AIR - Air NZ.

[Jay]

Why do they lease some aircraft and own others? Is it to do with the estimated life span or tax treatment - write down the depreciation rather than the lease as a expense.
I know one is a capital expense and if they have the capital available, get a better deal overall from the supplier rather than lease from a 3rd party?
Just wondering

[dobby41]

Not life span as some aircraft type have both own and lease.
More likely 'purchased' at a time when leasing was more 'the thing' or they didn't have the borrowing capacity.

[777]

Also easy to return to lessor if there is a down turn and reduction in aircraft numbers is required. Selling them on a down market not easy.

[brend]

Yes looks good on a very quick skim read, I'll have a thorough read ASAP, interesting to note they own rather than lease all their dreamliners, they must think they're on to a good thing with those fancy new birds..anyway here's the link folks:, just click on the pretty aircraft picture http://www.airnewzealand.co.nz/databook

for aircraft on order have them made any prepayments/advances on them?

page 15 - "Give the cyclical nature of the airline industry" haha.
Talks about dividend policy, not share performance.

[Beagle]

for aircraft on order have them made any prepayments/advances on them?

page 15 - "Give the cyclical nature of the airline industry" haha.
Talks about dividend policy, not share performance.

Must have been a typo error Airlines are growth business

Yes they make deposits and progress payments on aircraft on order and in fact specifically mentioned that they got extra incentives from Boeing in the 2015 year so pre-paid earlier on some of their FY16 scheduled deliveries. See note 9 to the accounts page 16. Progress payments as at 30 June 2015 $525m, ($209m) previous year.

Now no more curly questions today mate...it is Friday after all !

[Poet]

Good initiative by AIR to produce this data book, it makes interesting reading. I was very surprised by the graph on page 12 showing 'share price performance compared to key indices' since 2010. In this graph you can see that AIR share price has barely outperformed the NZX50 over the last five years (by 6% in the five year period) and has only very recently overtaken the NYSE ARCA airlines index. Go figure...

[skid]

go figure,indeed.

This is a repeat from another thread,but I have a friend who ,in times of more than average uncertainty,simply shorts the share by the same amount as his investment and goes for the dividends.(cash flow)
in times of less uncertainty he shorts less,or not at all.(capital gain)

[iceman]

Have just completed my first trip on the new EZE-AKL leg. Wandered throughout the plane and had a good chat to crew. This particular flight had both BC and PE full and economy about 80-90% full. Crew told me most of the flights so far have had good loads, lowest about 75%. But 2 of the crew also told me that they've been carrying lots of freight so on some occassions load limits have been reached before seats are all sold out, if I understood them correctly. My observation was that mainly Kiwis & Aussies were traveling BC & PE (Antarctic cruises season on now) and a big majority in economy class appeared to be South Americans. I thought this was interesting and hopefully means more tourism between the 2 countries. In any case, looks like Buenos Aires has been a good choice.

[Beagle]

Good initiative by AIR to produce this data book, it makes interesting reading. I was very surprised by the graph on page 12 showing 'share price performance compared to key indices' since 2010. In this graph you can see that AIR share price has barely outperformed the NZX50 over the last five years (by 6% in the five year period) and has only very recently overtaken the NYSE ARCA airlines index. Go figure...

Hi Poet. I think there's two factors at play there. 1. 2010 was a low point for the airline coping with the fallout from the GFC and the effects of six billion dollars, (that's not a typo) of money that was wiped out by the collapse of dozens of finance companies in N.Z. Remembering that the majority of bookings are from Kiwi's you simply cannot lose that vast amount of money from people's personal wealth and while the memory is fresh without it having quite an effect on how people chose to spend their remaining disposable income. In short, people spend a lot less on travel when they feel poor.

2. The stock is presently under priced because it seems many (despite being in a period of pretty challenging economic times both nationally and internationally), think we're at the peak of the earnings cycle. My contention is that if oil was somewhat higher (say $70), and there was far more national and international economic growth I think AIR would actually do better than in this cheap oil low growth era where yields are compromised. Regarding the whole cyclical thing, a short while back I expressed my thoughts that I believed it was strange that the consensus analyst forecast for FY18 earnings was 32 cps given that analysts didn't see the same level of cyclicality with QAN earnings. I see analysts are starting to see my point of view and consensus eps for that year is now over 40.8 cps a pretty remarkable 28% increase. http://www.4-traders.com/AIR-NEW-ZEA...07/financials/

A couple of other interesting facts came out of that databook. Have a look at the projected average aircraft age over the next few years and check out the number of full time employees which was at its lowest point in 2015 despite the growth. New efficiencies and strong RPK growth are also part and parcel of why future earnings will be supercharged and in my view lower oil is less of an influence than people are realising due to its effects on yields.

[sb9]

Virgin Australia profits rise as domestic fares surge

http://www.smh.com.au/business/aviat...10-gmqr1w.html