Forum Archive Index - December 2000

["Jeremy" <jeremy@electrosilk.net>]

From: "hugh webber" <hugh.webber@clear.net.nz>
> Higher NZ dollar is bad medicine spelling the end of our precious
> new export led recovery and doom for Air NZ, Carter Holt, Affco,

Why is it a problem for Air NZ ?  Their major costs are aircraft (US
dollars) and fuel (US dollars).  If anything, a rise in the kiwi will make
them more competitive as their costs go down.

They can compete in several new markets with the new open skies agreement,
and now their costs are lower they are even more competitive.

In the Australian market with their subsidiary Ansett (give the rising
Aussie) , they can offer lower cost airfares and expand the market,
improving load factors and profitability.

In terms of NZ, their cost of new aircraft purchased will drop, improving
the balance of payments for the country.

Sounds like good news for Air NZ as well and NZ to me.

Jeremy



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