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

From:	"Peter Maiden" <pmaiden@xtra.co.nz>
Date:	Sun, 13 May 2001 14:12:37 +1200

So it looks like AIR's plea for $500-$700M is a ploy to put the pressure on the government to allow some greater foreign ownership of our beloved national carrier.

Will the funding be increased levels of debt for AIR? - or a capital injection?

AIR by their own admission admit their balance sheet needs tidying up. so capital injection looks probable?

Whatever way this goes looks pretty ominious for current shareholders.

Reduced profitabilty will put the share price under further pressure. Increased debt will no doubt mean dividends are suspended for a few years. A capital injection will dilute their shareholding.

Looks like SIA just need to wait in the wings to end up with a cheap airline?

Be interesting to see what eventuates over the next few months

Cheers

Peter

PS: James - don't under rate the Govt too much. In view of what has developed they got a good price a few years ago. And you must admit they got a good price for thr North Island forests.

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