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01-04-2020, 02:26 PM
#16291
Originally Posted by Dassets
Here's a big issue going forward. This crisis will lead to a new generation of airlines with very different cost structure. First up will be the cost of rolling stock. eg those 400 Boeing Max, circa USD120m, sitting at the factory carpark, are worth USD50-60m. All the widebodied fleet especially A340 and B777, seller no buyer.
So new operator can lease or buy fleet at a fraction of the cost of the legacy airlines. Head offices, marketing functions, terminal facilities a fraction of the size and cost. See how it all unfolds.
Foran already alluded to this a few days back
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01-04-2020, 02:46 PM
#16292
Perhaps Govt will buy fleet and lease back as was done with rail track many years ago.
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01-04-2020, 02:47 PM
#16293
Originally Posted by steveb
AIR will soon slap a surcharge on outgoing freight.They will justify this by saying inbound flights are empty,but what they will actually mean is " we no longer have much competition so lets start gouging our customers"
Why would inbound flights be empty? Somebody needs to transport all these medical supplies, computers and airmail parcels ...
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"Prediction is very difficult, especially about the future" (Niels Bohr)
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01-04-2020, 02:50 PM
#16294
Virgin look to be "in it" good and proper. Could be a fire sale of their fleet coming up later this year.
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
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01-04-2020, 03:10 PM
#16295
Junior Member
Originally Posted by bottomfeeder
RIP Air New Zealand. Aotearoa Air will rise like a phoenix from the ashes as a Government Corporation. There will be several, National Airlines, International Freight and the wholly subsidised International Passenger.
Air freight may be attractive at the moment, but wait until they all start getting into it. The competition will be horrendous.
As soon as this happens the better, this will pull the executive salaries into line! Currently AIR is milking the tax payer!
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01-04-2020, 03:55 PM
#16296
Originally Posted by Beagle
Good that AIR are maintaining a skeleton international network for freight so we can all get essential medical supplies. Freight was 6.7% of their revenue base last year.
Easily now the biggest part of their business. Wonder what air freight rates are going to look like going forward ?
Crikey BWH - that is very grim.
Why is AIR NZ doing this if it costs them money? Likewise with the national network? If its not profitable but vital for the country the government and/or the respective businesses should subsidise it.
What a bad time to have a travel newbie at the helm. Was hoping Rob Fyfe might return as an adviser at least but see he has a task somewhere else. Guess why would you come back just to swing the axe.
Foran has been far too slow in a time that requires decisiveness. Ground the whole fleet and call everyone's bluff. Management, the workforce and the government all need to chip in. Subsidies, pay cuts, redundancies and compulsory unpaid leave will see the airline through.
Not a fan of Alan Joyce but he is showing how its done. 70% of staff gone or on unpaid leave, no international flights and 30% pay cuts for management. AIR NZ in comparison just sleep walking.
PS: thanks John Key for all that great forex/oil hedging advice !!
Last edited by Jaa; 01-04-2020 at 03:57 PM.
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01-04-2020, 05:59 PM
#16297
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
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02-04-2020, 12:07 AM
#16298
Originally Posted by Jaa
Why is AIR NZ doing this if it costs them money? Likewise with the national network? If its not profitable but vital for the country the government and/or the respective businesses should subsidise it.
What a bad time to have a travel newbie at the helm. Was hoping Rob Fyfe might return as an adviser at least but see he has a task somewhere else. Guess why would you come back just to swing the axe.
Foran has been far too slow in a time that requires decisiveness. Ground the whole fleet and call everyone's bluff. Management, the workforce and the government all need to chip in. Subsidies, pay cuts, redundancies and compulsory unpaid leave will see the airline through.
Not a fan of Alan Joyce but he is showing how its done. 70% of staff gone or on unpaid leave, no international flights and 30% pay cuts for management. AIR NZ in comparison just sleep walking.
PS: thanks John Key for all that great forex/oil hedging advice !!
Hi Jaa
I believe Australian law allows the LWOP to be implemented as it has been. So QANTAS was able to apply the law ASAP.
NZ law does not allow for this.
Companies cannot force accrued leave to be taken BUT can force (after consultation, if that 'fails' then by law can force) Due and Excess leave to be taken. These two leave types are leave balances on 12 months or more.
My understanding is that Air NZ has asked the question and the response was fast from employees. Even given 30% will go soon (overseas offices are getting the haircuts this week, locals soon thereafter) another 750 asked for voluntary exit, 2700 for LWOP and 4000 for part time.
I think Air NZ people, aside from wanting their jobs post crisis - actually like working where they work.
Foran has told employees this week that management have foregone 'tens of millions' in salary cuts, bonus cancellations and incentive schemes stopped. I know that one large group within the flying part of the business has handed back half a million dollars in the next 3 months without having been asked to do so as a solidarity gesture to the company.
Maybe Air NZ isn't as sleepy as we think.
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02-04-2020, 01:30 AM
#16299
Originally Posted by Chinesekiwi
Hi Jaa
I believe Australian law allows the LWOP to be implemented as it has been. So QANTAS was able to apply the law ASAP.
NZ law does not allow for this.
Companies cannot force accrued leave to be taken BUT can force (after consultation, if that 'fails' then by law can force) Due and Excess leave to be taken. These two leave types are leave balances on 12 months or more.
My understanding is that Air NZ has asked the question and the response was fast from employees. Even given 30% will go soon (overseas offices are getting the haircuts this week, locals soon thereafter) another 750 asked for voluntary exit, 2700 for LWOP and 4000 for part time.
I think Air NZ people, aside from wanting their jobs post crisis - actually like working where they work.
Foran has told employees this week that management have foregone 'tens of millions' in salary cuts, bonus cancellations and incentive schemes stopped. I know that one large group within the flying part of the business has handed back half a million dollars in the next 3 months without having been asked to do so as a solidarity gesture to the company.
Maybe Air NZ isn't as sleepy as we think.
A good post Chinesekiwi thanks for injecting some reality
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02-04-2020, 09:16 AM
#16300
Apparently AIR doing 12 round trips to London this month, presumably to repatriate displaced tourists.
Virgin Australia donating all their grounded loo-roll to good causes, must be worth bailing out then.
I would love to get on a plane, with or without loo-roll and go 'home' but I am locked out of my country of residence until further notice
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