Mike Pero and Air New Zealand: Capitalism vs Socialism

The fuss made by Air New Zealand [AIR.NZ] over Mike Pero's generous offer last week to provide a plane for families of victims of the 1979 Mt Erebus crash to visit the crash site has come to a head today when Air New Zealand seems to have relented because of embarrassment over a pitiful 6 individuals allowed to go to the site for the 30th anniversary of the crash last week.

The pilot of the fateful Air New Zealand DC10 that killed 257 people was blamed by Air New Zealand management at the time for the crash but evidence was clear that the fault lay first and foremost at Air NZ's feet and that management lied and covered up to rescue the company reputation.

It seems Rob Fyfe and his fellow board members have learned little over the years.

The company that he runs, which is majority owned and financially supported by Kiwi taxpayers has had a history under Fyfe's ownership of socialistic tendencies. That is, its CEO Fyfe has muttered that his company needs more taxpayer moola to run it, using fake science to attack competitors and making public comments that really shouldn't be made by a CEO in a publicly listed company.

Air New Zealand is to all intents a government department and it is run that way.

You can see that in its response to Mike Pero's offer to get a charter plane up to Erebus. Pero made the offer, Air NZ was "offended" by it, then changed its mind and now wants to do it itself, with taxpayer money - pure politics in operation and nothing else.

The failure by Fyfe at the top to be proactive and supply a plane for as many family members of victims who wanted to go is the real story.

Of course the fact that Jim Collins, the pilot of the 1979 flight, hasn't been publicly vindicated is the biggest shame of all and politics is again to blame for that.

As taxpayers, we are all Air NZ shareholders and we should all be angry about that. Those that have made a choice to buy Air NZ shares on the NZX should be seriously looking elsewhere to make money - this company aint going anywhere good in the long-term.

I salute you Mike for standing up to the mediocrity of socialism and using your fine capitalistic skills to try and make a difference for "victims" of the Erebus disaster.

Lets hope you go ahead with the flight. I know which flight I would rather be on.


AIR @ Share Investor

Queenstown Airport: Loud Voices & Loyalty
Long Term View: Air New Zealand Ltd
John Palmer Tipples on the Shareholder
Mike Pero and Air New Zealand: Capitalism vs Socialism
Rob Fyfe's "Environmental Extremism"
Reality Needs to Bite
Air New Zealand wants another taxpayer bailout

Discuss this stock at Share Investor Forum - Register free
Download AIR Company Reports

Security Analysis: Sixth Edition, Foreword by Warren Buffett (Security Analysis Prior Editions) by Benjamin Graham Buy new: $41.77 / Used from: $33.50 Usually ships in 24 hours

c Share Investor 2009