Remember Branson tearing up the "cheque" that was for NZ buying DJ ?? That slam you just heard was Branson walking out of the door on future talks. DJ don't need NZ anywhere near a quarter what NZ need DJ. Branson knows it too - with his cost structure and DJ's 19,000,000 person home market, he could really hurt NZ, then turn it into a gem for him.
The potential he'll find a Kiwi partner (for the ownership issues) to eventually turn the Koru into a red Virgin is a good medium bet I reckon. I'd imagine the N.Z. Government would prefer to sell to Virgin than Qantas if worse came to worst and no other offers were on the table.
As to the statement everyone knows they are losing money trans tasman, why are they still flying it then, or I'll rephrase that to why aren't they doing something about reigning in costs on it?? Too many flights?? Cut them. Who says they have to fly to SYD from AKL 3 or 4 times a day. Fly it once or twice *if* that makes you money. Prestige, ego and pride is some of the cause of the situation they are now in - the object of the game is to make money, not be seen where you think you should be seen !! If they're bleeding money left, right and centre, as everyone is admitting, then do something. It's the same mistakes all over again - shuffling deckchairs on the Titanic.
I know they've publicly stated it looks likely all flights under 4 hours will become a no frills, bare bones service, which is a good start, but it's catch 22. They'll lose their corporates and yield to QF. Damned if they do, damned if they don't.
How long will the N.Z. public stand by and allow NZ to milk their treasury with these constant losses and handouts??
It's a serious question - I don't know how passionate about NZ the public are there, or if they will stand for increased taxes and personal pain if the Govt slugs the taxpayers to help NZ out.
Correct me if I'm wrong, but haven't they almost, if not haven't already, spent the bailout money with no tangible results?
I'm not "going" at NZ, just saddened that they haven't seemed to shake off their conservative, steady as she goes, let's look at things slowly tag. Same mistakes over and over. They were a fantastic niche carrier and doing very well till Cushing tried to fiddle things.
Whatever happened to him anyway ??