whoshotjimmi
Well-Known Member
Tarn Spotter said:This article may give food for thought. http://www.reuters.com/article/2015/02/ ... GC20150203
Based on this article, it is just as dangerous to visit France or Northern Ireland at the moment. Britain constantly carries out terror raids. As does Germany. And Belgium. And the Netherlands etc etc etc. Occasionally, they slip through the net. The difference in Egypt was that groups have been able to take advantage of ambiguity caused by numerous coups. The situation is more settled now and I fully expect Egypt to regain complete control in time. That does not mean that there will not be occasional issues.
I'm starting to miss your point now Tarn Spotter. You claimed that as a shareholder you were concerned about restarting flights to the region from a commercial point of view, not a physical risk point of view, yet you are only quoting the physical risk and nothing financially. If I were to talk about the financial risk, I would be far more interested in talking about the anti government protest in Egypt in 2011. This ruined travel companies in Eastern Europe and Russia because Egypt was their major destination. The British companies quickly scaled right back with no real revenue issues, mainly because the majority of the business is for other parts of the Mediterranean such as Spain/Turkey. A large proportion of tourists heading for Egypt were able to change their itineraries for other destinations. The possibility of a large scale evacuation of Egypt is incredibly unlikely. That seemed to be your main cause of concern when stating your objections. So I am very confused.
I think it is far more damaging to the share price to scaremonger. After all, share price is linked intrinsically to shareholder confidence. A company that deals with a crisis situation in a proper and positive manner can end up seeing an increase in share price. For example, M&S posted a large decline in online sales in Q3 2014/15 but saw a rise in share price because the cost and restructuring satisfied the city and the shareholders. In stark contrast, Tesco downgraded their profit forecast and saw a massive drop in share price because it turned out someone had done some creative accounting. If there is an sudden escalation of violence in Egypt, providing Dart Group do and say the right things, it will enhance their reputation rather than dent it.