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Yeah because they were probably working for him, but he's working for shareholders. In the time he was there, share price more than doubles and they continue to get dividends. I would say that investors would have been happy with that.
The thing is in airlines, a good CEO is either good for shareholders or employees, I don't think they can be both.
AIR made money throughout the GFC which shows it is very resilient...but people were seriously concerned about their finances then...being seriously concerned about the prospect of death is something entirely different and I would say potentially far more serious. If they start flying with 8% lower load factors at an average of 2-3% lower yields that $400-500m less revenue effect as you quite rightly suggest, comes straight off their bottom line. They're smarter than that though and will reduce frequency of service to try and keep load factors profitable but there's only so much you can do when demand falls significantly before a company becomes like a sick cat chasing its own tail down in a descending tailspin.
On the weekend I heard Hello travel advertising return fares to Australia for $299 inclusive of taxes, (of which they are very steep to exit Australia) I would think close to half that fare is taxes and $299 is not something I can recall for a very long time which gives an interesting insight into where airfares might be headed. i.e. Its not just load factors that could come under enormous pressure, yields could too.
Disc: No position but wish I could find an easy way to short this.
Pretty interesting chart here too. Had to break it down to the 4 hour to get a good fit but it looks like a decline to 2.70 is happening right now and this will be the area to watch. A close below 2.70 has 2.6 and then 2.5 in sight. Pretty solid support at 2.50 so don't think its a straight shot, but 2.40 could be on.
Attachment 11028
About to book very expensive flights to Nelson through air NZ, not put off by Coronavirus at all. Wouldn’t fly to Asia though.
I'm currently sitting on an AirNZ flight from S Korea to Auckland. It looks about 75% full. I wouldn't know wether that is normal or not.
Also I've been watching the very long movie "Time to destination".
it is very uninteresting ........I do not recommend it.
Lightened the load a little bit. Can't help but think that this will affect AIR. SA reducing services ... https://www.singaporeair.com/saar5/p...htcapacity.pdf
Had plans for a personal trip to Asia mid this year, have shelved it for now ... expect many to be doing the same. Even at work, most reducing trans-tasman travel if they can avoid it.
Just the beginning of widespread flight cancellations worldwide by almost all airlines, in my opinion.
Of course AIR's unionised workers will still be expecting their usual last year + 2-3% annual increase.
Just out - AIR cuts Hong Kong services https://www.nzherald.co.nz/business/...ectid=12309619
Beagle - you really do enjoy kicking unions and unionised workers yet I am pretty sure you would have no objection to Employer Unions -also known more commonly as the likes of Federated Farmers, Chambers of Commerce, Employers and Manufacturers Association etc etc etc.
I am not anti these groups at all - but to call a spade a spade they are essentially or in part lobby groups - employer or industry unions if you like.
They act as a union would - lobby for the best outcomes of their members. Yet there is no outcry when in the past they have lobbied for tariffs on imports to protect their profits - oops I meant industry - all the while happy for Joe public to pay the inflated prices they charged.
So why is it that workers union bad employer union good?
Anyway for what it is worth Beagle in tough times in years and decades gone by Air NZ worker unions have FORGONE wages rises for the sake of all in the company -on more than one occasion. How about laying off the workers who keep Air NZ going eh? Maybe your wrath can be turned on the HQ fat cats starting with the abruptly departed smooth talking Low Wage Luxon.
corporate travel announcement provides a good guidance on impact of virus to date. feb bookings down 50% :scared:
https://www.asx.com.au/asxpdf/202002...qp8m38mldy.pdf
Thanks. I am expecting AIR to downgrade (the first of several downgrades) FY20 guidance when they report on 27 February.
I assume anyone still on board this one has a very strong stomach and their seat belt firmly tightened because they are in for some extreme turbulence directly ahead.