Monthly Archives: April 2022

Glenn Taylor/Stuff

Julien Debord, his wife Sophie and their children Lisa, 10, and Thibaut, 12, would like to stay in New Zealand. (File photo)

A French family is waiting to hear if they can remain in New Zealand after being told their business didnt perform as expected during the pandemic.

Last month Julien Debord, his wife Sophie and their two young children were told by Immigration New Zealand (INZ) that they wouldnt get visas because their business, Cafe Tennyson, hadnt met revenue and staff targets set before the pandemic.

In late 2020 Julien Debord applied for entrepreneur resident visas for the family.

Hes spent the past 16 months providing information, accounts and forms to satisfy numerous requests from Immigration. These included a supportive letter from Napier MP Stuart Nash, who proffered his strong support for the family and business.

READ MORE:* French family running popular Napier cafe told they won't get visa * Immigration medical certificate no longer required before submitting resident visa application* SailGP proposed saving NZ round with privately-run MIQ or self-isolation

INZ said it couldnt be satisfied the family met the requirements and told the Debords they had until March 21 to provide further comments or information.

Debord responded. On Friday INZ general manager border and visa operations Nicola Hogg said no decision had been made, but they were looking to make [one] as quickly as possible.

SUPPLIED

Green MP Dr. Elizabeth Kerekere, Napier resident Kathryn McGarvey, and Napier Mayor Kirsten Wise with the petition started by McGarvey in support of the Debord family.

Following news of the familys plight in early March, local woman Kathryn McGarvey began a petition. It was signed by 7308 people by Saturday and was passed to Green MP Elizabeth Kerekere, who will present it to the House of Representatives next week.

Debord said the family had been surprised by the support they had received since their story became public.

We have been crazy busy in the past two weeks with people wanting to support us. When I heard of the petition I thought if we were lucky maybe 500 people would sign... 7300 was a surprise.

The petition calls on Immigration Minister Kris Faafoi and Associate Immigration Minister Phil Twyford to grant or extend the family's visa and to update the criteria for the granting of the entrepreneur resident visa, taking into account the unprecedented difficulties of operating a business under Covid conditions.

RICKY WILSON/STUFF

Associate Immigration Minister Phil Twyford, pictured, has been asked by Napier MP Stuart Nash to use his Special Ministerial Direction in the Debord case. (File photo)

Joining Nash in providing letters supporting the family are Napier mayor Kirsten Wise, National MP for Taup Louise Upston, and Napier City Business Incorporated general manager Pip Thompson.

Thompson said the Debords had made the caf an institution bustling daily with local business people, families, and visitors.

STUFF

Immigration Minister Kris Faafoi announces thousands of migrants on temporary work visas would be fast-tracked for residency after a major immigration policy shift. (First published on September 30.)

Once the rules relax and domestic travel becomes more comfortable, international borders open, and we welcome cruise ships passengers to our iconic Art Deco city, we absolutely need cafs like the Debords to be open and trading, Thompson said

McGarvey said Julien and Sophie are kind, friendly, and hard-working people, and we only ask that they are given a fair go.

Go here to read the rest:

Thousands throw support behind French family fighting to stay in the country - Stuff

Dame Therese Walsh - pictured just after getting the Air NZ role - achieved top positions in cricket and rugby administration. Photo / Dean Purcell

OPINION:

There's nothing in any governance handbook that could have prepared Dame Therese Walsh for the impact of the Covid pandemic on the national flag carrier.

This week, the Air New Zealand chair and her CEO Greg Foran announced a recapitalisation plan to raise $2.2 billion in equity and debt to restore the airline's financial health so it can take advantage of the border reopening and rebuild its international passenger networks.

Coming just a week after the pair announced that the airline would fly direct to New York City from September 17 and just sneaking in by one day ahead of Walsh's earlier "promise" that the recapitalisation would be unveiled within the first quarter of 2022 it was an auspicious moment.

Finally, Air New Zealand could get on with rebuilding its future.

