Market warns of Air NZ risk

Institutional investors yesterday warned that Air New Zealand urgently needed a deeply discounted rights issue, similar to that which re-capitalised Fletcher Forests, or it would be the next local airline in receivership.

"It's exactly the same situation Qantas New Zealand found itself in - if the shareholders don't stump up, then the thing goes bust," Arcus Investment Management's Simon Botherway said.

Sir Selwyn Cushing's apparent desire for government funding looks like a loser.

Sources said if and when Sir Selwyn approached the government for a cash bail-out he was likely to be rebuffed.

Air New Zealand's options

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

CDC Independent Valuation - 30 June 2025
TruScreen Group Limited SPP Update
THL provides updated guidance
CEN - Greymouth gas deal
July 4th Morning Report
July 3rd Morning Report
ikeGPS Chief Financial Officer Transition
TWL - TradeWindow announces strategic partnership with FTA
BLT - Patent issue settled and new 5 year agreement with BSP
July 2nd Morning Report