My observations from todays annual result releases:The second...

My observations from todays annual result releases:

1. The second half of FY21 is a bit of a holding pattern - underlying profitability maintained but costs of introducing E190 fleet have had an impact.
2. Decision not to pay a dividend understandable given additional aircraft purchase amounts still due. Net debt picked to peak at $156 million at December 2021 (from $120.1 million at June 2021). On that basis, wouldn't expect a half year FY22 dividend to be paid either.
3. AQZ sounding confident on successfully deploying E190 fleet. The presentation states "Secured new contracted wet leasing business to guarantee deployment of newly acquired E190s" (emphasis added). The tripling of total flying hours will be huge in terms of financial outcomes, which should be fully apparent in FY23. Once fully deployed, the 32 E190's will produce 80,000 annual flying hours alone. If this growth occurs, $4.40 per share will look like a great buy, so question for investors to weigh up is what are the risks to the growth not being achieved.
4. The proposed E190 fleet deployment plan has no mention of Virgin Australia, so either this is now off the agenda or AQZ will need to secure additional aircraft to provide regional flying capacity to Virgin. Surely additional aircraft would require an additional capital raise.
5. Speaking of Virgin Australia, Note J4 to the annual report states:
   Any collection from the Voluntary Administrators under this process would be a bonus.
6. There is no indication that the current COVID state border restrictions are materially adversely impacting AQZ, although my observation that wet lease flying for Qantas is at a reduced level from what would have been otherwise expected.
7. Aside from the E190 expansion, AQZ is sounding positive on organic growth for FY22 in its contract and charter operations.
8. The top 20 shareholder details indicates that aside from Qantas's 19.76% shareholding, the share register is quite open. There is no significant institutional shareholding, so will be interesting to see if this changes.