Walsh says there had been earlier speculation that the Crown might seek to extend its 51 per cent holding in Air New Zealand or "nationalise" it by going to 100 per cent. But the airline board believed the company needed to be a commercially balanced organisation going forward.

She had early on asked the question on the Crown's intentions. But she says Finance Minister Grant Robertson has been resolute that the Crown would support the airline by maintaining its 51 per cent stake through the rights issue.

"They haven't deviated. They have been robust on that," she says.

Walsh is grateful for the Crown's continued debt support which critics (including this columnist) earlier described as being at a usurious rate.

She says the truth is that the airline could not get sufficient commercial debt in place early on to sustain its operations.

1 Apr, 2022 07:58 PMQuick Read

The government-supported cargo scheme has also been an absolute lifeline, she says, providing financial support to the airline to take New Zealand exports to offshore markets.

But it has been a marathon.

In February 2020, Walsh had spoken to the Institute of Directors on how governance was undergoing a transformation: "Whatever the ownership structure of organisations, accountability was on the rise" was how her speech was promoted.

A straight arrow, Dame Therese's career had seen her reach top levels in sports administration as head of New Zealand for the ICC Cricket World Cup 2015, and previously as chief operating officer for the 2011 Rugby World Cup before making the switch to more traditional governance roles as chair of TVNZ and a director of the NZX.

Two years on, she is more likely to describe the governance challenges her airline boardroom has faced in quite different terms. Accountability is a given. But there have been "black swan events". "Swiss cheese risk models". These also became part of the boardroom lexicon.

Walsh has spoken before of how Air New Zealanders developed a new philosophy during the tough months when Covid was raging. "Smile with your eyes above the facemask" was how she termed it.

She was barely "five minutes" into the chair's role herself when New Zealand went into the first level 4 lockdown. Foran was also just newly in his role.

Walsh doesn't dwell overly on the past.

But it's worth recalling that when Covid struck in March 2020 and New Zealand borders shut hard, the airline had to pivot very substantially and fast.

Routes were closed. Planes parked up. Staff massively downsized and customers felt disenfranchised. Flight demand was down 95 per cent almost overnight.

But with government funding support, Air New Zealand a critical element of the country's logistics kept servicing exporters by taking their products to the world.

She acknowledges it was tough for everyone involved. Especially those who lost their jobs.

Like Foran, who makes a point of getting out in the business and working occasional shifts with staffers, Walsh also checks in with the pilots every time she flies between her home in Wellington and Auckland (where she also chairs ASB) to catch the mood.

Showing visible leadership is important to her.

The workload at director level went through the roof as the board had to schedule many more meetings.

The retail offer to shareholders has not opened yet. But early signs from the round of institutional investor meetings held by Foran and his chief financial officer Richard Thomson are promising.

There were multiple negotiations with the Crown on various recapitalisation plans. There was disappointment that the airline could not fill its boots with new capital in the early stages of the pandemic as some competitors did. But also a recognition "in hindsight" that the frustrating delays may have been to the airline's advantage.

Air New Zealand had wanted to go last August. But the Crown said it was not ready. It was a timing thing.

Robertson wrote Walsh a "letter of comfort" that pledged the Crown's continued support. Then the Delta outbreak happened and transtasman flights shut down again. Then Omicron.

The difference between then and now is that borders are opening and Covid restrictions are easing.

There are other issues which the board would obviously have been watching. Ukraine. The geopolitical stresses caused by the Russian invasion. Complexities around the US and China. Rising fuel prices and inflation which are all part of the full range of risk factors the airline and its advisers have had to balance, and are outlined in the offer documents.

Against this the airline's board has made a safe strategic bet that internationally demand is going to build up.

Walsh wonders: Will this pent-up demand result in aviation going gangbusters? Or will passengers take a more measured approach as they return to the skies?

The airline clearly hopes that this substantial recapitalisation will set it up for its future and that it does not have to return to the capital markets again, as have some other airlines that recapitalised much earlier in the Covid pandemic.

Reflecting on the past two years, Walsh says "crisis brings out the best in people".

