AIR - Air NZ.

[Traderx]

Surely AIR needs to cancel its dividend due to be paid on March 25. Demand is evaporating internationally and could evaporate domestically very soon. Precautionary principal says they'll need all the cash they can get in coming months and so should hold on to every cent.

[Benny1]

Surely AIR needs to cancel its dividend due to be paid on March 25. Demand is evaporating internationally and could evaporate domestically very soon. Precautionary principal says they'll need all the cash they can get in coming months and so should hold on to every cent.

Shane Jones has probably been promised the governments share for more election bribes for Northland ( in return for him leaving AIR alone for a while!)

[dobby41]

Shane Jones has probably been promised the governments share for more election bribes for Northland ( in return for him leaving AIR alone for a while!)

Unneccessary bull*

[Beagle]

Dead right. I looked at the balance sheet this morning I was shocked. Look at the drop in cash too from pcp Any course in financial statement analysis presented this would come to one conclusion.

Cash and Short Term Deposits - spot the trend folks
June 2018 $1,343m
Dec 2018 $1,217m
June 2019 $1,055m
Dec 2019 $1,003m
June 2020 ??

The strength to withstand any conditions ?

[Beagle]

Surely AIR needs to cancel its dividend due to be paid on March 25. Demand is evaporating internationally and could evaporate domestically very soon. Precautionary principal says they'll need all the cash they can get in coming months and so should hold on to every cent.

The board really are "in denial" about the seriousness of this crisis. If one was being extremely kind about it you could possibly make the case that they have been caught out by the rapidly evolving nature of how the risk to the airline has developed, but I think that case is quite weak and they have been a bit reckless keeping the dividend the same. Perhaps they think they really do have the financial strength to withstand any conditions...but the last company I can think of that made that bold claim as part of their advertising was Hanover Finance.

[macduffy]

Travel on any aircraft, even N.Z. domestic flights will involve significant risk going forward. https://www.nzherald.co.nz/nz/news/a...ectid=12313758
Travel by private car has never looked so good !

Agree, but plenty of (other) risk there, too.

[macduffy]

Agree 100%. Not doing so would raise serious questions about the prudence of Board decision making as Beagle has alluded to. You would think Air NZs bankers would be wanting the company to shore up its balance sheet.

Luckily? the govt still has that big shareholding, an incentive to prop AIR up financially, if necessary.

[Beagle]

Agree, but plenty of (other) risk there, too.

True that but the key is you are in control of your own destiny at least to a certain extent...washing one's hands very thoroughly after touching a fuel bowser, paying by pay-wave, driving carefully etc and most importantly you are only in very close proximity in your car to people you choose to be with.

Anyway back to Air - I wouldn't want to be Greg Foran for all the tea in China, talk about a baptism of fire !! Welcome to the airline industry Greg, lets hope you're a very fast learner and already have Grant Robertson on your speed dial !

[peat]

Anyway back to Air - I wouldn't want to be Greg Foran for all the tea in China, talk about a baptism of fire !! Welcome to the airline industry Greg, lets hope you're a very fast learner and already have Grant Robertson on your speed dial !

Imagine the kudos if he navigates through this, though. I mean he's no Bezos but he's rich enough that he wont be working for the money anymore, so maybe he is fully enthused at the challenge.

With the govts backing and being the national flag carrier I guess the company is safe , presumably the state will do what it needs to so as to retain a sovereign airline , which doesn't mean the share price cant go down a lot but as with say Meridian its unlikely it goes completely down the gurgler.

[winner69]

Air Chatham cutting flights to the Chathams

https://www.stuff.co.nz/business/ind...to-coronavirus