QAN's outlook was noted as being strong and they are also seeing firmer yields across their network as are AIR. As predicted some time back, new entrants don't maintain opening special's on their new routes forever, its simply not feasible.
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QAN reaches 52 week high after CEO gets a pie pushed into his face
Our man Chris needs to get more politically 'active'
New routes doing very well. Good news http://www.nzherald.co.nz/business/n...ectid=11853158
New Zealand is in a very unique position. Do you have to use Auckland as a transit connection to anywhere apart from " The Islands " ??
Nah !!..
Therefore Air is in a unique position.. More so when share holding is perused..
Great news indeed Roger. The AKL-EZE BC seats are almost always sold out when I am travelling and PE normally pretty full too. Particularly in summer when Aussies and Kiwis are going over to South Argentina for cruises to Antarctica. Increasing to 5 flights pw and increasing seat numbers in BC by 50% with the new layout when that happens will do well for yields on this route
Good to hear those high value seats are in strong demand, thanks for sharing.
Govt investing $178m in tourism infrastructure, partnering with councils to help keep N.Z. clean and green. https://www.nbr.co.nz/article/govern...ast%252520Call
Interesting article from Bloomberg on the profitability of the frequent flyer business - for Qantas!
https://www.bloomberg.com/news/artic...rplane-tickets
Airpoints is undoubtedly a huge money spinner for AirNZ and although not necessarily advocating a sale, any private divestment of the loyalty programme could land the company with a huge windfall of cash.
Air Canada's return on the sale of 12.5% of Aeroplan was C$250M in 2005. AC subsequently sold their remaining stake to Loyalty Management group, and have recently started their own loytal programme once again called Altitude, which will be their primary rewards system by 2020.
One pending negative for Airpoints is the likely changes (perhaps via government regulation) to interchange fees, which will gut the credit-card rewards component upon which much of the system is based.
Air NZ's Airpoints program is without a doubt one of the best in the World. Good earnings rates for frequent flyers, simple to monitor/use and the most easy access to use the points of any of the many frequent flyer programs I have belonged to. Very valuable for AIR.
Have a skim read of the full content of the RBNZ announcement this week, I posted a link in the GNE thread. They see as far out at late 2019 the OCR still being only 1.75% and not moving up to 2% till mid 2020. Very supportive environment for high dividend yield stocks. I see ~ $1.50 in fully imputed dividends over the next 5 years including two specials of ~ 25 cps in the FY20-FY22 years after their capex program is finished. $2.08 inclusive of imputation credits to be paid to shareholders over the next 5 years. (I acknowledge forecasting dividends that far out in the aviation industry is subject to significant potential variation).
Any wonder dividend hounds are chasing it ? Disc: I added even more yesterday at $2.76 as I believe on a dividend yield basis the investment case is very sound indeed.
Whilst Air has a great divvy yield, excluding specials it's on a par with a few others at current prices. I focus on the immediate upcoming divvy which just happens to be IFT right now ,which should announce a 10c divvy the same as the upcoming Air one. Of course I plan on coming back for the Air divvy but will choose another option if the SP is at or higher than currently, when it is buy time.