AIR - Air NZ.

[Beagle]

Thanks for the links Joshuatree. Treasury's analysis focus's solely on direct financial returns from dividends and capital return.
It does not take into account indirect returns, taxation and other national interest issues.
The whole issue of international transfer pricing is "red hot" at present. All sorts of international companies doing large amounts of business in N.Z. and paying no or negligible tax here.
I am certain that if Marlyn had her way and AIr was sold to one of the sand state airlines the following would ensue
1. Sand state INC would pay very little if any tax in N.Z. This factor alone could have deprived the N.Z. Govt of over $200m in tax revenue just in the FY16 year
2. Sand State Inc would predominantly use their nationals to staff the airline depriving the N.Z. Govt of a significant portion of the annual PAYE they earn on AIR staff wages of circa $1.1 billion per annum
3. Sand State Inc would charge whatever they like for internal airfares within N.Z. due to their near market dominance and Jetstar would simply play along and extricate significantly more money from the N.Z. economy too.
3b Kiwi's would be effectively held hostage and pay hundreds of million of dollars, potentially as much as $1 billion a year in increased domestic airfares

Treasuries analysis does not look at the bigger picture as their brief is to strictly focus on quantifiable financial returns without considering broader social and national interest issues.

Baa Baa, I suggest you ask the report's author(s). From a conceptual point of view they are probably hypothesizing that Government normally doesn't have a good track record in commercial enterprise.
I think the mixed ownership model is working just fine. OECD recommend all sorts of things from time to time, doesn't mean there's a political will to follow along like a meek sheep to the slaughter.

An awful lot of Governments around the world either own their national airline outright or own a significant stake in it to protect the national interest. I think if one of the sand state airlines owned AIR Kiwi's would find out the real meaning of truly usurious airfares. We can rely on the Commerce Commission to ensure in those circumstances that domestic airfares are fair and reasonable...yeah right, someone please hand me a Tui !

Perhaps you'd be so kind as to post a link to their report which might assist people to see their conceptual point of view.

Seeing as its repeat day, where people seem to be litigating their perspective again for some reason...I have no problem whatsoever with Treasury's strict financial return on investment calculations but there are serious dividends that the government will miss out on in the share of PAYE, approx. $300m every year, income tax and social cost to Kiwi's as another airline would likely price gouge hapless Kiwi's.
The Government has received BILLIONS of dollars of tax revenue and PAYE revenue from AIR over the period of Treasury's analysis.
Our dear fiend Marilyn assures us the free market knows best and another airline would step in to provide the necessary competition to ensure domestic airfares were reasonable, yeah right, time for a Tui.

The put option Marilyn refers too is a necessary evil to ensure stability and reliability of transportation within the N.Z. economy which the N.Z. Govt also benefits from.

[Biscuit]

Seeing as its repeat day, where people seem to be litigating their perspective again for some reason...I have no problem whatsoever with Treasury's strict financial return on investment calculations but there are serious dividends that the government will miss out on in the share of PAYE, approx. $300m every year, income tax and social cost to Kiwi's as another airline would likely price gouge hapless Kiwi's.
The Government has received BILLIONS of dollars of tax revenue and PAYE revenue from AIR over the period of Treasury's analysis.
Our dear fiend Marilyn assures us the free market knows best and another airline would step in to provide the necessary competition to ensure domestic airfares were reasonable, yeah right, time for a Tui.

The put option Marilyn refers too is a necessary evil to ensure stability and reliability of transportation within the N.Z. economy which the N.Z. Govt also benefits from.

Agree, also the Govt has shown that it likely wears the risk anyway - when push comes to shove it will not let AIR fail - whether it owns the company or not. If you wear the risk, you should prudently have some control.

[winner69]

Hows the share price going today

[Xerof]

what are flying conditions like at your place?

[winner69]

what are flying conditions like at your place?

AIRplanes all over the place

March operating stats should be pretty good

[Joshuatree]

Stealing from its own citizens. The Govt is ripping us kiwis off (including this hypocrite with esp domestic fares ; unless you are on a main route and can pick up the cheap fares on their time frames which seldom fits.They sure are looking after us; yeah right hand me and Marylyn a Moet. Sell their share I reckon and have a few caveats in place re kiwi employees etc. Time to leave business to run businesss. And if this great current management (who reward themselves over handsomely) did stuff up again well then the Govt could do it all again. sorta of a virtuose möbius loop

[Snow Leopard]

Zodiac vows a lavatory Revolution

Might be useful for this thread .

Best Wishes
Paper Tiger

[Beagle]

Stealing from its own citizens. The Govt is ripping us kiwis off (including this hypocrite with esp domestic fares ; unless you are on a main route and can pick up the cheap fares on their time frames which seldom fits.They sure are looking after us; yeah right hand me and Marylyn a Moet. Sell their share I reckon and have a few caveats in place re kiwi employees etc. Time to leave business to run businesss. And if this great current management (who reward themselves over handsomely) did stuff up again well then the Govt could do it all again. sorta of a virtuose möbius loop

LOL had to book a last minute flight for my Mum to travel to Dunedin tomorrow for a funeral later this week...AKL to Dunedin tomorrow at 4.50 p.m. (business hours flight) $119 and back on Easter Tuesday $229 during peak Easter and school holiday time. Absolute theft...yeah right, definitely time for a Tui She's nearly 88 years old and really enjoys the superior service AIR offer...never too old to enjoy a good thing She can't stand Jetstar either...must run in the blood..or maybe their service and aircraft really are third rate !

[JeremyALD]

Was travelling from Auckland to Napier today. Had two failed landings in Napier and the flight diverted back to Auckland. We were in the AIR for three hours!!! We got offered to try fly again at 5pm on another floghr and my answer was no thank you so I took the flight credit.

[Joshuatree]

Thats not a good enough reason to move to Auckland i never want to become a JAFA.
Drink your Tui JAFA, I'm having a nice Pinot Gris myself.