AIR - Air NZ.

[duncan macgregor]

AIR NZ are now contemplating outsourcing clerical jobs to FIJI.
It seems clerical staff work for $6000 a year in fiji. Maintenance done in china now this. Why dont they go the whole hog and rename the company. MICKEY MOUSE AIRLINES SPRINGS TO MIND. I hope they dont claim to be the national carrier after this. macdunk

[peat]

They were supposedley doing that with various divisions in the late 90's when I worked there duncan. What I saw during the 9 years I worked in the Financial systems dept was always always cost cutting (in your face...) but stupid expenditure in other ways. Sack lots of people then hire them back 6 mths later as consultants on 3x the pay... happened so much it was unbelievable.
The airline industry is something I would not advise most people to be exposed to in any portfolio, super high beta factors, too many unpredictables, and thin margins that blow up in a nanosecond.

[trackers]

stuff.co.nz:

Air New Zealand reported a 47 per cent drop in net profit today, blaming sharp fuel price increases.
»LISTEN TO AUDIO CLIP


Chairman John Palmer told a media briefing that while "this is not the result we would have liked to have achieved" it was a "respectable result" given the business environment.

The airline said net profit after tax was $96 million, down 47 per cent, while profit before tax and unusuals was $150 million, down 36 per cent.

Airline chief executive officer Rob Fyfe unveiled a strategy to make the airline grow and expand, saying it was the only way they could survive.

Air New Zealand shares were unmoved at $1.13 following the announcement.

The board declared a fully imputed final dividend of 2.5 cents per share, and said it expected to maintain present dividend flows.

Operating revenue for the year was $3.8 billion, an increase of $189m or 5 per cent over last year, Air NZ said.

As a result of a 6 per cent yield improvement, passenger revenue increased $179m or 6 per cent to $3.1b. Included in the passenger revenue increase was a $24m negative foreign exchange impact.

Other external revenue increased $10m or 1 per cent to $746m. A $62m increase in freight revenue was partially offset by reductions in external engineering revenue, due to higher internal engineering (747 refit) and maintenance requirements.

Higher fuel prices led to total expenses, excluding borrowing costs, increasing by $253m or 7 per cent to $3.7b.


Listen to Air New Zealand chairman John Palmer outline the company's big profit fall.

[COLIN]

quote:Originally posted by peat

The airline industry is something I would not advise most people to be exposed to in any portfolio, super high beta factors, too many unpredictables, and thin margins that blow up in a nanosecond.

I'm with you on that.

[Pennywise]

Being one of 'resident' Belgs big investments/tips/multiple winks, its amazing you never see him on AIR threads anymore

funny that, wink wink

thought it was very strange at the time for someone predicting energy doom and gloom to invest in an airline...and so it has become.

funny little man.

[Skol]

The unfortunate Morrie Davis made the statement many years ago that "there's no money in freight".
Since that time freight airlines have boomed but AIR has never got into it, except outsource a freighter and crews from other operators. Why would an airline do that when it must be cheaper to do it itself, it has crews, it has aircraft, could convert an older one to a freighter using its own expertise? (Before they sacked hundreds of engineers).
No overheads. No cabin crew, no hotel rooms, no transport for cabin crew, no check-in staff, no lounges, etc. etc. etc.
NZ is an exporting nation, we rely on export of perishable cargo to markets like Oz, Japan, US.

[duncan macgregor]

quote:Originally posted by Skol

The unfortunate Morrie Davis made the statement many years ago that "there's no money in freight".
Since that time freight airlines have boomed but AIR has never got into it, except outsource a freighter and crews from other operators. Why would an airline do that when it must be cheaper to do it itself, it has crews, it has aircraft, could convert an older one to a freighter using its own expertise? (Before they sacked hundreds of engineers).
No overheads. No cabin crew, no hotel rooms, no transport for cabin crew, no check-in staff, no lounges, etc. etc. etc.
NZ is an exporting nation, we rely on export of perishable cargo to markets like Oz, Japan, US.

If you are looking for common sense to prevail you are in the wrong place. macdunk

[Skol]

You're probably right macdunk, I talked to a former AIR manager a while back. He told me he "thought he could make a difference, but it's not possible'.

[rmbbrave]

Air NZ to outsource 70 jobs in finance to Fiji in 2007

Saturday September 30, 2006


Workers at Air New Zealand face more outsourcing of jobs with the airline confirming about 70 finance department clerical workers' jobs will be outsourced to Fiji.

An Air NZ spokeswoman said workers who were affected by the decision were told about two weeks ago, through an internal-only announcement.

About 70 clerical jobs in Air NZ's finance business area, now called Financial Shared Services, will go to Fiji from January 2007.

The spokeswoman said the airline had no further comment to make on the decision.

The Service and Food Workers Union - the union representing the finance workers - said members had been in a constant state of consultation and restructuring for years and workers were demoralised by the lack of response from the airline to their submissions.

Union regional secretary Jill Ovens said Air NZ corporate management was driven by ideology. The focus was to secure a low-paid workforce who were passive and compliant, she said. Ms Ovens said it was likely more jobs in finance would go over the next 18 months.

- NZPA
http://www.nzherald.co.nz/section/st...ectid=10403699

[BRICKS]

BRICKS will be in WELLINGTON Thursday night at MIDNIGHT papers Welcome.. [8D]