Hope this isn't the reality, or if it is, that it's short lived...would have some pretty big repercussions for our economy.
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Clothings are generally high margin relatively light weight and non bulky items (especially summer wear) so air freight is a realistic alternative?
Not much fabric in these...I could scarcely believe a good friend of mine suggested tongue in cheek that HLG could keep raising their profit margins more and more and more by using less and less and less fabric https://www.glassons.com/offer/swim-...SORT_RELEVANCE
:blush: I suggested management are already on to pushing the boundaries to a pretty "fine line" in that regard !
Hopefully, but we are also seeing huge increases in airfreight charges and very limited space. For example its very difficult to get our fresh lamb to Europe for Christmas. I worry that we are about to see a significant negative economic shock in NZ due to this but hopefully I'm wrong
So with Air NZ also having a lot of experience handling logistical challenges are you now long not short them? If the volume available through sea freight drops, its going to be a big problem. The cargo space in a plane hold is just not the same as in a cargo ship.
Mention of the Annual Report made me have a closer look
So glad they now include a few pages on Sustainability. People, Planet and Product a good framework to start.
Has this been included because Mary thinks it’s more important than previous MDs did
Besides the discussion on bad fabrics, waste and slave labour it’s good to see HLG also have a diversity policy that ensures they have a diverse and inclusive workforce.
https://www.hallensteinglasson.co.nz...ion-Policy.pdf
At some stage AIR will be a speculative buy but we need to see some definite glimmer of light at the end of the Covid tunnel. I think Pfizer's announcement this week amounts to the possibility of a glimmer of light but time will tell and speaking of logistical challenges the difficulties with up tooling sufficient manufacturing capacity and then distributing this throughout the world and storing it at -75 degrees cannot be underestimated !. First AIR have to undertake a large cash issue to get their balance sheet into reasonable shape and I think the risk reward balance is skewed heavily towards risk until at the very earliest that's behind the company.
I thought you'd enjoy pages 10-13 of the annual report ;) If you go onto www.hallensteinglasson.co.nz/sustainability you can download the whole 61 page report and really fill your boots to your hearts content.