2 Cheap Cars, which has built a nationwide chain of auto yards selling used imports since starting four years ago, is looking to sell its stake in Kiwi Regional Airlines, which is run by the founder of failed mid-1990s operator Kiwi Travel International Airlines. The car reseller today said it wants to sell its 10.4 percent holding in the airline, and that it "never intended to be a long-term investor." When it first invested last December, the company said it was "joining a consortium", with chief executive Eugene Williams appointed to the airline's board. Companies Office documents show the company initially owned 23 percent of the airline, but its shareholding was diluted in July, August and again earlier this month when Kiwi Regional Airlines issued more shares. "When we first got involved the airline didn’t have any other investors," Williams said. "We were pleased to help at the entrepreneurial level and play a part in getting it underway. Now with CAA certification, an aircraft and a growing passenger list it is a great time for others to come on board." There are currently four other investors: Nicole and Guy Domett, former directors and shareholders of the New Zealand School of Tourism, who each individually own 33 percent; Ewan Wilson, the company's founder and director, who owns 20.3 percent; and William Wilson, with 4.2 percent. Kiwi Regional Airlines was set up by Ewan Wilson in December 2014, after Air New Zealand announced it was abandoning services from Auckland to Kaitaia and Whakatane, Wellington to Whangarei, Taupo and Westport, and the Palmerston North to Nelson service in April 2015. 2 Cheap Cars was the first investor, and at the time, Williams told BusinessDesk his role would be "giving advice on marketing."
The full article can be found here : http://www.scoop.co.nz/stories/BU1512/S00849/2-cheap-cars-to-sell-10-stake-in-kiwi-regional-airlines.htm
Pretty much looks to me that it's a vanity project of a tourism school operator couple. And Mr Wilson is their horse.
ReplyDeleteHorse, or pony.....or another name for a donkey???!!!
ReplyDeleteKRA was incorporated a year ago (23 December). The Companies Office register shows Ewan Wilson has throughout been the ONLY director. He started with 180000 shares, with Mrs Domett and 2 Cheap Cars each holding 75000 - that is, EW was the majority shareholder. On 17 July 2015 Ewan took up another 25,000; Williams Wilson took up 50,000; 2 Cheap took up another 50,000, Mrs Domett took up another 62,500, and Mr Domett came in with 137,500. On 28 August 2015 each of the Dometts put in another 130,000 and Ewan Wilson put in 40,000.
ReplyDeleteNow on 16 December each of the Dometts has put in a further 125,000. Between them they now have just under 69% of the total shares.
2 Cheap has not participated in the last two rounds of share issues and so has been watered down. For it to make a public statement that its shares are for sale, we can assume that (a) none of the other shareholders will buy them and (b) they have failed to privately find a buyer.
The effect on KRA in the industry from such a (presumably considered) unusual public statement will be significant.
Not sure who is the horse, who is the donkey, or who is the show pony...
Set up after services were abandoned - they never picked up a single route that was 'abandoned'.
ReplyDeleteAll we currently know is whilst they're getting the loads, their yields mean every flight flown is a loss, full or empty. They've got a lot of work to do getting the balance right between realistic fares and stimulating demand. - yield management
Still reckon a J41 would've been a better choice of aircraft. The current livery on the Saab looks like it can be removed quickly for a hurried resale. Need to get realistic with airfares...and how they are placed.
ReplyDelete