One airline is set to announce next week that they are leaving the NZ market and taking their aircraft to a more profitable routing where they can sell bottoms on seats rather than cargo in the boot. Big hit for NZ importers/exporters.
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One airline is set to announce next week that they are leaving the NZ market and taking their aircraft to a more profitable routing where they can sell bottoms on seats rather than cargo in the boot. Big hit for NZ importers/exporters.
Seems some investors must be thinking that way currently. With all going on with AIR and Covid it seems surprising the SP has actually increased back into the 1.5 range. Is the power of the retail investors strong enough now to hold an SP up higher than what it should actually be, simply through the belief that Air NZ cant fail and will come back. Goes against all logics that SP is not still steadily falling with the looming deferred capital raise and ever increasing debt.
How has the SP gone back up to 1.55!?
It could be from a cargo perspective.. but what it does highlight is that NZ is getting left behind in the economic recovery due to our border policy and low vax rates. Our national carrier cant openly sell bums on seats, while the rest of the world is starting to.
just need to persuade our PM to share a view similar to her Singaporean and Australian counterpart that's all
Does it make any sense that AIR is rallying looking to test resistance of 1.60. With massive inevitable looming capital raise, and huge debt by then, how is the market rallying AIR currently?? By most analysts accounts AIR SP will be below $1 (possibly 0.75-0.85) by the time the capital raise comes around, so shouldn't we be seeing a gradual steady decline in SP?
Totally agree. I spoke with a mate who is still in and he believes they are worth close to $2 per share when things get up and running. Plus many of his mates who are tradies are into AIR. I mentioned to him to consider selling while the price is this high. I don't know why during a pandemic that you could "invest" in AIR
The incredible thing imo is that this is all written in the history of AIR, after the Ansett debacle in 2001 which in current times will be the Covid debacle. It's even published on NZX, the story of Covid for AIR will read very similarly to the second paragraph of the history. I recall the SP falling to $0.21 (from I think over $11 a year earlier) and existing holders were severely screwed and diluted to oblivion.
Its going to be a long day by the looks of it before the night.
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Like flying Auckland to Perth...the day never seems to end.
The historical prices that places like Yahoo finance quote for the year 2000 are adjusted figures, not the actual share prices from the day. The price was in the $2 to $4 range for the later 1990's before Air's collapse and bailout. It then did fall down to circa 20c, and my recollection was a low of 13c. They then had the government bailout in the circa 20-25c range that hugely increased shares on issue. Soon after this they had a 5:1 consolidation that returned the price to above $1. This 5:1 consolidation however caused all these earlier $2 prices to start being reported as $10 prices. It also cause a lot of general punters that didn't follow closely to see $2 prices before the collapse and $2 prices sometime after the collapse and not realize the full wealth destruction that had occurred.
There was the 90%+ fall, but not quite $11 to 21c.
That’s very much how I recollect it as well
Bottom line that’s relevant today is that shareholders who held through thick and thin took a real haircut when the government bailed them out (through dilution) ….and those shareholders included Brierley and Singapore Airlines.
I’d say dollars to donuts history will repeat itself