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08-08-2016, 09:44 AM
#7791
True enough, but I think that when the crunch comes on, that's when it starts to matter who brings the tourists to NZ as the other airlines would have no vested interest in doing so and would drop the route if it suited them. This is why it's in AIR's interest to maintain an international arm, even if it becomes a loss leader (which seems unlikely given they would pick up the freight volumes if competitors back away).
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08-08-2016, 10:03 AM
#7792
Originally Posted by RTFQ
From a pure business model I think management would have ditched the international arm of AIR a long time ago. The return on investment is just not there.
AIR's international Ops is more about Branding for the Govt, waving the NZ flag and supplying customers to the profitable side of the business. I don't think it really matters who brings the tourists to NZ as long as they get to fly domestically.
You're focusing on the RPK rate in N.Z. for short domestic flights and not factoring in all the ground handling costs, aviation, landing fees or the fact that domestic planes are used for a relatively low hourly rate per day. I mean no disrespect but I couldn't disagree more.
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08-08-2016, 10:22 AM
#7793
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08-08-2016, 10:46 AM
#7794
Member
[QUOTE=Roger;631404]You're focusing on the RPK rate in N.Z. for short domestic flights and not factoring in all the ground handling costs, aviation, landing fees or the fact that domestic planes are used for a relatively low hourly rate per day. I mean no disrespect but I couldn't disagree more.
Higher frequency and synergies produce lower costs, ground handling and the alike. I suggest that the capital cost of the international fleet is 3 x that of domestic fleet numbers.
Yet the domestic ops produce 70% of the profit.
A good modelled company aims for 15% return on investment, an airline uniquely gets around 4% return.
On a side note UAL some time ago made a record profit of $900M, this equated to an average of $9.80 per passenger carried that year. Still a very poor return on investment.
Enjoy your posts R
Last edited by RTFQ; 08-08-2016 at 01:05 PM.
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08-08-2016, 11:03 AM
#7795
RTFQ it is obvious then that all airlines should close down. (smiley face if I knew how to produce one)
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08-08-2016, 11:16 AM
#7796
ok......I see an opportunity
Originally Posted by 777
RTFQ it is obvious then that all airlines should close down. (smiley face if I knew how to produce one)
Not all, leave a couple flying and let us buy share in them before the formal decree that closes the other bad apples. ROR will sort itself out...and demand.
This makes as much sense as no industry experience on Boards as required..not sure what everyone is on around here...
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08-08-2016, 11:26 AM
#7797
Originally Posted by Raz
Not all, leave a couple flying and let us buy share in them before the formal decree that closes the other bad apples. ROR will sort itself out...and demand.
This makes as much sense as no industry experience on Boards as required..not sure what everyone is on around here...
I love the smell of spent aviation fuel when standing too close to planes with engines running on the tarmac....it would appear some love it more than me
Last edited by Beagle; 08-08-2016 at 11:31 AM.
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08-08-2016, 12:50 PM
#7798
Member
Hi everyone. New here and new to trading. Have bought a small holding in AIR and have been enjoying reading everyone's thoughts and opinions.
Can anyone tell me what they estimate the upcoming dividend range will be including a possible special.
Thanks
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08-08-2016, 01:06 PM
#7799
Member
Originally Posted by simjp81
Hi everyone. New here and new to trading. Have bought a small holding in AIR and have been enjoying reading everyone's thoughts and opinions.
Can anyone tell me what they estimate the upcoming dividend range will be including a possible special.
Thanks
IMHO roughly about two and half times the length of a piece of string minus the amount of apples in a barrel of grapes. 0 to 40c lol
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08-08-2016, 01:21 PM
#7800
Originally Posted by simjp81
Hi everyone. New here and new to trading. Have bought a small holding in AIR and have been enjoying reading everyone's thoughts and opinions.
Can anyone tell me what they estimate the upcoming dividend range will be including a possible special.
Thanks
Welcome to the forum simjp81.
I would say the final divvy would be in 10-15c range and as for special its anyone's guesstimate. If you've time just go thro' few posts earlier in month of Jul where there's been good discussion about the possible special divvy which arose out of AIR selling out their stake in VAH.
If you would like a figure for special my bet is around 15-20c range, if there is one. Hope it helps.
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