Good just looks like some good vibe marketing:)
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Interesting that Auckland Airport's latest passenger growth shows a very anemic gain of only 2.4% and the domestic is worse at 2.0%. The tourism boom that we've experienced is set to end now and I think the move in prices down domestically might just be to stop the bleeding now.
Better off to break even or eek out small profits on those certain flights by selling them cheap than taking the hit..
Facts
Average load factor for the year to date 83.5% v 82.5% last year.
Year to date revenue per available seat kilometer up 2.1%.
Response
Oh my goodness the world is ending, tourism as we know it is over, the sky is falling and the end of the airline is nigh... (sarcasm intended).
Some already know this stuff but I found this interesting ...like 56 pricing combinations on some flights
https://traveltalk.nz/news-opinion/a...stic-airfares/
Star Alliance partner Air Canada enters the market with direct flights Vancouver-Auckland during our summer months https://www.nzherald.co.nz/business/...ectid=12208003
heading lower i reckon over time , new price war will impact results going forward as well as slowing demand
https://www.nzx.com/announcements/331245
Dividend remaining at $0.11
Only a happy customer and always pleased to stick up for them. No one else seems to , especially the media which never misses an opportunty to put the boot in. But doing the same to AIR NZ, no never, they are untouchable.
Oh , I should add..Jetstar are always accommodating too, not just innovative, polite and honest.
Are you for real ? We have had numerous articles in the herald recently putting the boot into AIR. Please go back a few pages through this thread and you will see many of them with references with a link. Enough propaganda about Jetstar already.
Happy to post my thoughts on the AIR result after listening in to the webcast.
Hahaha you must work for JetStar Lola. I think airline rankings and public surveys etc would be the opposite to your thoughts.
I'm completely with Beagle on Air NZ - media put the boot into them when they can, especially when something goes pear-shaped (although sometimes I think the travelling public expect too much)
We tried Jetstar for the first time a couple of years back - Welly to Gold Coast for $300 to $340 return on special, with no airport parking. Mostly travel Jetstar now and while seating may be a bit cramped in cattle class, its probably the same as all airlines.
But AirNZ by paying a fully imputed $0.11 full imputed divi has clearly held of the major fall in price until record day. They do state clearly that it reflects the previous period.
JetStar has the tightest pitch of any airline. Their service is absolute rubbish. Their spare parts, staff and engineering backup is poor and leads to numerous last minute flight cancellations.
Their treatment of passengers is extremely poor. They are on my permanent banned list.
I'm not currently an AIR shareholder so I'm allowed to speak honestly here :).
Our family uses both Air NZ and Jetstar within NZ. Mostly between Chch and Wellington and between Wellington and Auckland. Our experience is that Jetstar has been at least as reliable as Air NZ. The only major delays we have experienced the last few years was on an Air NZ flight.
Regarding service and seats -- for those journeys it frankly doesn't matter. You aren't going to be properly fed and you are going to be squashed.
If I can save $100 on a leg by flying with Jetstar (or vice versa) then I don't care what logo is painted on the tail.
The exception is when returning on an Air NZ international flight -- then we try to have the connecting domestic flight on Air NZ too -- that way they become responsible for connection problems.
https://www.marketscreener.com/AIR-N...07/financials/
Solid result in difficult operating environment.
Direct and indirect costs associated with RR engine issues to abate in 2H FY19 and significantly abate in FY20.
Management very confident on sustainability of the dividend and I note a 12% gross yield at $2.54.
Management not happy with the current level of profitability and working hard and confident about restoring same.
Up to 5 787's on the ground in first half just gone, abating down to 2 at present and expected just one by Sept 2019.
Significant efficiencies expected from fleet investment in A321 Neo's.
Capex very light in FY21 and FY22.
Operational review is making good progress.
Market share domestic has grown in the last year, (see my comment on JetStar's service level above)
Significant investment in customer lounges.
