Agree, but plenty of (other) risk there, too.
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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 !
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.
Air Chatham cutting flights to the Chathams
https://www.stuff.co.nz/business/ind...to-coronavirus
Govt shareholder is last resort financier, for a price (% holdings), we saw how low the SP went before the govt stepped in last time. Holding 50% this time if it collapsed the govt surely would nationalise the airline, i.e. forced buyout all shareholders at some desperately low SP.
A good article in the Herald 4.5 years ago. SP not far off now where it was then so a nice little history refresher course https://www.nzherald.co.nz/business/...ectid=11508152
More domestic and international flights cuts by AIR due to corona beer.
https://www.stuff.co.nz/travel/trave...virus-outbreak
Those that make the decisions made the decision some time ago (as in: I forget when and damned if I m going to go look for it) to reduce the amount of cash they held and it is this deliberate policy that the above trend is a result of.
This is one of the prime reasons for the current mismatch between current assets and current liabilities.
Historically AIR was at the more conservative end in this regard and even now, probably still is.
Probably best not to invest in airlines at the moment. :p
Some airlines still planning for a better future, even if it involves more nightmares:
https://www.marketscreener.com/SOJIT...ices-30057087/
Not sure, though I would have purchased planes from the the maker of the well feared 737 Max ... but at least they avoided the Rolls Royce engines to go with them. This must be a silver lining.
Coronavirus & the daily media & internet drenching of hysterial headlines can make us a bit short sighted.
For those holding AIR, keep in mind looking ahead (& once there's effective medication for those who need treatment from Coronavirus which looks like only months away, or it naturally fades or vaccines produced ) air passenger numbers projected to double by 2037 with huge & the most growth in the Asia Pacific region & an extra 2.3 billion passengers for a total of 3.9 billion passengers in this market alone.
https://www.iata.org/en/pressroom/pr/2018-10-24-02/
Sure ... though I doubt they considered in this analysis global warming and flight shame. Linear extrapolations are sometimes useful, but always wrong :):
On top of that - one of their "working assumptions" to come up with this numbers was that the trend to globalization continues. I doubt that.
Anyway - I think the current discussion is more around whether it is more fun to buy AIR for $2.00, $1.00 or $0.50 per share. No matter how much or little you pay, you always end up with the same share of the airline which may or may not have a great future.
Why paying full price if you can get it some weeks later as well at a nice discount?