im speculating cause they got big expenses in new aircraft and declining revenues on the horizon can they really afford too? maybe depends if the biggest s/h has there arm twisted behing there back a,whispering in there ear
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http://www.afr.com/street-talk/buyba...0160613-gpicqz
I can't access this site seems talking about buyback or special dividen
Here it is: (Sorry some of the stuff didn't come across properly)
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Air New Zealand could increase earnings per share by 10 per cent if it uses its cash windfall to buyback shares.
That's the view of Macquarie analysts, who ran the numbers on a buyback following Air NZ's sale of a 19.98 per cent stake in Virgin Australia.
"The key question will be around the state of the balance sheet, with gearing ~50% for the next few years," Macquarie told clients on Tuesday morning.
"However we note that AIR has effectively banked capex (~3 years) with an average fleet at ~6.2 years by FY19 (global average today = 9.9 years).
"AIR believes that maintenance capex is around $250m p.a. vs. the ~$1b of capex they are spending at present to improve the fleet, meaning significant free cash flow would be available following this investment period to reduce gearing and provide flexibility for change in operating environment."
UBS analysts reckon Air NZ should use a 25¢ a share special dividend to return the proceeds.
UBS told clients that the special dividend should happen before the end of August, following Virgin's capital structure review, which would also see Air NZ's $131 million loan to the Australian airline repaid.
"After both events we believe AIR will most likely return net proceeds from the VAH shareholding sale to its shareholders via special dividend," the analysts told clients.
"While exact timing is difficult to judge, we expect this to occur before the end of August."