Disc: Holding for yield. Happy to add more on any irrational weakness. Expecting pretty solid profit growth in FY20 and stable divvies for FY20. Possible special divvy in FY21 or FY22.
DYOR.
PS, If some people are happy with JetStar's service that's fine for them but in my opinion all that's really relevant on an AIR thread to AIR investors is whether AIR's share of the domestic market is growing and what impact JetStar are having on domestic RASK for AIR (none).
For the convienience of pople who want to discuss JetStar's service I have created a special thread in the off market section here https://www.sharetrader.co.nz/showth...473#post749473
Can we get back on topic to discussing the financial performance and outlook for AIR now, seeing as they have just reported...
Some more well considered opinions on that wouldn't go amiss...
I think we're headed back to ~ 30 cps earnings next year which out the stock on a forward PE of 8.5 and a gross yield as mentioned above of 12%.
Pretty compelling metrics for a well managed company that's been going nearly 80 years.
Always love that chart on Slide 15 re H2 fuel costs sensitivity
Apparently jet fuel over US$80 .....if that’s the average for H2 earnings impact $20m odd
http://nzx-prod-s7fsd7f98s.s3-websit...245/295932.pdf
Fair enough I can't cover everything at once mate. During the call they sounded confident around the mid point of the forecast and very confident about cost efficiencies going forward from there as direct and indirect costs around the RR engine issue fall away. I'm very much focused on (what I know we dislike but it is) normalised profitability for FY20 excluding non repeating RR impact. I see a very sound medium term case for investment on the basis of yield at around the current level.
I can now understand their confidence - RR Engine design has recently been moved to Germany! BREXIT directly helping Air NZ and other airlines suffering of poor British Engineering!
From the latest Wall Street Breakfast:
Quote:
Brexit preparations... Boeing (NYSE:BA) is shifting spare parts between its distribution centers in the U.K. and across the globe, according to Ken Shaw, head of supply chain management. Earlier this month, Airbus (OTCPK:EADSY) spent tens of millions of euros on stockpiling parts and securing IT systems. Brexit worries have also led Rolls-Royce (OTCPK:RYCEY) to move the home for its best-known jet engine designs to Germany to avoid regulatory delays or sales disruptions.
Yes it is made in Germany but has a GM engine installed that was probably assembled in a plant in Mexico (which would explain everything). https://en.wikipedia.org/wiki/GM_High_Feature_engine
Isn't this where we mention cyclical and coming down off a peak?
And longevity only via state support so not exactly a boasting point cf HLG.
I guess I'm just feeling conservative these days with stock selection and have a deep seated fear of airlines despite Warrens change of heart.
Those P+L's , whew they turn on the proverbial dime.
And yeh no Jetstar or Holden haha jk dont really care, topicality can be over rated.
Airlines not for everyone I agree but analysts don't see it the way you do and neither do I, (see earnings growth estimates for FY20 and FY21 coming off a cyclical low in FY19 :p base this year) https://www.marketscreener.com/AIR-N...07/financials/
Management extremely confident about their ability to pay the current level of 22 cps annual dividends going forward. 12% gross yield so dividends hounds will probably stop reading right here, that's all they need to know. They proudly noted during the call that AIR had only cut dividends twice in the last 15 years. Once for the GFC and the other for the Chch earthquakes.
Bit much coming from Luxon's Pet Poodle
So profit down and declining share price but pays a good dividend - much like TRA.
So applying the Beagle formula in it's generous PE * 8.5 that would value AIR at
$0.24 * 8.5 =
$2.04.
Luckily I did not use his PE * 7.5 version.
But seriously folks, OK result but I will wait for the $2.04 before buying.
I'm confident they'll maintain the 22cps because the operating CF is so strong. Don't forget that 2020-2022 they will likely have huge surplus cash flow as fleet replacement almost stops for 2 years before they have to deal with the 777-200's I think around late 2022/2023 (they said they'd tell us Q4 this year what their plans are). Unless things go very badly my hunch is 22cps ordinary for the next 3-4 years is more likely than not. Might even be a special or two in 2021-22 depending on industry conditions.
