Originally Posted by
Roger
They're all already on very cheap PE's Hoop, some a LOT cheaper than others. Market isn't treating fuel price gains as repeatable earnings going forward. Probably fair enough given potential for yield to compromise in relation to fuel price over time. As I've mentioned before in the medium term AIR would not be hurt with their fuel efficient and modern fleet with a return to ~ $70 Oil and yields would recover and some competitors would rationalise marginal routes.
On another note Jetstar must be losing truck loads in their provincial N.Z. routes at present. Little birdie tells me flight cancellations are a regular feature of these new services due to crew requirements and technical issues. Translation... minimal crew, (to heck with providing a reliable service), with little or no back up for sickness / absenteeism and really old planes with lots of engineering and technical issues. Jetstar rapidly becoming Jokestar on their new provincial routes...so I hear.