AIR - Air NZ.

[Beagle]

Of course the alternative is 'Air NZ goes broke leaving thousands unable to use credits or get refunds....'. That said I agree with you that statement is unfortunate right now although I doubt you would be happy whatever they said.

Some contrition that they acknowledge they have caused customers heaps of difficulty with their lack of call centre staff and inequitable credit system would be a start. Then going on to say we are looking at making it a lot easier for people to use their credits which can be applied to flights for whomever the credit holder chooses and these credits no longer have an expiry date would be far more fair and reasonable. People should be able to, for example, hold on to their business class return airfare credit to Vancouver until they feel its safe to travel their again, not if and when AIR ever allows them too. I really think someone needs to run a test case through the consumer guarantees act and / or fair trading act. You pay for a service, the supplier can't provide that service in a reasonable timeframe, my understanding is you're entitled to a full cash refund under the CGA which covers both goods and services.

For Greg Foran to say AIR have an "outstanding reputation for care, compassion and heart" is a grossly misleading representation of how they're currently treating customers. Even if he used the past tense "had an outstanding..." some would say that really stretches the truth.

Why not just come clean and simply say we'd go broke if we refunded everyone but we are introducing flexi credit, use it as and when you like with no time limit for whomever you like. I suppose its too much to ask for honest talk and fair play ?

Disc: I spent most of my remaining airpoints last weekend because I think there's a chance they might simply "disappear" under the auspices of we are sorry but we have no alternative but to invoke the force majeure clause of this system...we thank you for your understanding...etc

[winner69]

Hey Beagle .....AIR in full flight heading to FL200

OCA ascent stalled and flight plan says drop to FL90

[jmsnz]

Some contrition that they acknowledge they have caused customers heaps of difficulty with their lack of call centre staff and inequitable credit system would be a start. Then going on to say we are looking at making it a lot easier for people to use their credits which can be applied to flights for whomever the credit holder chooses and these credits no longer have an expiry date would be far more fair and reasonable. People should be able to, for example, hold on to their business class return airfare credit to Vancouver until they feel its safe to travel their again, not if and when AIR ever allows them too. I really think someone needs to run a test case through the consumer guarantees act and / or fair trading act. You pay for a service, the supplier can't provide that service in a reasonable timeframe, my understanding is you're entitled to a full cash refund under the CGA. The CGA covers both goods and services. To say AIR have an "outstanding reputation for care, compassion and heart" is a gross and extremely misleading representation of how they're currently treating customers.

Why not just come clean and simply say we'd go broke if we refunded everyone but we are introducing flexi credit, use it as and when you like with no time limit for whomever you like. I suppose its too much to ask for honest talk and fair play ?

Don't get me wrong, I am not defending them and I certainly think their messaging could have been an awful lot better than those statements which I agree are awful. As someone with a business associated with tourism who has seen their costs remain unchanged but revenues go close to 0, trust me it is a very confronting situation. We have had to make some very difficult decisions as have Air NZ and my point is that it wouldn't matter what they did there would be a very significant number of people that would very negatively impacted. It might just turn be that this is better than the alternatives.

[Beagle]

Hey Beagle .....AIR in full flight heading to F200

OCA ascent stalled and flight plan says drop to F90

I think you got the wrong company that's going to stall. AIR going too and lose heaps of altitude. Game still on to see who reaches FL100 first

[winner69]

Jetstar caught the pissing customers off trick ...but theirs is big time bad

https://www.stuff.co.nz/business/300...n-cancels-some

[Blue Skies]

Yep, if Air NZ are going to claim that kind of positioning it would be nice if they walked the talk and gave a **** about customers who can’t fairly use their credits. Surely the $900 m government loan facility is there to be used to run their business and do the right thing.

Interesting listening to Gregg Foran being interviewed on radio this afternoon.
After stating AIR could not afford to refund all the pre paid travel, he was asked that exact question, i.e. are you avoiding refunds so AIR will not have to dip into the $900 M Govt loan?
His rather shocking reply was, No, even without the refunds, AIR forecasts show they will be using that Govt. (convertible) loan within a couple of months & will need all of it.
That must come as a bit of a shock to anyone who is still investing in AIR because if/when that loan is Converted (& how on earth are they going to be able to repay it with interest ) it will severely dilute the value of the shares.

[winner69]

Interesting listening to Gregg Foran being interviewed on radio this afternoon.
After stating AIR could not afford to refund all the pre paid travel, he was asked that exact question, i.e. are you avoiding refunds so AIR will not have to dip into the $900 M Govt loan?
His rather shocking reply was, No, even without the refunds, AIR forecasts show they will be using that loan within a couple of months & will need all of it.
That must come as a bit of a shock to anyone who is still investing in AIR.

Not surprising ...but as you say might shock a few punters

[biker]

Perhaps these Air NZ forecasts of some gravity that the CEO is quoting in the media should be posted as announcement on NZX to stay compliant with continuous disclosure obligations? Might be helpful to the rampant optimists bidding up the share price.

They won’t do that because it’s not an official Air NZ forecast. It is simply a very very experienced CEO doing his best to smooth the troubled waters, saying what he needs to say and it may or may not, be true.
He’s playing corporate hard ball not tiddlywinks.

[CKWJ]

Interesting listening to Gregg Foran being interviewed on radio this afternoon.
After stating AIR could not afford to refund all the pre paid travel, he was asked that exact question, i.e. are you avoiding refunds so AIR will not have to dip into the $900 M Govt loan?
His rather shocking reply was, No, even without the refunds, AIR forecasts show they will be using that Govt. (convertible) loan within a couple of months & will need all of it.
That must come as a bit of a shock to anyone who is still investing in AIR because if/when that loan is Converted (& how on earth are they going to be able to repay it with interest ) it will severely dilute the value of the shares.

Cynical, but the timing of his remarks is on a Friday afternoon, without a trading day the next day, no time for the market to react, shareholders have the weekend to forget he said it. That being said, in this market he might as well say the government is bailing out the airline tomorrow and the SP goes up by 10c in a day.

Another thing to consider is the competitive landscape in the short term with the TT bubble. Across the ditch we have a well-capitalised rival in Qantas who has the ability to stand down staff without pay, and bring them back only when needed. Most of their world-wide network is offline and I can see them using the TT bubble as the opportunity to make inroads to Air NZ's position in the post-covid tasman market. They'll use Jetstar at the bottom end of the market and to put downward pressure on prices in the NZ domestic scene, even if the media coverage today wasn't good. Who knows what will happen once and if Virgin Australia get new owners.

[Traderx]

This frankly unbelievable SP surely allows AIR to quickly launch an equity raise? What are they waiting for?