AIR - Air NZ.

[value_investor]

I didn't realise how much extra capacity the A321s will offer, especially with the domestic market being so critical to the business' future success. Certainly from all the talk now, I don't expect the CAPEX spending holiday that we thought was going to happen in a few years is going to happen anymore.

I think that yields in this area have been identified as a area for the company to keep squeezing, and they have to continue at this pace to be ahead of the game. It's also better to take advantage from a gearing perspective of these record low interest rates before the door shuts.

[Raz]

I didn't realise how much extra capacity the A321s will offer, especially with the domestic market being so critical to the business' future success. Certainly from all the talk now, I don't expect the CAPEX spending holiday that we thought was going to happen in a few years is going to happen anymore.

I think that yields in this area have been identified as a area for the company to keep squeezing, and they have to continue at this pace to be ahead of the game. It's also better to take advantage from a gearing perspective of these record low interest rates before the door shuts.

Its a great presentation however those growth projections are dependent on sorting out the infrastructure in NZ and AIR keeping its share of the pie. The more you dig on that one the worse it gets.

Taking a look at what is now happening without AIR into and out of Christchurch is great for the region yet AIR should have been in the middle of it. The potential they leave on the table for others as they are Auckland centric has been a mistake for the country as a whole and as a shareholder.

All I can say is at least we have a decent ex-Aucklander running Christchurch Airport :-)

[Marilyn Munroe]

Taking a look at what is now happening without AIR into and out of Christchurch is great for the region yet AIR should have been in the middle of it. The potential they leave on the table for others as they are Auckland centric has been a mistake for the country as a whole and as a shareholder.

It must be getting to the stage where Lee Kwan Yew Airlines are considering an additional arrival and departure for Christchuch. If they are seeking a use for cascaded 777's after deployment of A350's CHC x 2 seems to me to be a good option.

Lee Kwan Yew Airlines are probably unfavorably disposed towards Cullen Airlines after the family fight with Virgin(Under Arm Bowlers Division).

Boop boop de do
Marilyn

[Zaphod]

I] The potential they leave on the table for others as they are Auckland centric has been a mistake for the country as a whole and as a shareholder.

AIR have obviously made a commercial decision on this, therefore if another carrier wants to make fill the gap left then good on them.

[Subway]

Its a great presentation however those growth projections are dependent on sorting out the infrastructure in NZ and AIR keeping its share of the pie. The more you dig on that one the worse it gets.

Taking a look at what is now happening without AIR into and out of Christchurch is great for the region yet AIR should have been in the middle of it. The potential they leave on the table for others as they are Auckland centric has been a mistake for the country as a whole and as a shareholder.

All I can say is at least we have a decent ex-Aucklander running Christchurch Airport :-)

NZ is too small for two hubs, and no other airline would use ChCh as a hub, so i'm not entirely sure what you are suggesting as an alternative.

[mikeybycrikey]

NZ is too small for two hubs, and no other airline would use ChCh as a hub, so i'm not entirely sure what you are suggesting as an alternative.

I was thinking exactly that this morning. Many of AIR's international flights run daily out of Auckland. That's once per day, every day, from our largest city.

If you run anything out of Christchurch, it would only be something like twice a week which then don't work for most passengers and uses up planes at peak times.

Much easier with just one hub unless you can run a full quota of flights out of that second hub.

[Raz]

I was thinking exactly that this morning. Many of AIR's international flights run daily out of Auckland. That's once per day, every day, from our largest city.

If you run anything out of Christchurch, it would only be something like twice a week which then don't work for most passengers and uses up planes at peak times.

Much easier with just one hub unless you can run a full quota of flights out of that second hub.

I could say a lot here on the subject however this is the AIR thread, do a little research and you will start to appreciate the volumes now going into & out of Christchurch, there are already full quota flights, examples - China Southern, Singapore airlines and Emirates. In certain market segments more Chinese come into Christchurch than Auckland for the first time in 2017. I have a good handle of the numbers from the inside as I'm involve with the freight out with several south island businesses for export. An example is the most profitable meat exports in NZ are via a carrier exiting Christchurch. Can't happen via Auckland. Even smaller businesses are working with the data link with Christchurch Airport & Alibaba SL to sell directly to visitors when they return home.

Interesting to see the other airports are also into catch up wrt thiswith Auckland airport signing a strategic alliance with Christchurch airport recently in this particular area.

Don't assume..take a real look. As a taxpayer and shareholder I want to see all routes in NZ exploited where the kpi's are compelling and markets developed, if they can have 777s flying domestic between Auckland and Christchurch there is clearly some scope.

The economic multiplier to the region from the Airport is around 50 to 1. Perhaps a little cutting edging thinking with that development fund Mr Jones because my understanding is its hardly spent at the minute.

[Robomo]

About 10 or more years ago Air NZ tried direct services Christchurch to Los Angeles using a 747 but stopped after about a year, presumably because of insufficient passengers/profit. Since then the USA-NZ passenger numbers have more than doubled and I just wonder if this CHC-LAX service might be tried again, particularly as there is no competition. Using a 787 has less seats than a 747 and much better economics and would offer ex-USA tourists another choice in much the same way that ex-NZ travellers now have a choice of 4 USA destinations (LAX, SFO, IAH plus ORD later this year) compared to just LAX 10+ years ago. All the Air NZ facilities are in place in Christchurch and I'm sure the CHC airport authorities would love another international service.

Just putting it out there....

[Beagle]

LOL Raz, asking Shane Jones for a contribution from his development fund to assist Air New Zealand...
Pretty sure you're whistling into the wind with that one.

[Raz]

LOL Raz, asking Shane Jones for a contribution from his development fund to assist Air New Zealand...
Pretty sure you're whistling into the wind with that one.

Naturally, give it to Christchurch Airport or associated market arm..not to that myopic lot :-)