AIR - Air NZ.

[value_investor]

Possibly not, but AIR have a stronger proposition and financial position than many of those US airlines.

Still have domestic NZ customers to gouge.....

Very true, you have many airlines in the US fighting for domestic routes while here you have two players, and in some places just the single carrier with price gouging.

I think AIR was incredibly prudent in the past two or three financial years to only pay out 20-22c dividends and keep a buffer for a time period like this. They could've borrowed in excess, kept gearing very high like some airlines do and pay out higher but they chose not too.

I'm hoping to see what else they add to their coronavirus comments and the impact on future dividends when they report earnings later this month.

[ynot]

AIR slashing internal fares. No profit in that. Sub $2.00 soon.

[winner69]

Tourism guy on radio this morning said past experience with such events it takes up to 9 months for things to get back to anywhere normality....but is this event worse or more feared than previous events.

But no worries as Jacinda and Grant going to get tens of thousands extra tourists from elsewhere to replace the Chinese who ain’t coming soon.

[Snow Leopard]

When the going gets tough start flying NASA missions

Air New Zealand joins forces with NASA

[bull....]

Tourism guy on radio this morning said past experience with such events it takes up to 9 months for things to get back to anywhere normality....but is this event worse or more feared than previous events.

But no worries as Jacinda and Grant going to get tens of thousands extra tourists from elsewhere to replace the Chinese who ain’t coming soon.

lol when the world is in lock down will air even be around?

[Blue Skies]

AIR slashing internal fares. No profit in that. Sub $2.00 soon.

Let's not get too carried away.
AIR have always had promotional fares but they are not slashing all domestic fares across the board as it appears you imply.

If you want to travel to Wellington tomorrow & need to be at the office for 8.30am meeting, the Flexidate fare is going to cost you either $309 or $406 one way.
If you want to fly down after work for the weekend, the fares are $448 or $490 OW for flights departing at 4.30p, 5.30p & 7p.
That's hardly a slashed fare.

Members of my family fly Auckland Wellington return every week for work & tbh the fares don't look much different now than late last year & flights still full.

Of course there's going to be an impact but some of the comments here are a bit careless & over enthusiastic.

[Beagle]

lol when the world is in lock down will air even be around?

The beauty of having the Govt as the majority shareholder is they know there has to be key transport infrastructure so if a cash issue is required to support the airline I would think its highly likely the Govt would support that.

[Blue Skies]

The beauty of having the Govt as the majority shareholder is they know there has to be key transport infrastructure so if a cash issue is required to support the airline I would think its highly likely the Govt would support that.

That's so true & such a significant distinction between AIR and the US airlines (& many other airlines around the world).
As a quirk of geography, the govt & NZ tourism would never allow us to become solely dependent on foreign carriers, we need a strong national airline to support our economy.

[dobby41]

Let's not get too carried away.
AIR have always had promotional fares but they are not slashing all domestic fares across the board as it appears you imply.

If you want to travel to Wellington tomorrow & need to be at the office for 8.30am meeting, the Flexidate fare is going to cost you either $309 or $406 one way.
If you want to fly down after work for the weekend, the fares are $448 or $490 OW for flights departing at 4.30p, 5.30p & 7p.
That's hardly a slashed fare.

Members of my family fly Auckland Wellington return every week for work & tbh the fares don't look much different now than late last year & flights still full.

Of course there's going to be an impact but some of the comments here are a bit careless & over enthusiastic.

Even the grabaseat out today for Hamilton to Wellington isn't cheap.
$49 for December but have to fly at 6:30am.
More reasonable times are $99 to $159 like normal.

[bull....]

the biggest hit to air will come if/when the virus hits NZ and people stay home