Forum Archive Index - November 2001

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

yeah, I'm rather sceptical of the Cullen logic on this....so we the taxpayers
will have the privilege of paying for future losses without any profit motive
to stimulate cost efficiencies.
But then there are lots of contradictions involved.
It was said that the Govt could not afford to let Air NZ disappear becos of
the effect on tourism and exports which is probably a reasonable statement.
So now they close down airfreight exports from the South Island and cripple
the world beating Air NZ Engineering Workshops in Chch. 

And as we all know the history is fraught with contradictions. Air NZ wanted
Ansett and said it had identified $350 million of synergy savings incl
doing Ansett engineering work in Chch. Nothing happened. No savings
took place. Instead costs blew out as they took on Toomey and his
gold plated mates from Qantas - was it $25 million on management that wasn't 
needed.
Then the Aust government says you can have Ansett and now we'll let in
Impulse and Virgin Blue so no one can make a profit.
So Ansett goes down the tube and the Oz govt says its all Air NZ's fault.
Nothing as blind as those who will not see.

And as I've pointed out from time to time airlines are a commodity in the 
Buffett
analysis i.e. you can't make a reasonable continuing profit - they are typified
by low/no barriers to entry and competition determined by price alone -
so sensible people (which should include governments) don't invest in them.

cheers,
Hugh

----------
From: G Stolwyk <stolwyk@wave.co.nz>
To: sharechat.co.nz <sharechat@sharechat.co.nz>
Subject: Re: Re: [sharechat] Cullen airlines
Date: Wednesday, 28 November 2001 12:48

Big ' Iron bird ' with wings clipped, can't fly so high anymore!

One would normally smell kerosine,  whenever this plane takes off from the 
tarmac; from now on, the
odour of the gases from the exhausts will be more  like that of  burnt bank 
notes!

Keep flying Big Iron Bird!

Gerry  


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