And that one with Rachael in it is pretty stupid as well
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Latest consumer confidence survey out and doesn't look too bad. http://www.sharechat.co.nz/article/f...t-purchasehtml Forward bookings dropping off must have been because of that absurd juvenile safety video.
Its time to stop mucking around and bring back the eye candy, sexy sells, always has and always will. https://www.youtube.com/watch?v=q0tkeGPG_8Q
......now your'e talking Beagle. Couldnt get abreast of that "other" video but definitely not the case with this one. Maybe even 2.
Hi Chris,
Shareholders I know are VERY disappointed with the profit forecast downgrade.
(AHHH—my dividend is at risk and I paid too much!!!!)
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?
If every airline did this Rolls will almost certainly disappear leaving only ONE large engine manufacturer---not a good position for the industry to be in!! Airline’s play one maker against another when buying new aircraft, with only one manufacturer engines will skyrocket in price…and no incentive for the remaining engine maker to improve its products going forward!)
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 ?
See above--- although we will probably buy more of these soon!!! ( we got a good deal with Boeing and rolls! I will be gone before they arrive! Just like the last CEO)
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 ?
Hope you not including me in that!!! My deck needs upgrading again soon!!!
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 ?
I’m not putting body paint on for anyone!!! That was the last guy in charge!
Engineers too greedy last year with their demands, outsource more engineering overseas to beat greedy unions ?
I agree sack all the engineers that will fix it!!! Some are due to leave in the next few years anyway, Let’s pay them a year’s salary to leave tomorrow so they can go to the beach and drink beer!
We have only done that heaps of time’s before, only to re-employee them later… we love paying staff a year’s wages to only re-employee them again… ( We never seem to learn that one) I know one guy who’s done that about 4 times!!!!
No offense Christopher just couldn't resist !!!!
An no Beagle I am not upset at your comments!!! you need a laugh in this hot weather....
@stevebiddle
The @flyairnz on time performance at present truly is abysmal. Needs to be the core focus of the airline this year.
And a few minutes later
@stevebiddle
More delays.. More broken planes.. The joys of flying @flyairnz
Yes Benny1 we need all the humour we can get with the SP of this where it is. Have a good weekend...but maybe skip hiring the architect for a refurb of the house...you never know what might happen do you...
$2.50 cum an 11 cent divvy would definitely get me standing to attention https://www.dreamstime.com/stock-pho...-image48370953
Said that bit a little tongue in cheek but do realise it is well and truly an option the company may take up.
The axe has been hanging for a couple of years now particularly in certain areas of engineering, yes well and truly before the last negotiations.
Still won't stop the big I told you so's on here.
Benni1 or anyone else, do any of you know where exactly AIR is at with the RR repairs and when the Dreamliners may be back in normal and full schedule service, rather than running leased or much more inefficient planes than planned !
Nope no idea how long this will drag on for..
It will be for quite a while yet.
This is not something that will be resolved this year...
As far as the leased planes go... This is a very fluid situation.. I would most likely expect the EVA 777-300 would be the first to go.. The lease would be quite a lot more than for the other two.
This will all of course depend on the extent of the apparent softening in tourist demand.. The schedule may reduce to a point that the airline can manage with just their own fleet allowing for a few 787's being parked up at any one time.. 4 out of service at the moment .. however some engine's will be available over the next few weeks... Again not sure how many aircraft will actually get back flying.. possibly a couple.
Sorry probably doesn't help too much!
Thanks Benny1. Yes this was good info. Pleased I sold out when these issues hit and based on your answer re RR issues, no need at all to rush back in for me. Just all too uncertain and risky for me to invest in an airline with such issues hanging over them.
I have my serious hat on today. I don't understand from as legal point of view why AIR are not climbing into RR over the obvious impact on the airline with this engine issue.
RR have a market cap of 17 Billions pounds https://www.rolls-royce.com/investors/share-price.aspx so I don't accept a fully litigious approach would have any catastrophic effect on RR.
I'm going to be all over this issue at the next annual meeting and won't take the usual "commercial confidentiality" response without some serious barking. I can't see why AIR don't have a strong actionable case against RR and I think the losses the airline are experiencing because of this issue may be recoverable once this fiasco is sorted.
I am watching the share price decline closely on the basis that at some point I think this becomes a BUY especially if one looks through their current issues and values the company on a DCF basis. I was surprised by Friday's fall but that may not be the end of it. Fortunately I have a fairly modest position at present but I am looking to acquire a good meaningful stake at the right time.
Speaking of engine issues I have my own and it really rocks your confidence. Brand new ZB Commodore Calais V delivered just before Christmas. Engine seized 20 days and 850 km's later. Unlike AIR I don't take these sort of issues lying down but then again there are more than two engine manufacturers so that makes it easier...
