Is AIR the new PEB thread? ;) That one has been unusually quiet recently...
At least on the AIR thread, nobody seems to have been driven to leave...;)
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http://www.nbr.co.nz/article/carry-a...more-ng-188984
We keep hearing the naysayers talking about all the increased competition but isn't it funny we never hear from them discussing how AIR is expanding at its fastest rate in 76 years while still maintaining load factors at near record level's.
NBR´s Carry On is a great weekly read. Very informative.
I agree about competition Roger. The air travel growth is happening at a fast pace worldwide, US, Europe, Asia and Oceania all growing fast.
I am very pleased to see AIR increasing capacity on my frequentely traveled route to Buenos Aires and introducing the Dreamliners. Missed them after switching from LAN.
As I have told you, I think AIR is doing very nicely on this route with good loads on all the flights I have been on and apparently much more freight than they expected.
I'm not so sure mate. He seems ready willing and able to engage openly and honestly with shareholders and I enjoyed a good chat with him after the last annual meeting. Struck me as a straight shooter.
Won Chairman of the year at last year's Deloitte top 200 awards and this from the N.Z. shareholders association
Their response will be interesting. At least they have acknowledged my communication so that's something but I await their formal response with interest. I don't have the time or tenacity of Max Gunn or Bruce Sheppard but someone has to do something now their guns are silent so its worth a shot and might be worth a shot through the FMA if they don't take shareholders concerns seriously.Quote:
NZSA has announced that Mr Tony Carter is the recipient of its 2015 Beacon Award. Tony has been chosen for his unwavering commitment to best practise corporate governance, high ethical standards and willingness to engage fairly and openly with all shareholders .
Got more fire in my belly now regarding this matter seeing the extent of the SP decline post the investor day briefing. That and I think its not unreasonable to assume that senior management would also have known that they were looking to settle that freight dispute imminently at the time they sold so in effect they had the jump on regular shareholders in that regard as well.
Hi Iceman, I'm sure AIR will look after you in business class on their new Dreamliner...sounds like a "very tough" way to start your work assignments over there :)
Surely someone on that Board or management knows better and has worked for a F500 company at some point. They then would know in the international market place they would be looked at sideways for their actions. It come down to leadership, do they want to be a world class company or not.
Also their marketing is doing well, their latest marketing to US is clever with the "go further" concept. They are not discounting their international flights as much as the competition however their add on flights wrt domestic USA are priced well and made easy to consider. They are using their strategic alliances well, minimising their revenue share to them while maximising their gain.
AA and qantas should poach someone from AIRs marketing department as their are not highlighting their advantages and points of difference well enough beyond price.
They are offering wifi, the 787 product, a clear product which is advantageous currently to AIRs offering on the routes, plus the hold fares feature via Qantas which allow you to defer paying for months now if you work it right:-)
Great marketing case study.
Now back to Manhattan or will the AIR share price be more exciting today :-)
You're right, looking at the future based on PE is a bit of a pointless activity. I've just seen so many posts here about how AIR currently has a PE of 5 (or even worse, bringing up the dividend yield) and surely that means it's undervalued. I'm only trying to bring up a scenario where the current PE of 5 is reasonable and it doesn't mean that the stock is undervalued. I'm certainly not thinking that I'm predicting profit with it!
I'm aware that the P/E ratio is more useful as a rule of thumb than as an actual predictive measure although I feel like this analysis helped me visualise better what an SP of 300 really means for AIR desite the high profits in 2016 and 2017.
Dear Roger and associated shareholders,
Thank you for your email and we acknowledge your concern over the senior management share sales in recent weeks. Per your request, I am able to schedule a call with yourself and Mr. Carter for this Thursday, 19 May at 12:30pm NZT, so that he can provide more specifics around the procedures that we go through at Air New Zealand. Please let me know if this time will work for you and also the phone number that Mr. Carter can use to call you directly?
In the interim, I did want to provide you with information on Air New Zealand’s Securities Trading Policy, as well as briefly address some of your comments related to Virgin Australia and our recent Investor Day event.
Firstly, be assured that we take insider trading and unauthorised staff (including executive and senior management) trading of Air New Zealand shares very seriously, hence the reason for our Securities Trading Policy, which you can access by clicking the below link.
http://www.airnewzealand.co.nz/asset...April-2016.pdf
Under this Policy, all the executives and senior management who undertake share sales which you see disclosed on the NZX, are classified as “Restricted Persons”. Under this policy, all Restricted Persons must have a signed Consent to Trade signed by an authorised approver before participants sell or buy shares, which must then be disclosed. In each and every case of executive share sales in recent weeks which you are referring to, the executive for whom a disclosure has been made has requested, signed and received a Consent to Trade.
By signing this Consent to Trade the participant is confirming that they do not have access to information which is not generally available to the market and would have a material effect on the price of Air New Zealand shares if it were generally available to the market.
In the case of recent executive share sales, this would include any information they believed could be market sensitive in relation to any information disclosed on the Investor Day and any information in relation to the possible sale of Virgin Australia.
- In relation to the Virgin Australia announcement, Christopher Luxon stepped down as Director of Virgin Australia on 30 March 2016, and therefore was not privy to the Q3 results announcement or the outlook statement prior to this being made public and certainly not in the time leading up to any share sales, nor were any other Air New Zealand executive.
- The Investor Day did not include any further information that specifically resulted in a profit downgrade for FY17 which was not already public information. Market consensus of broker forecasts were already forecasting that FY17 earnings would be lower than that of FY16, and we affirmed this position during the Investor Day, including information about the competitive environment and FX impact which were already public information.
Finally, I thought it might be helpful to provide some insight on what is occurring within the global airline industry, as we feel it has been impacting our share price within the past few weeks. As you know, Air New Zealand is an airline, and to that effect, our share price can react with volatility that is not simply explained by our own financial performance or news. In fact, it was the traffic report released by Qantas in mid-April that initiated weakness in our stock price. Looking at the broader industry, quite a few of the global airlines have also seen declines in their share price ranging from -10% to -15% over the same time period. Air New Zealand does have a significant portion of institutional shareholders based in the U.S., therefore it is not surprising that our share price would experience similar volatility to these global airlines.
I hope that this information is helpful to you and that you find your conversation with Mr. Carter later this week beneficial as well. Again, please confirm that Thursday at 12:30pm is a good time to reach you and provide the best phone number to call.
Best regards,