Thanks for confirming that Benny1. I won't take the bait on other possible industrial action because I can't remember when any other union last threatened to strike as it seems so many years ago :p
Have a good Christmas.
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Thanks for confirming that Benny1. I won't take the bait on other possible industrial action because I can't remember when any other union last threatened to strike as it seems so many years ago :p
Have a good Christmas.
From somebody on the flight showing off their new neo thing. A few things didn’t work but this is hilarious
Steve Biddle (@stevebiddle)
24/12/18, 4:23 PM
The round of applause on the plane when they had to stop the safety video about 15 seconds in and do a manual demonstration because a screen wouldn't drop down pretty much sums up the entire video and people's attitudes towards it.
I saw a Reddit thread which summed it up pretty well too. Person flying from AKL to ZQN Christmas day "so how was watching that 'safety' video" "pls no".
I think "pls no" is a pretty good summary. Seen it four times this last three weeks, and it absolutely hurts to think how much they spent on it (hundreds of talented kiwis?!?) after spending five minutes watching it, which is actually longer that the shortest flight in the world, which clocks in at about 2min 30sec.
I have a great way that Chris Luxon can save some of his $30m. Bring back past safety video's that are confirmed classics for example the safety in paradise video was a great one and would be very suitable for the summer season. Why spend hundreds of thousands (millions ?), on new video's every year when we already have interesting and humorous safety video's ?
https://www.youtube.com/watch?v=q0tkeGPG_8Q From memory the P.C. brigade killed this one off early. Bring it back I say !
I remember flying on Virgin America in 2015 where the safety video was done in the form of a music video/song. At the time I appreciated that at least Air NZ didn't do songs. I didn't pay any attention because it was just music to me. A song isn't a great way to get me to pay attention to "important safety information", instead I just hum along to the tune.
And here we are 3 years later with Air NZ giving us a song that I just want to ignore. Or hum along to.
Those videos didn't feature a gender neutral singer unlike the latest one..
I use 'singer' in the widest possible context...
You would believe the amount of PC bull...t ruling this place these days....
I was on a flight earlier this month and I watched my fellow passengers around me while we were subjected to the video...
Most looked away put their own headphones back on or sat there with a look of disgust on their faces!
I don't know how you can stand the absolute tsunami of politically correct nonsense these days to be honest.
Their latest "safety" video comes in for special mention in the latest Showshine annual "awards" presentation with special mention of more sick bags required.
https://www.nbr.co.nz/story/2018-rev...les-out-awards It would appear that multiple tsunami's of political correctness are about to be thrust upon the public as well whether they like them or not...I'm "so happy"
https://www.stuff.co.nz/travel/news/...9000km-in-2018
1700 km per flight...must be one of the few people that uses AIR to Europe on a regular basis..thought most business travellers had flicked them for that route. Perhaps one of their staff:)
As a shareholder, must admit I've changed my mind on that safety video when realised how much of a marketing tool they have become.
i.e. The Hobbit safety video has racked up over 2.7 million hits on You Tube, while the current safety video has already reached almost 2.3 million hits.
After production costs, that's an awful lot of free advertising, a lot of it reaching into Asian & US markets.
I would not assume that all those looking at ¨trending¨videos on YouTube will necessairly jump online and buy a ticket with Air NZ. That cohort will buy the cheapest possible airfare which in most cases will not be Air NZ. I remain disgusted by this latest video, like most other passengers I´ve observed watching it on many flights, both domestic and international !!
While agree that there probably is some advertising merit to these videos... The whole point of them is to portray a safety message to the passengers on board..
This is the primary purpose of these videos, and if that is not happening then why not just play a plain Jane boring video and put all the production costs into a proper advertising campaign?
I guess because,
1) people avoid advertisements, they don't like advertising messages, they click off adverts as soon as poss.
and 2) to buy that kind of Reach & Frequency across NZ, Aust, UK, Asia, US etc would cost $millions, & why pay when you can get it for free?
So, lets name it/do a quirky safety video instead!
Just watched the latest air nz safety video. I had no idea about the safety message it was trying to tell. Especially for those who are from non-English speaking countries, I believe many of them hardly can understand the message - air nz has a lot of passengers from different countries right? I recently had a flight with Qantas and their safety video was clear in message yet fun enough to watch.
Given the amount of whinging here about the video I am genuinely surprised that the share price is still as far above fair value as it currently is :p
I'm guessing there are about three posters on this thread (including me) that actually own Air NZ shares (maybe less) so not surprising that the "anger" has not hit the share price.
I'm just really happy that oil is in the doldrums. What am I thinking...I'm hijacking the thread. Let's get back to the safety video.
It just means you could put a video of the all blacks playing tiddlywinks and AIR share price would still do well. They only put these videos on for legal requirements “health and safety”. Just a waste of money if no one understands the message and no one would know what to do if a plane did actually get into trouble.
