Ansett grounding pressures Air NZ

By Phil Boeyen, ShareChat Business News Editor

Tuesday 10th April 2001

Air New Zealand (NZSE: AIRVA) shares have come under further selling pressure following news that a number of Ansett jets have been grounded just prior to the busy Easter period.

The airline's A shares have been hovering just above the $1.00 mark for the past week as investors grow continually concerned at how much more bad news can come out of Australia.

In trading this morning the shares broke under the $1.00 barrier, with midday trades around 97 cents, down four cents from yesterday's close. Air NZ B shares have been knocked by 13 cents to $1.35.

The selling pressure stems from news that seven of Ansett's nine 767-200 fleet were taken out of service yesterday after a routine maintenance check found structural cracks in engine pylons of two aircraft.

Air New Zealand spokesman, David Beatson, says this included one plane which was pulled out of service just as it had been taxiing to the runway for takeoff. Passengers were rebooked on a Qantas flight.

Mr Beatson says of the seven planes under investigation three have now been cleared for use, another should be cleared by tomorrow and a further two by Good Friday.

He says another plane had been taken out of service for major maintenance and had not been included in Easter schedules.

Mr Beatson says despite yesterday's grounding customers' Easter travel plans should not be disrupted.

"Air New Zealand also has some additional capacity and would be able to provide extra aircraft if necessary."

Air New Zealand's fleet of Boeing 767-200s is not affected by the pylon safety check because they are later models.

This latest incident is another setback for Ansett, already battling a price war and trying to recoup passenger confidence after several of its planes were ground at Christmas.

Comments from our readers

No comments yet