Boeing predicts Air Travel Miles flown will grow at a compound rate of 5% per annum
http://www.nzherald.co.nz/business/n...ectid=11532277
Underscores some of my core investment theme's with AIR.
1. Air travel is incredibly cheap in real terms e.g. it cost my mother $2,000 to fly to the U.K. 23 years ago and you can fly there now on a qulaity airline like AIR for the same price on special now ! How many other products or services can you think of that haven't gone up in 23 years ?
2. AIR N.Z. are well positioned with a modern fuel efficient fleet and are positioned better than most when oil goes back up.
3. 60,000 new migrants last year, (highest ever), all wanting to see the country, fly back to their native homeland and have their friends and extended family come visit
4. Baby boomer generation have significantly more time and money on their hands now that the kids have left home.
5. Many younger generation people have simply given up on trying to save for their own home, (last census threw interesting light on the low proportion of people under 40 who own their own home) and are simply spending the money now, often on travel.