Record Profit for Air NZ
Yep, Air NZ is 53% owned by the NZ Government, now as it was sold down by the National government along with numerous power companies.
How much more money did the NZ Government put into Air NZ since that bailout? About $0.
Stands on its own two feet, gets no special benefits from the government here, has to pay full taxes in NZ and even pay the government dividends just like any other shareholder. There is no government debt assurances, discounts on fuel, landing fees, airways charges or CAA charges. They are the same charges as any other airline in NZ get charged, except for Jetstar. They don't pay NZCAA charges, security charges.
The main difference is post bailout, they have found exceptional CEOs and board members who have done a great job transforming the airline to what it is today. They have been smart, innovative and open to opportunities as they have presented themselves to run an efficient business.
How much more money did the NZ Government put into Air NZ since that bailout? About $0.
Stands on its own two feet, gets no special benefits from the government here, has to pay full taxes in NZ and even pay the government dividends just like any other shareholder. There is no government debt assurances, discounts on fuel, landing fees, airways charges or CAA charges. They are the same charges as any other airline in NZ get charged, except for Jetstar. They don't pay NZCAA charges, security charges.
The main difference is post bailout, they have found exceptional CEOs and board members who have done a great job transforming the airline to what it is today. They have been smart, innovative and open to opportunities as they have presented themselves to run an efficient business.
I agree that the Board of Qantas is the sub-standard problem here. More interested in the title than tightly running the show.
However the point is that Air NZ is majority Govt owned and therefore the banks are comfortable...it was baled out from some bad Board and management decisions years ago...
However the point is that Air NZ is majority Govt owned and therefore the banks are comfortable...it was baled out from some bad Board and management decisions years ago...
empacher48: How much more money did the NZ Government put into Air NZ since that bailout? About $0.
A better question would be how much money has the NZ government got back from Air NZ since the bailout, both in dividends and their recent share sell down? I'd say they've done pretty well.
Quite clearly TBM you do not understand the concept of ownership of shares. Shareholders do not guarantee an organisation's debts. You seem to think that by the NZ Govt holding the shares, that this transcends into some form of debt guarantee that lenders feel happy with.
Wrong. Shareholders provide the capital, are there as investors, and when you look at the returns the NZ Govt has extracted from it's ANZ shareholding, you would have to say it was quite an astute move in retrospect.
Glass half full / Glass half empty. The ANZ board, under their Corporations Law obligation, are the ones charged with ensuring the shareholder's interests are maintained. No safety net for them about back-up guarantees.
Which just goes to show - not only do they appear to be running a better airline operation, but they also seem to have a smarter Board. perhaps QF should take a look at how they are doing it - they had the chance a few years ago when they too held an ANZ shareholding.
Wrong. Shareholders provide the capital, are there as investors, and when you look at the returns the NZ Govt has extracted from it's ANZ shareholding, you would have to say it was quite an astute move in retrospect.
Glass half full / Glass half empty. The ANZ board, under their Corporations Law obligation, are the ones charged with ensuring the shareholder's interests are maintained. No safety net for them about back-up guarantees.
Which just goes to show - not only do they appear to be running a better airline operation, but they also seem to have a smarter Board. perhaps QF should take a look at how they are doing it - they had the chance a few years ago when they too held an ANZ shareholding.
The point is in so called free markets you go broke. You fail. Then someone else can start afresh.
Ansett was let to go broke, yet Air Nz gets a bailout then comes in and starts flying in our airspace. It's ridiculous.
Ansett was let to go broke, yet Air Nz gets a bailout then comes in and starts flying in our airspace. It's ridiculous.
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Typical tall poppy syndrome from some of the Aussies here.
Hopefully Qantas can get rid of their board and start over, and wouldn't be a great if the government come in to bail out Qf, that way we can stop hearing how NZ was given a hand out blah blah blah.
Good work Air NZ what a great result.
Hopefully Qantas can get rid of their board and start over, and wouldn't be a great if the government come in to bail out Qf, that way we can stop hearing how NZ was given a hand out blah blah blah.
Good work Air NZ what a great result.
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Ansett was going broke through a similar situation as QFs current troubles, poor management and decisions with aircraft etc.
Air NZ was flying in Aus airspace a long time before Ansett went broke so a pointless comment grow up and stop trying to bag a company that's well run.
Air NZ was flying in Aus airspace a long time before Ansett went broke so a pointless comment grow up and stop trying to bag a company that's well run.
Quite clearly TBM you do not understand the concept of ownership of shares. Shareholders do not guarantee an organisation's debts. You seem to think that by the NZ Govt holding the shares, that this transcends into some form of debt guarantee that lenders feel happy with.
Wrong. Shareholders provide the capital, are there as investors, and when you look at the returns the NZ Govt has extracted from it's ANZ shareholding, you would have to say it was quite an astute move in retrospect.
Wrong. Shareholders provide the capital, are there as investors, and when you look at the returns the NZ Govt has extracted from it's ANZ shareholding, you would have to say it was quite an astute move in retrospect.
Almost. The Export-Import Bank of the United States provides cheap credit facilities to Boeing customer airlines, it is designed to assist US company exports. Generally, these airlines have to government backed/owned or investment credit rated. ANZ has used the Export-Import Bank for aircraft financing.
Got to love the "free market" bahahaha.
But good on Air NZ, it's hard to knock Fyfe in how he took the batton from Norris and kept things moving forward. But I think Luxon really sees a plausible growth strategy for the 'end of the line carrier' and I think it's exciting times ahead.
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Nev, air nz flying domestically in aussie airspace yet? No, except as owner ship in Virgin.
Ansett were flying domestically in NZ decades ago.
Keating stopped air nz flying domestically in aussie when he crapped all over the Open Skies Agreement to protect who??
In desperation air nz made a bad decision and bought into a dead duck called Ansett, top heavy with internal rip off ( remember the story about 300 staff in the dept which handled rental vehicles for Ansett staff on leave?).
Ansett were flying domestically in NZ decades ago.
Keating stopped air nz flying domestically in aussie when he crapped all over the Open Skies Agreement to protect who??
In desperation air nz made a bad decision and bought into a dead duck called Ansett, top heavy with internal rip off ( remember the story about 300 staff in the dept which handled rental vehicles for Ansett staff on leave?).
Last edited by Not Nightowl; 27th Feb 2014 at 23:44.
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Hang on
Well isn't Air New Zealand shares about to be floated or maybe sometime in the near future.Purpose the Government to get there money back.So if you have Million in spare cash would you put into this Airline or any Airline.So is the balance sheet going to show anything other than a profit.If you looked at and were able to ask would you find that future costs such as Engine overhauls and Airframe checks are included.So what are there liabilities.I have not looked closely have you.They want there money back.One of the problems today is Standard dont start from the bottom up they start from the top down.So what did the NZ Government say to the accountants.Have you really found a real Gem here or are we looking at fools Gold
Since ANZ is now so profitable perhaps they would like to pay back the $millions to the Aussie taxpayer and travelers who had to pay out the Ansett workers redundancy payments after ANZ walked away from their obligations.Quote "we owe those workers nothing" after the Ansett collapse. Easy to make profits when you don't pay your bills.
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Since ANZ is now so profitable perhaps they would like to pay back the $millions to the Aussie taxpayer and travelers who had to pay out the Ansett workers redundancy payments after ANZ walked away from their obligations.
Neat cash grab, with the Ansett workers as the fall guys. And the bulk of the Australian public thinks that they paid for the Ansett worker's entitlements to this day! By the way, the receivers fell short in their asset sales & Ansett workers did not receive all the money they were entitled to under the various wages agreements.