Airline to file final proposal

Friday 6th July 2001

By Graeme Kennedy

Air New Zealand expects to file its final proposal for lifting the government's foreign ownership cap to allow Singapore Airlines to increase its 25% stake in the carrier early next week.

It delivered a draft proposal a week ago and since then has been in discussion with officials to work through details. The carrier needs a cash injection of several hundred million dollars to re-fleet troubled 100%-owned subsidiary Ansett Australia and the board identified a larger SIA shareholding as the preferred option to raise the necessary funding.

However, such a move would require the government to lift its 25% single foreign ownership limit to as much as 49%.

The board rejected a proposal from Qantas in which the Australian carrier would take 25% of Air New Zealand and SIA acquire all of Ansett.

Air New Zealand chief executive Gary Toomey was scheduled to have a short meeting with Transport Minister Mark Gosche to discuss the issues today but is understood to be suffering from a bout of influenza.

The carrier hopes to have a decision from the government within two or three weeks.

Comments from our readers

No comments yet