AIR - Air NZ.

[waterboy]

Well my timing was lucky for change sold my holding yesterday at 1.18 now at 1.11. Oil price down nicely overnight just in time for those world cup fans to come over which should be a good scenario for AIR but will it be reflected in a share price increase or are stocks just to scary right now to see any positive movement coming.

[percy]

Well I believe one or all the 747s sitting at Auckland airport have been sold.
What upsets me is one has been sold to Israel,who will convert it to a freighter.why AIR leaves frieght to Emmerites and others beats me.They should have converted one to frieght themselves.

[percy]

[QUOTE=belgarion;361117]Percy, the largest airline fleets in the world are (or used to be) frieght and parcel ones. The two types of businesses - passengers vs freight - are very, very different. Thus just few 747s isn't going to make a very good freight business.[/QUOTE

every night Emmerits are flying out of ChCh with a full load of freight to Sydney.does not matter whether they have a paasenger on board or not because freight pays.Qantas are also carrying a huge amount of freight out of Chch to Sydney.
Air NZ are not,because they do not have the freight capacity.Neither qantas or emmerites are freight airlines.

[Jay]

Saw a Qantas freight plane leave Auckland Airport the other weekend - so may operate out of Auckland as well.
Thre are a number of freighters that fly out of Akl. Maybe with only 1 or 2 planes cannot compete??

[percy]

I should point out a good friend of mine who follows shares works for air new zealand in ChCh,and he tells me AIR are missing out on this huge amount of freight going to Sydney all the time.Now I believe the 747 was sold for $40mil and will cost very little to convert to a freighter.Had this been done,instead of sitting on the ground at Auckland AIR could have had this market sown up.

[modandm]

I should point out a good friend of mine who follows shares works for air new zealand in ChCh,and he tells me AIR are missing out on this huge amount of freight going to Sydney all the time.Now I believe the 747 was sold for $40mil and will cost very little to convert to a freighter.Had this been done,instead of sitting on the ground at Auckland AIR could have had this market sown up.

your friend should know better percy. There are enough passenger aircraft crossing the tasman to carry frieght that there is noo need for a freighter (except DHL's own).

the 777-300er carries 40% more freight than a passenger 747 and emirates are flying a number of them daily from nz to sydney with an average passenger load of around 50-60%, well below what is economic. They have MASSIVE excess capacity to carry frieght and try and make up of the losses on the route. AIR can't and doens't want to compete in this market because they will lose money - AIR actually entered an agreement with emirates to cooperate by acting as a freight reseller for Emirates - effectively clipping the ticket.

Further AIR had a freighter and got rid of it. You can be assured they did the numbers.

[modandm]

To anyone else invested in AIR - we can look forward to operating stats next week as well as the Annual Analyst day presentation - which tends to be the most interesting of the year. The september stats were disappointing indicating people were not travelling due to RWC and no school hols. So we will need good stats for october and november.

Air has also recieved its 4th 77W and 3rd A320 (domestic) - the A320 brings 20% lower seat mile costs to the 737-300 so having 4 in the fleet by end year should really get the domestic business a kick. The transtasman business and seats to suit has been so strong they are adding another a320 - back from lease and with Virgin super busy in Aus, Air is flying virtually all the capacity transtasman. With Pac Blue's shoddy product I wish virgin would move over and stick to aussie. Their 737's are better for short hops anyway where the A320's suit the TT perfectly.

Key things we will be looking out for are:
- Longhaul review outcomes
- Update on trading through RWC and guidance

[modandm]

Now I believe the 747 was sold for $40mil and will cost very little to convert to a freighter..

Really if they got $40m for it I would be over the moon. They bought one for $15m not long ago. Also conversion to freight costs $18-$25 million USD from what I understand.

[percy]

Really if they got $40m for it I would be over the moon. They bought one for $15m not long ago. Also conversion to freight costs $18-$25 million USD from what I understand.

Hope to catch up with my friend over the weekend so I can add "some facts". $40mil is wrong.sorry.

[percy]

Saw a Qantas freight plane leave Auckland Airport the other weekend - so may operate out of Auckland as well.
Thre are a number of freighters that fly out of Akl. Maybe with only 1 or 2 planes cannot compete??

This service started about 4 years ago.Sydney,Auckland,christchurch,Sydney.was 4 days a week using a 767.they then brought a 767-200 from USA,which ran 5 days a week. They have now brought a freighter x ANAreg VH-ERF which works 6 days a week.Qantas are more than happy with the loads they are achieving.