I've been told the sky is blue in Beijing for the first time in years so silver lining for sure
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Australia imposes 14 day self isolation for arriving travellers like nz
That won’t help AIR
AIR has been full of bad news at moment, and I like it:)
Lets see how much you like it tomorrow at the close :eek2: Good luck, you're going to need it !!
I might double my short tomorrow...this could go down to 25 cents over the next few months, if not earlier....history never repeats...or does it ?
By May 2020, unless there is a bailout or capital raise beforehand, the company will be truly desperate for cash.
Its not going to happen in one day or one week but you will get a very serious belting tomorrow, that much you can be absolutely certain about, unless the company puts its shares in a trading halt or unless the Govt announces a 9 figure support package as a non-repayable support grant. They can afford it as they probably get a total of in excess of $500m per annum out of AIR in PAYE, GST, tax and dividends.
Its time to cough that amount back up Cindy.
Its not the end of the world. The Govt has to bail them out so as critical transport infrastructure is maintained in and to and from N.Z. (for example many essential pharmaceutical supplies arrive via air freight) With the unprecedented cuts coming to services they no longer have a viable business model, that's clear to anyone with an in-depth understanding of this company. They do not have the reserves to survive until a vaccine is developed. The only question in my mind is what form the Govt support will take and when will it be forthcoming ?
Last time in 2001 they waited until the share price was completely in the toilet and just one tenth of what it was before stepping in at 25 cents.
My base case assumption is they will step in earlier this time, perhaps at about 75 cents, half NTA, but anything can happen. The trouble is its sets up a precedent. Where do you draw the line this time ? Help THL as well, what about SKC, AIA, Skyline Enterprises and private successful companies that have been enjoying boom times for years like Real Journey's in Queenstown ? Shouldn't some of these companies have built up substantial reserves to handle a temporary downturn already ? Why should taxpayers step in when they should have built their own financial strength by now ?....talk about a fiscal dilemma !