Latest Qantas safety video released 11 months ago, watched (almost) 259 thousand times on You Tube.
Latest AIR safety video released only about 8 weeks ago, already watched (almost) 2.3 Million times on You Tube.
They ain't watching it on You Tube for the safety messages. That's great marketing.
Millions watched Mariah Carey and All I Want for Xmas is You on YouTube over the last week or so ...and it was played 11 million times on Spotify on Christmas Eve
I'm always a little bemused at the inflight safety videos - how many people swim away from a plane crash. (the one on the Hudson the only one I can think of)
Okay...back to the shares. I think they are a reasonable hold at $3.10 for yield so I made a small top up at the close, my final investment decision for 2018.
The penultimate one earlier this morning was taking an small opening position in Kathmandu. I am impressed with their same store sales growth and positive talk of strong profit growth is in stark contrast to the commentary coming from HLG. PE's are not materially dissimilar. If the first half results impress I will double down, same goes for AIR.
And you point is..?? I'm sure the media will not be interested in picking up on all that if an accident occurs. The PR for the airline would be unworkable...they really need cross department input in decisions...classic marketing myopic.. and perhaps Winners point is 2.3 million hits in context is nothing much...
For you marketing gurus and for you that have been seduced by guru marketers and not forgetting those who confess to be accountants here’s a repost of a Tom Fishburne cartoon which in essence shows what 2.3 million YouTube views really means
LOL Winner. At least their super expensive recent Antarctica video delivered something of a worthwhile message about the environment and was visually stunning and from memory got over 6 millions hits. The latest rubbish on the other hand...
https://www.msn.com/en-nz/news/world...cid=spartandhp
Good on them for doing the decent thing. Pretty sure in similar circumstances AIR has almost always apologised and simply cancelled the tickets and refunded the money which is poor form in my opinion.
http://www.scoop.co.nz/stories/BU190...n-training.htm
I understand a while back that AIR reduced their experience level for new entrants from 1500 hours to 600 but that's still an awful lot of hours to acquire even after graduating from aviation college with a CPL.
Another perspective on the strike that almost, but didn't, happen last year
https://www.pressreader.com/new-zeal...81560881928343
Just flew AIR to Nelson and return - no safety video to watch so have not seen the latest one or bothered to search for it.
However good (limited for the flight) service - slightly better on return - both flights full both ways - maybe a few seats spare going -(2nd Jan).
https://www.nzherald.co.nz/business/...ectid=12176487
I hope they go with GE engines.
Very, very sad. https://www.nzherald.co.nz/nz/news/a...ectid=12190561
I would like to think an airline with more established procedures would have taken more responsive action.
It says he had an asthma attack which began 30 mins into the flight. It's not uncommon and they probably would have spent some time trying to treat him with what they have onboard (which is usually a fairly extensive kit). That would have taken some time and probably during which they passed the point of no return. Quite why they didn't divert to Tonga I'm not sure, that must have been on the cards as he died only 20 min from Samoa.
Air NZ still got unexpected 787 engine issues. just received this email today for Sunday flight:
"Air New Zealand would like to advise that due to engineering requirements the Boeing 787-9 V2 aircraft scheduled to operate your flight, NZ87 from Auckland to Hong Kong, is no longer available..."
I've flown to Japan a few times on the 787 and really like the plane, but more than happy to be on a 777 for our flights to/from Canada later this year.
May not have been with the engines...any engineering issue can happen, the key is to manage things safely and professionally like this https://www.nzherald.co.nz/nz/news/a...ectid=12192136
Air NZ starting to wind up nicely as we get closer to the dividend.
https://www.msn.com/en-nz/money/comp...cid=spartandhp
How they handled that makes me proud to be a shareholder. Really bad **** happens, its how you look after people that counts.
This is a pretty big earnings guidance downgrade. Beagles favourite method using mid point it’s a 16% reduction (best case view down 20%) -
The company now expects earnings before taxation of $340 million to $400 million for the year ended 30 June 2019. This includes the impact of the global Rolls-Royce engine issues.
The previously announced guidance was for underlying earnings before taxation of $425 million to $525 million, which excluded an estimated $30 million to $40 million impact of schedule changes prompted by the global Rolls-Royce engine issues.
http://nzx-prod-s7fsd7f98s.s3-websit...915/294185.pdf
Last year F18 npbt $540m ....this year maybe $340m
That’s some drop - 37% - wonder whats caused the $200m shortfall?
massive downgrade this stocks going to get hammered
just checked the chart and what ya know it displays the 3 humped camel pattern, very bearish pattern.
Fair value around $2.60-$2.70 I reckon.
