Air New Zealand half the value

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news update… Air New Zealand profits down by 61%

Friday, February 24th, 2012

24 February 2012.  News reports state that Air New Zealand has announced a big slump in profits and warned that it is cutting more than 400 jobs. Some staff will be made redundant, others will not be replaced when they leave, and more will not get their contracts renewed. The airline’s six month net profit, after tax, was down by 61 percent to $38 million. One contributing factors for deepening financial problems and profit loss might be the lack of cooperation with local travel agents (zero commission policy plus additional fees)

The Market says Rob Fyfe has failed” So the departing CEO of Air New Zealand Ltd [AIR.NZX] is leaving his post at the end of 2012 and being lauded by some as a  “rockstar” CEO and the saviour of an airline. According to the market though he is not. If we look at the 7 year chart below – the length of time Mr Fyfe has been with AIR NZ –  we can see that the share price has kamakazied to half the value it was when he took over in 2005.
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