Airlines reap sale rewards

By Phil Boeyen, ShareChat Business News Editor

Tuesday 3rd April 2001

Air New Zealand (NZSE: AIRVA) and Qantas will realise around $80 million each from the sale of two computer reservations systems used by travel agents in Australia and New Zealand.

The reservations systems - Southern Cross Galileo and Sabre Pacific - will be sold to their international parent companies, Galileo International and Sabre Inc.

Air New Zealand owns the systems via an associate company called Travel Industries Automated Systems (TIAS), in which it has a 50% holding with Qantas.

Air NZ chairman Selwyn Cushing says the sales are consistent with the group's strategy of realising non-core investments.

The cash from the sale will come as a welcome shot in the arm to both Air NZ and Qantas as they struggle with trying to make money in the increasingly competitive Australian market.

Both airlines issued warnings last week that they were having a tough time as a result of the competition, and are also under pressure from higher fuel prices and declining exchange rates.

Air NZ says in future TIAS will concentrate on its e-business operations, which include e-commerce services and software development for the travel and transport industries.

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