AIR - Air NZ.

[Raz]

Agree Beagle. Yesterday I sold all my AIR shares. Today I am looking for an alternative airline to fly with my regular long haul flights. I wont be alone. AIR has got serious reputation issues and keeping their heads in the sand will not fix it

Snap, I was not going to be first to say it and surprised who said it first :-) The other point to clarify is most travel insurance will not cover this as it is classified as an airline controllable event..most events will be flights cancelation from management rescheduling of flights ...

[winner69]

Agree Beagle. Yesterday I sold all my AIR shares. Today I am looking for an alternative airline to fly with my regular long haul flights. I wont be alone. AIR has got serious reputation issues and keeping their heads in the sand will not fix it

Maybe our man Chris is struggling to balance maximising shareholder returns in the short term and doing what’s best for AIR long term. Short terminism not good.

In a recent interesting Forbes article it mentioned that a couple of HBR guys said that maximizing shareholder value is “the error at the heart of corporate leadership.” It is “flawed in its assumptions” and even went on to say it is “pernicious nonsense”

Hope Chris is not keeping his head buried in the sand as you suggest Iceman but AIR seems to be keeping a pretty low profile with these current problems.

[Beagle]

Maybe our man Chris is struggling to balance maximising shareholder returns in the short term and doing what’s best for AIR long term. Short terminism not good.

In a recent interesting Forbes article it mentioned that a couple of HBR guys said that maximizing shareholder value is “the error at the heart of corporate leadership.” It is “flawed in its assumptions” and even went on to say it is “pernicious nonsense”

Hope Chris is not keeping his head buried in the sand as you suggest Iceman but AIR seems to be keeping a pretty low profile with these current problems.

He doesn't do that but he wouldn't talk to NBR despite repeated requests according to shoeshine on Friday, the poor bugger is probably scrambling to understand the enormity of the issue and how to deal with it. I'd expect some explanation from AIR early this coming week on what their intentions are to manage and mitigate the problems.
Disc: As mentioned earlier this week, I reduced my stake as a risk management strategy, still have some. Feel sad for the company that they have to endure this **** from Rolls Royce.

[Baa_Baa]

Foolishly I thought the engine thing had subsided, got sucked into the rhetoric, media and optimistic chatter here, a lesson in keeping ones eyes firmly on the ball.

Albeit a bit of SP movement has presented some trading opportunities, though trading what is emerging as a negative sentiment environment is much more challenging than trading positive sentiment as we have less opportunity here in NZ to work the downside as we do the upside.

Clearly the engine issue hasn't subsided. The tightly increased frequency of engine checks and the punitive ETOPs restrictions show how serious the problems are, world wide - this is not just AIR, but every Dreamliner with the dodgy engines. Worst case, it's not a long bow to draw to suggest a couple more issues could down the worldwide fleet, until it's fixed.

Hopefully it won't come to that, but as they say hope is an awful investment strategy, so better maybe to just avoid and observe while the debacle unfolds.

[Beagle]

Yeap, listening to Chris Luxon in late February 2018 in the conference call...we have a really great relationship with RR e.t.c.e.t.c.e.t.c.... all problems to be fully resolved by mid April e.t.c.e.t.c.e.t.c... its hard to believe its come to this. Feel a bit miffed although to be fair the SP has risen from $3.05 on the day of the announcement Feb 23 I think it was as high as late 330's at one stage plus an 11 cent interim divvy in the last two months so hardly a trip down the garden path but nonetheless frustrating for those like me that bought long term hoping for a fairly safe divvy yield. Now its frankly anyone's guess the impact on FY19 earnings ? How you quantify that, quite frankly I have no idea which really leaves long term investors in no mans land doesn't it ! I know average forward booking period is approx. 2 months so profit impact in FY18 should be minimal as RR pick up charter plane replacement lease costs for sure but impact next year on bookings as people lose confidence in the "dream"liner ? and get sick of getting mucked around, how can anyone quantify the financial impact of that ????? The very first thing AIR came out and said this week was 16 of our long haul fleet of 27 planes are not Dreamliners. Sorry team, but if that was meant to reassure shareholders it did quite the opposite !!

[theace]

Some detail on the issues from RR, mentioning AirNZ: https://youtu.be/4IHKLr-OztI

[oldtech]

Actually got up to at least $3.415 Beagle, on the 11th of April ... I know this because that's when I sold what I had left.

I have made a reasonable amount of money from Air NZ in the past and will look to get back in at the right time, but as a relatively cautious investor I'm also taking a risk-minimisation approach right at the moment.

[Beagle]

Nice timing oldtech, can't beat that.
http://www.scoop.co.nz/stories/BU180...date-three.htm Regarding that last sentence...that last sentence, they would say that wouldn't they !

[Raz]

Nice timing oldtech, can't beat that.
http://www.scoop.co.nz/stories/BU180...date-three.htm Regarding that last sentence...that last sentence, they would say that wouldn't they !

The knowledge of the respective deterioration on the relevant engine parts must still be developing otherwise the full checks conducted in December would have established the current engine issues and changed the maintenance program then. Just four months ago. I'm going to avoid these planes... if it means travelling with someone else so be it.


https://www.stuff.co.nz/business/ind...afety-concerns

[Benny1]

The knowledge of the respective deterioration on the relevant engine parts must still be developing otherwise the full checks conducted in December would have established the current engine issues and changed the maintenance program then. Just four months ago. I'm going to avoid these planes... if it means travelling with someone else so be it.


https://www.stuff.co.nz/business/ind...afety-concerns

The original checks and rectification of the engines in December and early this year were solely based on the Turbine blade issue, as far as I am aware the rest of the engine was not inspected at that time..
The fact that this engines are only a few years old is probably the most concerning aspect of all this, and long term reliability must be called into question.

Looks like Hi-fly will be back for a short term wet lease (with crew) in the middle of next month, AIR also trying to secure a 777-200 on a dry lease ( AIR to crew and maintain) for up to 12 months.