Qantas attacking Air NZ in Christchurch with new daily services to Brisbane (30 Oct) and Melbourne (4 Dec) and pushing their connections on to Asia, Europe and the US.
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Qantas attacking Air NZ in Christchurch with new daily services to Brisbane (30 Oct) and Melbourne (4 Dec) and pushing their connections on to Asia, Europe and the US.
Agree with you mate on the price thing. Somewhat off topic but it occurred to me today, its a curious thing. We live in a strange world with these ultra low interest rates. People think nothing of loading up on debt to buy Auckland houses when they've already had a massive price run and if they don't get a P addict or someone who'll wreck their investment property in some other way they might be lucky to get a yield after expenses of 3%, less tax of course.
On the other hand its frowned upon to think of loading up on debt and buying a stock like AIR or HLG which have been beaten down and are paying gross returns inclusive of imputation credits of early to mid teens, (percent per annum).
Massive positive carry trade on a beaten down liquid asset vs cash flow negative on a risky less liquid asset that requires tons of your own time managing and repairing and has already had a massive positive run.
The world is a crazy place. That said I am too old / too risk averse to bother with debt anymore no matter how compelling the investment opportunity. Disc: Reason for semi off topic rant, nearly fully invested and part of me wishes I had the nerve to gear up for these outstanding opportunities.
The thing is Rodger people who are not too switched on have made money in property in the last few years...most have no idea what can go wrong as a landlord or with property and it has come easy. Its been a one way bet for now with Government policy. However risking ones capital does not come easy to the human psyche..even if your just sit on shares and collect dividends :-)
ps the share market has also had a massive price run.
I suppose one has to consider those who racked up debt to buy AIR @ $3---
I have done well with property,but have put heaps of work into it(I know all about landlord issues) but having said that ,I dont think I would be cut out for what it takes these days,having to load up on $8-900,000 debt for an average house in Auckland.
These low interest rates are doing harm to the economy imo--I personally wouldnt bank on this scenario being really long term,without damage. Major banks have got to be suffering,especially overseas---They(Fed) are not trying to raise interest rates just for fun---these low rates are a last resort with risks attached----They are hoping for a kick start and some growth and earnings--but the jurys still out ,especially with earnings in general.
Meanwhile ,its hard to think of a more competitive business than airlines-when things get to sweet--others jump in---this will be an interesting period for AIR in terms of earnings.
Whilst the reported range of a 787-900 is around 14,000km I don't think they could carry a commercial load that far given the enroute fuel requirements, [ ETOPS/EDTO] and fuel required on arrival. The only aircraft I am aware of operating those distances at present are 777 extended range options. Do QF have these? The 787 is not the accountants Dreamliner, due to the current cost of fuel and its initial capital cost.
The NZ Herald is not a Qantas Q300 fan !
http://www.nzherald.co.nz/travel/new...ectid=11694936
This comment from another article:
Meanwhile Jetstar operates 50-seat Q300 turboprop aircraft on five routes in New Zealand, including to Nelson, New Plymouth, Napier and Palmerston North. A spokesman said the airline had no plans to expand its Q300 network beyond regional links.
Just as well they are a monopoly
http://www.stuff.co.nz/travel/news/8...n-trunk-routes
Mind you a slow non-stop flight on one of the smaller planes Wellington Queenstown on a fine clear cloudless day in winter is a magical experience (if you have a window seat)
And they're often on special on www.grabaseat.co.nz for $59 each way you lucky dog.
I can't see the issue here. 10 minutes extra flight time in a turboprop and the trade off is more frequent service with up to 20 return flights a day. The only thing I've found is the seat bottom on the seats in an ATR600's is quite firm. Longer flights could be a little more uncomfortable but the original complainant was only talking Christchurch to Wellington which is a short hop in anyone's language.
That businessman should try flying Jetstar and then he'd having something genuine worth complaining about.