airlines’ current approach to pricing and passenger perks. Most industries don’t cut prices unilaterally unless market conditions, or competitors, force them to. But persistently rising demand proves that airlines don’t need to cut prices to goose sales.

And

But the flying public, simply put, should get over itself. For the fare increases have far more to do with the dynamics of the broader travel marketplace than with the short-term greed of companies. And counterintuitive as it may seem, airlines are making a smart long-term move.