"It's all landed in a balanced and pragmatic way.

"We have righted the ship. Let's go sailing."

Continue reading here:

Fran O'Sullivan: Air NZ chair - 'We have righted the ship' - New Zealand Herald

Air New Zealand in a trading halt, Transmission Gully finally opens and a melanoma study reveals a grim reality in the latest New Zealand Herald headlines. Video / NZ Herald

Analysts at Jarden say that in spite of the Air New Zealand's recapitalisation being an important step in improving the investment appeal of the company, they still retain their sell rating.

Air New Zealand last night announced a $2.2bn recapitalisation, comprising $1.2bn of new equity, $600m of redeemable shares and a new NZ$400m four year Crown loan facility.

The funds will be used to pay back $850m of an existing Crown loan and provide $950m for the airline to rebuild its pandemic-ravaged international network and for continued growth of its domestic operations and other parts of its business, including its loyalty scheme.

The airline has to invest in new aircraft and remodel new and existing business class cabins with seats now undergoing regulatory checks in the US and according to reportss today look more like its competitors.

The undrawn $400m new Crown loan will be used as backup should it be needed before 2026.

The analysts Andrew Steele and Nick Yeo have reduced their 12-month target share price for the company from 80c to 65c, reflecting the greater level of dilution for existing shareholders from a heavily discounted rights offer.

A two-for-one rights offer at a price of 53c per share represents a 61 per cent discount on the share price yesterday when trading was halted, ahead of the announcement that just made the deadline of being in the first quarter of the year. Airline chair Dame Therese Walsh said the price was set to be as appealing to as many shareholders as possible and had taken into account other discount offers in the market.

Those shareholders who don't take up the rights offer face dilution to their stake of more than 60 per cent.

The recapitalisation was pitched largely in line with expectations but the market may struggle with its sheer size, Salt Funds managing director Matt Goodson said.

The rights offer gives Air NZ a theoretical ex-rights price of 81c.

30 Mar, 2022 06:58 PMQuick Read

30 Mar, 2022 05:09 PMQuick Read

30 Mar, 2022 04:23 AMQuick Read

27 Mar, 2022 08:25 PMQuick Read

"It will be interesting to see how the share price does trade," Goodson said.

The 53c offer price was a touch below expectations of one or two people "but we thought it was pitched about right".

"In terms of the forecasts, they line up with what we were thinking but, as always, airlines have massive operational and financial leverage, so very small changes can make a big difference to the bottom line," he said.

Jarden says there were still significant risks for the airline, with the sharespresenting a negatively skewed risk/reward profile.

''Risks include changes to the timing of border reopening, changes to competition, fuel costs, FX (foreign exchange) and underlying consumer demand.

They say the size of the re-capitalisation allows the airline to retain its investment grade credit rating -currently Moody's Baa2 stable outlook - by increasing available liquidity from $1.4b to around $1.8b.

The airline said last night its pre-tax loss for the full financial year would be less than $800m, not in excess of it.

The Jarden analysts forecast losses to fall to $791m from $809m. Forecasts for the 2023 and 2024 financial years are a loss of $54m and$171m.

They airline says did not expect to pay a dividend before 2026.

The airline's rebuild

In an investor presentation, the airline said while the operating environment will remain uncertain, by controlling what it can, its capacity based on available seat kilometres (ASKs) will reach 90 per cent of pre-Covid levels in the 2025 financial year.

Key assumptions for this are:

Domestic flying continues uninterrupted and without restriction

From the middle of 2022, international travel (excluding China andHong Kong where international borders are expected to remain closed) is uninterrupted,with no self-isolation restrictions and testing requirements easing for inbound andoutbound customers on Air New Zealand's key routes.

By 2025 aggregate passenger demand for domestic, Tasman and Pacific Islands travel will marginally exceed FY19 (financial year) levels, supported by network growth into those markets; and aggregate passenger demand for long haul will be slightly lower than FY19 levels (due to fewer ASKs flown overall), and have a more gradual pace of recovery relative to short-haul markets.

