Hazelton says aviation partner essential

By Phil Boeyen, ShareChat Business News Editor

Wednesday 24th January 2001

Air New Zealand-owned (NZSE: AIRVA) Ansett is getting full support from NSW regional airline Hazelton as it continues its takeover bid for the airline despite regulatory rejection.

Both Ansett and Qantas have been battling for control of Hazelton but last week their bids were rejected by the Australian Competition and Consumer Commission.

Qantas this week pulled its $1.50 bid but Ansett is hanging in there and has extended its $1.60 a share offer until February 27th.

An Ansett spokesman says the airline is continuing to work through competition issues with the ACCC and hopes it can come to an amenable result.

Hazelton Airlines says it's disappointed at the circumstances that have caused Qantas to withdraw its offer but has welcomed the decision by Ansett to continue to pursue its bid.

Hazelton chairman Stan Quinlivan says the company will do everything all possible to overcome any barriers in order to bring the bid process to a successful conclusion.

"If this company is to continue to provide a high quality and competitive level of air service to regional NSW, and jobs for our employees, it is essential that we have access to the financial and other resources of a larger aviation partner."

Mr Quinlivan is disputing that the issue facing a takeover is about Hazelton's lucrative take-off and landing slots at crowded Sydney Airport, which the ACCC cited as a problem area in any takeover.

"A short term view of immediate slot issues carries the danger of long term damage to the company, job losses, disruption of aviation services to rural Australia, and a loss of value by a large number of rural Australian investors who have stood by this company over the past difficult years."

Ansett is continuing to add to its Hazelton stake and currently holds 35.916% of the company.

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