AIR - Air NZ.

[sb9]

Behind paywall on NBR, can't access the content....

"Air New Zealand puts hold on Philippines service"

[iceman]

Suspended until further notice. "Industry source" says bookings well below expectations

Behind paywall on NBR, can't access the content....

"Air New Zealand puts hold on Philippines service"

[Beagle]

Air New Zealand [NZX: AIR] is postponing the launch of its direct service to the Philippines, which was due to start in December, until further notice.

The airline says administrative delays in being able to make the new route available for sale, coupled with the traditionally longer booking window for the market, prompted the decision.

An industry source, who wishes to remain anonymous, has told NBR the bookings were well below what was expected for the non-stop direct service.

Air New Zealand, however, says bookings never opened for the service.

The first air link between the Philippines and New Zealand was launched last December by PAL (Philippines Airlines). This runs from Manila via Cairns in northern Queensland to Auckland.

The industry source says this is a popular leisure route and can justify the transtasman leg as an add on.

Initially, most of the traffic for this service is expected to be Filipinos living in New Zealand and Kiwis wanting a choice of holiday routes into Asia.

Note: Updated to correct route of PAL's Manila-Auckland service and add Air New Zealand comment on bookings.

Make of that what you will...

[sb9]

Thanks Roger and iceman.

[workingdad]

Well there was certainly some activity this afternoon and price holding up which is reassuring, even after market trading was at 2.12 or higher.

Concerns of sub $2 are looking less likely or ominous.

There have been plenty advising against catching knives and waiting for signs of a turn around. Not quite there yet but am I alone in thinking AIR is looking better and better.

[couta1]

Well there was certainly some activity this afternoon and price holding up which is reassuring, even after market trading was at 2.12 or higher.

Concerns of sub $2 are looking less likely or ominous.

There have been plenty advising against catching knives and waiting for signs of a turn around. Not quite there yet but am I alone in thinking AIR is looking better and better.

The share price is volatile and still unpredictable IMO, for those of us with holdings big or small purchased at higher prices, worrying about catching falling knives is irrelevant and most of us are happy to collect a pile of excellent divvies over the coming years while the price oscillates between X and Y.

[iceman]

Make of that what you will...

Roger what do you read into this ? I firmly read that AIR did not do their homework and have found through travel agents that they don't have the market for this service.

[iceman]

On another note. I do not understand why AIR is not marketing their Buenos Aires route more as 1 of 2 things:
1: An alternative route for Kiwis to go to Europe, via BA
2: An alternative route for Chinese going via Auckland rather than Europe as they do now

From what I have seen (frequent traveler) , they have had very good loads from the beginning on this route but I do see a big drop in loads beyond southern hemisphere summer. So why not get some of the traffic from NZ & AUS to Europe in the northern hemisphere summer, travelling through this route. I have just had a ticket search for me by a travel agent going from NZ-Europe-Argentina-NZ with preference to be on AIR or other Star Alliance partners. They came up with lots of options but not via BA. I will end up going through Houston (probably would have gone LA so no benefit for AIR), then Lufthansa to Frankfurt and BA before AIR back to NZ. But the other options AIR gave me were really bad connections and did not include BA. They need to get the S into G. They are completely failing to utilise this route

[Beagle]

Sorry mate I don't have any visibility on the Philippines thing.

[Beagle]

https://nzx.com/companies/AIR/announcements/284580

Its great they've sold the vast majority of this flea infested pup for 33 cps which compares very favourably with yesterday's closing price of only 23.5 cps.
i.e. AIR sold at a meaningful premium to NTA and the stock now trades at a significant discount to asset backing, (SP where it really belongs in my opinion based on my own assessment of its prospects).
Folks can now rest easy...there will be no Ansett MK2 and the previous management's mess with Virgin has now been almost completely cleaned up.
A nice clear unencumbered flight path is a beautiful thing to behold, as any pilot would be happy to attest.
Regarding the prospects for a financial year end special dividend. Record ever profit at peak of cycle earnings, vast majority or Virgin stake sold and funds received and exchange rate at over 70 cents U.S. reducing balance sheet footings in regard to debt level's in $N.Z....Join the dots...