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Thread: AIR - Air NZ.

  1. #16191
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    Interesting article from Bloomberg on which airlines might not survive and how long cash reserves may last. Annoyingly has left off Air NZ.

    The Airlines Most in Danger of Going Under During the Crisis

  2. #16192
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    Changes of a capital raising at 0.20c ?

  3. #16193
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    Quote Originally Posted by Beagle View Post
    I have a theory that at that moment in time Labour did not want to be seen as propping up big business unless it was on arms length commercial terms. Since then they seem to have had a rethink and propping up any business that keeps people employed is seen as being politically correct.
    I think your wrong there mate! Propping up businesses that keep the economy running more like. In essence buying time to allow us to knock the bastard off and still have businesses to function afterwards.

    I'm interested to know what you think is a better option? Let them all go belly up?

  4. #16194
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    Quote Originally Posted by thedrunkfish View Post
    I think your wrong there mate! Propping up businesses that keep the economy running more like. In essence buying time to allow us to knock the bastard off and still have businesses to function afterwards.

    I'm interested to know what you think is a better option? Let them all go belly up?
    The support would have been exactly that if it was on normal commercial terms that AIR borrow at, their external loans range from 1.0 - 3.0%. Unwittingly or otherwise, AIR is on a direct flight path to what will ostensibly amount to nationalisation.
    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

  5. #16195
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    Quote Originally Posted by Beagle View Post
    Singapore airlines one of the first cab's off the rank with a massive deeply discounted rights issue. https://www.theedgesingapore.com/new...vertible-bonds
    Temasek is Singapore Super Fund isn't it? so its comin from the guvmint.

    Edit Answer the questions

    Yes it was started in '74 to manage Singapore's assets and is solely owned by the Minister of Finance (Singapore). Operates on a commercial basis and the a majority shareholder in SIA.
    (So its a very similar situation in a way to us really !)
    Last edited by peat; 27-03-2020 at 06:52 PM.
    For clarity, nothing I say is advice....

  6. #16196
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    Quote Originally Posted by Beagle View Post
    The support would have been exactly that if it was on normal commercial terms that AIR borrow at, their external loans range from 1.0 - 3.0%. Unwittingly or otherwise, AIR is on a direct flight path to what will ostensibly amount to nationalisation.
    Perhaps. But a privately owned airline, facing the virtual shutdown of its operations for an extended time, would fold and go out of business in these circumstances. I'm no fan of nationalisation but a national airline is essential for NZ's economy in 2020.

    Disc: I don't invest in airlines.
    Last edited by macduffy; 27-03-2020 at 07:26 PM.

  7. #16197
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    A lot of people in the general public have been loading up on these.. flavour of the month

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    Quote Originally Posted by Cadalac123 View Post
    A lot of people in the general public have been loading up on these.. flavour of the month
    Do you know for a fact that “a lot of people in the general public” who have been “loading up” on this? Or just an opinion? I reckon they’re mugs if they have and going to be lambs to the slaughter soon enough.

    AIR is in big trouble, soothing the cashflow for the meantime, with a modest government injection will lasting a few weeks is one thing, but the balance sheet damage will be long lasting.

    I’m with Beagle on this one, it’s a train wreck, sadly through no fault of its own except maybe not moving quickly enough to quarterise the damage. Whole business is basically shutting down!

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    Quote Originally Posted by Baa_Baa View Post
    Do you know for a fact that “a lot of people in the general public” who have been “loading up” on this? Or just an opinion? I reckon they’re mugs if they have and going to be lambs to the slaughter soon enough.

    AIR is in big trouble, soothing the cashflow for the meantime, with a modest government injection will lasting a few weeks is one thing, but the balance sheet damage will be long lasting.

    I’m with Beagle on this one, it’s a train wreck, sadly through no fault of its own except maybe not moving quickly enough to quarterise the damage. Whole business is basically shutting down!
    A lot of the millennial Sharesies brigade I know have been buying in.

    There is a genuine belief that any share/stock at a discount to it's recent performance is a "good buy".

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    Quote Originally Posted by samjaynz View Post
    A lot of the millennial Sharesies brigade I know have been buying in.

    There is a genuine belief that any share/stock at a discount to it's recent performance is a "good buy".
    I just wish there was an easy and direct way to short the Sharesies customer database.
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