Interesting read. Great link. The last paragraph is very interesting.
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Interesting feedback, thanks Iceman. I hear they are looking to expand to five flights per week to Buenos Aires but at this stage I'm not sure they have the fleet capacity to do it ?
Brent Oil now with a $28 handle...who would have thought ? http://www.cnbc.com/2016/01/17/oil-s...re-lifted.html
Seems hard to believe that as recently as Q1 Fy16 AIR had some forward cover on oil to work through their system in the $70+ range. ( Source: Most recent fuel hedge disclosure 24/11/2015)
Yes certainly happen on the domestic market here..if the load factors are good they naturally will take the higher margin..what is clear is they are happy to allow new competition in and expand the market to take the marginal/price sensitive traveller..always have the risk of losing market share in time..look at Jetstar increase in share based on price while not providing a great robust network/service.
Think that sums it up in more ways than one...they don't have the capacity...surely all those oil producers will have to do something to turn it around before they go down. I'm watching the Saudis... first having a go at Iran trying to avoid them returning to the market...now what??
You also can not get a one way economy seat from Singapore to Auckland for some days in early February and never for less than $NZ1200++ for any day in the next month and a half.
February is the peak travel period to NZ and Chinese New Year but still... that is impressive since they have a daily A380 AND a 787 on that route to sell tickets for.
Air NZ's strategy of partnering with market leaders has worked very well to Australia, Singapore, Hong Kong and now it seems to Buenos Aires and China.
if you have the market cornered(as in direct to Buenos Aires) or its a super busy time of year ,you will always do well,and it certainly appears this is ''the best of the best''for airlines in general with oil and all--I would certainly hope that I didnt have to pay $1200 one way from Southeast Asia at the time I go (its usually less for RT)in winter here,but they will always get big bucks for school holidays or Christmas season---Guess its how well they set themselves up for the future that will tell the story---enjoy the spoils now ,but dont take those projections as the never ending gospel.
Theres good momentum atm unless the markets really come unstuck (more) so it appears to have been a good Christmas for most around here.
Winner..I thought i heard some one cheering all the way from my camping spot,when that $3 was broken!