Forum Archive Index - May 2001

["Ken Donelan" <kdonelan@ihug.co.nz>]

It's all a political ploy by Air New Zealand. They ask the NZ Government for additional capital knowing full well that they will be turned down. They then go back to them and say "We desperately need the money and as you won't cough up, and Brierleys can't afford to, then how about letting Singapore Airlines put up the additional capital we need". The Govt is then stuck between a rock and a hard place and either the National carrier bellyflops or they allow SIA to increase its shareholding above the current 25% limit. Which option do you think they will choose?

----- Original Message -----

From: Peter Maiden

To: sharechat@sharechat.co.nz

Sent: Sunday, May 13, 2001 7:05 AM

Subject: [sharechat] Air New Zealand as a taxpayer owned company?

So Air New Zealand is preparing a case seeking $500M funding from the Government.

http://www.nzherald.co.nz/storydisplay.cfm?thesection=news&thesubsection=&storyID=188500

 

Subsequently denied by Selwyn Cushing on Radio New Zealand.

 

As a taxpayer I would be horrified if the Government did assist Air New Zealand to this degree. Even more so if Air New Zealand continued paying dividends to shareholders. Taxpayer subsidised dividends - what next.

 

Political issues and the impacts that they can cause are one of the risks of owning an airline in New Zealand.

 

Good business planning takes these into account and that risk is managed.

 

My advice to the Government, if it felt the need to 'invest' in Air New Zealand, would br to find another $500M and buy the whole lot back. After all the market only values it at less than a $1B.

 

That way all taxpayer 'shareholders' would benefit from the turnaround (yes ?) in Air New Zealand's fortunes  

 

How do others feel

 

Cheers

 

Peter