the south island moose enjoys nothing more than driving through the hills of the south island. occasionally I am obliged to fly to auckland to visit in-laws
Printable View
Good thing about the south island is no wild bears....
Ingrid keeps sending me photos of wild bears on the roads in my favourite mount biking spots...Im sure they are photo shopped.. Not so many tourists means the high tundra is now over run she says...with a population of only a couple of thousand it seems a wild story...
Actually the Machynlleth Loop is on my list.. But is anyone wants to come for a fly with me I have been practising on Microsoft Flight Sim. It rates me 8.2 so above average.
No easy feed to be had here according to the brokers https://www.goodreturns.co.nz/articl...for+4+Feb+2022
Excerpt:-National carrier Air NZ also continued to rally on the border reopening plan, it rose 1.9% to $1.59 today. UBS analysts give the stock a 75-cent target price, only just below Jarden’s 80-cents. Forsyth Barr has the most positive view, but still only gives a $1.10 target.
Forget Forbar's assessment as they are rumored to be supporting the pending capital raise.
I think its clear they need to raise at least $1.5 Billion so if the issue price is the rumored 80 cents that's probably a 2:1 rights issue.
Only anecdotal but I hear ticket prices are rallying this week for the middle of the year. Hope they have the staff they laid off on speed dial.
Headline a few years ago Air NZ risks a hit as oil price booms: analysts ….when oil was still in US$70’s
Over US$90 at the moment ….hmmm
Doesn’t really matter though because profits don’t matter these days …so no worries (and waltzing will pay the higher fares)
Once we go over 1000 cases a day do you guys think people will want to get into a small aluminum tube and sit there for ages next to complete strangers and breathe in all the air that others have expelled. Hmmm...I foresee demand collapsing.
No need to wait for a 1000 cases per day. Of the current 168 locations of interest, 18 of them are flights (10.7%), and even that doesn't tell the whole story ...
... from the Covid website, "Not all exposure events will become locations of interest if health officials can identify everyone who may have been exposed (for example, a flight, a hairdresser with booked appointments, a private social event). These are considered private exposure events and you will be contacted by a district health board, the Ministry of Health or a district health board public health unit."
So, not all flights with exposures are reported as locations of interest. Who knows then what the actual number of flights with exposures is.
So which travellers are supplying the virus to these flights of interest, the 'double vaccinated' or the 'tested negative'?
Can you wait at least a month ? .. the Counters at MOH Ratgate Central are too busy counting all the Hijacked RAT packs ;)
Comrade Andy has ordered an urgent full Stocktake of the spoils for the next instalment of "Try to Spin a
Truth" - as per usual to be delegated to Bloomfield , so Little doesn't have to show his dial :)
Looks like Australia are fully reopening in two weeks. As people will be able to transit to the rest of the world via Australia this effectively means the resumption of free movement for Kiwis (so much for the 'five phase plan' announced earlier this week!)
Judging by other countries it doesn't seem like Omicron had as greater impact on peoples willingness to travel.
Totally correct. The World is back traveling in a big way. I am in Ushuaia in Argentina where 4 cruiseships have come in today with around 6,000 - 7,000 passengers. The industry is up and running again. Sadly the scaremongering in NZ seems to have worked on a large proportion of the population, so NZ is missing out on the boom that is already happening elsewhere ! AIR remains a basket case as a result.
Passenger / capacity numbers growing pretty fast ….normal not thar off ….except this part of the world
https://www.oag.com/blog/increasing-...in-all-markets
Not right. If you are a kiwi and want to use the stay at home Quarantine option(that is what it is but no one will do it) you have to have been with the convicts for two weeks or MIQ for you.
AIR is not stable enough to do a cash issue. That is why it keeps getting put off. Even Min of Fin said that in a letter to AIR. To raise $1.5 bil and still be loss making for 2 or 3 years is a problem for an operating business. Remember AIR had already consumed the cash paid for tickets then issued the biggest IOU in NZ history. To me it is up there with a scam.
Their op stats for December. Not much to get excited by......
364129.pdf (nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com)
Big fall in passenger numbers in December v prior year ... even domestic was down 23%
http://nzx-prod-s7fsd7f98s.s3-websit...905/364129.pdf
Its the BIG STAY AT HOME in the HUT coming. Now if your in the country side or rural towns its dont go near those big population centres.
