AIR - Air NZ.

[Beagle]

So...lets compile a list. In the last few weeks we've had:-
Qatar threaten to abandon its new routes entirely in the laptop ban comes in, (which surely it will)
American Airlines cancel its flights to America for a few months while they rejig capacity, to be restarted very late 2017
China Southern pull back on Chch routes
Signapore Airlines trimming Wellington flights
Jetstar confirming no expansion of flights within N.Z.
and in the meantime AIR announcing expanded frequency to South America and Houston using all new Dreamliners with more business and premium economy seats to meet strong demand for premium services...have I missed anything else ?

[iceman]

So...lets compile a list. In the last few weeks we've had:-
Qatar threaten to abandon its new routes entirely in the laptop ban comes in, (which surely it will)
American Airlines cancel its flights to America for a few months while they rejig capacity, to be restarted very late 2017
China Southern pull back on Chch routes
Signapore Airlines trimming Wellington flights
Jetstar confirming no expansion of flights within N.Z.
and in the meantime AIR announcing expanded frequency to South America and Houston using all new Dreamliners with more business and premium economy seats to meet strong demand for premium services...have I missed anything else ?

Yes you did ! China Airlines dropping Sydney flights to both Wellington and Auckland, 3x and 4x per week respectively

[sb9]

So...lets compile a list. In the last few weeks we've had:-
Qatar threaten to abandon its new routes entirely in the laptop ban comes in, (which surely it will)
American Airlines cancel its flights to America for a few months while they rejig capacity, to be restarted very late 2017
China Southern pull back on Chch routes
Signapore Airlines trimming Wellington flights
Jetstar confirming no expansion of flights within N.Z.
and in the meantime AIR announcing expanded frequency to South America and Houston using all new Dreamliners with more business and premium economy seats to meet strong demand for premium services...have I missed anything else ?

Throw into the mix I heard somewhere about new flight services to Osaka, Japan.

[Beagle]

Yes you did ! China Airlines dropping Sydney flights to both Wellington and Auckland, 3x and 4x per week respectively

Throw into the mix I heard somewhere about new flight services to Osaka, Japan.

Crickey...its hard to keep up with how AIR's competitors are shrinking their capacity and how AIR are expanding theirs !

[sb9]

Crickey...its hard to keep up with how AIR's competitors are shrinking their capacity and how AIR are expanding theirs !

Hence Mr Market appears to be rerating this stock at the moment...

[BlackPeter]

QAN running higher leverage and an older less fuel efficient fleet and have been enjoying the benefits of wage freezes negotiated for several years after their blockbuster $2.8 billion dollar loss a few years ago. This works fine while oil and interest rates stay low and those freezes remain in place but for how much longer ?

Roger,

I obviously realise that this is the Qantas trash thread. However - are you sure that their fleet is that inefficient? Just came back from a trip to Singapore flying Qantas (to my excuse - had to use up some Frequent flyer points) and was flying with A330-200 and Boeing 737-800. Both have a fuel consumption of roughly 2.3l per 100 passenger km. Not too bad.

Just some other observations: While I rated Qantas previously lower in terms of service and comfort than e.g. Singapore Airlines, Air New Zealand and Emirates (and I used to fly a lot - i.e. I can compare), my recent experience (after something like 3 years abstinence on Qantas) seems to point to Qantas moving back into this top group. It feels like the partnership with Emirates is influencing them quite positively.

I like the 30kg luggage allowance which they adapted from Emirates (i.e. no need to worry about the luggage - on my last trip with AIR I still had to worry about the (I think) 23 kg limit with AIR.

Their seats have been new (and not too bad for economy), the crew was in 3 out of the four legs exceptionally helpful and friendly, food is as good (or bad) as on the other "better" carriers.

Don't want to annoy anybody on this thread, but it might be even for AIR investors useful information that AIR might not be the only good airline.

I put Qantas after this last experience back into the group of my preferred carriers (i.e. might accrue some more frequent flyer points with them ).

[Kelvin]

Not quite correct

China Airlines dropping their Sydney - Auckland and Christchurch flights, but increasing Brisbane - Auckland to daily
Singapore Airlines only cutting 3 return services over 3 months, I wouldn't consider it a significant cut

[couta1]

Not quite correct

China Airlines dropping their Sydney - Auckland and Christchurch flights, but increasing Brisbane - Auckland to daily
Singapore Airlines only cutting 3 return services over 3 months, I wouldn't consider it a significant cut

True, and if demand was there Singapore Airlines wouldn't be cutting their service, nothing in it for Air considering they are a code share partner.

[Beagle]

I stand by my comment BP. Its not a thrash thread for QAN I am simply stating the facts. Their fleet average age is a lot older, less efficient, they are running more leverage and they are presently enjoying the tail end of a number of wage freezes negotiated after their horrific $2.8b loss a few years ago. Their business model works very well when oil and interest rates are very low but as we saw with their shocker loss when things go against them they really struggle. I believe AIR's business model is more robust and they would be profitable with $100 oil.

[winner69]

Over the last 5 weeks flown with AIR, Cathy Pacific, Icelandair, Logan Air/Yoube and Easyjet

I'll forgive Icelandair for being late on one leg because of a big storm ......the only other flight that was late departing was an AIR flight from AKL to WLG because of (believe it not) " crewing requirements" ....and the Jetstar flight leaving at the same time was on time. Was not impressed waiting an hour for AIR to sort that out.