AIR - Air NZ.

[CJ]

Perhaps this will be the next one to be sold down by the govt - nice and easy as its already listed and not in the controversial power game.

Could probably be an offmarket placement within a week if they didn't have to worry about getting the shares into M&D investors hands.

[modandm]

decent operating statistics, slightly better yield than my estimates. One thing that I found particularly pleasing is the improvement in domestic demand (up 8.2%), and shorthaul yields are only down 1.5%. That gives me confidence that the domestic profit fortress NZ has is sustainable and that the threat of jetstar remains well under control. With susbstantial capacity (new A320's and ATR's) coming on next year NZ can grow domestic profit nicely.

The outlook is actually better than my estimates which was for about $240m (guide 235m-260m) although the pax revenue line I have is right, this means either cargo, contract or ancillary revenues are doing better than I expected, and/or that costs are being effectively controlled. It could be fuel given the recent fall (although much is locked in at slightly higher prices).

Roll on the strategy day - looking foward to hearing about the 'go beyond' plan!

No change in my view or holding

P:S re the 787's - uninformed commentators talking about ETOPS... 1st thing as i have said before is 787 has no effect until 2015 or 2016 performance so who cares! 2nd AIR is planning to use 787 on asian leisure routes (which don't need ETOPS 180 anyway) 3rd have you seen the boeing shareprice going up? The 787 will be fine!

[Poet]

Hi Modandm, love your work!

When do you expect the strategy day to be?

[zcyong]

All good points!

[modandm]

Hi Modandm, love your work!

When do you expect the strategy day to be?

Sometime in May - date TBC is what IR has told me.

NZ is moving towards more of a leisure focus - and this means less luxurious (but more efficient) seating plans for both the new 787 and the refurbished 777-200ers. This will undoubtedly result in much whinging and media attention, so it will be particularly interesting whether this is brought up or pushed aside until the last minute before being announced.

The more I hear the more I like this new CEO, he seems pretty cut-throat about reducing costs and maximising profits! Happy days!

[noodles]

Sometime in May - date TBC is what IR has told me.

NZ is moving towards more of a leisure focus - and this means less luxurious (but more efficient) seating plans for both the new 787 and the refurbished 777-200ers. This will undoubtedly result in much whinging and media attention, so it will be particularly interesting whether this is brought up or pushed aside until the last minute before being announced.

The more I hear the more I like this new CEO, he seems pretty cut-throat about reducing costs and maximising profits! Happy days!

IR? What is that?

[Marilyn Munroe]

..and this means less luxurious (but more efficient) seating plans for both the new 787 and the refurbished 777-200ers.

Does this mean future Cullen Airlines carriage trade customers will have to endure cattle class until the nearest Ethiad pick up point?

Boop boop de do
Marilyn

[zcyong]

huge volume today, strange.

[slimwin]

Leaked document today which looks to outlines huge staff redundancies in engineering.
I remember them doing this in 2005 only to have to recruit worldwide to get engineers 2-3 years later.

[janner]

Leaked document today which looks to outlines huge staff redundancies in engineering.
I remember them doing this in 2005 only to have to recruit worldwide to get engineers 2-3 years later.

Yes slimwin.. But the world qualified work shop ended up with fewer REAL engineers..

Are we seeing a repeat ??


Good for the share price.. Not good for the bookings..