1 00:00:00,960 --> 00:00:04,320 Speaker 1: You're listening to a share of these podcast a couple 2 00:00:04,360 --> 00:00:05,760 Speaker 1: of years back, I think when you had the capital 3 00:00:05,840 --> 00:00:07,400 Speaker 1: rays that sort of set yourselves up for all of this. 4 00:00:07,440 --> 00:00:09,920 Speaker 1: Twenty twenty two, you were talking about being app at 5 00:00:09,920 --> 00:00:12,959 Speaker 1: about ninety percent of COVID levels. By now, yes, it's 6 00:00:13,039 --> 00:00:14,440 Speaker 1: right nowhere, nowhere near it. 7 00:00:14,600 --> 00:00:17,400 Speaker 2: I think we're at about eighty eight of pre COVID 8 00:00:17,440 --> 00:00:22,480 Speaker 2: levels eighty seven, but at huge cost. All these rented 9 00:00:22,480 --> 00:00:26,239 Speaker 2: Triple sevens, all these rented engines, a whole bunch of 10 00:00:26,280 --> 00:00:29,600 Speaker 2: new aircraft that we're paying for in terms of depreciation 11 00:00:29,920 --> 00:00:34,080 Speaker 2: and invested capital that aren't doing anything. And so while 12 00:00:34,120 --> 00:00:38,319 Speaker 2: we're close to that level of flying, it's coming at 13 00:00:38,680 --> 00:00:41,440 Speaker 2: a significant cost burden that what we didn't anticipate. 14 00:00:41,640 --> 00:00:45,400 Speaker 1: Be nice to get some tourists too, it would something 15 00:00:45,479 --> 00:00:47,920 Speaker 1: like what I think I read fifty percent or fifty 16 00:00:47,920 --> 00:00:51,040 Speaker 1: five percent levels coming out of China compared with pre 17 00:00:51,120 --> 00:00:55,600 Speaker 1: COVID levels. Obviously that's an industry wide problem, but it's 18 00:00:55,640 --> 00:00:58,280 Speaker 1: it's it's another one of those levers that any Zeland's 19 00:00:58,280 --> 00:01:01,080 Speaker 1: already always been quite keen to so pull and support 20 00:01:02,400 --> 00:01:03,120 Speaker 1: what's going on there. 21 00:01:03,160 --> 00:01:05,319 Speaker 2: At a total country level, I think we're at eighty 22 00:01:05,440 --> 00:01:08,759 Speaker 2: seven eighty eight percent of where we were visitor arrivals 23 00:01:08,800 --> 00:01:12,640 Speaker 2: pre COVID. But within that number, averages are deceiving. So 24 00:01:12,720 --> 00:01:15,400 Speaker 2: within that number, actually the US is ahead of where 25 00:01:15,440 --> 00:01:18,959 Speaker 2: it was pre COVID. It's the exchange rate of US 26 00:01:19,000 --> 00:01:21,640 Speaker 2: tourists coming to New Zealand now. Actually the exchange rates 27 00:01:21,640 --> 00:01:24,600 Speaker 2: amazing for all the reasons why it's tough for a 28 00:01:24,680 --> 00:01:27,000 Speaker 2: key to travel to US at the US at the moment, 29 00:01:27,520 --> 00:01:31,800 Speaker 2: so US is sitting actually well above where we were 30 00:01:31,880 --> 00:01:36,200 Speaker 2: pre COVID. Australia just behind. I think they might be 31 00:01:36,319 --> 00:01:39,440 Speaker 2: ninety two ninety three percent of where they were, but 32 00:01:39,480 --> 00:01:42,759 Speaker 2: they're strong to demand out of Australia. So it's one 33 00:01:42,760 --> 00:01:46,640 Speaker 2: of our best performing markets, as you say or allude 34 00:01:46,680 --> 00:01:50,160 Speaker 2: to the big gap at the moments out of China market. 35 00:01:50,440 --> 00:01:53,040 Speaker 2: So we are I think half all very close to 36 00:01:53,080 --> 00:01:54,400 Speaker 2: half of where we were before. 37 00:01:55,080 --> 00:01:58,360 Speaker 1: I think I've read somewhere it's like over five hundred 38 00:01:58,400 --> 00:02:01,760 Speaker 1: dollars for someone to come here before they've even bought 39 00:02:01,800 --> 00:02:04,000 Speaker 1: the ticket. Right, there's a huge visa cost, and then 40 00:02:04,040 --> 00:02:06,680 Speaker 1: you've got that extra visa levy that's been put on 41 00:02:06,800 --> 00:02:11,840 Speaker 1: for tourism and conservation purposes and instead of pricing ourselves 42 00:02:12,000 --> 00:02:12,400 Speaker 1: out of the. 43 00:02:13,320 --> 00:02:16,560 Speaker 2: I