Auckland International Airport Limited (AIA)

[Bjauck]

You ever been to Percuil …. just down the road from Portscatho …. or across the river from St Mawes

I travelled mainly along the North Coast - I met some crazy Scottish surfers at St Ives! "Doc Martin" characters were sane in comparison. Anyway I guess I am diverging from AIA.

[Marilyn Munroe]

The art of taxation(monopoly pricing) consists in so plucking the goose as to procure the largest quantity of feathers with the least possible amount of hissing.

Jean-Baptiste Colbert

AIA has been plucking too many feathers so the volume of hissing is louder.

Boop boop de do
Marilyn

[value_investor]

Key question for me with AIA is do you believe long term passenger numbers will double to 40 million as per AIA projections? I do believe this will happen long term, so will continue to hold despite short term downside from coronavirus. Has been very successful investment over long term. I would not be surprised if share price declines short term before returning to the long term upward trajectory.

I think they will be, its more of a when question. They reached the lucrative 10m mark in 2006 according to that annual report. Then the 20m mark in 2018. A slowdown in global travel will affect the rate of increase in the next year or so but I see it as a blip.

I think the real money earners are in the property investments long term for the business. My only take from that is, if AIA are becoming more of a property company, why pay 40x earnings. There is already stellar property companies such as KPG, GMT, PCT to name a few who aren't on as crazy of a valuation.

[winner69]

AIA Book Value $6 billion and market cap $10 billion seems reasonable

Strategic value of assets high?

[macduffy]

I agree, winner. AIA is more than a property company, although a very successful one. I don't see anyone developing an alternative airport for Auckland just yet!

[BlackPeter]

I agree, winner. AIA is more than a property company, although a very successful one. I don't see anyone developing an alternative airport for Auckland just yet!

No need to develop a second airport in Auckland, it - its already there: https://en.wikipedia.org/wiki/Whenuapai

[macduffy]

No need to develop a second airport in Auckland, it - its already there: https://en.wikipedia.org/wiki/Whenuapai

Yes, and AIA was developed because Whenuapai wasn't suitable for large jet aircraft. It's difficult to see how this could be accommodated these days, given Auckland's subsequent urban development in the area.

[Mr Slothbear]

AIA Book Value $6 billion and market cap $10 billion seems reasonable

Strategic value of assets high?

yes on that front it looks very reasonable but on the earnings / cashflow / the things that matter if you can’t liquidate the assets when they increase in valueside it is quite grim.


As a frequent consumer of air travel / member of the general public there is very good cause for a low cost 2nd airport in auckland. There are many cities especially in europe with populations smaller than aucklands that have 2 or 3 airports and competition does wonders.

flew hong kong to chch few days ago and Christchurch airport is a significantly better experience than auckland

[value_investor]

AIA Book Value $6 billion and market cap $10 billion seems reasonable

Strategic value of assets high?

Agree with you, its probably the only stock on the exchange I would hold with my eyes closed for the next 20 years. However, as a value investor its a steep valuation. This is in my too expensive pile with other great companies..

38 times underlying earnings, with single digit growth (likely to be negative for this year), low dividend yield..

[Joshuatree]

Trading Halt !!?

ZX Regulation (“NZXR”) advises that, at the request of the company, it has placed a trading halt on Auckland International Airport Limited (“AIA”) ordinary shares. The trading halt was placed at 3.59pm this afternoon.The trading halt has been put in place pending the release of an announcement by the company.
The halt will remain in place until the earlier of: • An announcement made by the issuer; or
• Market open on Monday, 16 March 2020.