Forum Archive Index - May 2001

["Matthew Van Veen" <mattvanveen@hotmail.com>]

One thing that hasn't been mentioned on this forum today is I am sure I 
recalled CEO Toomey yesterday when discussing the possible talk of 
discussions with Impulse, AIRNZ had $600m in cash reserves. Anyone of you 
airline analysists have an idea where this money is from?

Matt


>From: "Andrew Dengel" <adengel@clear.net.nz>
>Reply-To: sharechat@sharechat.co.nz
>To: <sharechat@sharechat.co.nz>
>Subject: Re: [sharechat] Airline shares
>Date: Thu, 3 May 2001 15:47:44 +0930
>
>Thanks for your comments Snoopy, very interesting discussion from everyone.
>
>One thing I feel I have picked up from all these analysis and opinions on
>Airlines (and the relative politics involved)  is.............
>  I dont think I want to invest in one!! ;-)
>
>Andrew
>disc: hold no airline shares and dont think will be for some time
>
>----- Original Message -----
>From: <tennyson@caverock.net.nz>
>To: <sharechat@sharechat.co.nz>
>Sent: Friday, May 04, 2001 12:53 AM
>Subject: Re: [sharechat] Airline shares
>
>
> > Thanks Brian, Greg, Andrew and Peter for your useful comments on this
> > topic.
> >
> > Greg, perusing 800 articles and coming up with the reasoned
> > conclusions you did would put many pro analysts to shame, so you
> > need not apologize for not being one.  I was interested in your
> > bracketed comment
> >
> > "(the SAAB is a reliable work horse on existing
> > routes but they could do with 2 more, also more ATRs
> > and focus on the shorter main trunk routes, and focus
> > the Beech 1900s on the short provincial routes)."
> >
> > Now it seems to me that you are suggesting larger planes are needed.
> > Yet back in the early Air New Zealand domestic days, did they not run
> > Fokker Friendships (around SAAB capacity) on these routes, a plane it
> > would seem in hindsight was too big to be economic?   So I am curious
> > at your reasoning behind this statement.
> >
> > Further, I am also curious about the situation with code sharing and
> > international landing rights.  Now I understand the usefulness of Air
> > New Zealand using a star alliance partner to fly into London, rather
> > than a half full plane of their own.  But this doesn't mean they have
> > given up their landing rights into Heathrow, London does it?   Or did
> > they never have landing rights there, was it only to Gatwick the
> > other London Airport?  But if Air New Zealand aren't actually flying
> > any of their own planes to London, and have no future intention of
> > doing so, just what rights is Helen Clark talking about negotiating
> > with the British government.  I guess I'm a little confused as to how
> > this landing rights system works.
> >
> > Andrew, I see the point about Virgin Blue being an Australian
> > Airline.  I suppose you mean it is registered as a company in
> > Australia.  But it is still British *owned* by the Virgin Group in
> > the UK, so in that sense it is British.   And it would seem that it
> > is the ultimate ownership, rather than where the airline company is
> > incorporated, that is the key issue as regards trading off
> > international landing rights.
> >
> > I know that Virgin Blue has nothing to do with the
> > European operations of Virgin Atlantic.   While technically correct,
> > both airlines still both enjoy the support of the same shareholder.
> > It is hard to imagine that Richard Branson regards them as
> > completely separate, even though legally, they are.
> >
> > I don't see Singapore Airlines getting too concerned about the short
> > term performance of Air New Zealand.  In fact I would suggest it
> > rather suits them that Air New Zealand has a couple of bad financial
> > years.  If Air NZ/Ansett don't meet certain profit targets, then no
> > top up payments to Brierley Investments are required, thus saving SIA
> > millions of dollars!  In fact it wouldn't be beyond the bounds of
> > possibility that two years out SIA might use their influence on
> > Branson to engineer a merger between Ansett and Virgin Blue.  Air
> > NZ/Ansett CEO Toomey is jumping up and down about the Impulse/Qantas
> > merger at the moment.  I don't think that is going to be called off.
> > But by getting the Australian commerce commission to officially
> > sanction that, how could the Commerce Commission not sanction a
> > merger between Ansett and Virgin Blue down the track?   How is that
> > for a grand conspiracy theory?
> >
> > And now to Peter's latest 'rave' on the subject ;-)
> >
> > "I cannot agree with you with Air New Zealand is
> > currently demonstrating any reasons why they should be
> > treated as a 'best in breed'."
> >
> > Well, I didn't exactly say that.   I said that if you were to invest
> > in airlines you should invest in the best ones.  Unfortunately for
> > Air NZ both Qantas and Singapore airlines (the direct
> > competition) fall into that category!
> >
> > Personally I think Air New Zealand are well managed.  They have to be
> > to 'hang in there' with the competition!  It seems to be a series of
> > factors (intense competition in Australia, downturn because of the
> > olympics, digesting the different culture of Ansett, a spike in fuel
> > prices and the weak New Zealand dollar) any one of which they could
> > have coped with, but when all 5 hit together, well, it hurts!  I
> > regard myself as slightly 'underweight' in Air New Zealand but won't
> > be buying any more of them until I have a clearer picture as to how
> > they will fund the 5 billion dollar fleet upgrade for Ansett. SNOOPY
> >
> > (disc: Hold AIR)
> >
> >
> >
> > ---------------------------------
> > Message sent by Snoopy
> > e-mail  tennyson@caverock.net.nz
> > on Pegasus Mail version 2.55
> > ----------------------------------
> > "You can tell me I'm wrong twice,
> > but that still only makes me wrong once."
> >
> >
> > 
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