Given the new guidance assumes a lower average jet fuel cost than previous, in terms of demand levels falling away it is possibly even worse than it looks.
If it falls back to the lows of 2016 - around $1.80 - I'm in! :t_up:
All the evidence you need that global growth is slowing and the domestic economy is very weak is right there in plain sight for all to see.
As you quite rightly state Winner this is a 16% downgrade at the mid point of the respective forecast so I would expect a ~ 10% SP correction given that this affects current year earnings and may have some roll on effect to FY20. Its not a permanent impairment on their earnings ability and I think the company is right to review its cost base and I am trusting the calibre of the management to do a comprehensive job in that regard.
The Rolls Royce issue will hopefully be mostly finalised in 2019 so again hopefully this is not a permanent impairment on their future earnings capability. I think talk of a massive correction in the SP is overdone. The fall this morning to around $2.82 a few minutes ago when I looked is probably already overdone in my opinion but sentiment will remain weak for some time so anyone looking to top up probably has time on their side.
Posted this on thl thread a while ago
Maybe the signs for this ‘slowing growth in leisure travel in NZ’ were already out there
Quote:
Net migration is falling and the government want it to fall faster.
This is an interesting insight from my mate Rodney -
“It probably isn't a coincidence that net tourism and net migration have started to fall at roughly the same time much as occurred after the previous booms in the first half of the 2000s. It seems that around the same time the permanent net flow of people turns up or down the temporary flow driven mainly by tourists does the same. As covered in our housing and building reports there are good reasons for expecting further sizeable downside in net migration. By implication that implies that net tourism will probably fall further ......”
http://www.sra.co.nz/pdf/TourismThreatOct17.pdf
I have a lot of respect for Rodney... worked with him many years ago. straight up sort of dude who isnt afraid to stand out from the crowd. I must admit I was a bit lucky to have ditched my holding recently simply due to cutting down exposure in this bearish market.
I didn't expect to invest again in AIR after collecting a nice profit in June 2017 (Sold for $3.18). Couldn't resist the temptation of $2.85 so am now back in with a small parcel & watching for any further discount.
https://www.nzherald.co.nz/business/...ectid=12198445
Good Chris Luxon is taking the cost cutting seriously and leading the team doing that review...they need to be thorough. What would be helpful is if all unions were mindful that economic conditions are starting to slow and are cognisant of that with their more realistic expectations going forward.
Start at the top and work slowly downward.
Our man Chris’s concern about current trading has hit Qantas shares as well
There is always the risk that continuing to cut costs comes back to eventually bite you in the a r s e. Especially in the airline business
Bugger, this has been letting out air (pun) since the double top Sept 2017, now it gaps down on a crap forecast just before the golden cross which won't happen anytime soon now, so we have to wait and see where it lands. It can be a long time between drinks (buy in) with AIR. Patience I tell myself, patience.
Average salary is over $110K. What we need is a good old fashioned wage freeze for 3 years like Joyce did with Qantas for everyone over the average salary of $110K. Was at a party on Saturday and two people I knew there from years gone by work for AIR in a fairly senior capacity...honestly their "entitlement attitude" really made quite an impression. The number of people at AIR on more than $300K per annum is really eye watering to be quite frank about it.
Maybe somewhere near the 2.60 it was in November ?
well, in 1996 it was $20 .. look at it now. Some things get better with time , and , well some things just don,t. ( maybe there was a share split, i dont know ) but the chart gives me the shivers... .imagine if that was your kiwisaver !
Disappointing update but was holding for div so not that upset SP probably near bottom.
Wonder what percentage of shares remain in NZ holders control.
GS update NZ$2.85
Bit of a drop today.
I am surprised that the market was caught by surprise - it is an airline after all.
Take the mid-point and normalise out the RR fiasco and it is not too bad...
...but then don't these things come in threes?
But seriously: Get rid of that safety vid and I am sure the punters will come flocking back.
I wonder if a drop in forward bookings is in part related to regular and loyal flyers going else where? Lounges often full and not as good as other airlines, on-going hard line on customer complaints and of course the RR issues with inferior leased planes. I only say this as I am one that has gone off flying AIR in the last wee while for the above reasons, maybe I am not alone.
Perhaps the nation is tightening its belt a bit in anticipation of leaner times ahead.
I cant see the SP holding, historically it has been a continuing decline even against forecasts so I cant see why this one would be different, I sold out around 3.25 a while back and never came back in. Will reconsider if it drops like last time but wont be trying to catch the knife on some of those bounces it can have.
Maybe more people have decided to fly less by taking a responsible and caring attitude to the environment and the future of the world.
http://markmaking.com.au/mmwp3/wp-co...y_online_s.pdf
Thanks for the link. If the general (rather appalling) public reaction to the article below is anything to go by, then almost certainly that isn't a major factor yet. (Lots of comments to the article saying the plane will fly anyway. True if only one person does it, but in aggregate if many start making the same choices then definitely there will be less planes flying). https://www.stuff.co.nz/environment/...climate-change
Only 1500 private jets flew into Davos this year !!!!!!
