http://www.nzherald.co.nz/business/n...ectid=11334198
share price down because of this?
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http://www.nzherald.co.nz/business/n...ectid=11334198
share price down because of this?
Every now and then you find a company which manages to do well in a difficult industry.
Air has had very difficult times in its history, it seems to me they have learned their lesson and are on the way to surprise their share holders pleasantly. Have a read if you haven't yet of the recently released annual shareholder review. A very positive review and there is every change that under Christopher Luxon leadership we will see results in the right direction in my view.
http://www.airnewzealand.co.nz/asset...der-review.pdf
Its was a real pleasure to travel down to Chch with Forest, attend the Air AGM and meet up with our southern friends afterwards at the Brewers arms. A big thank you to Percy for his very kind assistance with transport, thanks mate.
The link Forest has provided contains all the information that's necessary to gain a good understanding of where AIR is at.
Management at the AGM reiterated their confidence that based on current year trading to date and forward bookings that earnings growth would continue in the current financial year.
I think we can look forward to a 2015 earnings guidance around the same time as they provided 2014 guidance last year.
Forest and I had a good chance to discuss the airline's situation after the meeting with Chris Luxon and I think its fair to say that we both came away very comfortable with where Air is at with its growth plans and with Mr Luxon's leadership. He is clearly highly energized and charismatic and his enthusiasm for the airline was obvious. He appears to have excellent leadership skills, (essential when you're in change of motivating a work force of 11,000 people), seemed very intelligent and highly articulate and had a way of connecting with people that put them as ease very quickly. I found him very likeable.
Turning to the new Dreamliner's operational performance, he confirmed it's performing right up to its expected operational expectations and fuel burn was slightly more efficient than expected.
As mentioned previously, this is incredibly important because with 10 coming, (2 already here and another one before Xmas) its profoundly important that this new aircraft type design meets its specifications.
He advised initial passenger feedback had been very positive. When asked if AIR would be considering exercising the further 8 options it had on the 787-9, without giving the game away Chris said I think you'll be seeing a lot more of the Dreamliner...read into that what you will.
With Air's strong financial position, improving product offering and strong cash flow and with AIR trading on very cheap fundamentals with excellent growth prospects and a high fully imputed dividend yield, I think its fair to say shareholders are very well positioned :)
Thanks for the great feedback Rodger!
Thanks for the great feedback Rodger!
You're most welcome guys. Forest bought some more straight after the meeting which speaks for itself, (opps was I allowed to say that mate ?).
Any mention of the cash burn by Virgin(Under arm bowlers division) and what Cullen Airlines was going to do about it at the meeting?
Boop boop de do
Marilyn
Yes, Forest and I discussed the Virgin situation with Chris and as you'll know he is a director on the board. He advised good progress is being made on capturing corporate market share from Qantas and while unable to give any indication on financial guidance in regard to VAH's situation for 2015, he seemed very confident about their medium term outlook.
Thanks for all your comments Roger, much appreciated.
I thought Rob Fife would be a hard act to follow but I have been very impressed by Chris Luxon, he has really got AirNZ humming. Just hope he can do the same with Virgin.