Apparently hospitality already noticing a big slow down...
https://www.nzherald.co.nz/business/...5EAZARA2GIQDA/
Much excitement at AIR. Great selling point for their pending gargantuan capital raise. What an "amazing" opportunity that will be ;)
Seeing as Robertson's "strip the Reserve Bank by Borrowing from Yourself" didn't quite make it to Germany's
1920's inflationary currency printing levels, maybe AIR could try the same with billions of ultimately
worthless new shares - likely to be hovered up consolidated and cancelled in the future, once AIR thinks
everyone has gotten past the point of remembering that they paid good money for the things ;)
Although it seems on the face of it that shareholders could be crushed by AIR's pending requirement for tons of new capital, it begs the question why the top 9 shareholders (not including Government) continue to hold such large positions?
Tourism share in AUS plus others are up on the ASX with the new opening border date for AUS.
AIR up..its never going to crash ... they are never going to do a cap raise..just add more debt..
The government hates stock markets and wants your jewels (letters to the 400) but they dont want to be seen to crash saving of ordinary voters..
Very hard for airlines around the world the make $ too with fuel prices so high atm. :scared:
Many of this threads comments are valid on any business fundamental level, yet the belief in Air New Zealand not "crashing" seems to be enough for many to forgo logical assessment. In turn seeing SP rallying to 1.7, most investors following investment theology would be turning away from this stock. Yet belief seems to govern markets these days, such as with Crypto. All it takes is enough who believe in an idea and everything else goes to the sidelines. SP should be continuing a downtrend not rallying simply on a few less boarder restrictions etc. Still a long long way off before there is even a dent in the debt. Still with limited travel, airfares will be much higher in times to come and overall the travel era has peaked for our lifetimes at least. Will wait and see what prevails with a Cap Raise, and loaded debt. Any logic would still have to say SP should still plummet. However the fact SP is rallying quite strongly off the back of recent news goes to show investing is more and more becoming calculated gambling. Following technicals and metrics seem to almost become irrelevant. AIR is almost being treated as a growth stock at current SP, however following technicals indicate it is not a bargain price for the stock nor a positive future growth outlook off almost 1.7
Oh yes they are and its going to be very highly dilutive. Only a question of "when" not "if"
If things go well AIR might be marginally profitable in FY24 or FY25...maybe even make a few cents a share on the vastly expanded capital base but anyone chasing dividend yield is going to need to have extreme level's of patience.
Totally un-investable in my view but I do agree with some other comments earlier in this thread that those that choose to fly in the future will be looking at much, much higher ticket prices as airlines try desperately to claw their way out of a very deep and dark abyss of extremely high debt.
Don't forget the cost of airport testing can be sky high too, depending on where you're flying to. So even without MIQ and home quarantine, budget tourist is likely to suffer. :(
"Oh yes they are"
well may be new fuel mixes will drive the profit through the floor adding the dilution of future profits...:scared:
Yes but those who can afford business class will still fly it. Aircraft will be reconfigured with large ECO and smaller business class.
There were some already published design changes on international mags on line.
2023 looks like the year to restart those trips.
There is a flaw in established airlines plan to claw back balance sheet black holes with higher fares; new entrants. You can probably get a Boeing 777-200 for a small margin above scrap from an aircraft lessor.
Maybe Sand State airlines can get fuel at mates rates.
The Bain Capital spreadsheet jockeys who own Virgin(Under Arm Bowlers Division) have access to cheap money which could be used to fund a combat air patrol stuffed with cheap over the ditch seats reducing Robertson Airlines to smoking wreckage.
Boop boop de do
Marilyn
"Robertson Airlines to smoking wreckage"
new entrants. Interesting and no shortage for local pilots but there is a shortage going forward in US and Europe apparently.
rubbing it in to AIR?
Jetstar sale offers domestic fares for $25 each way (msn.com)
Talked with the CFO of a local unlisted aviation company who do a lot of maintenance, aircraft and helicopter leasing. One of the biggest operators in Auckland, better not name them. Very, very tough times. Work has really dried up since Covid hit especially in the fixed wing division and for flight schools. Desperate times and many unpaid bills and qualified engineers sitting around picking their noses.
The stories you wont read much about.
Similar to harsh view from a women hamilton city sitting board member. First time in 2 years this person has dared to speak off record in private.
There appears to be little reporting the carnage out there in some private business sectors.
Foran says Air NZ capital raise to be “massive” and hopes it goes ahead after several delays.
This highlights a couple of points. AIR shareholders, other than the Govt, are likely to get hit between the eyes once the details are announced and secondly that the whole gig depends on the whim of the Finance Minister as the controlling shareholder.
