Forum Archive Index - March 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
> The part
> that still worries me though is that when a small cut price operator
> starts as it has in the past, even with only one chartered plane it
> seems to be able to start a price war that cuts Air NZ prices over a
> wide spectrum. 
>
Or on the competing routes at least.  Nevertheless IMHO Air NZ does 
a good job of keeping it's costs under control.
>
>We also have the oil price surge at the mo which
> can't be helping but its the discount competition that is a
> worry....what happens if Virgin comes in, if a recapitalised
> domestic Ansett goes for more market share. The jury's still out for
> a while I guess.
>
And while there is uncertainty that creates a buying opportunity.
(Disclosure, I followed through my own thoughts and topped up my 
AirNZ holding a couple of weeks ago)
>
> I think there are some growing 3rd liners nibbling
> away, can't remember the names.
>
Like Origin Pacific, run by the guy who years ago started the 
successful Air Nelson which has now been swallowed by AirNZ.
>
> At the
> moment Air NZ can only do as well as Qantas and SAS will let it as
> they can compete much more fiercely.
>
With Air NZ set to become a 'top twenty' world airline, I am not sure 
whether this still holds.   Mind you I'm not sure what this means 
exactly.   If it was based on profits Air NZ might have been a top 
twenty airline years ago.  I suspect it might be based on number of 
take offs and landings scheduled per day.   I would be interested if 
anyone knows of a website where such comparative statistics are 
published.
>
> On AIA, I think its probably a different situation from Ports of
> Auckland because as you noted, passengers want immediacy and
> convenience.. I can't really see anyone getting town
> planning permission for an international airport close to Auckland
> which is why I think its a classic Buffett consumer monopoly.
> 
Well AIA is certainly strategically sited and they are ramping up 
their charges because they know customers are prepared to pay for 
that fact.   But if the Auckland traffic builds up there is always 
Hamilton Airport, and what if Tranzrail decided to put a high speed 
train link between Hamilton and Auckland?   That could end up being 
the fastest way into the Auckland CBD. SNOOPY

 
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