GS ...........latest Price Target $2.85 approx 15% (SP$2.49) upside maybe a dividend and appreciation hounds dream
lower bollinger in sharp decent now on the hourlies . suggests more downside to come
no dividend will make up for the loss in equity on a falling SP, wont be knife catching this one and given how low the SP went when the outlook was a lot better on the last dip in the roller coaster who knows where this one will end up
@stevebiddle via Twitter
I just went to book flights to Queenstown on Monday and was (mildly) shocked by Air New Zealand's $389 o/w fare from Wellington. I was totally shocked when I found Jetstar want $520 to get there o/w. Who says they're always cheaper?
The gouging by both airlines on the tourism routes is ... think of a word that makes you puke money. Disgraceful, but I guess they still fill those aircraft because demand is met by supply, however expensive it is. Pity the poor Kiwi aunty who wants to visit her nieces and has no tourist interests. Cheaper to take a few days off and drive there, even including a Ferry if they're from Te Ika a Maui.
A very interesting result indeed, I really like page 6 of the interim report. Wish more companies did this because it really tells you pretty much all you need to know. More passenger revenue, but more expensive fuel would be a good way at a elementary level to explain this.
Its the life of an airline investor, AIR can do anything and everything but some things are out their control. The cash flow shows that net operations are holding steady which is a good sign, also that the cash position is holding strong despite the dividend.
The forward bookings situation is a interesting gauge of just the future economically and it doesn't paint the best picture for tourism. I'll continue to hold and keep that juicy dividend, may add more if this keeps trending down. Best buy at maximum pessimism.
"Best buy at maximum pessimism" Yeap, analysts think the numbers are a bit soft https://www.nzherald.co.nz/business/...ectid=12208298
Hopefully negativity abounds and it gets thumped down to $2.00 (15% gross dividend level) so I can do a Couta1, back up the truck and enjoy gargantuan dividends for many years to come. Bring it on.
I am fairly confident that slide 3 of the HY presentation is wrong:
Attachment 10356
No way is that Christopher Luxon.
Heaps of extra flights to and from Wellington this weekend for Eminem concerts.
Boost AIR revenues
I not going ....going to John Prine more my thing. ‘Everything is Cool’ and ‘In Spite of Ourselves’ are pretty cool
I see that cost per available kilometre is up to just over 10 cents per kilometre flown. It occurs to me that Auckland to Queenstown is more than 1,000 km's https://www.distance.to/Auckland/Queenstown so costs AIR over $100 per seat.
Pretty cool that you can book ahead and get tickets as low as $79 and travel below cost. The greenies could pay for the optional carbon credits out of their own pocket and still be ahead and under cost...oh wait...that's asking a politician to put their own hand in their own pocket, yeah like that's going to happen :lol:
You could just cut some of your trees down instead of lifting a leg on them each day:lol: faker.
My broker has dropped T/P from $2.95 to $2.61 but expect juicy divs to be maintained and to provide a floor to the S/P
https://www.zermatt.ch/en :drool::drool::drool:
Only need 10,000 AIR shares to get $2,200 divvies a year, enough for a free flight to Europe, how cool is that !
Need quite a few more to afford to stay there in decent digs for a couple of weeks though :eek2:
price war begins
https://www.nzherald.co.nz/business/...ectid=12208482
I reckon Chris Luxon had his toughest year ever last year. Looks like he has plenty of gas left in the tank so too speak which is a good thing in my opinion.
https://www.msn.com/en-nz/money/news...cid=spartandhp
You'll have to ride with the beagle dog in the Hold your breath cargo section with a load like that.
Thats why they named it cargo HOLD btw:cool:
Yeah Switzerland is rather expensive yet so memorable...less domestic flights when you go like this... there and that you will be able to afford here!
https://www.glacierexpress.ch/en/win...SAAEgKYpvD_BwE
Trying to get my nose to work on this one and see if we're close to a bottom but the fumes from burned jet fuel are very strong so will rely on gut feel as well along with FA but TA says stay out, have to acknowledge that.
