Forum Archive Index - December 2000

["hugh webber" <hugh.webber@clear.net.nz>]

You may be right, you may not - I don't have the latest Air NZ data
in front of me; I'm no longer a shareholder - got out of Air NZ A at $3.40.
But factors involved.....if Air NZ have greater costs than revenues
from overseas (incl both Ansetts in Australia) then that's not a good
look for them to start with.
I understood they did a fair bit of leasing rather than buying all their
aircraft
outright.
Then they have both direct and indirect tourist revenue (incl overseas
tourists flying within NZ - the effect of making them feel 'richer'), 
plus overseas revenue from their largish repairs and
maintenance op in Chch plus dividends etc from the Ansetts plus air
freight.
If they've got themselves in such a position that they do worse instead of
better out of a lower NZ dollar then they're an even worse investment than
I thought.

cheers,
hugh
----------
> From: Jeremy <jeremy@electrosilk.net>
> To: sharechat@sharechat.co.nz
> Subject: Re: [sharechat] Strange times
> Date: Friday, 1 December 2000 23:03
> 
> 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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