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Thread: AIR - Air NZ.

  1. #17861
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    Quote Originally Posted by Marilyn Munroe View Post
    The time has come for civil servants in the Ministry of Transport instead of sipping tea and nibbling biscuits give some stark but realistic advice to the incoming government about the future of Cullen Airlines.

    Every ten years or so Cullen Airlines stalls financially and needs an injection of taxpayers money to survive.

    A policy of allowing Cullen Airlines to crash and burn next time is politicly untenable. There is no way our elected representatives would accept travelling to Wellington on a bus.

    The realpolitik aim should be to limit the dip into taxpayers pockets next time, and there will be a next time.

    I propose the the Government announce a single isle aircraft only rescue policy. Operation of wide body jets is solely at the creditors and shareholders risk. This allows support for domestic and Trans Tasman operations. To those that gasp and mutter words like tourism and flag carrier I say international cargo is carried OK by non Kiwi shipping companies why not air travel.

    Boop bopp de do
    Marilyn
    Sounds like a solution in search of a problem.

    The government made a fantastic profit from bailing out Air NZ in 2001, 19 years ago not 10 like you say. Whose to say they won't do so again this time?

    Mixed ownership model of Air NZ is working well for all stakeholders IMHO. Don't change what isn't broken.

  2. #17862
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    Interesting few articles and interviews on NZHerald.

    In one Cam Wallace states the domestic network is almost back to 80% capacity and in the second Grant Bradley states Air NZ got its cash burn down to $60m in June. Forsyth Bar also upgraded its price target from 80 to 90 cents.

    Lastly an article about the government's cargo subsidy scheme being under-spent with only $140m of the $320m allocated to be spent by the end of the month and thus likely to be extended. Air NZ must be earning at least half of that.
    Last edited by Jaa; 07-08-2020 at 07:07 PM.

  3. #17863
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    Thank you for your second link wherein you claimed that Grant Bradley states AIR got its cash burn down to $60m in June.
    I've had a super hard last two weeks working on a major assignment with a fixed deadline so forgive me, but I didn't see that claim in that article. Perhaps I am going cross eyed ?. Perhaps people should read it for themselves and make up their own mind. https://www.nzherald.co.nz/business/...ectid=12352376
    One thing is absolutely for sure, a price target 12 months hence of 90 cents is a long way short of today's closing price of one dollar thirty something. Until there's a widely available and highly effective vaccine I remain of the view AIR is a very bad and extremely high risk investment.
    Last edited by Beagle; 07-08-2020 at 07:57 PM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  4. #17864
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    Quote Originally Posted by Beagle View Post
    Thank you for your second link wherein you claimed that Grant Bradley states AIR got its cash burn down to $60m in June.
    I've had a super hard last two weeks working on a major assignment with a fixed deadline so forgive me, but I didn't see that claim in that article. Perhaps I am going cross eyed ?. Perhaps people should read it for themselves and make up their own mind. https://www.nzherald.co.nz/business/...ectid=12352376
    One thing is absolutely for sure, a price target 12 months hence of 90 cents is a long way short of today's closing price of one dollar thirty something. Until there's a widely available and highly effective vaccine I remain of the view AIR is a very bad and extremely high risk investment.
    He says it in the video, about half way through.

    Always a good idea to watch for trend changes Beagle. Get away from here and enjoy your weekend

  5. #17865
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    Quote Originally Posted by Jaa View Post
    He says it in the video, about half way through.

    Always a good idea to watch for trend changes Beagle. Get away from here and enjoy your weekend :)
    Good advice, had a really good weekend, much needed !!
    Looks like Virgin is slimming down. No return to N.Z. yet so that's good for AIR, (for now). https://www.odt.co.nz/business/virgi...ming-return-nz
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  6. #17866
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    Quote Originally Posted by Jaa View Post
    Sounds like a solution in search of a problem.

    The government made a fantastic profit from bailing out Air NZ in 2001, 19 years ago not 10 like you say. Whose to say they won't do so again this time?

    Mixed ownership model of Air NZ is working well for all stakeholders IMHO. Don't change what isn't broken.
    I would generally treat anything MM says about Air NZ with a refinery of salt. Said member appears to have a personal vendetta against AIR and QAN and would be spewing hatred if they literally developed technology to teleport individuals across the planet and monetise it.

  7. #17867
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    No PPE offered for crews of the special isolation flights. We can assume the transfers are virus free. On the good new front my AIR-NZ-Singapore european flight credits have been refunded after 2 months wait... the money does come back... eventually...

  8. #17868
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    US airline index up 7% overnight. Seeing a rotation from tech into airlines and travel. Air has been trading in a very narrow range, so will this be enough of a catalyst to change things?

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    Quote Originally Posted by JohnnyTheHorse View Post
    US airline index up 7% overnight. Seeing a rotation from tech into airlines and travel. Air has been trading in a very narrow range, so will this be enough of a catalyst to change things?
    It'd be hard to differentiate from the announcement of a travel bubble with the Pacific Islands I imagine..

  10. #17870
    Senior Member Marilyn Munroe's Avatar
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    Quote Originally Posted by kyanar View Post
    I would generally treat anything MM says about Air NZ with a refinery of salt. Said member appears to have a personal vendetta against AIR and QAN and would be spewing hatred if they literally developed technology to teleport individuals across the planet and monetise it.
    My beef against Cullen Airlines is the existence of the Cullen Put.

    In other words if things go well shareholders get to quaff champagne and swing from the chandeliers if things turn horrid taxpayers have to front up with their hard earned cash.

    There have already been calls on the Cullen Put and and in all likelihood there will be more in the future.

    It is time ordinary Kiwi jokers who have to pay for this by stacking supermarket shelves or milking cows told the sacred cow, Cullen Airlines, next time you are on your own mate.

    Boop boop de do
    Marilyn
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