AIR - Air NZ.

[trackers]

Could the slump be due to Helen Clark's bashing of Air New Zealand over the chartering? Perhaps investors are pricing in further losses due to the prospect of more government involvement in the company.

No, its to do with a very large global player entering into the domestic market as a major player.... Wouldn't read much more into it than that I reckon...

There's definitely room for another player, but will take a while for the dust to settle from this I suspect

[biker]

May still be flying but domestic is Air New Zealand's main, number one, primary, substantial, consistent profit centre. Domestic competition wont put them out of business but they will inevitably loose traffic and will be unable to increase yield to compensate. Virgin are cunning operators and even more cunning marketers. It has been a golden period for AIR domestic over the last 12 months but the market knowns things are about to change.

Having said that, there are some big sellers in the market at the moment and when they have gone and when AIR announce their annual result and some new domestic initiatives next week,I think there may be a bit of a bounce in the share price. I'm back in for a while at 2 bucks.

[trendy]

Competition!

Pacific Blue to take off with $39 fares
| Thursday, 23 August 2007

Australian airline Pacific Blue has ushered in a new era of competition in New Zealand skies, offering $39 special fare flights on trunk routes in this country.

Flights will lift off from November 15, reporters were told today as more details were revealed about the move, which puts Pacific Blue into direct competition with Air New Zealand and Qantas.

Intitially the carrier will fly on key trunk routes: Auckland-Wellington, Auckland-Christchurch and Wellington-Christchurch.

There would be five direct daily return flights from November 15, the airline said.

The $39 fare was a special sale fare, one-way, purchased on the internet.

[biker]

Hard to compete effectively with only five services a day and now the market has the facts it doesn't seem so worrried. Nice to see the share price up 4-5% on the Virgin news.

[peterb]

214,000,000 net profit divided by 1,051,682,560 shares = $0.203 earnings per share

804,191,058 owned by the NZ government = $163,639,574.30

divided by 4,233,889 = $38.65 NZD per New Zealander or $27.35 USD

Total GDP per capita of Malawi = $161 USD

Proportion of mean Malawian GDP represented by profit attributable to each citizen or permanent resident of NZ from the just announced AIR NZ profit: %17

I think we're doing ok

[biker]

Having said that, there are some big sellers in the market at the moment and when they have gone and when AIR announce their annual result and some new domestic initiatives next week,I think there may be a bit of a bounce in the share price. I'm back in for a while at 2 bucks.

Latest stats show International improving as well. Happy to see a 25% gain in a month.

Why start a new thread Phaedrus?

[QOH]

How much lower can it go? At $1.29 it's looking cheap to me .

[JBmurc]

How much lower can it go? At $1.29 it's looking cheap to me .

-Have to agree going off ASB securities AIR have some great fundamentals
low P/E-4.8 High yeild-11.57% NTA-93c this time last year mid $2
-But with there greatest cost being fuel and the slowing economny, though record amounts of NZ'er are using AIR to leave NZ
- may look at taking a position at these levels would be a good hedge to all of my Oil&Energy shares

[Dr_Who]

--But with there greatest cost being fuel and the slowing economny, though record amounts of NZ'er are using AIR to leave NZ
-

This is the only reason I have not bought into AIR. I like the management team and the CEO with good business concept. But the oil price and slowing economy may result in future downgrades?

[CJ]

-But with there greatest cost being fuel and the slowing economny, though record amounts of NZ'er are using AIR to leave NZ

Problem is going across full, coming back empty so only 50% load factor