Originally Posted by
27/09
Hmmmm, I don't know about JT but I'm pretty sure Mr Luxton's apparent success is largely due to things his predecessor put in place and the drop in fuel prices. I don't think there's any way you could stretch it to say he showed anyone up or Air New Zealand's current financial returns can be directly attributed to CL.
Anyhow, back to the topic of the thread.
Actually I think you'll find Chris Luxon (note the spelling, there is no 'T') in some capacity has been responsible for the profitability and increase in share price.
"Over the past 3 years the cost per available seat kilometre has reduced by 7 per cent while most recently the available seats per kilometre and revenue per kilometre have grown 16 and 17 per cent respectively in the first half of this financial year. Despite the yield being down 4.6 per cent, the increase in capacity, passenger demand and cargo revenue up 21 percent, along with the improved yield of 1.6 per cent on freight and reduction in fuel prices have driven net profit after taxation to a record first half high of $338 million. This amount is increased 154 per cent on the previous year where full year results were $327 million after taxation.
Since Christopher Luxon was appointed Chief Executive Officer in January 2013, previously the Group General Manager International Airline May 2011, the full year results have grown from $75 million in 2011 to an expected full year result in 2016 exceeding $800 million. With an operating cash flow of $541 million, and net cash on hand of $1.4 billion up 6% from June 2015, the airline not only received an upgraded investment grade rating of Baa2 from Moody’s in FY2015, but was able to provide equitable dividends of 10 cents per share to investors, only reinforcing the stability of the airline's financial position."
At least the ANZ board along with QF and any other airline with half a brain managed to hedge fuel correctly in the last couple of years. JB's book 'Game Changer' is aptly titled - playing checkers, not chess...
