I think part of virgins problem has been that they exist as a means to funnel passengers into their larger shareholders networks, not really to max out their own profits, the virgin float is less than 10% and they have 5 big holders all of whom are big players in the long haul market. The Fifo or charter business just does not interest these shareholders as it does not connect them to customers like the regional routes, Virgin will be happy to let AQZ have all this business and if they can save them money in the process then it is a win/win, the next 12 months will really show what aqz are made of. If they can become a high growth company with improving margins then they will re-rate and we will go much higher, if the mining fifo market implodes and the virgin deal proves a costly diversion then I cant see we go much lower than we are now ... I wonder if the recent contract non renewal has come about as a result of a little muscle flexing on pricing by aqz, if they have all these new uses for planes then why not ratchet pricing up a little ? Would be good to get some feedback from anyone who has a feel for how things are at the coalface .
AQZ Price at posting:
85.5¢ Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)