AIR - Air NZ.

[McPussPuss]

7 hrs of fuel burn for no gain.
Bring on more global warming.

The aircraft need to either be flown or stored somewhere bone dry otherwise they become expensive jungle gyms quite quickly.

[winner69]

Anyone got a detailed model of AIR as a going concern at the moment. I dont have one and therefore wont be even be thinking of trading a black hole.

It wonderful to write a warm and fuzzy summary but based on what detailed data please.


The current share price tells us nothing because i doubt any of the current investor buying and selling daily have a detailed model.

I wont comment on the article because i do not have access to a detailed model.

Black hole just got bigger ...

https://www.nzherald.co.nz/nz/news/a...ectid=12366432

New world these days ...financial models mean squat all ...it’s the power of the story that drives value these days

[Beagle]

AIR will always be a going concern because pretty much the GOVT will give it enough of our money to survive ad infinitum. So no need for auditors to even go there.

I took the time to read the auditors report on the weekend. They did go into considerable commentary about the issue of going concern and appear to have spent considerable time going over AIR's forecast under a number of different forecasting scenario's.

Obviously they had to make a judgement on the matter without considering the Govt's need to maintain critical transport infrastructure.
Interestingly there's a new standard around the whole going concern matter https://www.nzherald.co.nz/business/...ectid=12364940

What I find interesting is the market obviously thinks you're bang on the money because AIR have a small bond issue and they're currently bid on the secondary market at 3.5% with no sellers and yet AIR are paying the Govt 7-9% on the new Govt loan facility.

[winner69]

I’d rather do this than a flight to nowhere

More of a thrill

https://www.pacifictrailways.co.nz/s...sku/01436.html

[Beagle]

I’d rather do this than a flight to nowhere

More of a thrill

https://www.pacifictrailways.co.nz/s...sku/01436.html

Looks awesome

[peat]

Sheesh MOD didn't even get the CEO's name right.

Fortran hahah, wasnt that some sort of computer programme in the 60's or even earlier !! Haha shows where MOD's head at.

He's just self promoting with this article. I dont think AIR havent thought of upselling possibilities ....
And he is worried for the Mums and Dad out of pocket with the shares.... lol

[BlackPeter]

New world these days ...financial models mean squat all ...it’s the power of the story that drives value these days

As we all know: share price = value + hype.

Not quite sure whether any story can drive the value, however - it clearly will impact on the hype.

Probably more correct to say that the story can drive the share price (by determining the hype).

[biker]

I like MOD but its obvious he knows nothing about operating an airline. Normal whinging about prices and service you often read from wealthy, entitled people. Nor is his talk of the loan package accurate or responsible. There has been no official announcement from Air NZ or the government that they have started to draw down on it yet alone are sucking $70m for it.

There is nothing wrong with Air NZ's capital or operating model, its flexible and been proven to work for all parties. Its efficiently run and the government can increase its stake in bad times and can sell down in good times. Shareholders earned very good dividends for close to two decades. The airline can survive as a mostly cargo and domestic operation until better times return so even the capital is worth a bit as evidenced by the current share price.

Sheesh MOD didn't even get the CEO's name right.

Air have started to draw down on the loan. They don’t have to officially announce when. It is reasonably common knowledge.

[winner69]

Coronavirus latest: Long-haul flights riskier than thought, says CDC paper

https://www.ft.com/content/b159b59a-...f-cf35980cc55d

[winner69]

As we all know: share price = value + hype.

Not quite sure whether any story can drive the value, however - it clearly will impact on the hype.

Probably more correct to say that the story can drive the share price (by determining the hype).

Surely you need to know the story to drive/evaluate value ....and then you add hype.

Oceania is a great point in case eh ...pity story not understood