AIR could save millions by recycling some of the great safety video's like the body paint one and safety in paradise. Wakes wakey Chris, Sexy Sells !
Revenues are going to be up on last year in F19 ..that’s good
But profit before tax could be $200m less than last year
Previous guidance assumed fuel at US$85m. Did have a period where higher than this but below that now (currently mid 70s) so maybe fuel not that much adverse impact, if any, on the F19 result
AIR obviously have a big expense problem ....possibly $170m more to run the airline (excluding fuel and allowing for the RR issue) this year compared to last year.
No wonder Chris is in charge of cutting costs ....appears as if AIR has become awfully bloated over tithe last few years.
This company is overrun with Troughers, time to cut the food rashions down so the Trough gets a bit more down time.PS-Lets switch Luxon with Herd Licker.PPS-Does Luxon play tennis.
Those in Fanshawe St probably safe from losing their jobs....especially the exec suite
HQ seems to be called “The Hub) ,.even featured in Wikipedia
"The Hub", Air New Zealand head office 36.84492°S 174.75332°E
Air Nelson Saab 340A (no longer operated) at Auckland Airport
A Mount Cook Airlines ATR-72-500.
The Air New Zealand head office, "The Hub," is a 15,600 square metres (168,000 sq ft) office park located at the corner of Beaumont and Fanshawe streets in the Western Reclamation Precinct 2, Auckland City;[26][27] it includes two connected six-level buildings.[27] The facility consists of a lot of glass to allow sunlight and therefore reduce electricity consumption. The building does not have cubicle walls. Lights automatically turn on at 7:30 A.M. and turn off at 6 P.M. Sensors throughout the building can turn on lights if they detect human activity, and turn off lights if human activity is not detected for 15 minutes.[
Bloated and obsessed with the appearance of being green when anyone in the know knows they burn over one billion litres of aviation fuel per annum so all Chris's pet green projects are just lipstick on a very dirty pig. Enough money wasted on the complete farce of caring about the environment already ! Lets just get back to basics...people want to get from A to B and that involves burning a lot of fuel...just embrace it for what it is.
(Beagles love the smell of burnt aviation fuel and they like barking too so I did, see below)
No doubt some engineers won't be happy with this but that's a copy of the email I just sent to Chris and that's how I feel about it and if that's wrong in others eyes that's too bad.Quote:
Hi Chris,
Shareholders I know are VERY disappointed with the profit forecast downgrade.
Rolls Royce engine issues obviously having quite an impact but why are AIR not recovering all their losses from these highly problematic engines from the manufacturer ? Dreamliner become a nightmareliner ?..Time to take RR to task properly for all the losses or leave that until they can be fully quantified at the end of the fix ?
Too many people in AIR with an entitlement attitude earning over $250K in my opinion. Time for a 3 year wage freeze like Qantas did for anyone earning over this amount ?
Why waste millions ever year producing new safety video's when the public would probably enjoy you guys bring back some of the classics like the safety in paradise one or the body paint one ?
Engineers too greedy last year with their demands, outsource more engineering overseas to beat greedy unions ?
Just putting my 2 cents worth of idea's out there as it appears you could use the help to keep costs under control.
Best wishes and kind regards
have to agree with most if not all,. Mr Beagle
Could have added about all the electric cars - cost more in first instance, battery life??, though probably leased, suppose they did the cost analysis, extra cost of lease v difference in fuel to electricity??? One would hope so!
I'll help out shareholders, flew with then over new year and again will be in Sept/Oct, long haul this time.
Disc: not a holder at present
lol that was funny. Must admit I do enjoy a fair bit of discretion with how I spend my time now. Its a hard life being semi retired :)
http://www.sharechat.co.nz/article/8...-more-painhtml
In other news, looks like Chris has got the message after this
https://www.nzherald.co.nz/entertain...ectid=12198619 and is already starting to recycle previous proven performers.
https://www.nzherald.co.nz/entertain...ectid=12199374
How to keep your eye in during semi-retirement
https://www.sharetrader.co.nz/blob:h...5-ab7222e3eec3
Damn copy and paste didn’t work
https://www.stuff.co.nz/travel/news/...p-safety-video
Well well well the nation votes
AIR can start their cost savings program by firing all those people responsible for creating this debacle and thinking this ridiculous juvenile claptrap was good marketing.
I thought along the same lines Ggcc, would not have thought a rap video would fit with the majority of their passengers, have not seen it, but don't think I'm missing anything.
Gone back to the Rachael Hunter one from 2016 I think Mr Beagle