....and I was starting to get nervous with winner on board.
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Bang on the money mate. Note 14 at the foot of page 21 is also very interesting. AIR is one of only a small handful of international airlines with an investment grade rating, (I believe C.L. mentioned there were only 7) and got a credit rating upgrade this year. As a result they can lease aircraft at an incredibly low rate in the international markets. Fixed interest rates on those leases ranged from 0.7% - 3.4%. Expensive debt isn't it :D
Yep. They'll have so much cash flow this year I reckon they just write a cheque in due course and pay those bondholders out and save $10.35m a year in interest costs.
I'm forecasting an average annual gross dividend rate of 12% inclusive of special dividend(s) for the next few years so buying the shares compared to the bonds is a no brainier as far as I'm concerned.
I was going to mention that $10m but thought you would like to tell us how much
Cash keeps rolling in eh
Sure does mate and this year's capex is lower than last year. Something not a lot of people know is the new Dreamliner's require no heavy maintenance for the first nine year's of their life. You could say they're the perfect cash cow...errr, should that be cash bird. At the 2014 annual meeting C.L. said they'd built the airline with its young, (and getting younger), and efficient aircraft fleet to be profitable at $120 barrel oil...its just "a little" below that :) Last financial year they had three of these new aircraft for most of the year and this year six so with the new forecast at this year's meeting shareholders are starting to get an inkling into the cash flow benefits of this new aircraft...six more to come with another six options on top of that !
No argument from me mate. I'm on record with the (outrageous as it may sound) prediction that AIR is a $5+ stock in a few years and with gross divvies incl special(s) we're being paid extremely handsomely to wait.
When you get high growth, high dividends, an exciting and interesting industry and the highest standards of management and governance you get something you rarely see in life, an excited accountant :)
Couta1 - mate you've gone quiet. You on holiday enjoying your profits ? I might shout myself the afternoon off. I think I've earned it.
Just back from a trip to Europe. Used Air NZ and star alliance partners Virgin Atlantic, BA, Air Canada, and Portugese National Carrier (whose name escapes me)
For what it's worth, my impressions..
Overall I didn't think the Air NZ Service and Product particularly stood out. I'd say adequate rather than exceptional - the new Lounge at Tom Bradley in LA is very nice, although it is a star alliance lounge rather than an Air NZ one. All of the Air NZ long haul flights seemed to be full as far as I could see, although was a bit disappointed that the LA to Auckland sector NZ5 was still operating on a 777-200 rather than 300 and the plane seemed pretty tired fitout wise, the entertainment system was out of the arc when compared with the 777-300 ones
Anyway, I'm still holding and very pleased with the share price and dividends that are flowing - just think that AIR needs to lift its game a bit if it wants to continue to charge premium fares.
Poet, comments almost mirror my recent experiences
Had fun on a dinger of a 777-200. Creaky old hing and entertainment system slightly munted but best bit was pissing of the guy next to me when my overhead light brightly lit up his seat and left me in the dark. Did it a few times.
Shareholders shouldn't worry. AIR doing a good job in squeezing every dollar out of every passenger with a careful balance between customer experience and cost efficiencies.
It's all about perception ....perception AIR brillant and better than most, reality not te case.
But as long as the hye and marketing does its thing shareholders will be duly rewarded
I think you guys were a little unlucky getting some of the last flights on the 777-200's before they're refurbished. C.L. mentioned at the recent annual meeting that the refurbishment programme on those planes would be complete by December 2015. All planes across the international fleet are being fitted out to the current modern standard so the customer has a consistent quality experience. Notice I didn't say a gold standard experience as really ten abreast on a 777 is a pretty tight fit in terms of shoulder space. The seating has been designed for optimum efficiency and a reasonable standard of comfort. The accountant and shareholder in me is very pleased with how efficiently they're kitting out their planes.
Unfortunately the tighter seating standards are becoming the norm right across the industry. Best you can hope for is the bigger windows, lower cabin altitude and fancy lighting of the new Dreamliner to give the illusion of space and comfort or ante-up for business class.
[QUOTE=Roger;594343]No argument from me mate. I'm on record with the (outrageous as it may sound) prediction that AIR is a $5+ stock in a few years and with gross divvies incl special(s) we're being paid extremely handsomely to wait.
Doesn't sound outrageous to me Roger. It has nearly tripled in value in the last 3 years and its medium term future looks fantastic.