downgrade, page-50

re: chart - in a four year down trend... Once again, I dont think you are understanding the industry. There HAS been significant change in the Industry. The unleashing of Jetstar into the fares war and the subsequent massive drop in booking numbers at FLT outlets as people book on line. The reductions and in some cases removals of commissions form Travel Service providers and the effects of oil and other surcharges.

How do I explain the downtrend. I have explained it twice in recent posts but will do so again. See my previous postThe thing that worries me about FLT is not the quality of their management,it is very very good. Not the fact that people will stop travelling , they wont! Not the extremely competitive market place...FLT are leaders.

What worries me is the same thing that made me sell QF shares. The market perception of the travel industry severely curtails the ability of a company's shares to reach full value. QF have won every major battle they have entered over the last 5-10 years, however their share price has never blossomed.

The reason, the industry is vunerable to , fuel, terrorism, disasters,baggage handlers, viral outbreaks, strong competition, government interference, manipulation (in the case of Air NZ and Ansett),etc etc . If an Alitalia plane or a Lan Chile or any airlines plane crashes, the whole market suffers.There is always caution and nervousness surrounding the industry which tends to supress their share price.

Give me a good mining Company anytime....I used to own FLT

As for streamlining. FLT is a company that is in a state of continual change. If you look at their website you will see that it is a very different beast to what it was 6 months. Twelve months ago they didnt have the emphasis on business travel that they have now, werent value adding at the level they are now.

Having said all of that, I believe they are a well run company involved in a very difficult industry. Shareholders are nervous of all travel shares. Personally I am nervous enough that I no longer own any.