AIR - Air New Zealand

[Bongo666]

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http://www.airnewzealand.com/

[Bongo666]

Originally posted by Bongo666 » Sat May 16, 2009 12:40 am

Like Warren Buffett I wouldnt touch airline stocks with a ten foot spruce goose. AIR is kinda limping along at the moment. It has increased competition on the Trans Tasman route where it makes the bulk of its profit, much higher fuel bills historically speaking and a huge slowdown in people flying that looks to continue well into 2010.

Granted it does have 1 billion of taxpayer cash in its bank account, but even a billion aint enough when you are being squeezed by the balls.

AIR will have to consider a partner or merger with another player to survive in the medium to long term and its current rouble just might be the turning point.

It is too small to seriously compete and those competitive pressures are seriously eating away at its bottom line.

The CSO (Chief Socialist Officer) at Air NZ, Rob Fyfe, gets more socialist (see attachment below) as his business gets further and further into trouble.

He wants you and me to subsidise his airline, again, to fly into "marginal routes". Rob you have more than 1 billion of our money already, use some of that you bloody plonker

[Bongo666]

So AIR NZ's Rob Fyfe thinks his competitor the far superior Emirates Air is guilty of "environment extremism". It seems he should be pointing the finger at himself. A company so wrapped up in the global warming nonsense and spending millions of shareholder dollars is surely the one that should have the finger of extremism pointed at at. While we are at it wasting shareholder money in the process. See attachment at bottom for the full story.

This guy really has something seriously wrong with him..sniffing too much twink or smelly bio fuel?

[kbot]

Not only has Mr Fyfe being sniffing it, it appears the fumes have reached some wallets. Not sure why the share price has rocketed (I mean flown high ?) recently, but AIR was a small allocation of my portfolio when I pulled my savings out of the bank late last years. If only I had a crystal ball 30 days ago . . .

[Bongo666]

Not only has Mr Fyfe being sniffing it, it appears the fumes have reached some wallets. Not sure why the share price has rocketed (I mean flown high ?) recently, but AIR was a small allocation of my portfolio when I pulled my savings out of the bank late last years. If only I had a crystal ball 30 days ago . . .

Might be good for a short term punt Kman but long term you are onto a loser. Take a look at the long-term returns below...

http://shareinvestornz.blogspot.com/201 ... d-ltd.html

[kbot]

Thanks B.

I like the fact that you've put some pointers for me to study on. I plan to hang on to these until after the A320 new planes come in and during the Rugby World Cup games, I'll fondly say goodbye to them. Touch wood AIR will also issue cheap shares before that, and if not that, then there is also some incentives for long term investors I need someone fluent in English to explain to me if it's worthwhile.

[Bongo666]

Thanks B.

I like the fact that you've put some pointers for me to study on. I plan to hang on to these until after the A320 new planes come in and during the Rugby World Cup games, I'll fondly say goodbye to them. Touch wood AIR will also issue cheap shares before that, and if not that, then there is also some incentives for long term investors I need someone fluent in English to explain to me if it's worthwhile.

Good point on waiting to sell at an opportune time. Next year could well be it because of the World Cup but visitors to NZ will be small compared to their overall patronage and of course they will not be the only airline flying here - AIA will probably benefit there.

Another good point about more efficient planes but oil looks like it is headed north again so it is going to be a headwind for them and other airlines.

DISC I own AIA

[kbot]

Appears that short-term wise this received a pounding. Not sure why investors are not interested at this bargain. I'm pretty sure come dividend time in Nov this year, there should be a bounce.

[Grace]

Appears that short-term wise this received a pounding. Not sure why investors are not interested at this bargain. I'm pretty sure come dividend time in Nov this year, there should be a bounce.

Why do you describe AIR as a bargain.?

[kbot]

I'm in it for the short-term, like ditching the shares in the middle of the rugby world cup which is like Feb-Mar next year. One of my theories is that publicity does wonders for share price, and I expect the price of the share ought to soar to an irrational level around this time, along with AIA and some other travel related firms. After saying goodbye to the AIR/ and maybe AIA shares, I may consider a home for the cash in firms who shares didn't dip too much during the global crisis. Ofcourse, currently all my AIR dividends are being reinvested into shares due to the company incentive scheme, so in a way a low share price is in my best interest until the next dividend payout. And in my own peculiar way, I am much impressed with the CEO!

[kbot]

Appears AirNZ is in for some interesting times in the near future. Pacific Blue + Virgin are withdrawing their domestic services. Fortunately my diesel can get me pretty much anywhere domestically, so I don't need to worry about spending my money in a less competitively paced market.
Since I opted to have my AirNZ dividends re-invested, I think I may hang to these shares a little longer past the world cup.

[Share Investor]

Air NZ Acquires Substantial Shareholding in Virgin Blue

Air New Zealand has acquired a substantial shareholding in Australian-based airline Virgin Blue.

Air New Zealand has notified the Australian Stock Exchange and New Zealand Stock Exchange that it has become a substantial shareholder in Virgin Blue, as part of a planned acquisition of a shareholding between 10% and 14.99%.

Air New Zealand Chief Executive Officer Rob Fyfe says there is no intention to make a takeover bid for Virgin Blue, something he confirmed to the Australian airline’s Chief Executive, John Borghetti, in a telephone call today.

Air New Zealand has obtained Australian Foreign Investment Review Board approval to purchase up to 14.99% percent of Virgin Blue; a shareholding which it believes will keep the total foreign ownership of Virgin Blue within the statutory limit of 49%. Virgin Group based in the UK has a 26% shareholding.

“The investment in Virgin Blue is part of Air New Zealand’s strategy to develop scale and reach in this region. The Tasman alliance with Virgin Blue was the first step in this strategy. This investment cements the emerging relationship between our two airlines and demonstrates the confidence we have in Virgin Blue both as an entity and as a partner for Air New Zealand,” says Mr Fyfe.

Air New Zealand intends to make a further announcement about the shareholding to the NZX and ASX before the commencement of market trading tomorrow.

For further information contact:

Sonya Joyce
Manager Investor Relations
Phone: + 64 9 336 2287

[Olive Man]

This strategy is going to provide better returns for AIR as bigger airlines can leverage off costs and marketing across airlines.

A good move by Fyfe.

Disc AIR shareholder...

[Share Investor]

Earnings Update

Air New Zealand gave guidance on February 24th 2011, at the six month result announcement, that it expected to be profitable in the second half, noting the risks around fuel price and the Christchurch earthquake.

The financial impact of the Christchurch earthquake is more severe than expected then. Further, the recent tragic events in Japan will also impact revenue in that important market. Based on current fuel prices and demand trends the company does not expect to be profitable in the second half year and full year normalised earnings are expected to fall below $100m.