It is too quick off the block.. and it's grammar.
Sorry , couldn't resist.
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Some very good specials on grabaseat to Honolulu today. $633 return from Auckland. I continue to expect consolidation around the current level until we see the viability on numbers at the annual result.
The caveat is any escalation is verbal or physical hostilities over North Korea which would obviously affect all airline stocks to some degree. Holding for long term dividend yield including expected big special dividends in FY20-FY23 during their capex holiday.
Disagree. They are doing nothing more than an initial aircraft type scoping study this year. I think you'll find the decision and negotiations will be quite protracted and any meaningful initial deposits won't occur until well into next decade. Its clear to me they now have a very strong focus on discipline around carefully measured growth and I expect that to flow through into their capex decision making and timing. Don't forget they've only just completed a thorough refurbishment of the 777-200 fleet so I would expect a remaining useful life of approx. 10 years.
Agree with Beagle. The 777-200's are probably good until at least 2025 (20 years old by then for the oldest) so it's likely that's when they'll start a replacement program. Plenty of time to negotiate a good deal, particularly as orders for big new planes are slowing down and both Boeing and Airbus will be keen to get confirmed orders to keep the production lines going. 8+ years lead time is not unusual for new aircraft such as the Boeing 777X and Airbus equivalent so an order from a reputable established airline like AIR works well for the manufacturer. Lots of wheeling and dealing to be done yet, so it will be a year or two yet before an order is negotiated.