The history of ex-politicians on boards is pretty abysmal so got to be good that John Key is moving on.
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The history of ex-politicians on boards is pretty abysmal so got to be good that John Key is moving on.
Sharply rising oil prices due heightened US Iran tensions might not be so good for airline stocks on Monday.
At these levels, happy to reduce my holding from 6% to 3% of portfolio. Still a lot of hurdles to face this year & next from what I hear, & you'ld have to be tone deaf not to hear a few alarm bells with new CEO asking all employees to find & suggest areas to make savings. Not the first time an airline CEO has done this & it's not a good look for the brand, but surely borne out of necessity.
My opinion is AIR has got bloated with an extremely long period of many years of wage settlements with unions at rates materially above the above inflation rate and the compounding effect of this is on an international basis they're not especially competitive any more.
Thank you for posting. In my opinion its good that Greg Foran is looking at cutting costs, that should be his focus. I'm sitting on this being ~ 2% of my portfolio and have no plans to change that.
Hmmm Beagle, I will respectfully disagree re the Union part of your comments.
The settlement rates have been not that far off inflation and have been progressively more parsimonious.
Air NZ has a responsible union it deals with and negotiations have been tough but fair over the past few annual rounds.
Unions have proven good for workers at the company and the company itself has expressed satisfaction with outcomes jointly negotiated.
If you wish to want to see cost cuts - then I can suggest middle to higher management levels. There are large numbers of folks at the head office with titles with the word manager in it (and the salary package to go with said title) and yet they have no direct reports.
There is money on the table - in the head office.
Ha, yes agree on both counts.
But sentimentality has blinded me in the past & as you know it's such a cyclical business & facing v significant disruption from these maintenance issues with little resolution in sight.
Easy to get too attached to a particular company but Ive seen this AIR movie before, & each time kicked myself for not reducing my holding while watching the SP slide backwards towards the 260's.
Maybe it won't happen this time but we'll see.
Still hold a significant number at 3%, airlines far too seductive for me to let them all go. :)
Agree. In the digital team alone four significant restructures and three exec level managers in the last six years alone. With every restructure comes a change of title and an increase in the number of managers along with increased inertia driven by fear of the next restructure.
Greg Foran will bring a tight focus on cost, something that's badly needed at AIR. Be extremely rigorous and thorough would be my advice to him.
Herald reported recently in his first 100 days he plans to meet with 1200 managers and senior staff within the airline.
I think the number 1200 is half the problem...
Christopher Luxon has been cutting costs for the last 7 or so years. It’s not like someone has just forgotten to do this. Ask any flight attendant and you won’t hear the end of it I’m told.
Unstable oil prices, no real growth (in fact deferred orders of A/C), no real scope for big growth moves (NY and maybe somewhere else I’m guessing) Flight crew are paid on the balance of it less than other comparative airlines. Much more competition Internationally, less domestically. No real fleet expansion on the horizon.
The only thing I see that is attractive is the dividend return and I’m not a full legend, but I’m pretty sure that if I were a Baby Boomer selling up my property, that the dividend would look mighty fine in a pretty secure investment like this.
just my two cents folks, no digs or otherwise.
22 cps in annual fully dividends = 22 / 0.78 = 30.56 cps gross = 10% gross yield at $3.05.
https://www.stuff.co.nz/business/ind...at-1720-return
https://www.stuff.co.nz/business/ind...are-their-tips
Shane Jones is most certainly NOT an industry expert.