Forum Archive Index - September 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

I did recommend to people to get out of AIR and made several negative comments, starting with:

 

http://www.sharechat.co.nz/archives/2001/02/msg00410.shtml 

 

This company should have been the main flag bearer but was subjected to - in my opinion - negligent treatment.  There was a rapid change of CEO's at one stage and this alone cooled my interest.

 

There are some real problems at the NZ Board level and I have spent two posts on this.

 

As I see it, a reluctance or incompetence to estimate risk arising from actions to be taken. Any decision is better than none, seems to be the policy. Poor Board governance is another problem. 

 

Other directors merely react; only those who are able, can afford to be pro-active.

 

I realise that Australia has not helped,nevertheless, the then Board who bought the remaining 50% was responsible. Members who voted for that proposal, should have resigned.

 

It is now known that the Board had no real idea of benefits and costs on some routes in Australia.

 

I am not sure if the NZ Government is aware of any guarantees given by AIR to Ansett as reported to be in existence.

 

Meanwhile, expect not only bad publicity but some permanent damage to the image of this country: The doubt about entitlements to workers in Australia should have been immediately dealt with. Evading this problem is not justified!

 

If there are problems eg. sabotage then one could see people shunning the Air New Zealand carriers; this could damage the country and AIR. It has some of our money and may even have to go for a ' double dip '. 

 

I am angry as I find that AIA is suffering from the fall-out. There is no need for any reader to dissect this post and discuss selected extracts at length. Please continue performing the funeral rites on Ansett if you must.

 

I am a hard- headed investor with a reasonable stake in the market and in AIA. Let us hope that the Boards of AIA and SKC can keep out willing but incompetent Directors.

 

Gerry