I really would be extremely surprised if Snow Leopard got his desired $2.04, (but stranger things have happened in the aviation industry) and to be honest part of me would like to see this level so I can really open my shoulders and do a Couta1. I think we are pretty close to a bottom, (especially if one looks through the immediacy of the near term dividend and takes a view that they're effectively investing at $2.47 - 0.11 = $2.36 ex divvy). I think most professional investors and the analysts are trying to look through the remaining effects of the trials, tribulations and costs (both direct and indirect), of the long running Rolls Royce fiasco to determine how the airline will perform in the lower growth environment in FY20 once these issues are resolved.
I think the starting point in considering this medium term investment case is there will still be some lingering RR issues in FY20, especially the first half and Luxon admitted in the call they still expected to have one "dream"liner on the ground by September 2019, two at present, but worth noting they have had up to 5 in the first half of FY19 just gone.
My view is they can make somewhere around 30 cps in FY20...I really don't want to be more prescriptive than that as forecasting in the airline industry is fraught with serious risk !
This is in line with how the analysts are seeing it for FY20 and beyond, see here..https://www.marketscreener.com/AIR-N...07/financials/ Average analyst view is actually 31.4 cps in FY20, I will stick a little lower at this stage.
So medium term what's the investment case seeing as TA looks so terrible ?
Looking through the immediate 11 cps dividend and looking at this as effectively a $2.36 ex divvy investment for the medium term what do the metrics looks like ?
1. FY20 forward PE 236 / 30 = 7.9. Looks cheap but where are we in the cycle ?...anyone's guess how demand would hold up in a recession so maybe not so cheap ?
2. Dividend sustainability. Management are extremely confident about their ability to pay out the current level of dividend on a sustainable basis and barring a quite significant recession I think their confidence is well founded. 22 cps per annum grossed up for imputation credits = 30.55 cps / 236 = 12.9% per annum gross. I think that's extremely attractive but its not without risks, its the aviation industry, enough said !
How did QAN fare with the fuel price pressure compared to AIR's profit reduction ? https://www.asx.com.au/asxpdf/201902...1n99nr8qn5.pdf
I think its clear they did better, (but weren't handicapped by RR engine issues), and Luxon and his team have some serious work to do in terms of their strategic review.
RR engine issues appear to be drawing slowly towards an eventual resolution, see https://www.marketscreener.com/BOEIN...-end-28091275/
Medium term I think AIR are well positioned in terms of their fleet requirements and the new A321 Neo fleet, (provided they prove to be operationally robust), should deliver some very good efficiencies on short haul routes and it will be good to see all the 787's operational again. Who knows how long it might take before FAA to grant extended ETOPS again but I doubt it will be in the near future.
Looking out to FY21 and beyond I think AIR are well positioned and hopefully having put some very serious operational issues behind them and with the benefit of a strategic review they should be more slightly most cost efficient and very well placed to compete and capable of earning 30-40 cps on an ongoing basis.
Investing now I guess it comes down to whether you back Luxon and his team to do a thorough strategic review or not and whether you think this is close to a bottom or not ?. I am quite pleased that they are taking their time with this review which gives encouragement that it will be comprehensive. He looks well energised in the video I posted yesterday after a tough year and I expect he will stay on for quite some time which I think is a good thing.
Nobody should rely on me to be picking the bottom here, (aviation is simply too volatile) but on an ex divvy basis buying at $2.36 or cum divvy at $2.47 the metrics especially the gross yield look encouraging.
Disc: Accumulating for dividend income and not expecting much if any capital gain in the near future..but over the due course of time I expect we will see north of $3 again and the possibility of a special divvy in FY21 or Fy22 is very real in my opinion.
My rating BSA (Beagle slowly accumulating) :)
Good analysis ... (where is the reputation button when you need it?) - even if I personally would still be a bit careful with accumulating ...