Some guy on the internet claimed Rather Rocky Motors had received certification from the FAA and its European counterpart for a redesigned impeller blade. I would imagine these are being manufactured quickly for installation in affected engines. This replacement would require an engine removal and tear-down.
Boop boop de do
Marilyn
A job for you Beagle ...will be extremely well paid
As far as I am aware in the past a lot of the compensation offered by the likes of Rolls Royce and other component manufactures comes in the offer of discounts on future purchases.
That is why I would not at all be surprised to see Rolls Royce engines on future aircraft ordered, this artifice sums that up for me:
https://www.nzherald.co.nz/business/...ectid=12176487
When words such as compartmentalise get used that says to me we are still friends with Rolls and look forward to doing business with them again soon.....That's just my take on it!
However we will not know probably for a couple of months what the decision is for the new aircraft...although thinking about it..announcing an order for shiny new jets may take some of the sting out of the half your results due out soon??
That $340m npbt guidance pretty bad
Just imagine what it would have been if the price of fuel had stayed up $100
If so $2 would be cheap.....Chris and his team have fingers crossed that the price of fuel stays low
If you are looking at economy, especially Asia and Europe...the price premium is materially against AIR compared to first tier airlines.. most of the year.
Air's Business class product is also out of date compared to other first tier airlines yet generally costs more. Also no first class means they do miss out on some high yield passengers that are going to others.
Price driven customers - they are not in the running, since the jet fuel price bump last year they were not competitive on price even when specials were launched.
As an aside smart people driven by price can get cheaper Air product on code share specials internationally as well..
Product, already mentioned for business class is also a problem for economy - tight seats on planes plus lower service levels on flights have weakened the overall experience on international flights.
Why its so different to the professional and warm nature of service domestically has been a puzzle for a while. Koru lounges are well documented. Scheduling of flights has been compromised since the network has been placed under pressure since the RR issues started. Delays have become more common.
On balance the experience has deteriorated to the point it is inferior to a number of others and also similar to some lower priced carriers.
I get the feeling given they are the national airline they believe customers will be sticky given the brand. Even Disney discovered this would only hold to a certain point and are noticing attendance decline. However in the airline business sales at the margin can determine profitability.
$340m will make for a sad and even more disappointed Beagle. Hopefully a bit further up the guidance range. I hope AIR stop barking about their good relationship with RR and start showing some teeth and use them ! RR deserve some really serious pain over their shonky engines.
RR do, but is this strategically the best option for an airline operating in a limited supply market. To avoid a mismash of engines, you ideally want to be with one supplier. If you go all legalistic with this supplier, will you get the best deal in the future. If you go legalistic, will you be at the front or end of the cue if you need additional engines or specialist assistance in the future? If you develop a reputation for being legalistic, will this assist or hinder your negotiating position should you decide in the future to change primary suppliers?
Will going legalistic even get you more compensation for the issues?
On balance its a bit like when your partner does something stupid - you want to get mad but often it isn't the best option.
A mismash of engines is not a big deal... Sometimes an aircraft will only come with one choice of engine ( think the 777-300er).
Engines a normally sold these days with a total care package so the maintenance specs and overhauls are carried out by the manufacturer...
Only limited engine work is now carried out in-house.
You are right in not pi$$ing off the suppliers as you will be back at the table with them sooner of later wanting a discount on your new engine purchases.. Pi$$ them off and good luck to you...
https://www.nzherald.co.nz/business/...ectid=12201768
CEO of Virgin is going after 8 years and earning top money while having more than one third of the Australian market the airline has struggled really badly while Qantas has gone from strength to strength.
Luxon was right to get out of Virgin and challenge the board that this guy is a liability in more ways than one. Virgin's load factor on the Tasman since the acrimonious split with AIR late last year is pretty interesting.
If cullen Airlines wanted and could get an agreement on stratergy from Lee Kuan Yew Airlines it could buy back in to Virgin(Under arm bowlers division) at a good discount.
Etihad need the cash and I'm pretty certain the China based holders are ruefully contemplating the balance between the ying and the yang of their buy in.
However Cullen Airlines should be mindfull of the Kiwi dollars previously squandered trying to follow the yellow brick road of investment in Aussie aviation.
Boop boop de do
Marilyn
Marilyn regularly puts this up. Have never worked out why.
So nothing special about Air New Zealand - they can be as bad as any other airline as frequently as any other airline:
Air NZ flight debacle traps passengers on Christchurch tarmac in 5-hour flight 'shambles'
My understanding talking to a broker that fly's into Queenstown on a very regular basis, (everyone knows this airport is surrounded by mountains and flights are subject to satisfactory weather) is that standard procedure as the alternate airport is Dunedin and passengers are transferred by bus to Queenstown. This happens quite often when bad weather prevents landing at Queenstown.
