Air New Zealand may be treading on thin ice

Is Air New Zealand in trouble?

I often discuss share market activities to people but don’t always post material on the web about my predictions.

However, in or about 1997, I made comment to several people Air New Zealand’s NZ share price would drop dramatically. It came to pass that Qantas and Air New Zealand were to join forces but there was a ‘big to do’ and the deal fell through. The shares dropped dramatically at the appointed time, as low as 8 cents as I recall, then bounced twice and returned to about $1.60 / per share within a month or so. This prediction was Three Years ahead of the game.

A few months back, I heard Air New Zealand was opening a direct haul to Houston USA. A quick scan of the charting I do, saw that this was a big move on a big pond with very thin ice cover and one that I would not put my hand in my pocket for. I discussed the matter with a very good friend in the air industry and they thought it was a good move, but now their thoughts have changed and it may be that Air New Zealand is making a big mistake, a costly mistake, and the Company’s timing could not be worse.

Threat of competition hits Air New Zealand Stock

This morning, the New Zealand Herald leads with an article ” Threat of competition hits Air New Zealand Stock ” and it looks as though there is trouble in the wind with speed bumps ahead for the National Airline. As always, I suspect there will be a media release saying that all is well, but where there is smoke there is always fire, and it may be a smart move to have your portfolio visit the doctor for a check up.

This move, and with the airline having invested a huge resources in the acquisition of new aircraft and marketing as of late, may be one that causes Air New Zealand several years of restructuring before recovery can be made. There is trouble in the wind as I see it and prudent action is necessary as the tides of change are once again at the door step for our National Airline and for the punter.

Shares and cabin luggage too heavy.

Shares and cabin luggage too heavy.

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