Air NZ shares flying again

By Phil Boeyen, ShareChat Business News Editor

Wednesday 26th September 2001

Air New Zealand (NZSE: AIRVA) shares were being traded again Wednesday afternoon after the airline clarified reported "don't sell" comments by Prime Minister Helen Clark.

The Market Surveillance Panel ordered the trading halt early Wednesday but lifted it a few hours later.

"On closer examination of the Prime Minister's remarks it appears, as Air NZ has reported, that these did not constitute a statement as to Air NZ's future structure, and that the situation remains as reported by Air NZ's acting chairman last evening," the panel says.

"The panel considers that although the situation relating to Air NZ is still evolving, it is nonetheless important to respect the ability of shareholders to sell and investors to purchase its shares, and therefore concluded that trading could resume."

Air New Zealand says it examined statements made by Ms Clark in a television interview and considers that "the media has made more of them than is warranted or was intended."

"On examining the transcript from a TV One interview of the Prime Minister's comments, it appears that the Prime Minister was asked whether, when she said that people should hold on to their shares, she was saying that the company would not go into statutory management, or was implying that it could trade out if it did go that way," the airline says.

"She responded "I think that whatever path is chosen, Air New Zealand has a very viable future as a company."

Air NZ company secretary, John Blair, says while the Prime Minister's views are reassuring, they do not constitute a statement as to the company's future structure.

"The situation remains as reported by the company's acting chairman, Dr Jim Farmer, late last night."

That statement advised that recapitalisation talks between the airline, its major shareholders and the government were progressing and that the airline remains hopeful of a successful outcome.

"That remains the position," says Mr Blair.

Air NZ has also been assured by the Prime Minister's office that no calls have been made to brokers to try to determine market reaction to restructuring alternatives as has also been reported.

"The company believes that statements by its acting chairman have kept the market adequately and properly informed of the correct status of the recapitalisation talks," Mr Blair says.

Air New Zealand shares have continued to recover Wednesday following the trading halt as the market begins to feel more confident that the airline will not topple over.

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