The latest Balance sheet shows about $1b cash but a liability of about $1.4b for revenue paid in advance. So they need to face upto this and say what they intend to do.

There is an interesting parallel in the cruise industry where some cruise lines are offering for cancelled cruises the choice of 100% cash refund or 200% credit for future travel.

It’s clearly a tough time for them but they need to recognise that customers money held on behalf and not earned is not their own money and respond accordingly.

I think how AirNZ choose to respond in the next week will have a huge effect on their fortunes over the next 5-10 years in terms of loyalty and the very concept of making bookings in advance and taking the risk.

Lets hope wise heads prevail. They don’t take short term gain and win the battle only to then loose the war.