Business commentator Nicholas Pointon
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Airline industry reps call out spiralling costs
A group representing airlines says prices will continue to go up and more services will be lost if there is not a reset of the air industry's investment structure. Cath O'Brien from the Board of Airline Representatives is among industry representatives to call out spiralling costs in the wake of Sounds Air having to cut their routes from Blenheim to Christchurch and Christchurch to Wanaka. The rise in security levies means airlines will pay $10.91 per domestic passenger instead of $6.57 and $22.30 per international passenger instead of $13.12. Cath O'Brien from the Board of Airline Representatives spoke to Melissa Chan-Green. To embed this content on your own webpage, cut and paste the following: See terms of use.
RNZ News
an hour ago
- RNZ News
Foodstuffs commits to rebuilding New World Victoria Park after fire
Fire engulfed the supermarket in June. Photo: RNZ/Marika Khabazi Foodstuffs says it's "100 percent committed to rebuilding" New World Victoria Park at the same site as its fire-damaged predecessor . A massive blaze broke out at the central Auckland supermarket in June, taking more than 10 hours to extinguish and significantly damaging the building. The announcement of a new store was made on the supermarket's social media. "Work is well under way to make our fire-damaged site safe for entry. "Right now, it's still too dangerous for anyone to go inside, but specialist crews and structural engineers are on-site, carefully stabilising the building so we can begin the recovery." "We're 100 percent committed to rebuilding a new supermarket on the same site. Our focus is on getting back up and running as quickly as we can, but safety comes first." The statement went on to say it has brought forward the opening of the store in Point Chevalier to 19 August, which is 5km away. The New World store in Victoria Park had employed more than 180 people . Foodstuffs said it continues to work with affected staff. "To our amazing team, we're continuing to work one-on-one with each of you and are so grateful for your patience and resilience. "Being part of the Foodstuffs North Island co-operative means Foodstuffs have been able to off over 100 roles across 23 Auckland stores, and we're doing everything we can to help our people find the right next step," the statement on social media said.
NZ Herald
2 hours ago
- NZ Herald
Sky TV-TV3 deal: Why Sky TV bought Three – and what's next
TVNZ, which had no comment on today's developments, is preparing an upgrade that will give its streaming platform wider capabilities, including paid content. In more traditional or 'linear' TV terms, pundits see Three's greater audience reach than Sky's free-to-air channel, Sky Open, as a key element in securing the next round of rugby rights, expected to be finalised in the coming weeks. An insider said that despite proliferating digital options, many viewers remain fixated on the first three buttons on their remote. 'The rugby discussions continue to be really constructive,' Moloney said. 'I don't think that this changes the nature of those discussions, but we're really excited about the diversity of reach that we'll get through Three and ThreeNow.' 'No layoffs at this stage', Stuff not stuffed The transaction will close on August 1, but Moloney told the Herald the merger of the two broadcasters' operations would take 12 to 18 months. 'Detailed planning starts from now,' she said. Over the next few months, Moloney said viewers will see 'no change to Sky Open or Three channels and content'. Sky is committed to Three being part of Freeview, she said. The Stuff-produced 6pm news bulletin, ThreeNews, will remain. There were no plans to extend news to Sky Open (formerly Prime), which has had no local bulletin since its 5.30pm news, produced by Three, was dropped last year at the same time Warner Bros Discovery outsourced its news to Stuff. 'There is no discussion about any layoffs or anything at this stage,' Warner Bros Discovery Australia-New Zealand managing director Michael Brooks said. New digs, old digs In a few days' time, some 130 Discovery NZ staff will still move from Three's long-time home at Flower St, Eden Terrace to a building in Freeman's Bay, where Warner Bros International Television Production New Zealand also has an office. But Brooks now frames the shift as transitional. The plan is for them to move in with Sky, which maintains a corporate office in the CBD and its main operations in light-industrial Mt Wellington, 'in a few months' time, once details are worked out'. There aren't any immediate plans to merge any Sky or Three online services. There will be no change to the location of any Warner Bros Discovery content, Brooks said. Dividend hook remains in place A key lure for investors in recent times – Sky's 2023 promise to double its dividend to 30c per share by 2026 – remains firmly in place, Moloney said. Sky says the transaction will add to free cashflow immediately and add 'at least $10m' to operating earnings by 2028. How did the deal get watchdog's green light? The deal got a regulatory green light, or at least an assurance of no investigation, after it was confidentially shared with the market regulator before the announcement. 'The Commerce Commission was made aware of this merger from the parties involved and doesn't currently intend to consider it further,' Commerce Commission general manager, competition Vanessa Horne told the Herald. Sky TV chief executive Sophie Moloney (right) and Warner Bros Discovery Australia and New Zealand managing director Michael Brooks. Photo / Cameron Pitney How did the deal get the okay from the same regulator that raked the proposed Sky-Vodafone NZ and NZME-Stuff mergers over the coals, ultimately incinerating both? The Herald understands that Warner Bros Discovery (WBD) told the regulator that it would fold its tent in New Zealand if the Sky deal was not approved – lessening competition. But Brooks said that was 'not at all' the case. Sky and WBD had begun talks late last year then 'leaned into' the process after they realised it was mutually advantageous. The Commerce Commission had no comment specific to the Sky-WBD deal. The spokeswoman said every merger was assessed on the basis of whether there would be substantial lessening of competition. Brooks said the deal was not tied to Warner Bros and Discovery's decision to unwind their 3-year-old mega-merger. Sky-WBD New Zealand talks had pre-dated the announcement of that conscious uncoupling by months. What's different from 2022? Sky circled Three in 2022, when it was part of MediaWorks, only to end talks after large shareholders raised concerns over its financial sense. What's different today? 'It's a totally different context,' Moloney said. 'These [Three and ThreeNow] are complementary assets. There's no stretch in terms of out-of-home [outdoor advertising] or radio'. The state of Warner Bros Discovery's New Zealand finances was laid bare last July – a massive $138 million loss in 2023, including a $79.5m impairment. Its 2024 financials are due to be released in the coming weeks. The New Zealand media landscape has been extremely dynamic in recent months, highlighted by the board changes at NZME and Trade Me buying 50% of Stuff Digital. Across the Tasman, global streaming giant DAZN is buying Foxtel in an A$3.4 billion ($3.7b)) deal. Paul Goldsmith, Minister for Arts, Culture and Heritage, said he saw the deal as encouraging and an investment in New Zealand media. 'Not the fact that it's one dollar, but the fact we're having an investment in TV Three, and we have a good, sound Sky. I think it's quite exciting. It will make Three stronger and more sustainable.' The deal in a nutshell In a statement to the NZX, Sky said the deal to buy 100% of shares in Discovery NZ for $1 was expected to be: Debt-free with 'a clean balance sheet largely clear of long-term obligations, including property leases' Deliver Sky revenue $95m extra annual revenue, with about 25% from digital sources Add to Sky's existing audience a growing digital audience via ThreeNow, a BVOD (broadcaster video on demand) platform that recently recorded its 12th straight quarter of viewership growth Grow Sky's combined total linear television advertising revenue share to about 35% and total digital television advertising revenue share to about 24% Deliver material cost synergies primarily across Sky's content and broadcasting infrastructure Deliver a pathway to achieve incremental, underlying free cash flow from FY26 and sustainable ebitda (interest before tax, depreciation and amortisation) growth of at least $10m from FY28. Chris Keall is an Auckland-based member of the Herald's business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.
