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Yep, just like some folk down in Queenstown and management of Air New Zealand Ltd [AIR.NZ] at their plush new head office in the most expensive real estate in the country, in Auckland, I am fired up about Air New Zealand's attack on Auckland International Airports [AIA.NZ] buyout of nearly 25% of Queenstown Airport.

Management met with some Queenstown council drones yesterday to assuage their fears that the airport was stolen from the Queenstown ratepayers but it looks like there are a few loud voices down there filling newspaper and webspace in the hope they are noticed before local elections latter on this year. The majority of ratepayers must be pleased that the nearly $30 million that AIA paid for their share of the port might just be put to paying off council debt, if councillors do their jobs properly. This would mean less of a rates rise in 2011 and wouldn't that be a good platform to stand on for election.

There is an agreement by AIA and those on the council side of the airport deal for Auckland Airport to raise their 27.7% stake up to 35% but unless there is a firm deal to do that it looks like this deal could be compromised by the chatter.

As I said in my second post of this deal Air New Zealand's poke at AIA for being "anti - competitive, greedy and monopolistic" is kind of laughable considering the way the company has been ripping off New Zealanders for decades with sky high fares and their own monopolistic business practices and this story out toda y about an Air New Zealand's Starfish Card a "loyalty programme" that will cost users $800 per annum in order to get a regional flight discount is surely evidence that the airline will do anything as long as there is no competition to keep them honest.

Why not just charge customers lower fares ?

Answer? Because they don't have to as they have no competition in this area of their business.

This is the very reason Air NZ has taken a shot across the bow of Auckland Airport and clearly makes little sense given they continue to rort their "loyal" customers.

Meanwhile the NBR reports that AIA management are "bemused" by AIR NZ's public outbursts and I would have to agree and I must add confused by the AIR move.

Sour grapes.

Disc I own AIA shares in the Share Investor Portfolio

Queenstown Airport Buyout @ Share Investor

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AIA @ Share Investor

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Download AIA Company Reports
Download Queenstown Airport Company Reports

AIR @ Share Investor

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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

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 2010

In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO. The calculation of returns includes dividends and tax credits.

Skellerup Ltd [SKL.NZ] has been on a roller-coaster in terms of stock prices and results since its June 2002 listing at $1.15 (see SKL prospectus for details) and has been a poor performer. With 44c in net dividends and 30% more in tax credits, plus a fully subscribed 2:5 rights issue in 2009 (see chart above)gives SKL a negative 50% return (see chart below for the share price percentage gain against the average of all NZX indexes - does not include dividends, tax credits and the share split in its calculation) and over the nearly 8 year listing of SKL an annual net return of minus 6.25 %.

This is approximately a 200% worse return when compared to the average of all NZX indexes.