don't think it helps, So I'm not for sure 44 00:02:16,600 --> 00:02:19,320 Speaker 2: it's five hundred dollars, it's four forty one I think 45 00:02:19,360 --> 00:02:20,239 Speaker 2: for the visa. 46 00:02:20,040 --> 00:02:22,320 Speaker 1: And then the hondy on top and then on top. 47 00:02:22,680 --> 00:02:26,480 Speaker 2: So it is expensive us in our Singapore office a 48 00:02:26,480 --> 00:02:28,760 Speaker 2: couple of weeks ago talking to the team up there, 49 00:02:29,160 --> 00:02:32,680 Speaker 2: and there's no doubt it's a friction point compared to 50 00:02:32,720 --> 00:02:38,120 Speaker 2: other countries who have got much lower sort of costs 51 00:02:38,120 --> 00:02:40,560 Speaker 2: of entry. And I think one of the tough things 52 00:02:40,600 --> 00:02:44,919 Speaker 2: with the visa is that it's it's a levy that's 53 00:02:44,960 --> 00:02:49,960 Speaker 2: imposed at the time people are making decisions about where 54 00:02:49,960 --> 00:02:53,880 Speaker 2: they're traveling. It's not like they've arrived in country can't 55 00:02:53,919 --> 00:02:58,200 Speaker 2: do anything commitive, you know. So there's no doubt in 56 00:02:58,240 --> 00:03:03,400 Speaker 2: my mind that it is influencing where people choose to travel. 57 00:03:03,440 --> 00:03:06,920 Speaker 2: We are have become a much higher cost destination than 58 00:03:06,960 --> 00:03:10,320 Speaker 2: we were in the past, still very desirable and we're 59 00:03:10,320 --> 00:03:12,640 Speaker 2: still getting good and bound tourism, but that is a 60 00:03:12,680 --> 00:03:13,240 Speaker 2: friction point. 61 00:03:13,280 --> 00:03:15,080 Speaker 1: I think, how on earth do you sort of keep 62 00:03:15,120 --> 00:03:16,799 Speaker 1: turning up with a smile on your face then when 63 00:03:16,840 --> 00:03:19,280 Speaker 1: it feels this challenge, I mean, you know, Any aircraft 64 00:03:19,360 --> 00:03:21,639 Speaker 1: that sets out without knowing when it's going to land, 65 00:03:21,720 --> 00:03:23,840 Speaker 1: where it's going to land is in some real trouble. 66 00:03:24,080 --> 00:03:26,160 Speaker 2: Where an airline that's been around for eighty five years, 67 00:03:26,680 --> 00:03:29,040 Speaker 2: there's a huge amount of pride in the airline. It 68 00:03:29,120 --> 00:03:31,280 Speaker 2: is an amazing place to work. We've got a lot 69 00:03:31,280 --> 00:03:32,960 Speaker 2: of people on the staff who have been with the 70 00:03:33,120 --> 00:03:37,840 Speaker 2: company for twenty years, like me thirty forty. A lot 71 00:03:37,840 --> 00:03:41,360 Speaker 2: of people on the staff have seen the various ups 72 00:03:41,360 --> 00:03:45,360 Speaker 2: and downs through the years. People are philosophical. I think 73 00:03:45,400 --> 00:03:47,760 Speaker 2: about where we're at in the cycle. We have a 74 00:03:47,880 --> 00:03:52,200 Speaker 2: good plan going forward, great fleet plan, great product, you know, 75 00:03:52,200 --> 00:03:54,680 Speaker 2: the wide body fleet at the moment, it's just starting now. 76 00:03:55,520 --> 00:03:59,360 Speaker 2: We fly the flag offshore lots of different countries, so 77 00:03:59,440 --> 00:04:04,160 Speaker 2: where one of the country's biggest cheerleaders, and people just 78 00:04:04,240 --> 00:04:07,000 Speaker 2: get a thrill out of that. And it doesn't seem 79 00:04:07,040 --> 00:04:11,600 Speaker 2: no matter how tough the situation is. People we just 80 00:04:11,680 --> 00:04:17,320 Speaker 2: get that fulfillment and pride out of representing the country 81 00:04:17,600 --> 00:04:20,400 Speaker 2: as well as we can, and that's what gets people 82 00:04:20,600 --> 00:04:23,680 Speaker 2: or keeps people going. Investing involves the risk you might 83 00:04:23,720 --> 00:04:26,120 Speaker 2: lose the money you start with. We recommend talking to 84 00:04:26,160 --> 00:04:30,440 Speaker 2: a licensed financial advisor We also recommend reading product disclosure 85 00:04:30,480 --> 00:04:32,200 Speaker 2: documents before deciding to invest.