It’s like waiting to watch a live train wreck!
The cost and complexities of getting tested prior to international travel in NZ are now so high compared to other countries that Air NZ should develop their own testing facility at Auckland international airport with guaranteed turnaround times like most major international airports (SYD, SIN, LAX etc) have. Would be a major competitive advantage.
Just another way NZ has fallen far behind the rest of the world in managing this pandemic.
" live train wreck!"
crash landing wheels up.... could be some damage...
It's ridiculous, my son had to pay over $300 for the 'within 72 hours' departure test, which was more than it cost him to buy the one way flight to Melbourne. For a 19 year old off on his OE, that expense was gut wrenching, like for example it's three weeks shared rent in the hostel. Just for the test.
A couple of times I have mentioned that a prospectus seems to be an issue for AIR in getting to a capital raise. Today there seems a little more focus on a debt capital raise also as part of that. Presumably that debt is government.
I did a quick refresh on the regs. I cannot understand how AIR can meet the requirements of a prospectus unless COVID relief can be granted but that has expired. Basically that COVID relief allowed issuers to tell investors nothing about any risks and really pull the wool over people's eyes. The past pulled capital raises for AIR are really the canary in the coal mine. I think the probability that an equity or public debt raise is diminishing at this time given the uncertainty with the business. As it stands the company must be looking at (large)losses for a indeterminate time.
This raises a few questions/issues/possibilities.
1. Restructuring. It is clear the business outlook has changed in away not envisaged in the first 6 months of the crisis. There is no return to how demand and the market operated prior. Long-haul is deeply affected in a more permanent way. Public comments now are focusing on short-haul targeting. For AIR that means a vastly shrunk network which means airfreight will remain a challenging logistics environment. AIR probably a considerable restructuring to shape the organisation to the new operating environment. A sizable "shrinking" across the organisation. That will need capital. I would like to know why Foran has ruled out any pure freight operation.
How big does a trans-tasman/pacific islands operation look like?
2. Nationalisation. The likelihood of this is increasing. Why? The financial market and general corporate rules framework governing AIR are becoming incompatible with its survival. Having minorities in there with legal protection is a problem. That said the rules on spending public money are there too but hey the penalties are nothing just some people may not vote for you with a bad report card from the auditor-general(and Labour already has a few).
At what level would this happen? Market?160? True value?50 cents? Midway?
Problem with market is more in the MoF's face. That is writing a monster cheque for minorities(plus pay a small $50m for the bond expiry) AND then own ongoing funding of losses plus never see the money already used which was meant to be paid back and now never will. This is probably a $5bil entry price. Fun times in the beehive.
Then you 100% own something where you have hundreds of people being paid more than a minister and quite a few more than PM including some walk around pilots. I would love to see that culture shift. Imagine both sides of the table eating endless dead rats.
3. Last thing. The banks and senior debt are still sitting there. So Govt will have its interests subordinated unless the banks allow some miracle on the Hudson type event. But that would screw their shareholders.......
Decisions, decisions anybody? Good luck with this steaming pile of turds.
Greg Foran will try and make investment in the massive capital raise as sexy as possible, even has a new Maori term for his 5 year thrive plan. Kia Mau
https://www.nzherald.co.nz/business/...RCWHDEUUFR4WY/ Paywalled
Of course there are "no risks whatsoever" in making things look really sexy as this video clearly shows https://www.youtube.com/watch?v=KwxUdT0pMZc
Hands up all those who want to be on this "risk free" exciting ride...what could possibly go wrong, the Government are in charge :lol: :lol:
Will there be a Hui, kui, wuie...
lots of hungi's... free food, drinks, hula girls?
Big party? Masks not mandatory?
A Juan Trippe dance troupe out on the wings on the Black 777?
Not sure about being all in on this one...
Could create a whole new flying experience. Tourism to islands off the coast with flying boats..
Traditional fishing experiences show casing south pacific cultures..
