AIR - Air NZ.

[emveha]

There is a dangerous trend in Wellington Airport's investor day presso for Air NZ (slides 8 and 9).

Over the last 5 years, there has been a growing trend in favour of long haul via Australia rather than via Auckland which is Air NZ's hub. In the last two years I guess almost inevitably this has lead to an increase in Qantas's group share of international flights out of Wellington to almost match Air NZ/Virgin's share.

When I lived in Wellington 6+ years ago, the appeal of flying international all the way, the wider options and cheaper prices did make hubbing via Australia more appealing than Auckland.

Not to mention Singapore in a more and more likely future. Air NZ's protest that no international airline could profitably operate from Wellington was a bit too vehement to be entirely believable.

[IAK]

Interesting story on Alan Joyce - King of the Quantas comeback. Bit of competition for CL. http://nzh.tw/11622517

[Snow Leopard]

Senior exec's keep exercising options and cashing in and selling the shares. Very tough for the SP to track north when they keep over-supplying the market with shares.

You would hope that they had sufficient confidence in the future to at least keep some of them!

Surely they are not all building new decks?

Best Wishes
Paper Tiger

[Beagle]

Feeling less grumpy this morning after reading that Joyce is on $12m. One supposes that we need to pay market rates to attract and keep the best talent including share incentive schemes but in my opinion there are too many LTI scheme options out there, about 45m as at 30 June 2015, which represents a whopping 8% of the free float of AIR's shares, excl Govt stake.

[dobby41]

What do you really have to do to earn $12m?
Perverse!

[winner69]

The $3 holding at weeks end

Looks good for next week

[skid]

The $3 holding at weeks end

Looks good for next week

See,just like you predicted ...it got to $3...

[winner69]

Airlines are proving once again that they are in a commodities business - same product, same input costs, same planes and little differentiation.

The cheap fuel of late has lead to increased capacity, probably beyond demand.

Put all this together the intense competition results in tumbling airfares. Herald reports us$100 odd AA special LA / AKL and stuff says Singapore adding more flights to CHCH.

I reckon boom profits this year for the likes of AIR (maybe a bit lower than forecast) but then heading back to where airlines usually are - not that profitable

AIR at $3 today - maybe as high as it will go

Hoop possibly is right in saying airlines are notoriously cyclical - mostly of their own making

Is now the top of this current cycle?

[Raz]

Airlines are proving once again that they are in a commodities business - same product, same input costs, same planes and little differentiation.

The cheap fuel of late has lead to increased capacity, probably beyond demand.

Put all this together the intense competition results in tumbling airfares. Herald reports us$100 odd AA special LA / AKL and stuff says Singapore adding more flights to CHCH.

I reckon boom profits this year for the likes of AIR (maybe a bit lower than forecast) but then heading back to where airlines usually are - not that profitable

AIR at $3 today - maybe as high as it will go

Hoop possibly is right in saying airlines are notoriously cyclical - mostly of their own making

Is now the top of this current cycle?

That is my thinking, possibly touch more on the share price although with the executives cashing in well..

[Beagle]

AIR are getting their fair share of inbound and outbound growth and enjoying the domestic growth that flows from same.