AIR - Air NZ.

[Beagle]

They have done well given the environment they operate in. It is possible, nay probable, that they will do a little better next year.

This is their actual announcement.

Their annual report is about a month away - I am sure Roger will look forward to reading it when it comes out.

Best Wishes
Paper Tiger

Far more interested in QAN's one TBH...being the closest regional competitor and all but seeing as Singers a quality operation happy to digest that in due course.
What to do with the juicy dividend...reinvest in more shares or reinvest in AIR flights

[Raz]

There are some airlines I choose not to fly with for safety reasons if I can avoid them. But it isn't because of aircraft safety, its because of pilot training.

Some airlines choose and train pilots in manner we expect here in NZ: A young person learns to fly at a local aero club or commercial flight school. They gain a private Pilot's licence, then a commercial Pilot's licence, an instrument rating, possibly an instructor's rating, then they build their hours actually flying. After they have 800 -1000 or so hours hands on flying they will work for a local flying company or, if they are lucky direct to a small commuter airline. after 2000 hours maybe they will advance to a link airline (Mt Cook), and at around 5000 hours to a major airline. This is what happens in NZ, Australia, USA, Canada, Britain, Germany etc. and pilots are expected to be able to actually fly the plane if they need to. I am very happy to fly on any of these irrespective of the type or age of the aircraft.

Then there are places that copy our system for the first 250 hours, then do all remaining training and experience in a simulator. When they are deemed ready they go straight into the right hand seat of a 777 or similar. Airlines that follow this method are Emirates, Etihad, India, France and a few others. Mainland Air in Dunedin trains many overseas pilots for that first 250 hours, and I have seen a large range of abilities in the students that gain their CPL there, even to the point of intervening with one of their students who was on his first cross country as his approach and landing at our local airfield was dangerous (He didn't eventually pass). These airlines are my second choice.

Then there are airlines that skip even that first 250 hours of actual flying, and all training is done in the simulator. The first time a trainee pilot actually sits in an aircraft is likely to be as a Second Officer on an A320, or even an A380 full of passengers. It is mainly Asian airlines that use this method. Some actually make their trainee pilots pay for this whole training, both simulator, and while flying as second officer with passengers, and don't go on the payroll until they are promoted to First Officer. I do not fly on these airlines if there is any alternative.

There are a few who try to mix pilots with at least one trained in the traditional methods and one in the simulator method. Singapore is one of those.

On my last trip to Europe I could have saved over $500 by flying on one of my non-preferred airlines. I chose to pay a bit extra and fly Air NZ and Lufthansa. Next year when I travel to Vienna I will do similar.

Most of this agrees with what I have been told by pilots except no one has ever confirmed Emirates or Singapore in this context to me, actually explicitly exclude them from this process... where do your sources for these two airlines come from?

[Jantar]

When my son was working as an instructor at one of our aviation colleges some of his pupils were Emirates cadets. For Singapore, that information came from a pilot who flew for them: That they preferred Western trained pilots, but did employ Asian trained ones as the traditionally trained pilots are getting harder to attract. However they would try and ensure at least one western trained pilot on every flight deck.

[Baa_Baa]

Ouch....!!

However, as Graham and Buffet note, Mr Market is not the only way to measure a companies success, and the market is often out of step with financials.

I'd rather tune into the market, it is more in touch with capital value. That Graham/Buffet example is fine if you're wallowing in the filthy lucre and don't give a toss about capital losses, as the chart shows. An 'investment' horizon of forever probably helps as well. Shares aren't like bricks and mortar with tenants paying rent (divi) imho, there is an option with shares to quickly quit a company and ride out the capital downsides others will suffer (often quoting investment Oracles) in cash, or invested somewhere else. Then, sure buy back when you think the SP has turned up and the yield is attractive with capital gains upside. AIR has topped out, hard as that may be to see for the indoctrinated. It will follow the globals sentiment regardless of underlying fundamentals, and the globals are looking seriously ugly. jmho.

[barleeni]

I haven't quantified it, but of late there seems to be a lot of air traffic over Napier, Jetstar flys here now, but it seems AirNZ has more flights not less as a result. Maybe all the talk of 'competition' in the media is stimulating more people to look into flying, and rather than being a negative for AirNZ it may be a positive as its promoting more people to take interest and fly?!?! As Roger eludes to adding competition to the marketplace is not really an issue if demand is increasing faster than AirNZ can keep up with anyway??

And just also... the last time I walked into Napier Airport to jump on an flight (AirnZ maybe 3 weeks ago at 6:30am) the first thing I heard on the intercom was "Jetstar regrets to inform that our flight to XXX has been delayed" I giggled to myself and then realised I hadn't even considered or looked at Jetstar pricing for the flight to Auckland I was about to catch. I guess that shows my overall lack of enthusiasm for them and there service. My flight was of course on time......... actually we were early but had to circle the Airport at Auckland as we were too early and they were too busy too accept us..

[Beagle]

Baa Baa...regardless of whether you think the SP has topped out or not, the fact remains that its looking very good for dividends for the foreseeable future and with circa 30 cps fully imputed that's over 14% per annum and at the same time AIR are making serious inroads into modernising their fleet and growing their network. Growth with a very high dividend yield and while growing profits, that's a pretty novel concept on the NZX isn't it !

[Mickey]

Baa Baa...regardless of whether you think the SP has topped out or not, the fact remains that its looking very good for dividends for the foreseeable future and with circa 30 cps fully imputed that's over 14% per annum and at the same time AIR are making serious inroads into modernising their fleet and growing their network. Growth with a very high dividend yield and while growing profits, that's a pretty novel concept on the NZX isn't it !

AIR is certainly one of the crown jewels in my portfolio at the moment. As you say Roger - AIR is an extremely well run business with top notch leadership and I can only see it going from strength to strength. I'll be looking to top up as buy opportunities present themselves.

[Nasi Goreng]

I think AIR might have a good day today after OCR cut. Just over 24 hours to grab a divi.

[BC_Doc]

I think AIR might have a good day today after OCR cut. Just over 24 hours to grab a divi.

Think you may find its too late to grab the divi.....today is the ex-div date. Which is why the SP is 10cents lower automatically on the NZX

With the record date of 11/3/16 and T+2 in effect, close of business yesterday was when you needed to be holding to receive div. Share will trade ex-div as of open this morning.

[winner69]

Think you may find its too late to grab the divi.....today is the ex-div date. Which is why the SP is 10cents lower automatically on the NZX

With the record date of 11/3/16 and T+2 in effect, close of business yesterday was when you needed to be holding to receive div. Share will trade ex-div as of open this morning.

ANZ Sec probably will adjust yesterday close by 13.9 cents