It will kill them in europe to experience this new vista in south pacific Bali Hai sunsets...
https://www.youtube.com/watch?v=81NROmUb7o0
And last but not least ...
https://www.youtube.com/watch?v=JjokXtoiQd4
:scared:
Air New Zealand 2022 Interim Results - NZX, New Zealand’s Exchange
Interim results summary
• A statutory loss before taxation of $376 million for the six-month period ending 31 December 2021
• Operating revenue 9 percent lower than the prior period, driven by a 26 percent decline in passenger revenue due to the national alert level restrictions and 107-day Auckland lockdown
• Cargo revenue increased 29 percent on the same period last year to $482 million, supported by Government freight support schemes
• Fuel costs increased 14% to $174 million for the half year, with the increasing cost of fuel expected to impact the second half
• Drawings under Crown Standby Loan Facility (the Crown Facility) are $760 million as at 23 February 2022
• Liquidity of $1.4 billion as at 23 February 2022, made up of approximately $170 million of cash and $1.24 billion of available funds under the remaining Crown Facility and Redeemable Shares
• Steps to recapitalise the balance sheet are underway including an equity capital raise that is intended to be launched by the end of March 2022 or shortly thereafter, subject to market conditions
• Dividends remain suspended
• Current expectation for the full 2022 financial year is a loss before taxation and other significant items that will exceed $800 million
This thing is still running on fumes......8th wonder of the world how it is trading in the $1.50-1.60's.....
{\irony on}
Well, cargo revenue increased, fuel costs increased and looking forward to another peak loss of >$800m nearly trying to compete with the ATH of 2020 ... all up, this must be good, isn't it?
As well - CEO sees light ahead ...
Lets hope it is no mirage;Quote:
Despite the remaining uncertainty around future travel demand and ongoing impacts on financial performance, Mr Foran can see light ahead for the airline.
“Looking at what is happening around the world and at home, we can see the path back to the Revive phase of our Survive, Revive, Thrive plan. We have the right strategy, the right people and we are ready to fly. We’re excited about welcoming Kiwis home in the coming days and months and international travellers back to Aotearoa later in the year.”
Must be a buy ... only disappointment - no divie :p;
{\irony off}
OK - I am sure tax payers will keep them alive, no matter the cost and it is clearly in NZ's interest to have an operating Airline.
Just a pity the government missed the opportunity to get rid of the ballast and turn this into a light and agile carrier. So many superfluous and overpaid pigs feeding at the trough ...
If anyone still believes in Efficient Market Theory, perhaps a small look at Air NZ would do them some good.
AIR has no professional investors( or semi) or fund managers who aren't indexers left. There is still a bunch of buyers(unnamed but people can guess) in there day after day who have plowed close to $180m in it so far without knowing it is worthless.
As for the CEO, I am tempted to count the number of times he has said there is light at the end of the tunnel. Problem Mr Foran the light isn't getting closer. You are stationary in the tunnel and have run out of Jet A1.
I do feel sorry for Greg Foran however. Got to appear upbeat, but had only a few days starting at the helm before Covid hit. Terrible circumstances, unprecedented situation and from the outside appears to have done a creditable job. Hamstrung by Govt's fortress mentality.
This company should have gone into receivership early on in the coronavirus saga. It could have started from there as a much smaller airline.
Not sure if the government guarantees its leases though. It could have restructured its whole operation. Maybe walked on some of the pensions.
It'll end up costing the taxpayer a few billion when all is said and done.
Nation pride in this case is national folly. Still the socialist dream is to make all dependent on the state.
Not massive compared to the 57 billion dollars of falling bonds the rbnz is stuck with I guess.
In terms of the potential for capital destruction, this is arguably the highest risk investment on the NZX.
Big news just mentioned in the live health briefing: possibility that self isolation requirements for people entering New Zealand may disappear altogether within the month (minister: “expecting to receive advice on that within the next week or two”)
This would be a significant event for the restart of international tourism into NZ.
This is back from mid-Nov on the NTA issue. I will also repeat AIR will lose money at least until FY25, unless it does an almighty cost out. Why? Just because you fly plane on a route doesn't mean you make money. Load factor break even I can only guess cause haven't modelled for over 20 years but probably 60% under the old rules when business seats paid for alot of the flight. Note today's announcement on re-hiring aka costs. Cost out exercise coming doesn't reconcile with that re-hiring.
I predict(not forecast under FMA rules lol) 2-3 cap raises. 1st, the "Light at the End of Tunnel" raise, 2nd, the "Almost at the End of the Tunnel, Just got to get There" raise and finally the "Recovery Opening up Opportunities(but we are cash-flow negative and just need some money brother because we been flying for no cash cause of them pesky credits) " raise. $3 to 4 billion in total. "Welcome to my parlour boys" Quote JA 2022.
