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Speaker 1: Together due to see US for reminder. Of course, Chris

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Speaker 1: Hopkins is with US after half past five. Now the

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Speaker 1: inevitable has happened in New Zealand has suspended its previous

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Speaker 1: earnings guidance and up to fair prices because of the

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Speaker 1: Iran wars impact on the oil price in New Zealand

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Speaker 1: was already facing a second half loss of around fifty

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Speaker 1: nine million dollars. But of course it's going to get worse.

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Speaker 1: Aviation commentator Irene King is with US now, high Irene

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Speaker 1: hi there, So how much worse do you think it

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Speaker 1: will get?

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Speaker 2: Wow? You know, it's hard to say. Some of the

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Speaker 2: financial commentators were saying the loss is going to be

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Speaker 2: twice the level and that was their comment before the

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Speaker 2: seal price really spiked, So you know, it does not

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Speaker 2: looking good. Now they do have some time to take

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Speaker 2: some remediate action, so that's a positive.

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Speaker 1: Yeah, but what action can they take?

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Speaker 2: Oh? Look, they've got a lot of costs that though

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Speaker 2: they can pull out of this, butusiness they really have

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Speaker 2: never addressed the cost side of their business since post COVID,

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Speaker 2: and they really could get stuck in there in their

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Speaker 2: labor costs astronomical.

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Speaker 1: So fire people is that the only way they can

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Speaker 1: save money.

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Speaker 2: Well, that's one of the variable costs. The other one

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Speaker 2: is sort of looking at their whole procurement strategies, what

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Speaker 2: they're buying, why they're buying it, how much of things

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Speaker 2: are buying, you know, are they buying them sensibly? There's

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Speaker 2: you know, there's some big cost drivers and that whole

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Speaker 2: engineering procurement area that again haven't been fundamentally touched. So

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Speaker 2: I'm sure they're getting on top of it. They're moving now,

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Speaker 2: but g was pretty late in the day too.

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Speaker 1: Right now, they've popped up the fares already. Domestics gone

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Speaker 1: up by ten dollars, short haul by twenty dollars, long

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Speaker 1: haul by ninety dollars. Do you think that's the end

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Speaker 1: of it?

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Speaker 2: Probably not. You know, when you start to to think

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Speaker 2: about how this is going to shake down, you know,

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Speaker 2: it comes down to really how much you and I

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Speaker 2: are prepared to pay. And you know, in the past,

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Speaker 2: I've always put it in as a levy and could

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Speaker 2: whip it off quite quickly. But if they've built it

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Speaker 2: into to base fears, you know they're going to get

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Speaker 2: the course of customer complaints that I've always had. Competitive, Yeah, Irene.

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Speaker 1: Thank you very much to appreciate your time. As always,

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Speaker 1: that's Irene King, avigation industry commentator. For more from Hither Duplessy,

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Speaker 1: Allen Drive listen live to news talks it'd be from

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Speaker 1: four pm weekdays, or follow the podcast on iHeartRadio