The dip in tourism and immigration might cause (temporarily) more damage than we currently think / hope.
Not sure about this price war on the home turf either ... great for customers but not so great for shareholders.
But - while I personally expect the SP to drop further, I agree that in the long run it probably is at least a "fair" buy.
Thanks for the thoughts Beagle. I was surprised by the impact of Jet fuel on the results, Jeff McDowell said "We delivered earnings before taxation of $211 million. And although this is a decline of 35%, you'll see shortly that this was largely the result of a significant increase in fuel prices." ... "earnings were hugely impacted by $131 million headwind from increased fuel prices. That $131 million net impact was driven by $146 million, or 31% increase in the average price of jet fuel from USD 67 to USD 87 per barrel, which was then partially offset by an additional $15 million in gains from our fuel hedging program."
That knocked the wind out of the results which otherwise showed growth in revenue and other key metrics. The volatility of jet fuel prices clearly isn't sufficiently offset by the hedging program having only a relatively minor ($15m) effect on the period results. I'll be monitoring the price of jet fuel more closely given its impact, as you can see here (IATA Jet Fuel Price Monitor), prices are rising off 2015/16 lows but still nowhere near highs as recently as 2012-2014.
I'm more inclined to continue to forego the dividends and keep an eye on the TA chart for a re-entry on potential further SP weakness in the cycle. The TA currently, by itself, suggests a very risky proposition buying in now. Best imho for the capital sensitive types to exercise patience.
Thanks for sharing your thoughts guys. Always useful to have good thoughtful constructive counter views :)
Quick check of comparative PE's suggests AIR is not especially cheap, what on earth is with American airlines PE ?...but here we are...looking ahead
QAN FY20 9.1 FY21 8.9
Delta FY20 7.0 FY21 6.4
American Airlines FY20 5.5 FY21 4.8
United Continental FY20 7.3 FY21 6.6
AIR FY20 7.5 FY21 7.1 (based on average analyst forecast and based on ex divvy price of $2.36).
Seeing as 97% of all AIR stock is held by parties other than retail NZ shareholders one ignores those international PE comparisons at their peril.
Hmmmm might pay to go a bit slower on the accumulate and watch the technical's more closely.
That said I do expect AIR (barring a major exogenous shock) to trade in the ~ $2.00 ~ $3.50 range in the years ahead and its currently trading in the lowest quartile of that range, (hence my accumulate approach) and at a close to 13% gross yield I don't regret getting a few more this week.
My view is AIR is currently priced about right, (very slightly cheap) until such time as the uncertainty of RR issue is fully resolved and the outcome of the strategic review is known, which brings me back to the yield of 12.9%. I'm not aware of any other company listed on the NZX paying a similar yield that also doesn't carry material risk. HLG for example another stock paying a similar yield but also not without risk if the economy goes pear shaped.
Good to see some sensible analysis here.
My $2.04 price is the price at or below which I would be willing to join the AIR share registry, it being a 25% discount to what I consider current fair value based on a 10 year view.
Disc: Picked the last $1.7X low and the subsequent $3.5X high, but I was probably just lucky.
Disc: Last saw an Air New Zealand plane in Feb 2016 at Pudong (Shanghai) Airport.
Well done on picking high's and low's...my track record not quite so good but have ridden the turbulence with some success and did quit quite a few at ~ $3.50 ish.
So if $2.04 is a 25% discount to where you see fair value Snow Leopard 2.04 / 0.75 suggests you see fair value at $2.72 at present.
Interestingly we have seen a major reduction is where analysts see fair value this week, now $2.60 https://www.marketscreener.com/AIR-N...407/consensus/
I'm pretty much around the same level now after the shock announcement of late January and the recent result.
I know the management team are not happy with the current level of profit and will be working towards better results ahead.
With all the issues AIR is having, engine problems, high fuel price & lower profits I don’t think there is going to be a big rush to buy after going XD. My best guess for a good time to buy will be 27 March at around $2.30. Quite often the share price falls below XD price with the low occurring 14 days after going XD.