Agree, this is basically AIR's "financial" Mt Erebus disaster event and it will take many years and many billions get though this. The Govt take many, many hundreds of millions per annum out of AIR in good times with GST, PAYE for staff, Company Tax and dividends so I see no reason for help them subsidize the losses. Anyone who is stumping up for the capital raise for AIR should ask if they're a registered charity so their donation will confer them some tax relief lol
https://www.stuff.co.nz/national/pol...as-cases-mount
Quote:
Tourism Industry Aotearoa (TIA) spokeswoman Ann-Marie Johnson said it was reassuring to hear the Government was reviewing self-isolation requirements for international arrivals.Having isolation requirements in place meant New Zealand was off the radar for international tourists, she said.
“With the move to phase three of the Omicron response, the rationale for keeping self-isolation rules in place no longer exists,” Johnson said.
TIA was working on an evidence-based case for removing self-isolation requirements and would provide it to the Government as soon as possible, she said.
Was in the viaduct for lunch today. Only went there because most other places are closed. Most of the viaduct is closed also. Very few people around, less than the last lock down. Be nice if a govt minister had a look around at the devastation. In Australia they show up for the big fires. Here there is an invisible fire so no one shows.....
AIR got $194m from the Govt as part of the MIAC scheme for airfreight. Take that out of the mix and looks a bit sicker.
I guess their proposed route for the Dreamliner to Kiev is off the table for the moment....
Very little chance of Air NZ going back to Europe I reckon, other than in the form of co-shares. The focus appears to be on North America for the last and current CEO.
Yes, this is what opening up looks like in a pandemic (hopefully the tail end of the pandemic.) A lot of people criticised the government for shutting everything down in previous lockdowns. Now you really aren't prevented from doing anything (aside from 100+ person gatherings I think) but that doesn't mean people will just revert to normal pre-pandemic life. Even if you removed every single Covid-19 related restriction (100+ level limit, contact tracing, masks, QR codes, etc.) you still won't necessarily fix the lack of attendance. People will still be influenced by hospitalisations, friends and family getting sick, case numbers, etc. I'm not really sure what you expect the government to do?
you have to love old AIR or NAC posters
Betcha Air wishes that 'everyone flies these days' was happening
But when I saw this I thought yes we possibly will see a nationalised airline again
Love how you dig out memorabilia from the old days.
This was my favorite safety video from much happier times...I just spent 4 minutes enjoying it again, probably just as well Mrs Beagle didn't catch me lol Why not take a break from this crazy world and relive happier times...
https://www.youtube.com/watch?v=q0tkeGPG_8Q
In this mental world of all things extreme PC they probably wouldn't even be allowed to make or screen a video like this now days.
Here's another AIR Safety Video - perfectly crafted for backing things
out of the mire from hibernation:
https://www.youtube.com/watch?v=qOw44VFNk8Y
Cap Raise sounding like not far off now. Ready for a bit of an avalanche. Still surprised there are that many 'punters' out there looking to support SP @ 1.5. Might be very disappointed once we see what the cap raise comes out at.
Disc. Dumping all remaining shares. Too many parameters stacked up not in favour of AIR making any money or even getting out of their whole for the unforeseeable future, even when international travel resumes. Higher fuel prices, will be counter productive to profits. Air flights will go up in cost/price, continuing to deter people from travelling further even once open. Many long haul flights won't be re-established. Don't see the point in investing on hope for the name of Air New Zealand. Many simply seem too be placing their faith in boarders reopening and that's all they are factoring in. Missing the bigger picture of all involved.
Almost like AIR needs to make a profit to make the share price decrease!! :scared: Keep flying (realtively) high on bad news. Seems like no matter how much they lose, what their costs are, what capital raise is in prospects, they keep on flying.
Not sure what degree they are hedged, but fuel has to be hurting them (as all other airlines).
If one had $10,000 AIR shares today I wonder what that $10,000 will be in a few months ….bearing in mind one might be tempted to put more cash in to get cheap shares at cap raise time.
On top of not having to quarantine or isolate. I for one would like to see pre-departure/arrival testing be either free or heavily subsidised. Otherwise economy class tourist will not likely come back in a hurry. Also, now that the airline is under another US biased CEO the outlook for haul will probably be very US-centric by pulling away from unprofitable Asian routes.
Actually - US bias might be these days a good thing.
Most long haul customers from here probably want to go to Europe or the UK ... and given the situation in Russia / Ukraine is it much safer to fly via the Americas to Europe instead of choosing the route over Asia / Russia / Ukraine. Ah yes, and pulling away from unprofitable routes always sounds like a good idea, no matter where the centre of the CEO lies :p ;
Well it is coming up to crunch time. I am short well in excess of 100.000 units now. Just waiting watching the ups and down ala sharsies. Soon I will either be right or wrong. I will short more as we get closer.
