Forum Archive Index - July 2001

["Trevor Gilbert" <trevor@tgif.co.nz>]

Snoopy wrote

"
You are referring to Wellington Airport?  What proportion of Infratil
Assets is that?"

Well I would consider all their assets regional monopolies. They have 67% of
Glasgow Airport,  66% of Wellington Airport, 25% (approx) of Port of
Tauranga and 26% (apporx) Trustpower. The three ports are service monopolies
by their very nature.

Snoopy wrote"
Personally I don't like this asset trading approach for utilities.
If an asset is a virtual monopoly (e.g. Wellington Airport), why
would I want to sell it?   I'd rather hang in there."

I couldn't agree more and according to their website this is Ift's
philosophy.


Snoopy wrote"

Have you looked at Auckland International Airport?   How does it
compare with that?"

I haven't done the sums I would think it is pretty fully valued already. It
is a very well run company, but there is too much involvement by political
entities (ie Auckland Councils) and a philosophy of returning a large amount
of the profits back to the councils for them to waste on pet projects. This
defeats the concept of getting full captial gains out of compounded
earnings. AIA are also largely a property developer and will have problems
increasing revenue from traditional airport services (landing fees etc) as
they are already in the top range for service charges and this must must
impact on their future performance.

Appreciate your comments anyway.

As a matter of coincidence I see that Forsyth Barr have come out in this
mornings Herald with similar pricing to my own. We must be reading the same
manual!


Trevor


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