My usual strategy with AIR is to buy when below $2.60 & sell when around $3.20. This left me without holding AIR between June 2017 after selling for $3.18 and 30 January this year when I broke my own rules & bought back a small parcel at $2.85 (Too quick for a sip after a long dry spell).
This strategy has returned 45% between 2013 & 2016 and 43% between 2016 & 2017. Between times I have been moving the cash earmarked for AIR between THL, HLG & SPK. At the present time all is in SPK & cash but will be cashing in SPK shortly to re-invest back into AIR.
DISC: That’s the way I invest with AIR and could also result in losses D.Y.O.R.
I have made more money off this share than any other on NZX except for Xero. The general trend for trading has not been too hard to pick. I just see it currently has so many more moving parts than in the last few years. Hard to pick.. yet one would expect to fall a touch more yet given the current negatives.
Appreciate all the feedback and discussion. Happy to acknowledge that buying now based on a theoretical ex divvy basis at $2.36 there is some potential downside but as mentioned yesterday I don't think that's as much as 30 cents. On the other hand over the next couple of years once RR issues are fully resolved, efficiencies from the new A321 neo's kick in and one-off costs like the $40m direct costs regarding the RR issue are non repeating plus indirect non repeating RR costs, adverse currency impact this most recent period of ~ $20m if I remember correctly and about another ~ $20m to launch Chicago and Taipei new services, total non repeating including indirect RR costs could be in the region of ~ $100m per annum.
Net profit could surprise in FY21 as could a special divvy. Yes its risky as TA looks dreadful but I see opportunity in the years ahead too and I also see a 12.9% gross yield plus special coming at some stage. I think I am happy to back myself to keep slowly accumulating with a medium term 3-5 year view. Risk and reward go hand in hand.
BYB (Back yourself Beagle)
Thanks mate. Early days but at ~ $2.47 cum divvy it doesn't look like my nose for value and a feed has been too badly affected by the spent jet fuel fumes...
Possibly should have saved the barking for when I'd finished accumulating...
A small blessing: at least Air New Zealand doesn't operate any 737 MAX.
https://www.stuff.co.nz/business/111...+12+March+2019
Interesting case. Does an implied contract to continuously supply confer with it the obligation from a commercial viewpoint to consider and implement all reasonable steps to ensure said supply continues continuously ? I will follow this one with interest.
Disc: I have shares in both AIR and ZEL
I find it pretty unbelievable that neither the airline nor the supplier had set up any contingency plans or risk management for such an event. I guess surely - if you list the top 10 risks to impact on the service reliability of an airline, than interruptions to the fuel supply must be somewhere on this list?
Having no contracts detailing whose responsiblity it is to ensure the continuous supply is just an outcome of above. Guessing after the event whose responsiblity it could have been is pathetic.
Not sure, how long ZEL was a partner to this contract (did they inherit that from Shell)? and how NZR (I think it is their pipeline, isn't it) would fit into the story ... but this whole thing clearly makes us to the loughing stock of the world.
One company providing a crucial fuel supply without defining the provided service standard (they never seemed to have thought about this);
The countries biggest airline relying on a crucial fuel supply without defining and agreeing on the required service standard (they never seemed to have cared about this);
The refining monopolist running a pipeline without defining the reliability of the fuel supply.
All (?) care but no responsibility and no risk mitigation. Which banana republic are we talking about?
Looks a bit iffy to me AIR going down the the american model of litigation. Chuck some sort of allegation out there,then try to get a settlement.The fuel companies forming the cartel supplying AIR will just put rhere prices up and joe public will end up on the recieving end again!
Interesting BP's position and will Z SP take a hit ?
"The airline had already settled a damages claim with BP, Geye said"
I'm not normally an advocate for any form of Govt intervention but airline travel is an essential service so if AIR and the fuel companies can't get agreement around a robust supply chain I would think the Government needs to stipulate some minimum standard that's above the current one. I believe that's what the enquiry around the fuel pipeline leak is essentially looking at.
