... and you cant really blame Greg
I'm hoping that Govt are trying to justify this to the public by being so business minded, but I fear it is a lifeline round the throat for govt control
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... and you cant really blame Greg
I'm hoping that Govt are trying to justify this to the public by being so business minded, but I fear it is a lifeline round the throat for govt control
Loan terms were negotiated on an arms length basis with independent advisors ....whatever that means
Shylock rates because they really stuffed ....go to lender of resort and hope he’s not to tough.
What govt borrows at and what aussie banks lend to Qantas at irrelevant ..except a sign of the desperate situation AIR is in
I have a theory that at that moment in time Labour did not want to be seen as propping up big business unless it was on arms length commercial terms. Since then they seem to have had a rethink and propping up any business that keeps people employed is seen as being politically correct.
Singapore airlines one of the first cab's off the rank with a massive deeply discounted rights issue. https://www.theedgesingapore.com/new...vertible-bonds
Check out how much of their fleet is currently grounded !
Interesting article from Bloomberg on which airlines might not survive and how long cash reserves may last. Annoyingly has left off Air NZ.
The Airlines Most in Danger of Going Under During the Crisis
Changes of a capital raising at 0.20c ?
I think your wrong there mate! Propping up businesses that keep the economy running more like. In essence buying time to allow us to knock the bastard off and still have businesses to function afterwards.
I'm interested to know what you think is a better option? Let them all go belly up?
Temasek is Singapore Super Fund isn't it? so its comin from the guvmint.
Edit Answer the questions
Yes it was started in '74 to manage Singapore's assets and is solely owned by the Minister of Finance (Singapore). Operates on a commercial basis and the a majority shareholder in SIA.
(So its a very similar situation in a way to us really !)
Perhaps. But a privately owned airline, facing the virtual shutdown of its operations for an extended time, would fold and go out of business in these circumstances. I'm no fan of nationalisation but a national airline is essential for NZ's economy in 2020.
Disc: I don't invest in airlines.
A lot of people in the general public have been loading up on these.. flavour of the month
Do you know for a fact that “a lot of people in the general public” who have been “loading up” on this? Or just an opinion? I reckon they’re mugs if they have and going to be lambs to the slaughter soon enough.
AIR is in big trouble, soothing the cashflow for the meantime, with a modest government injection will lasting a few weeks is one thing, but the balance sheet damage will be long lasting.
I’m with Beagle on this one, it’s a train wreck, sadly through no fault of its own except maybe not moving quickly enough to quarterise the damage. Whole business is basically shutting down!