Now I would speculate that due to the time of year, (peak tourist season for bus use) buses may not have been available on the day.
The international gate thing at Chch airport, I don't know why., maybe all the domestic gates were in use ?
Now lets get on to the accommodation side of things.
They put all the passengers up in reasonable accommodation. This would have happened at both ends as pax scheduled to depart on the returning flight couldn't have as it didn't land.
JetStar's approach and this is a very important difference, in these circumstances is to give people a $150 accommodation voucher. It is a well known fact that you simply cannot get accommodation of a reasonable standard in Queenstown in the peak summer period for anything remotely like that so the people scheduled to fly the return leg if that flight had of landed would have been really stuck if they were on JetStar and its also very difficult to find reasonable Auckland accommodation for $150 per night.
Oh just one other thing...passengers stranded on a JetStar A320 would have had to endure 5 hours seated in seats with the world's tightest 29 inch pitch. That would be excruciatingly painful and uncomfortable for this big dog and I would imagine for most passengers.
I am not trying to pretend that AIR get it right every time but most times I think they try harder than Jetheap and most other budget airlines. Remember when mother paper tiger told her cubs you get what you pay for ?...guess what, she is right !
Seems rather odd ....wheels falling off at AIR?
Hundman, an assistant professor at NYU's Shanghai campus, told the Herald the flight took off from Auckland as scheduled close to midnight last night but "midway through our flight, the pilot informs us that Chinese authorities had not given this plane permission to land, so we needed to turn around. A permitting issue, supposedly," he says.
https://www.nzherald.co.nz/business/...ectid=12202409
Maybe its all political and Jacinda needs to talk to her Chinese contacts.
If operational issue like not filing forms well nuff said
Very bad week for AIR with 2 out of approx. 2,000 flights proving to have inconvenienced passengers. OMG the wheels are falling off and the sky is falling in lol Obviously a slow week in the N.Z.media with more meaningful news. I guess Australian media don't bother reporting JetStar's and Virgin's fiasco's because the public get bored with reading about the same repetitive thing day in and day out... every day and that's before we even start talking about the truly woeful reliability of Tiger airlines...just look at the shockingly low respect the travelling public have for them https://www.productreview.com.au/listings/tiger-airways :p
To change the subject entirely is anyone else thinking "Pavlov's Dog" ?
Couldn't agree more with your sentiments. Easy headline click bait material for the Herald, lets bash the national carrier, any outrage will do, esp when there's little other news. From other passengers sounds as though nobody was 'losing their minds' & the captain & cabin crew were highly communicative & did everything they could to make people comfortable in a difficult situation which was no fault of the airline. Do people really expect airlines to compensate all the passengers for lost work, taxis etc when a situation arises where the airline has to put safety first. Sometimes I think our social welfare system is producing such a sense of entitlement in this country. It's an airline for Gods sake, not the Dept of Social Welfare! Apologies in advance for my little rant, but compared to experiences I've had on American let alone other airlines (& don't even get me started on never again Jetstar) Air NZ did a good job looking after those pax.
https://www.nzherald.co.nz/business/...ectid=12202787
Hmmmm... I would hope that whoever is in charge of obtaining the necessary approval faces very serious disciplinary action over this. Cost of this aborted flight must surely run into a six figure sum.
From my understanding it was a code 2 787 used for that particular flight.
Code 2 787's we're not originally intended to be flown to PVG so I assume the Chinese approvals for those particular aircraft in the fleet weren't applied for.
So sounds like a scheduling cock up...
Shouldn't happen... However with the on going 787 engine issues the airline is still under pressure to keep the schedule on track..
Maybe that was the only aircraft available and the Chinese approval was overlooked? That's just my speculation.. However like I said... Shouldn't have happened...
No I'm not on the stuff web site, just given the Huawei - five eyes situation has caused a number of administrative hard lines from China on New Zealand of late. It would have to be a major over site otherwise.
And today..the latest double speak...
https://www.stuff.co.nz/business/110...ence-to-taiwan
and again today...
https://www.stuff.co.nz/national/pol...r-tourism-snub
The airline has accepted full responsibility for the administrative error", but a slightly conflicting statement at the outset appeared to suggest the plane did not take off before Chinese authorities had in fact, approved the flight plan.
time to wise up...
As I said, wishful thinking by some. Sounds like that includes yourself.
https://www.nzherald.co.nz/nz/news/a...ectid=12202902 I find this more than a little interesting in the context of the Chinese turnaround incident. Public knowledge that the airline is majority owned by the Govt. Looks like any excuse for them to give Kiwi's "the bird" at present is a good one.
(This post was made from a source free of Huawei interference).