Aircraft can always tanker fuel into an airport to be able to depart, even if it has to refuel again enroute to its planned destination. Sure it costs the operator a lot more to do so.
TA is discretionary, one can use it rigidly or ignore it when it suits. IMHO the former is a more reliable approach. I suppose FA is the same, but different. The hard part of TA is figuring out what is working for each individual share, because there is no rule that fits them all. Once that is found out however, TA is a most satisfying tool, until it doesn’t work then it’s back to figuring out what is working.
Of course. I have also now read Beagles previous posts giving his FA reasons for his decision and can understand them.
I repeat..... good luck with this decision. (But plse also remember I'm entitled to make my own decisions which would be not to fight the downward trend.)
JMHO
break down of the 2.50 area looks like just under $2 again at some time
Just a little reminder ex div tomorrow, you have until 5pm tonight to buy in for the div. That also includes SPK ex div today.
Thank God for that, the last thing AIR needs right now is another challenge https://www.msn.com/en-nz/news/natio...cid=spartandhp
Thanks. I don't think anyone on here follows AIR as closely as I do. To clarify, I am semi retired (57) and buying for income, see previous comments about ~ 13% gross yield. Yes there are risks in the aviation industry for sure but I believe there is a very good chance they can continue the present level of dividend for the foreseeable future plus a special in FY21 or FY22.
I would not be upset to see it at $2 as that enhances my ability to earn extra income at a cheaper capital cost. I believe at $2.47 cum a 11 cent fully imputed dividend, (effective ex divvy price $2.36) I am buying in the bottom quartile of where I expect the trading range to be in the years ahead ($2.00 - $3.60) and that's good enough for me. I am not pretending I can pick the bottom with this one, (too much spent aviation fuel affecting my nose) so lowest quartile is good enough.
I know the TA doesn't look good and if goes down I am happy to buy more...
https://www.msn.com/en-nz/news/world...cid=spartandhp
Not a good look for Boeing.
There are probably product tankers headed here or for the East Coast of Australia loaded to the gunnels with JetA1.
If there was a repeat of the pipeline disruption and I was the Pooh Bar of a fuel supplier with an obligation to maintain supply I would be waving dollar notes under the cargo owners noses to divert to Auckland.
Boop boop de do
Marilyn
Getting worse for those airlines with MAX planes ....won’t be any flying soon
Hope there’s nothing lurking in the workings of the Dreamliners besides the dodgy engines.
Had my foray into owning airline stocks and loved AIR for a while ....it’s things like this that puts me off them ....one malfunction / mistake and it all comes crashing down. I’d hate to part own a plane that killed many people and buying AIR or any any airline stock seems to be tempting fate.
MAX turned into MIN overnight, (sorry couldn't resist). For those that don't know all 737 MAX variants worldwide are in the process of being grounded. Those currently in the air will be grounded when they land. Thankfully this does not affect AIR.
of course it will affect AIR,there will be all sorts of disruptions around the world,with major scheduling problems, connections missed,etc.Not to mention the public's adverse reaction to air travel,it's a fickle commodity is trust.
That was a pretty quick recovery of the divie .....it did go ex-div today didn’t it?
Sort of paying for their sins
http://www.sharechat.co.nz/article/1...-portfoliohtml
Oh oh...$2 here we come....
To be clear I would never advocate doing that. By and large I stick to not having more than 10% of my liquid resources in any one stock but in exceptional circumstances with an exceptional opportunity I am happy to make an exception within reasonably prudent investment parameters.
Here is a link to data gleaned from ADS-B transmissions from the crashed Ethiopian Boeing 737 MAX. While not of direct relevance to AIR i believe it will be of interest to readers of this thread.
I draw your attention to the green line on the first graph in the linked page. It shows the planes rate of climb. Scary.
https://www.flightradar24.com/blog/f...es-flight-302/
Boop boop de do
Marilyn