Auckland International Airport Limited (AIA)

[blackcap]

How long can AIA last without additional funding or government support if the shutdown continues longer than 4 weeks is the question i am asking?

Have a look at their annual report and see how strong their balance sheet is. That will give you an indication. What are their fixed costs like? Can they lay off staff and survive on limited revenue? What kind of reserves do they have?

[limmy]

The council owns a lot of AIA, so they will want to make sure that it survives the hard times. Hence they'll support this strategic asset's application for central government assistance. If all else fails, the deferment of capital project should keep AIA solvent.

[Baddarcy]

Have a look at their annual report and see how strong their balance sheet is. That will give you an indication. What are their fixed costs like? Can they lay off staff and survive on limited revenue? What kind of reserves do they have?

Apologies @blackcap, i meant it as a rhetorical question, appreciate that wasn't that clear.

They have over $600m in current liabilities and $160m in current assets ($65m in cash). With no income coming in and a likeley much longer than 4 week shutdown, how long before they need more cash is the point i poorly attempted to make. A capital raising will be hard with the council as a major shareholder, a bond sale would be expensive given no income and they already have $2.8b in debt on their books.

I can't see any bonds due this year however which would be a positive for them. Plus i'm sure i wouldn't be the only one that would be in like a robbers dog if they had to do an emergency capital raising.

[blackcap]

Apologies @blackcap, i meant it as a rhetorical question, appreciate that wasn't that clear.

They have over $600m in current liabilities and $160m in current assets ($65m in cash). With no income coming in and a likeley much longer than 4 week shutdown, how long before they need more cash is the point i poorly attempted to make. A capital raising will be hard with the council as a major shareholder, a bond sale would be expensive given no income and they already have $2.8b in debt on their books.

I can't see any bonds due this year however which would be a positive for them. Plus i'm sure i wouldn't be the only one that would be in like a robbers dog if they had to do an emergency capital raising.

No need to apologise. I find that replying to posts gets you going through good thought processes which sharpens you up. The current liabilities to current assets you have listed looks a bit thin, however a call on capital would see many like you doing the robbers dog. Would that be the only way and would that be a sneaky way to dilute the council holding in AIA? For me I am not sure what the fixed costs are like, they would be the killer. But surely they would be less that those of the Airlines that service AIA? So possibly they can keep going on longer on almost nil revenue?

[macduffy]

Even minimal aircraft movements would require a significant number of staff I would think - security of the property alone must be considerable. I'd want to see a bit more than "almost nil" revenue coming through the business.

Disc: Holding, and lining up if there's a capital raising!

[Balance]

Even minimal aircraft movements would require a significant number of staff I would think - security of the property alone must be considerable. I'd want to see a bit more than "almost nil" revenue coming through the business.

Disc: Holding, and lining up if there's a capital raising!

See KMD going for a monster size capital raising - $207m vs market cap of $330m (pre-announcement cap).

Guess we will see a capital raising with AIA - and that will be the time to back up the truck and load up on AIA.

[ratkin]

See KMD going for a monster size capital raising - $207m vs market cap of $330m (pre-announcement cap).

Guess we will see a capital raising with AIA - and that will be the time to back up the truck and load up on AIA.

Have a feeling there will be some big infrastructure projects to help them out. Auckland Mayor doing some drum beating

[Balance]

Have a feeling there will be some big infrastructure projects to help them out. Auckland Mayor doing some drum beating

Second runway to be funded by a rights issue with Auckland Council contribution to the capital raise from the government?

[Arthur]

Is Auckland Council already at the top of it's debt limits?

[Marilyn Munroe]

Is Auckland Council already at the top of it's debt limits?

Don't worry Jaffa's Marilyn has your back.

My District Council was so keen to join LGFA (Local Government Funding Agency) they blissfully agreed to joint and several liability for other councils debt. I expect if Auckland's bonds go base over apex it will show up in my rates bill.

Boop boop de do
Marilyn