Airlines

When it comes to investing, we’re not big fans of airlines.  But in the case of Alliance Aviation Services (ASX: AQZ), we’re happy to make an exception. You see, Alliance operates fly-in fly-out charter services for Australian mining companies, and its flights are in demand. With high returning business and strong cash generation, we think there’s a lot to like. continue…

by Gary Rollo Posted in Airlines, Companies, Stocks We Like.

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At Montgomery, we have often discussed market power as a driver of competitive advantage. Last week a major player in the travel industry launched a campaign to assert dominance, which, if successful, could have profound implications for Flight Centre (ASX: FLT) and Webjet (ASX: WEB). continue…

by Ben MacNevin Posted in Airlines, Companies, Insightful Insights.

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Despite our best efforts to alert investors and advisers to the traps, many remain unwitting speculators.

Take the recent collapse in the price of oil. An army of analysts has already produced a mountain of research and thought-pieces under titles like “Winners & Losers from the Oil Price Crash”. continue…

by Roger Montgomery Posted in Airlines, Energy / Resources.

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Having studied past corporate responses to airline disasters – including those of Japan Airlines, Korean Air and ValuJet – the last of which suffered a major crisis in 1996 after one of its planes crashed in the Florida Everglades – I’m not surprised to hear that Malaysia Airlines is to be delisted pending a major restructure. continue…

by Roger Montgomery Posted in Airlines, Insightful Insights.

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by Roger Montgomery Posted in Airlines, On the Internet.

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Qantas’ half-yearly ‘loss’ announcement today revealed a business in crisis. Fuel costs surged to a record level for any half-year period (there goes the hoped-for benefits of new, more efficient aircraft), intense competition, unfavourable currency movements and falling demand, have all been offered as reasons for the poor showing. In reality, however, the real reason for the poor result is that this is an airline. continue…

by Roger Montgomery Posted in Airlines, Companies.

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In this interview with Ticky Fullerton on ABC’s The Business on 25 February 2014, I discuss the recent losses reported by Qantas, and what needs to be done to support an industry on its knees. Watch here.

by Roger Montgomery Posted in Airlines.

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In this column for the Herald Sun, I warn, as I always have done, against investing in airlines. Read here.

by Roger Montgomery Posted in Airlines.

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Regional Express Holdings Limited (ASX:REX), Australia’s largest independent regional airline, released a profit warning on Friday evening in which the Chief Operating Officer used very strong language to warn of the sector’s imminent collapse. continue…

by Ben MacNevin Posted in Airlines, Companies.

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Whenever I have been asked to nominate the worst industries to invest in, I have always cited car manufacturing and airlines. Car manufacturing is an exercise in labour and capital intensive fashion design, while airlines suffer from being input price takers, are beholden (pun intended) to unionised labour, irrational competition and competitors who can secure their fuel for free. And if a commodity is anything that is purchased purely on price and where brand isn’t a consideration, then airlines are selling a commodity too. continue…

by Roger Montgomery Posted in Airlines, Insightful Insights, Manufacturing.

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