Originally Posted by
NZbutterfly
Owning a wee chunk of VA wouldn't hurt their back pockets either.
Owning a chunk of VA has (so far) meant nothing but throwing more and more money at the brand as it haemorrhaged money.. And having to increase ownership due to a mini boardroom battle.
The downside will be full on onslaught about to commence in the NZ market as JQ attempt payback for NZ backing VA in a campaign that has hurt QF significantly in their home market. Now that QF are profitable again they've got money to throw at NZ, and even if they never make a cent, if they can inflict pain on NZ then they believe they win.
If I had Air NZ shares (and I don't) I'd be getting ready to bail. While the exec team are promising another good year next year it's way to early to know what will happen. IMHO the cost cutting that has occurred with the profit at all costs mentality has left the airline in great shape financially, but has left HVCs grumpy and walking. Domestic competition and imminent arrival of competition on the LAX route along with OneWorld growing while *A struggles could all see very interesting things happen in the medium to long term.