Dr Cheong in 11th-hour lobby

Friday 27th July 2001

By Graeme Kennedy

Singapore Airlines chief executive Dr Cheong Choong Kong flies home today after an 11th-hour meeting with government ministers and officials in Wellington over the future of Air New Zealand.

Both carriers want the government to raise the 25% foreign ownership cap already held by SIA in Air New Zealand to allow the Singapore airline to increase its stake to as much as 49% - but Finance Minister Michael Cullen has said he was unconvinced of the necessity to take such action. The cabinet is understood to have the issue on its agenda for Monday.

An SIA contingent has visited Wellington to outline the company's case for increased shareholding - which Air New Zealand needs to fund fleet expansion for troubled subsidiary Ansett Australia - and left an open invitation for Dr Cheong to make a personal follow-up visit to further explain Singapore's aspirations.

He is understood to have reassured officials that even with a 49% stake SIA would maintain Air New Zealand's independence.

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