Its impossible to evaluate the cost IF customers lose faith in the Dreamliners and possibly even the AIR brand.Only time will tell what effect this will have on AIR. Too risky for me.
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I agree that its difficult to imagine they escape this fiasco without some collateral damage. I am expecting a slick public relations campaign once this issue is fully resolved and some heavily discounted fares to get the public back on board. The question in my mind given that I think its crystal clear that all the Trent 1000 engines will need to be overhauled is how long will this entire process take ? Then we have the question about the durability of the new fan blade design that's already in the ten version of this engine and is the rest of the engine reliable ? I think this is likely to dog AIR well in 2019 and possibly even longer ?
Nightmare liner ? Look at the impac t already...more flight and aircraft changes than you can shake a stick at https://www.airnewzealand.co.nz/trav...nN4n3MGlii7RwS The fleet management team must be working extremely hard.
Excellent article behind the paywall on NBR this morning. NBR earned their sub this month just with that one article alone.
Its deeply concerning that no director or the CEO will engage with the media over this at present.
Apparently its far more important for the Board to be meeting Iwi in Gisborne to ink a new regional development program including buying their carbon credits than to front foot this serious fiasco with the public or media at this time.
AIR claim this will not affect their 2018 earnings.
I think they're being disingenuous with the public and shareholders over how long this overhaul fiasco will take...it is absolutely certain all those Trent 1000 so called Package C engines will require overhaul and with Rolls Royce scrambling to try and deal with approx. 340 of these engines its quite possible this fiasco takes considerably longer than anyone's currently thinking.
I think this is certain to impact 2019 earnings as customers either lose confidence or get sick and tired of the delays and rescheduling.
Customer goodwill only lasts so long and is already stretched from more than four months of this fiasco. How will customers react if there's another 12-18 months of substandard service from the likes of Hi Fly ?
AIR managements refusal to engage with leading business journalists from NBR despite repeated requests is very troubling. Not much point in me emailing Chris Luxon and telling him he's making a complete hash of this, its perfectly obvious he is and I am sure I wouldn't get a reply.
Tony Carter doing a "great job" on the FBU board too.
Keeping just enough shares so I can bleat louder than a lamb lost from its mother at the annual meeting.
You almost make it sound tempting to buy a few shares just so I can come along and listen to you at the meeting!
Well almost....
Think this issue will be around for a while... Engines are sent to Rolls for a patch up job..they will all eventually have to be removed once more sent to Rolls for a permanent fix...if one is forthcoming from Rolls.
Hi-Fly is here from middle of next month for a short term lease only. Ex Singapore 777-200 will be in the fleet for up to a year.
One would presume that would take over the AKL-SIN route.. Will have AIR crew.. and SIN look after maintenance?
The silence from the board or the Exec is troubling. Some should be front-footing this..
I think they genuinely would have no idea though if asked how long this is all going to take to get resolved..
On the crappy water in Christchurch thread there’s mention of chemtrails ....planes putting stuff into the atmosphere (and some punters say stuff to change the behaviour of the populous)
Jeez - looks like Air NZ might be involved
https://chemtrailsnz.wordpress.com/c...ical-airlines/
Rather spookily yesterday was a beautiful sunny day with blue skies in Wellington and I was intrigued with these narrow white clouds over Cook Strait. Not your normal vapour trail from the planes heading to the South Pole but a lot lower ...and I feel weird today.
Be sure to wear your tin foil hat and everything will be fine mate :p Not sure we need yet another thing to worry about right at the minute !
Hard to believe our overseas based cat hasn't stuck his paw / oar into this issue isn't it ! Amazing we haven't hear one or two I told you so's already...he must be off the grid at present.
Market doesn’t think there’s any impending disasters to hit AIR
Share price holding up well
AIR say there's no impact to FY18 earnings so the market has taken comfort from that. Very few people thinking about FY19 earnings impact...YET.
Just consider this. Joe average Bloggs is about to make a new booking on a popular route flown by a number of airlines for travel later this year.
He has a choice of quality airlines only one of which is having major problems with its engines, has safety concerns about its remaining so called dreamliners and is embarking upon massive upheaval to its scheduled flight program. This airline is not even compensating its customers properly. Why would Joe average Bloggs choose to now make that new booking with AIR ? No easy way for AIR to quantify that potentially significant amount of lost business in the future or seek redress from RR is there and that's before we even consider their reputation damage.
All good for this financial year because most of the current year's flights are already booked, (average lead booking is just over 2 months) but you'll see the first impact on their balance sheet as at 30 June 2018 with much lower forward bookings, mark my words. They'll be scrambling to fill flights once they're in a position to put them on again properly in my opinion. Analysts asleep at the wheel as usual and will wait until AIR management actually tell them the bleeding obvious that the outlook for FY19 isn't quite so good, before adjusting their forecasts down. Fortunately some of us have the wherewithal to sense the headwinds before they arrive in full force.