No long-term structural changes in travel behaviour or trends post-pandemic, including resulting from environmental sustainability concerns, health concerns related to Covid19, technological changes, or changes in customer preference.

Until March 2023, the Government freight scheme will support cargo flight revenue to assist targeted revenue recovery (noting the level of support will reduce as passenger demand returns).

The competitors that were present in FY19 will progressively re-enter the marketthrough to FY25, with capacity at levels broadly similar to FY19 at that point .

Otherwise, no major changes in the competitive environment or airfare pricingon Air New Zealand's key domestic and international routes compared to FY19.

The presentation says the pandemic and conflict in the Ukraine have caused volatility in financial markets and added uncertainty to the outlook for the New Zealand and global economies.

Jet fuel prices are currently elevated due to the conflict in Ukraine and the airline says this is partially offset by the benefit of the hedging Air New Zealand has in place.

Fuel prices are assumed to progressively reduce to S$75 per barrel for the 2024 financial year.

Greg Smith, head of retail at Devon Funds said the oil prices had moderated form recent highs but had risen overnight and was a substantial cost to the airline.

He told RNZ that hedges would run out.

The border reopening was positive but it was uncertain how quickly old flying habits would return, how well off consumers were feeling and how intense competition would be as travel recovers.

The uncertainty accounted for the heavy rights offer discount on offer, Smith said.

Originally posted here:

Air New Zealand's $2.2 billion recapitalisation: Verdict from Jarden analysts - New Zealand Herald

PM Jacinda Ardern was 'disappointed' with the move of the America's Cup offshore while Auckland Mayor Phil Goff revealed more details about what will happen to the former team base locations. Video / NZ Herald / Getty Images

OPINION:

The America's Cup, which became New Zealand's Cup, is now Catalonia's Cup.

The love affair is over. We knew the passion had cooled, we were aware that one foot was already out the door, it was always coming to an end, but it doesn't make it any less painful.

Hubris, greed or the cold hard light of day - it matters not how or why this long-standing, all-consuming and tempestuous affair has taken its last breath, we just know it has.

Like all jilted lovers, Kiwi sports fans are left grasping for reason, desperate to understand how such a beautiful relationship could end like this. There is no doubt that during those halcyon days, overpowering heights were reached. Such heights could not possibly be achieved again, but that never stopped the desire to do so.

The lure of the green grass in the end was too much to overlook, the team could no longer justify staying and had to pursue the money. A long-distance relationship would be untenable.

New Zealand won't take this well, nor should we. The nationalism the team fed off for so many years is no longer relevant. The connection that encouraged government after government to bankroll the exercise in 'mouse versus lion' is no longer apparent.

The America's Cup has now reached such financially bloated and obscene proportions, there is no place for a plucky and underfunded group. Billionaires and Formula 1 collaborations all now with a timezone friendly platform in a European glamour region, give New Zealand little or no chance of retaining the Cup.

In the unlikely event they do so, what chance of it returning to our shores for a defence? Based on the accelerating cost, short of the largesse of a multi-billionaire local (looking at you Graham Hart), the only way of securing the required finance will be to auction the event off again to the highest northern-hemisphere bidder.

After Team New Zealand's Will Smithing of the government's Chris Rock, it'll be a cold day in hell if the public cheque book is opened again.

29 Mar, 2022 09:20 PMQuick Read

29 Mar, 2022 04:20 PMQuick Read

28 Mar, 2022 10:30 PMQuick Read

30 Mar, 2022 03:00 AMQuick Read

I don't wish ill on the team. The sailors themselves will always elicit a warm glow as they strive to board and scuttle their rivals. I expect, as is the norm, when the hostilities commence in Catalonia, there will some swelling of national pride and the media will dutifully report the massacre.

This event is never coming 'home'.

I would rather have borne witness as New Zealand fought and died on its feet in front of its loyal fans, as opposed to being beheaded on its knees in a foreign clime.

The relationship is over.

See original here:

D'Arcy Waldegrave: Team NZ's Am Cup decision a slap in the face to Kiwis - New Zealand Herald