We need to stand up against Chinas soft invasion, no doubt about that. Taiwan is between rock and a hard place though, soon to be taken back by force , this year maybe.Just one more big uncertainty cloud on the Investment horizon.
Mischief reef very aptly named in my opinion https://www.msn.com/en-nz/news/world...cid=spartandhp
https://www.nzherald.co.nz/business/...ectid=12203580
Cheap as chips. Suppose that's on the wonderful "nightmare-liner"
You can all relax now - Julian and the latest safety video have gone.
Back to this one on my flight this morning...… https://www.youtube.com/watch?v=IEnlEVLyD1s
Thank god Flying back home again Friday and was nervous I would have to have another flight where I would have absolutely no idea of what to do in an emergency, (Joking not joking) so happy that abysmal excuse for a video is now gone, Maybe the Shareprice will increase now ?
Pretty pathetic ad in my opinion (starts with some of our stunning scenery only to be snuffed out with poor content and acting) .........Sea Legs are probably the only winner with that one.
Another "administrative" foulup.
https://www.nzherald.co.nz/business/...ectid=12205676
Funny they choose this route anyway. Iran is not on any of their normal routes I am aware of and easy to avoid if you want to go from Europe to NZ. As well - most airlines heading from Europe towards SE Asia are passing this area towards the North or they go much more south-wards.
Probably somebody responsible to determine the route who is not familiar with global politics ...
Black Peter (who is always learning).
Overflying Iran from Asia to Europe is the most popular route for airlines, generally the quickest and safest for most routes. Air NZ only flys to Europe via USA but the relatively limited range of the A321 means that the Asia route is more convenient. However, Iran closes down on Fridays so business is usually only done Sat-Thurs, so that might have been a factor as well.
If you want avoid Iran try overflying Syria, Aghanistan, Russia, Ukraine, Iraq and see what the cost and safety factors are. You can't overfly Israel so forget that.
Have a look at https://ops.group/blog/tag/overflight/ and you will see why problems can easily arise trying to route aircraft on unfamiliar routes.
Well, looks like the convenience of not flying West did pay out for them - didn't it? As well - given this was a one off - what would have been wrong with Egypt - Saudi Arabia? Anyway - it happened, and maybe they learn at some stage to check before take off whether they have all required permits and the paperwork done. Can't be that hard if you are running an airline.
At least the AIR delivery crew weren’t as bored as this pilot in Oz
https://www.independent.co.uk/travel...box=1550670668
Interesting article re Qantas fuel costs ..probably applies to AIR
Whatever a bit of education
https://www.smh.com.au/business/comp...22-p50zhr.html
Emirates confirms an order for 40 x A330-900 and 30 x A350-900, all with Rolls Royce engines, Trent 7000 for the A330 and Trent XWB for the A350. Faith in RR obviously still there despite the recent debacles
5,822,868 Shares traded on Friday. Biggest 1 day volume since 21 June 2017. Hopefully recovery is on the way.
I expect a result in the lower end of the range and perhaps a dividend cut while we maneuver through this engine issue. Interesting to see what they say on the forward bookings considering that passenger growth is not where it should be.
We went through a small goldilocks period there of impressive tourist numbers as well as really cheap oil and I think this is more a reversion to the mean.
looks like they might be trying to stimulate forward bookings .....
https://www.stuff.co.nz/business/110...omestic-routes
Quite a bit of chat on Duncan Garners show about big reductions - 50% - coming on domestic airfares to regions. Jacinda seemed to be well in the loop as well in a subsequent interview........
Sounds like ALL regional fares to be slashed by 50% ....a game changer
I think excitement has got the better of Garner et al
https://www.newshub.co.nz/home/trave...e-regions.html
Govt have come out this morning said they have nothing to do with this. Electricity review has already reached conclusions that doesn't support any fear of your latter suggestion.
I'm with Raz that this is mostly a marketing stunt. I will be looking for signs from Chris Luxon at the annual result that they are taking the relentless cost creep this company faces seriously and taking the appropriate actions. Very sad that a few years ago QAN and AIR share prices were the same and now QAN is more than double. They're doing some things that AIR clearly are not.
I suppose they would. I think we would be naive to think that they have not had some input. No matter what they say.
https://youtu.be/WuJQD-wTvUA
At least in part will be trying to fill otherwise empty seats I would have thought, so not necessarily losing money as such.
http://nzx-prod-s7fsd7f98s.s3-websit...125/295736.pdf
Looking at operating stat's for January and year to date load factors and RPK's you'd be forgiven for wondering why AIR cut their forecast so much :confused:
That yield looks pretty worrying. 0% growth in short haul RASK, while there was growth in load factor and with the announcement of the cheapest fares dropping.
Could be in for a wild ride.