Cannot help but agree with the sentiment on AIR. I was shocked this did not reach the $0.30-$0.50 range in March 2020, from memory $1 was as low as it went. I was ready to take a position at around $0.30 but the market disagreed and still does. At lease until the capital raise...
The company needs to raise capital (equity) soon.
Very basic set of analyses:
Interims to 31 December, 2021
https://recastinvestor.substack.com/...zealand-airnzx
Annuals to 39 June, 2021
https://recastinvestor.substack.com/...zealand-airnzx
Feedback welcome :-)
A few further comments:
Forget creative deferred tax movements (in fact any tax) in P&L for this basket case
Net Profit before tax is a more appropriate measure of performance
in current times.
Fixed Assets should be valued at their fire sale values in the
current economic & global climate - that is values near to what
a Liquidator would see as realisation values
Impairment provisions to bring down to their Fair Value may be
substantial.
It's surprising that SHF for 2021 were $811M
They probably wouldn't be that now - adjust for reversing back out creative
deferred tax ($53m) , further months & months of travel carnage, fuel increases,
wage increases, Covid, Omicron possible derivatives unfavourably moving etc etc
It wouldn't surprise if the $800 m odd was all but evaporated by the time
CR comes along - what sort of SP true value does that suggest ?
No sense in Directors or the Company trying to further pull the wool
over the public & investor's eyes - the situation is indeed grim.
No amount of white washing can change things IMO
Wonder how many hundreds of millions extra per annum in fuel costs with the recent explosion in fuel prices ?
I can't be bothered going too deep on this any more....anyone thinking rationally about it should be able to see the capital raise is just a non tax deducible donation and if they can't see what they're looking at jumping into they should be taking professional advice.
Great points. Thanks. Not that familiar with deferred tax - I need to brush up on that. If you take out the tax credit it's not a pretty picture for just 6 months of operation. A indirect cash flow statement reconciling profit to operating cash flow would have been quite revealing.
Based on your comments the company must be nearly insolvent if not insolvent. Perhaps $1.2 bn will be no where near enough. They've got an NZ govt 'put' though :-)
Been a while since this aging bean counter looked at the rules around deferred tax but in essence if my memory serves me correctly you're only allowed to recognize a credit if there's a realistic chance the benefit of these losses can be realized in the foreseeable future, or words pretty close to that effect. But what year does anyone think AIR will be profitable again and in a position to utilize the value of prior years tax losses ? I don't see how anyone with a straight face could say they'll be profitable any year soon ?
To me "Revive and thrive" looks like nothing more than a creative B.S. marketing phrase to try and sell the recovery to some of the gullible public. In my opinion that's analogous to the disingenuous way promotors of My Food Bag extolled naïve investors to "Tuck In" Look how that's worked out for them ! They've lost half their money....and I'd say AIR investors would be very fortunate indeed if over time, they escaped with a similar outcome.
In my opinion if you want an almost sure fire way to get seriously kicked in the head financially, rock up and fill ya boots with AIR shares tomorrow and take up your full entitlement to the capital raise in due course.
Could see some big air freight increases but that will likely be passed on to everyone using the services of of Air freight.
Just got a bill for parts from Italy, 50 EU part , 250 NZ for Air freight. Parts weight almost Nothing and pretty small package..
Thanks for the comments! Just on the subject of deferred tax wouldn't it be better to record them as contingent assets or liabilities as the case may be? Take them off the balance sheet and put them in the notes to the accounts in other words.
beagle, fully agree re your assessment of AIR.
Only thing I would like to point out that for a trader any contributions to AIR's CR would be in my view fully tax deductible. Why do you think any trader would not be allowed to deduct their AIR incurred losses from their income and therefore pay less overall tax?
Obviously for any investor (not subject to capital gains tax) as well as for traders on lower tax rates than 33% the situation would be more complicated and a donation to the local church or welfare organisation within the defined limits of the tax law more sensible ... IF tax deductibility is one of the drivers of the donation.
You can only record on balance sheet tax losses that the accountants & auditors agree have a realistic chance of being utilised over some period of time. But off balance sheet tax credits are still available for use in the future regardless if they are on the balance sheet or not.
One thing to consider though is the potential loss of tax credits from changes in shareholder continuity. If there is a turnover of more than 50% of shares in a year then the credits will be lost.